22A - SPEC - HVAC REPLACEMENT - Laserfiche WebLink

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Contract Amendment for Chiller and HVAC Equipment Replacement October 18, 2016 Page 2 1996 so the building could serve as the Grand Central Arts Center (Center) for the CSUF Graduate Visual Arts Program. The Center opened in February 1999. On April 5, 2004, an amended lease agreement was executed to extend the lease for an additional 20 years, or until 2029, to provide a nominal annual lease payment of $1 and to assign the lease to the City of Santa Ana. The assignment of the lease from the former RDA to the City was necessary as California Redevelopment Law at the time prohibited RDAs from entering into long-term leases. With the lease assignment, the City became obligated, as the new landlord, to maintain the property and ensure that the Center's facilities and equipment were kept in good repair. Since this lease assignment in 2004, the City has not appropriated funds for the Center until the Surplus Allocation Plan was approved by City Council in October 2015. On April 19, 2016, City Council awarded a contract to Ontario Refrigeration Services, Inc. to replace the Center's chiller and HVAC equipment for an amount not to exceed $435,320. As part of the complete building renovation referenced earlier, the former RDA installed an HVAC system to provide heating and cooling for building tenants. An HVAC system's useful life is approximately twenty years and thus replacement of the system is warranted at this time. During the process of removing the existing HVAC components, it was determined, by the City's Planning and Building Agency that seismic enhancements were needed to comply with current building code requirements. A seismic retrofit design to safely support the payload of the new HVAC equipment was engineered under the contract and subsequently approved by the City's Planning and Building Agency. Specifically, the seismic retrofit design calls for the second floor platform, which will house the new HVAC equipment, to be retrofitted and/or reinforced with additional structural members, piping, and insulation, including isolation measures to mitigate HVAC heat and vibration. Furthermore, a temporary boiler will be installed for approximately two months (from October 2016 through December 2016) to provide uninterrupted hot water and heat to building tenants while the Change Order work proceeds. Staff recommends City Council approve the amendment to the Purchase Order and approve the Change Order to authorize the contractor to perform the additional work. As a result, a Change Order would be required to complete the installation of the new HVAC system. The Change Order is funded by savings from City Council -approved Surplus Allocation Projects that the Building Maintenance Division completed under budget. The available funding exceeds the Change Order amount. STRATEGIC PLAN ALIGNMENT Approval of this item supports the 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 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). 22A-2