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HomeMy WebLinkAboutItem 2c - Award Boiler ReplacementDATE: September 2, 2014 TO: Honorable Mayor and City Council STAFF REPORT Public Works Services Department FROM: Tom Tait, Public Works Services Director By: Dave McVey, General Services Superintendent SUBJECT: CONTRACT WITH SHELDON MECHANICAL FOR THE LIBRARY BOILER REPLACEMENT PROJECT AND APPROVAL OF A SUPPLEMEMTAL APPROPRIATION FROM THE CAPITAL IMPROVEMENT FUND IN THE AMOUNT OF $43,000 Recommendation: Approve SUMMARY The South Coast Air Quality Management District ( "AQMD ") recently inspected the boiler at the City of Arcadia Library. The boiler failed the AQMD source test which measures particulates, nitrogen oxide, and carbon monoxide levels. In order to be in compliance with AQMD regulations, the City must replace the boiler at the Library. To ensure the City is receiving the most competitive prices and quality service for this work, a formal bid was conducted and Sheldon Mechanical submitted the lowest responsive bid. It is recommended that the City Council authorize and direct the City Manager to execute a contract with Sheldon Mechanical for the Library Boiler Replacement Project, and approve a supplemental appropriation from the Capital Improvement Fund in the amount of $43,000. DISCUSSION AQMD periodically inspects boilers in the State of California that have more than a one million British Thermal Unit (BTU) output for nitrogen oxide and carbon monoxide. AQMD inspected the boiler in the Arcadia Library in late May 2014. The boiler failed the AQMD source test. In order to comply with AQMD regulations, a new boiler needs to be installed. Retrofitting the boiler to reduce emissions is not possible in this instance. The new boiler will include new copper pipes and an inline circulating pump, making the boiler approximately 60 percent more efficient. Once the new boiler has been installed, Southern California Gas Company (SCG) will inspect the boiler and issue the City a one -time rebate check in the amount of $500. Contract to Sheldon Mechanical September 2, 2014 Page 2 of 3 The requirement to replace the boiler was not known at the time staff was preparing the list of projects for the 2014 -15 Capital Improvement Program (CIP) budget. In order to avoid incurring noncompliance penalty from AQMD, it was agreed that the City would replace the out of compliance boiler during the 2014 calendar year. A Notice Inviting Bids was published in the City's adjudicated newspaper and bid packages were distributed to contractors that perform this type of work. The City Clerk publicly opened three sealed bids on August 12, 2014, with the following results: Rank Bidder Location Bid 1. Sheldon Mechanical Santa Clarita, CA $43,000 2. Los Angeles Air Conditioning La Verne, CA $46,000 3. Pardess Air, Inc. Los Angeles, CA $52,000 The bid documents were reviewed for content and the Contractors' background and recent projects were investigated for competency. Sheldon Mechanical was determined to be the lowest responsive bidder and is capable of completing the project for the City. Sheldon Mechanical has been the City's contracted HVAC maintenance contractor for the last three years and has provided excellent service during this time. Also, it is important to note that Sheldon Mechanical has recently completed similar projects successfully for several municipal agencies. ENVIRONMENTAL ANALYSIS Completing this project will meet AQMD requirements and keep the City in compliance with AQMD regulations. Sheldon Mechanical will register the new boiler with the AQMD and is required to perform a source test within 60 days after receipt of a permit from the AQMD. FISCAL IMPACT The total cost to complete the Boiler Replacement Project is $43,000 and will require a supplemental appropriation from the Capital Improvement Fund. This was not included in the FY 2014 -15 Budget as replacement of the Library Boiler was not anticipated at the time of budget development for the 2014 -15 Capital Improvement Program. The City will receive a one -time rebate check from The Gas Company in the amount of $500. Sufficient funds exist in the Capital Improvement Fund to cover the cost for this project. If the City does not replace the boiler to meet AQMD regulations, the City is subject to fines of up to $1,000 per day. Contract to Sheldon Mechanical September 2, 2014 Page 3 of 3 RECOMMENDATION It is recommended that the City Council authorize and direct the City Manager to execute a contract with Sheldon Mechanical for the Library Boiler Replacement Project, and approve a supplemental appropriation from the Capital Improvement Fund in the amount of $43,000. Approved. Dominic Lazzar t City Manager