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Home My WebLink AboutItem 10b - Budget Appropriation for Refurbishment of PD Cooling TowerResolution No. 7603 Award PD Cooling Tower November 19, 2024 Page 1 of 3 DATE: November 19, 2024 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Carlos Aguilar, General Services Superintendent SUBJECT: RESOLUTION NO. 7603 AMENDING THE FISCAL YEAR 2024-25 CAPITAL IMPROVEMENT PROGRAM BUDGET AND AUTHORIZING A BUDGET APPROPRIATION FOR THE POLICE DEPARTMENT COOLING TOWER PROJECT IN THE AMOUNT OF $213,788.40, OFFSET BY A REDUCTION IN THE CAPITAL OUTLAY FUND; AND CONTRACT WITH CARRIER CORPORATION FOR REFURBISHMENT OF THE POLICE DEPARTMENT COOLING TOWER IN THE AMOUNT OF $193,798.40 CEQA: Exempt Recommendation: Adopt and Approve SUMMARY On July 27, 2024, the Cooling Tower in the Police Department experienced a catastrophic failure that caused the Heating, Ventilation, and Air Conditioning (“HVAC”) system to stop working. This affected the HVAC for both the Police Department and City Hall. The Public Works Services Department (“PWSD”) issued an Emergency Purchase Order with Carrier Corporation, Inc. for refurbishment of the Cooling Tower and for placement of a temporary Cooling Tower System. The PWSD also had to issue a purchase order for Mesa Energy Systems, Inc. dba Emcor Services Mesa Energy (“Emcor”) to replace a leaking three-way valve, which is the piping that connects the chiller to the cooling tower. It is recommended that the City Council adopt Resolution No. 7603 amending the Fiscal Year 2024-25 Capital Improvement Program Budget and authorizing a supplemental budget appropriation for the Police Department Cooling Tower Project in the amount of $213,788.40, offset by a reduction in the Capital Outlay Fund; and approve a contract with Carrier Corporation for the refurbishment of the Police Department Cooling Tower in the amount of $193,798.40. BACKGROUND The Police Department Cooling Tower is responsible for the cooling of the Police Department, lower City Hall, and upper City Hall. The Cooling Tower equipment is the original equipment installed when the Police Department was built. The building is now Resolution No. 7603 Award PD Cooling Tower November 19, 2024 Page 2 of 3 19 years old and the HVAC equipment is showing its age. On July 27, 2024, the HVAC System stopped working, and staff found that the Cooling Tower was not resetting. The system was clogged with scale, causing a total failure of operations. To fix the problem, the entire cooling tower needed to be refurbished. DISCUSSION To quickly make repairs and get the HVAC back on at the height of the summer months, the PWSD issued an Emergency Purchase Order to Carrier Corporation for the refurbishment of the Cooling Tower. Carrier Corporation also installed a temporary cooling system while the equipment was being delivered. The repairs included removing the failing equipment, properly disposing of the equipment, and installing new components within the Cooling Tower. Furthermore, the PWSD had to issue a purchase order to Emcor to replace a leaking three-way valve, which is the piping that connects the chiller to the Cooling Tower. The Purchase Order with Emcor totaled $19,990. Under City Code Section 2846.1, when an emergency occurs, a purchase order can be issued without complying with normal bidding procedures. Following the emergency repairs, a report on the emergency event and work performed are to be provided at a Regular Meeting of the City Council. Based on the factors identified above, it was determined that an emergency situation occurred and that any delay in the HVAC system presented a safety hazard for City staff, especially when the outside temperature was nearly 100 degrees at the time of the failure. As a result, the PWSD issued an Emergency Purchase Order to Carrier Corporation in the amount of $193,798.40. The purpose of this agenda item is to comply with the requirements to inform the City Council and ratify the purchase order. ENVIRONMENTAL ANALYSIS This project is considered a Class 1 exemption as defined in Section 15301(d) “Existing Facilities” projects of the California Environmental Quality Act (“CEQA”), which exempts projects consisting of the repair and maintenance of existing public structures. FISCAL IMPACT The total cost for Carrier to refurbish and program the PD Cooling Tower was $193,798.40. The total cost for Emcor to replace a leaking three-way valve was $19,990. None of this work was budgeted as part of the Capital Improvement Program Budget for Fiscal Year 2024-25. Therefore, a budget appropriation from the Capital Outlay Fund, in the amount of $213,788.40, is requested for the Emergency PD Cooling Tower Refurbishment. Resolution No. 7603 Award PD Cooling Tower November 19, 2024 Page 3 of 3 RECOMMENDATION It is recommended that the City Council determine that this project is exempt under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7603 amending the Fiscal Year 2024-25 Capital Improvement Program Budget and authorizing a budget appropriation for the Police Department Cooling Tower Project in the amount of $213,788.40, offset by a reduction in the Capital Outlay Fund; and approve a contract with Carrier Corporation for refurbishment of the Police Department Cooling Tower in the amount of $193,798.40. Attachment: Resolution No. 7603 1 RESOLUTION NO. 7603 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING THE FISCAL YEAR 2024-25 CAPITAL IMPROVEMENT PROGRAM BUDGET AND AUTHORIZING A BUDGET APPROPRIATION FOR THE POLICE DEPARTMENT COOLING TOWER PROJECT IN THE AMOUNT OF $213,788.40, OFFSET BY A REDUCTION IN THE CAPITAL OUTLAY FUND WHEREAS, On July 27, 2024, the Cooling Tower in the Police Department experienced a catastrophic failure which caused the Heating, Ventilation, and Air Conditioning (“HVAC”) system to stop working; and WHEREAS, this affected the HVAC for both the Police Department and City Hall; and WHEREAS, The Public Works Services Department (“PWSD”) issued an emergency purchase order with Carrier Corporation, Inc. for emergency refurbishment of the Cooling Tower and for placement of a temporary cooling tower system; and WHEREAS, The PWSD also issued an emergency PO for Mesa Energy Systems, Inc. dba Emcor Services Mesa Energy (“Emcor”) to replace a leaking three-way valve which is the piping that connects the chiller to the cooling tower; and WHEREAS, the total to cost for Carrier to refurbish and program the PD Cooling Tower was $193,798.40; and WHEREAS, the total cost for Emcor to replace a leaking three-way valve which is the piping that connects the chiller to the cooling tower was $19,990; and WHEREAS, this was not budgeted as part of the Capital Improvement Program Budget for Fiscal Year 2024-25; and WHEREAS, a budget appropriation in the amount of $213,788.40 is needed for 2 the Emergency PD Colling Tower Refurbishment. WHEREAS, the budget appropriation will be offset by a reduction in the Capital Outlay Fund; and WHEREAS, the City Manager has certified that there are sufficient reserves in the Capital Outlay Fund; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. The sum of Two Hundred Thirteen Thousand, Seven Hundred Eighty-Eight Dollars and Forty Cents ($213,788.40) is hereby appropriated in the Capital Improvement Program Budget for the foregoing purposes, offset with an equal reduction in the Capital Outlay Fund. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. [SIGNATURES ON THE NEXT PAGE]