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CC - CONSENT ITEM: (1) Approval of an Agreement with Southland Industries in the Amount of $1,150,367 for the City Yard HVAC Replacement Project; and (2) Authorization to the City Manager to Approve Amendments to the Agreement in an Amount Not-to-Exceed an Additional $115,037 to Cover Contingency Costs.
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Meeting Date: September 23, 2024
Contact Person/Dept.: Gary Wansley/Public Works Maintenance/Operations
Joe Susca/Public Works-Administration
Phone Number: (310) 253-6444
(310) 253-5636
Fiscal Impact: Yes [X] No [ ] General Fund: Yes [X] No [ ]
Attachments: Yes [ ] No [X]
Public Notification: E-Mail: (09/17/2024) Meetings and Agendas - City Council; (09/09/2024) Southland Industries; (09/09/2024) MEP Fusion
Department Approval: Yanni Demitri, Public Works Director/City Engineer (09/03/2024)
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RECOMMENDATION
Staff recommends the City Council: (1) approve an agreement with Southland Industries in the amount of $1,150,367 for the City Yard Heating, Ventilation and Air Conditioning Replacement Project, CIP No. PF-041 Public Works City Yard HVAC Replacement in combination with PZ-132 Building Repairs; and (2) authorize the City Manager to approve amendments to the agreement in an amount not-to-exceed an additional $115,037 (10%) to cover contingency costs.
BACKGROUND
The City Yard is home to the City’s Park Maintenance, Environmental Programs and Operations, and Maintenance and Operations staff. The facility contains many offices and shops and houses equipment, materials, tools and supplies that support the traffic signal, sewer, traffic sign, parking meter, graffiti abatement, pavement painting, facility maintenance, storm drain, park maintenance, streetlight, asphalt and concrete crews.
The useful life of a Heating, Ventilation and Air Conditioning (HVAC) package unit is 15 to 20 years. The City Yard’s existing HVAC package units, exhaust fans, and natural gas Make Up Air (MUA) furnaces are over 25 years old, have become unreliable, breakdown frequently, and require replacing. The scope of work includes removing nine existing HVAC natural gas heating/electric cooling package units, five MUA furnaces, and 23 exhaust fans located inside the various shops and replacing them with 14 new HVAC all-electric heat pump package units and 23 new exhaust fans (collectively; the “Project”).
In addition to maintaining the City Yard facility, implementation of the Project furthers the City’s building decarbonization objectives by replacing existing natural gas space heating units with all-electric equipment, which will reduce the facility’s emission of carbon dioxide (a greenhouse gas) by 24.7 metric tons annually.
During their meeting of June 24, 2024, the City Council approved the Project’s plans and specifications and release of a Request for Proposals (RFP) to competing contractors.
DISCUSSION
On June 27, 2024 staff released RFP No. 2520 and received the following two responses in a timely fashion:
1. Southland Industries: $1,150,367
2. MEP Fusion $1,329,212
Currently, the City maintains an active contract with Southland Industries for standby HVAC repairs, which experience has been favorable, and staff recommends selecting them to complete the Project.
If approved, staff anticipates the Project will be completed by the end of this year.
FISCAL ANALYSIS
The Adopted Budget for Fiscal Year 2024-2025 includes sufficient funding for the proposed agreement and contingency costs with Southland Industries which total $1,265,404 including $300,000 in Account No. 42080000.730100.PF-041 Public Works City Yard HVAC Replacement and $965,404 in Account No. 42080000.730100.PZ-132 -- Building Repairs, which can be found in the Capital Improvements section of the budget book under Fund 420F (Capital Improvements and Acquisition Fund - Facilities Planning Reserve).
MOTIONS
That the City Council:
1. Approve an agreement with Southland Industries, Inc. in the amount of $1,150,367 to replace the City Yard HVAC system; and,
2. Authorize the City Manager to approve amendments to the agreement in an amount
not-to-exceed an additional $115,037 (10%) to cover contingency costs; and,
3. Authorize the City Attorney to review/prepare the necessary documents; and,
4. Authorize the City Manager to execute such documents on behalf of the City.