CC - Item 5B - Replacement of Civic Center HVAC System - Change OrderROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ACCRED, CITY MANAGER
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DATE: JUNE 12. 2012
SUBJECT: REPLACEMENT OF CIVIC CENTER HVAC SYSTEM - CHANGE ORDER
SUMMARY
On February 28, 2012, the City Council awarded a contract for the replacement of
Heating, Ventilation, and Cooling System equipment (HVAC). The project includes the
replacement of the existing HVAC system with nine (9) new energy efficient roof top units
and other related mechanical improvements at the Rosemead Community Recreation
Center (RCRC). Funding for this work is provided through the Energy Efficiency and
Conservation Block Grant ( EECBG). Work is progressing well and the HVAC system is
expected to be fully installed within 4 -6 weeks.
As part the HVAC project, a contingency of approximately 20% was approved for
unforeseen construction expenses. These funds, combined with other remaining
contingency funds from previous projects (RCRC Cool Roof, City Hall Window
Replacement), leave the City with a total balance of $90,000 in EECBG grant funds
remaining to be spent. These funds must be obligated no later than June 19, 2012 or
they will be required to be returned to the Department of Energy and reallocated to other
agencies.
In order to ensure that all grant monies available to the City are utilized, staff has
identified other energy efficiency improvements in the Civic Center — specifically at City
Hall. These improvements will entail the replacement of an existing HVAC packaged
unit, water - cooled chiller system and air handler system components that help cool the
building. Each of these projects has been submitted as a qualified project under the
EECBG program. Staff has negotiated with the contractor currently completing the
HVAC project to complete the additional work at City Hall. This HVAC equipment is
manufactured by Carrier and will replace existing inefficient Carrier units currently in
place.
Staff Recommendation
It is recommended that the City Council approve Change Order No. 1 with K &J Air
Conditioning in an amount up to $90,000 for the purchase of a new HVAC packaged unit,
water - cooled chiller system, and air handler system components, and authorize the City
Manager to execute necessary documents to complete the project.
ITEM NO.
City Council Meeting
June 12, 2012
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DISCUSSION
The City's total allotment of EECBG grant funds was $508,900. Of this amount, several
projects have already been completed, including replacement of City Hall
windows /storefront and the design of energy efficiency mechanical upgrades at City Hall.
Other projects are nearing completion, including the replacement of HVAC components
and the installation of a new, energy efficient "cool" roof at the RCRC.
To date, approximately $420,000 of the total EECBG monies have been obligated
towards specific projects, leaving a balance remaining of $90,000. This balance had
been previously allocated as contingency funds for other energy efficiency projects. With
these projects nearing completion, it is anticipated that these contingency funds will not
be needed. Due to Department of Energy and EECBG requirements, all grant monies
must be obligated no later than June 19, 2012. Funds not obligated must be returned to
the Department of Energy and will be reallocated to other agencies.
In order to ensure that all grant monies available to the City are utilized, staff has
identified other qualified energy efficiency improvements in the Civic Center area. These
projects include the replacement of an existing HVAC packaged unit and water - cooled
chiller system that help to cool City Hall. Both pieces of equipment are located in the
Civic Center campus, and have been identified as needing replacement. The packaged
unit will be replaced with a new, energy efficient 10 -ton Carrier unit, with a SEER rating of
at least 15. The water - cooled chiller will be replaced with a new, energy- efficient 40 -ton
unit, which is estimated to be 70% more efficient than the old model. Both pieces of
equipment are qualified replacements under EECBG guidelines due to their higher
energy efficiency ratings.
In order to meet the June 19 deadline, staff has negotiated with K &J Air Conditioning to
install these new components at City Hall. K &J is the contractor currently performing
HVAC system improvements in the Civic Center complex. K &J has agreed to replace
both units with equipment manufactured by Carrier, the same equipment currently in
place at the building. Based on these negotiated rates, it is recommended that the City
Council authorize the City Manager to execute a changer order to cover the additional
scope of work for the new HVAC packaged unit, water - cooled chiller and air handler
system components. This action will increase the total contract amount up to $258,700,
(approximately 50% above the original contract amount) and ensure that all EECBG
grant funds are utilized.
FINANCIAL REVIEW
The funding for this project has been allocated in the City's approved Capital
Improvement Program Budget through the Energy Efficiency Conservation Block Grant.
ENVIRONMENTAL REVIEW
The project is categorically exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15301 (a) of the CEQA Implementing Guidelines.
City Council Meeting
June 12, 2012
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PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted By:
Chris Marcarello
Director of Public Works