HomeMy WebLinkAbout22B - SPEC - AC EQUIPMENTA _
CITY COUNCIL MEETING DATE:
APRIL 19, 2016
TITLE
CONTRACT AWARD TO ONTARIO REFRIGERATION
SERVICES, INC. FOR CHILLER AND HEATING -
VENTILATION -AIR CONDITIONING EQUIPMENT
REPLACEMENT (SPEC. NO. 16 -054)
(STRATEGIC PLAN NO. 6, 1G & 2A)
(SURPLUS ALLOCATION FUNDING)
CITY MANA
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on V Reading
❑ Ordinance on 2nc Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
Authorize a one -time purchase and payment of purchase order to Ontario Refrigeration
Services, Inc. for the purchase and installation of chiller system and related heating-ventilation -
air conditioning equipment at Grand Central Arts Center in an amount not to exceed $435,320
that includes a 10 percent contingency, subject to non - substantive changes approved by the City
Manager and City Attorney.
Project in accordance with the Council approved Surplus Allocation Plan as of October 20, 2015.
Department:
Project:
Category:
Total Funding:
Finance
Grand Central Arts Center—
Facilities /Assets
$450,000
Chiller Replacement
FY 2015 -16
DISCUSSION
The Grand Central Arts Center building is located in the downtown area and owned by the City of
Santa Ana, who is acting as the Successor Agency to the former Redevelopment Agency. The
mission of the Grand Central Art Center is to explore contemporary art and visual culture locally,
regionally, nationally, and internationally through socially engaged collaborations among artists,
students, and the community. A lease agreement was executed in 1995 to lease the building to
California State University, Fullerton (CSUF) for $1.00 per year for an initial term of ten years.
The lease was amended in 2004 to extend the lease term for 30 more years. Under the terms of
the existing lease the City, as landlord to the property, is responsible for the maintenance of the
facility. However, the nominal rent income generated from the leasing of the property is not
sufficient to offset maintenance - related expenditures.
22B -1
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