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Contract Award for HVAC Equipment Replacement April 19, 2016 Page 2 In accordance with the Council approved Surplus Allocation Plan for fiscal -year 2015 -16, an evaluation of existing City buildings was conducted to help the Finance & Management Services Agency Building Maintenance Division determine the Grand Central Building necessitated an upgrade of systems. Specifically, as part of this evaluation Building Maintenance staff performed its annual inspection of the City's heating - ventilation -air conditioning (HVAC) equipment. This assessment revealed that the HVAC equipment at Grand Central Art Center is well past its lifecycle and can no longer be repaired or maintained in a cost - effective manner given its frequent system failures and downtimes. During the last six months, City staff and contract personnel have responded to 20 service calls related to the said HVAC equipment. Approval of the recommended purchase will allow the replacement of the chiller, boilers, condensers, cooling tower, expansion tanks, piping, plant controls, pumps, thermostats and variable frequency drives. In addition, the new equipment will provide improved interior air to tenants, reduce maintenance and repair costs. Santa Ana City Ordinance No. NS -2312 authorizes the City to use contracts from any public agency utilizing a competitive bid process. CSUF's Property Management Department solicited bids to implement cost effective energy efficiency measures at Grand Central Arts Center. Bid solicitations included the replacement of the chiller and HVAC system. City Attorney's Office staff reviewed the CSUF competitive bid process and determined that it was substantially equivalent to that prescribed by the City; therefore, could be used to exempt the project from the City's bidding requirements. As such, staff recommends approval of the recommended action. To allow for unanticipated charges, a 10% contingency has been included in the contract amount. STRATEGIC PLAN ALIGNMENT Approval of this item supports City's efforts to meet Strategic Plan Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans), and Objective #2 (address deferred maintenance on City buildings and equipment), Strategy A (prepare a Deferred Maintenance Plan that assesses safety, adequacy, and liability implications, and estimates repair costs to be programmed in the responsible agency's future budget). FISCAL IMPACT Funds in the amount of $435,320 are available in FY 2015 -16 Finance Building Maintenance Surplus Allocation account (05010021- 66200). APPROVED AS TO FUNDS AND ACCOUNTS Francisco Gutierrez Executive Director Finance and Management Services Agency 228 -2