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