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Home My WebLink About22A - SPEC - HVAC REPLACEMENTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 18, 2016 TITLE CONTRACT AMENDMENT WITH ONTARIO REFRIGERATION SERVICE, INC. FOR CHILLER AND HEATING -VENTILATION -AIR CONDITIONING EQUIPMENT REPLACEMENT (SPEC. NO. 16-054) (STRATEGIC PLAN NO. 6, 1G, 2A) {SURPLUS ALLOCATION FUNDING) ` CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on I" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For FILE NUMBER Amend the contract with Ontario Refrigeration Service, Inc. to seismically retrofit the Grand Central Arts Studio for the purpose of installing a chiller and related heating -ventilation -air conditioning (HVAC) equipment in the amount of $153,415 for a total amount not to exceed $588,735, subject to nonsubstantive changes approved by the City Manager and City Attorney. This project is in accordance with the City Council -approved Surplus Allocation Plan as of October 20, 2015. Department: Project: Category Total Funding: Finance and Grand Central Arts Center Facilities and $450,000 Management Chiller & HVAC Replacement Assets FY 15-16 Services Agency DISCUSSION The Grand Central Arts Center building was constructed in 1924 and is located at East Second Street and Broadway in the heart of Santa Ana's Artist Village. The former Community Redevelopment Agency (RDA) purchased the building from the Harry Greenburg Revocable Trust in June 19, 1995 for the purpose of establishing an Arts and Culture presence in the City's Downtown District. Concurrent to this purchase, a 10 -year lease agreement for the building was executed between the former RDA as Lessor and the California State University Fullerton (CSUF) Foundation as Lessee. The former RDA completely renovated the building starting in 22A-1 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 Contract Amendment for Chiller and HVAC Equipment Replacement October 18, 2016 Page 3 ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended action is exempt from further review. A Notice of Exemption will be filed for this project. FISCAL IMPACT Funds in the amount of $153,415 are available in FY 2016-17 Council Special Projects -Finance Building Maintenance account (05010021-66200). APPROVED AS TO FUNDS AND ACCOUNTS: ASNWQS23�S t IA .. �r'_ Francisco Gutierrez Executive Director qY Finance and Management Services Agency ,JA/WN/sp 22A-3 22A-4 EXHIBIT 1 Ontario Refrigeration (714) 546-6400 Fax (714) 546-6438 PROJECT AGREEMENT FOR BUILDING ENVIRONMENTAL SYSTEMS Proposal Date I Proposal Number Page September 27, 2016 CM401480A 1 of 2 AGREEMENT BETWEEN: CSU FFULLERTON AUXILIARY (Ontario Refrigeration Service, Inc. SERVICES CORPORATION AND 3303 Harbor Boulevard Suite D-8 2600 NUTWOOD AVE., SUITE 275, Costa Mesa, CA 92626 FULLERTON, CA 92831 hesanaftar CUSTOMCR horeinaftar Onlarlo Relri gration SERVICES WILL BE PROVIDED AT THE FOLLOWING LOCATIONM Grand Central Art -125 North Broadway, Santa Ana, CA ONTARIO REFRIGERATION WILL PROVIDE THE FOLLOWING TO CUSTOMER: Additional structural work required by City of Santa Ana for Project to replace the Grand Central Art Studio Chiller I Boiler, temporary cooling .Purchase Order #119198 Includes: - Temperary domestic boiler with sidewalk walk through and fence. Two months of rental. - Crane and rig all equipment and pumps from platforms. - City of Santa Ana "No cost street closure". - Demo and removal of existing piping as required for access to work. - Demo and removal of existing steel "shed". As a condition of performance, payments are to he made on a progress basis. Invoice payment must be made within ten (10) days or receipt. Any alteration or deviation from the above proposal involving extra cost or material or labor will become an extra charge over the sura stated above. This proposal will become a binding Agreement only after acceptance by Customer and approval by the President of Ontario Refrigeration as evidence by their signatures below. This Agreement sets forth all of the terms and conditions binding upon the parties hereto on the reverse hareof: and no parson has authority to make any claim, representation, promise or condition on behalf of Ontario Refrigeration which is not expressed herein. Proposal valid for 45 days from original proposal date. CUSTOMER Signature (Authorized Representative) Name (Prinfn'ypa) Title Date A Ontario Refrigeration o Signature (Sales Representative) Arch PhariS Approved by Contractor: Signature Phil Talleur President Title SUPPLEMENT TO PROJECT AGREEMENT PAGE 1 PROJECT AGREEMENT FOR BUILDING ENVIRONMENTAL SYSTEMS Proposal Date Proposal Number Page September 27, 2016 CM401480A 2 of 2 CONTRACTOR WILL PROVIDE THE FOLLOWING TO CUSTOMER (continued): - Demo and removal of existing equipment platforms, secondary decking - New structural members installed. - Rebuild of secondary decking with new platforms and waterproofing. - Installation of new metal shed. -Inspections. - Additional piping and insulation as required to reconnect equipment. Temperary boiler install and two month rental: $30,594.00 Additional Crane/Rigging work: $5,660.00 Additional piping and city upgrades including isolation: Estimated Material $23,980.00 Labor and fees $24,309.00 = $48,289.00 Structural Work including new metal shed: Estimated Material $7,440.00 Labor and fees $61,432.00 = $68,872.00 Total Cost: $153,415.00 Exclusions: - Any unforseen/Hidden conditions. THE SERVICES DESCRIBED ABOVE ARE GOVERNED BY THE TERMS AND CONDITIONS OF THE PROJECT PROGRAM AS SET FORTH ON THE REVERSE OF THE PROJECT AGREEMENT PAGE 1 22A-6