HomeMy WebLinkAbout08 - Police Facility HVAC PlacementCITY OF
NEWPORT BEACH
City Council Staff Report
May 13, 2014
Agenda Item No. 8.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director- (949) 644 -3330,
dawebb@newportbeachca.gov
PREPARED BY: Fong Tse, Principal Civil Engineer
PHONE: 949 - 644 -3321
TITLE: Police Facility HVAC Replacement Project - Award of Contract No. 5542 (CAP14-
0003)
ABSTRACT:
Staff has received favorable bids for the Police Facility HVAC Replacement Project and is
requesting City Council's approval to award the construction contract to K +J Air Conditioning,
Inc. of Buena Park, California.
RECOMMENDATION:
a) Approve the project plans and specifications;
b) Award Contract No. 5542 to K +J Air Conditioning, Inc. for the Total Base and Additive Bid
Price of $268,012.00 and authorize the Mayor and the City Clerk to execute the contract; and
c) Establish an amount of $26,800.00 (approximately 10% of Total Bid) to cover the cost of
unforeseen work.
FUNDING REQUIREMENTS:
Sufficient funding for the award
expensed:
Account Description
Facilities Maintenance
Proposed uses are as follows:
Vendor
K +J Air Conditioning, Inc
K +J Air Conditioning, Inc
of this contract is available. The following fund will be
Account Number
7480- C1002014
Total:
Purpose
Construction Contract
Construction Contingency
Total:
Amount
$ 294,812.00
$ 294,812.00
Amount
$268,012.00
$ 26,800.00
$294,812.00
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DISCUSSION:
The majority of the existing packaged air conditioning and heating units atop the Police Facility
were installed twenty years ago. These roof top units have exceeded their intended service life
and have become further compromised due to the coastal salt -air environment which is causing
them to break down more frequently than expected and running up higher than normal repair
and maintenance cost. Due to the age and condition of these HVAC units, they are also
considered to be rather energy inefficient when compared to the more modern unit used
today.
Given the various replacement alternatives and technologies available, staff contracted with
Glumac Inc. to study the current and projected future building operations and to make
replacement recommendations. Based on the building's expected remaining service life and
that most used HVAC equipment has little salvage value, Glumac recommended in -kind
replacements as the option with the least overall capital and energy costs. Staff prepared the
contract documents accordingly. Eighteen contractors attended the pre -bid job walk at the
Police Facility to inspect the work site and area conditions.
At 10:00 AM on April 23, 2014, the City Clerk opened and read the following bids for this
project:
BIDDER BASE BID AMOUNT
Low K +J Air Conditioning, Inc. $218,185.00
2 Zim's Integrated Mechanical Services $221,084.00
3 Anderson Air Conditioning $224,526.00
4 RAN Enterprises, Inc. $280,000.00
5 Unique Performance Construction $314,581.00
6 Air Temperature Specialists $324,400.00
7 Performance Automation Solutions $347,580.00
8 Johnson Controls $407,452.00
K +J Air Conditioning, Inc. is the lowest responsible bidder at $218,185.00. K +J's bid is
approximately 40% below the $440,000 Engineer's Estimate (EE). The average of all of the
total bids received is approximately 20% below the EE. Given the range of available
manufacturers that market different levels of HVAC equipment, the contract documents
specified four acceptable HVAC equipment units that the bidder's would be allowed to furnish
and install on this project. In reviewing the bids, staff believes the wide variance from the
Engineers' Estimate is related to the market pricing between the four various models of
acceptable equipment. The Engineers Estimate was based on the most common of the four
acceptable manufacturers listed in the Specifications.
Staff also included two additive bid items within the bid package. The first was to provide a 5-
year Extended Warranty on the installed HVAC units; and the second was to provide duct
cleaning of the entire police facility. K +J provided a cost of $18,549.00 and $31,278.00
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respectively for these two additive bid items. Staff believes that since the existing ducting was
last cleaned ten years ago, it is prudent to return it to its best possible condition before the new
HVAC units are installed. Also, the purchase of an extended warranty that provides no less
coverage than the original one year factory parts and labor warranty that comes with the units
should provide savings to the City in both future maintenance and staff costs over the added 5-
year period. As both of these additive cost items were within expectations, staff is
recommending accepting the bidder's offer and adding the work into the contract bringing the
total contract award amount to $268,012.00.
K +J has a California "C -20" Contractor's License as required by the project specifications. A
check of K +J's references indicates it has satisfactorily completed similar projects for other local
agencies, school districts, and transit authorities.
Pursuant to the Contract Specifications, K +J is allotted fifteen consecutive working days to
complete the construction exclusive of applying for and obtaining the necessary no -fee Building
Permits.
ENVIRONMENTAL REVIEW:
The project was determined to be exempt from the California Environmental Quality Act
(CEQA) pursuant to Section 15302 (Replacement or Reconstruction) of the CEQA
Implementation Guidelines. This Exemption covers the replacement or reconstruction of
existing structures and facilities where the new equipment will be located on the same site as
the equipment replaced and will have substantially the same purpose and capacity as the
equipment replaced.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the
meeting at which the City Council considers the item).
ATTACHMENTS:
Description
Attachment A - Location Map
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POLICE FACILITY
HVAC REPLACEMENT
LOCATION MAP
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CITY OF NEWPORT BEACH
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C -5542 1 05/13/14
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