02 Staff Reports - Civic Center HVAC Upgrades
DATE: COUNCIL AGENDA REPORT MARCH 18, 2009 MEETING DATE: 4/6/09 ITEM NO. TO: FROM: MAYOR AND TOWN COUNCIL GREG LARSON, TOWN MANAGER SUBJECT: PPW JOB NO. 09-01-CIVIC CENTER HVAC UPGRADES
PROJECT 411821-2103 A. ADOPT RESOLUTION DECLARING THERMA CORPORATION TO BE THE LOWEST RESPONSIBLE BIDDER ON THE PROJECT AND AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $358,029. B.
AUTHORIZE STAFF TO EXECUTE FUTURE CHANGE ORDERS TO THE CONTRACT AS NECESSARY UP TO AN AMOUNT OF $18,000. RECOMMENDATION: 1. Adopt Resolution (Attachment 1) declaring Therma Corporation
to be the lowest responsible bidder on the project and award a construction contract (Exhibit A) in the amount of$358,029. 2. Authorize staff to execute future change orders to the contract
as necessary up to an amount of$18,000. BACKGROUND: The adopted Capital Improvement Program FY 2008/09-2012/13 designates funding for the Civic Center HVAC Upgrades Project. Many of
the major components of this system are more than 40 years old and are long beyond their expected service life. Many of these original components are in need of replacement or upgrade
due to their age, condition, and limited reliability. Maintenance costs, periodic failure, and energy inefficiency are the primary reasons for this replacement and upgrade project. DISCUSSION:
The primary reason for this HVAC upgrade project is to replace major components that are beyond their expected service life. If these components are not replaced, the Town will have
to -- PREPARED BY: Todd Capurso Director of Parks and Public Works Reviewed by: Town Manager__Town Attorney __Clerk Administrator __Community
Development \\leona\data\PPW\MANAGEMENT\COUNClL\COUNClL REPORTS\2009 reports\April 6\PPW project 09-01 HVAC renovation .award,doc
PAGE 2 MARCH 18, 2009 MAYOR AND TOWN COUNCIL SUBJECT: PPW JOB NO. 09-01 CIVIC CENTER HVAC UPGRADES PROJECT 411-8212103 DISCUSSION (cont'd): perfonn maintenance on the existing older
equipment more frequently, which will raise maintenance costs significantly in the long tenn. Energy efficiency is also another key reason for replacement, to lower electricity and operation
costs for the Town. This project provides for the replacement of: • Two of the Civic Center's main air handlers that .serve the Administration and Community Development Departments •
One 10-ton package type air conditioning unit that provides cooling for the Police Department dispatch 0 ffi ce • Boiler flue • Main exhaust fan • The addition ofbuilding energy management
system control points Staff engaged the services of a consulting Mechanical Engineering finn to develop the plans, specifications and scope of work for this project. On March 25th, 2009,
four (4) bids were received for this project. Staff has reviewed the bids received and detennined three of the bids were responsive to the fonnal bid process. The fourth bid was rej
ected as not responsive. The three responsive bids received are as follows; • Foothill Mechanical $380,500.00 • O. C. McDonald $382,700.00 • Thenna Corporation $358,029.00 Thenna Corporation
was detennined to be the lowest responsible entity and their bid is responsive to the Town's fonnal bid process. It is recommended that the Council adopt a Resolution declaring Thenna
Corporation to be the lowest responsible bidder for the project, and award a construction contract in the amount of$358,029. CONCLUSION: I. Adopt Resolution (Attachment 1) declaring
Thenna Corporation to be the lowest responsible bidder on the project and award a construction contract (Exhibit A) in the amount of$358,029. 2. Authorize staff to execute future change
orders to the contract as necessary up to an amount of$18,000. ENVIRONMENTAL ASSESSMENT: This project is Categorically Exempt pursuant to Sections 15301 (c), and 15303 (e), and 15304
(b) ofthe State CEQA guidelines.
PAGE 3 MARCH 18, 2009 MAYOR AND TOWN COUNCIL SUBJECT: PPW JOB NO. 09-01 CNIC CENTER HVAC UPGRADES PROJECT 411-8212103 FISCAL IMPACT: Sufficient funds are available to pay for this project
as follows. Available Expendedl Proposed Bndget Encumbered Contract FY 2008/09 Fiscal Impact Funding To Date Amount Project 411-821-2103 $ 450,000 $ 32,555 $ 358,029 TOTALS $ 450,000
$ 32,555 $ 358,029 Design & Consulting Services $ 32,555 Construction $ 358,029 Contingency 18,000 TOTALS $ 32,555 $ 376,029 Attachments: Resolution authorizing the Town Manager to execute
a construction contract (Exhibit A).
RESOLUTION RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE A CONSTRUCTION CONTRACT WITH THERMA CORPORATION FOR PPW JOB NO. 09-01 CIVIC
CENTER HVAC UPGRADES PROJECT WHEREAS, the Facilities Maintenance Fund includes funding for PPW Job No. 09-01 -Civic Center HVAC Upgrades Project; and WHEREAS, proposals were sought in
conformance with State and Town Law for the Civic Center HVAC Upgrades Project; and WHEREAS, it is necessary for the Town Council to secure a construction contract for the Civic Center
HVAC Upgrades Project; and WHEREAS, the Town Council has selected the firm of Therma Corporation to provide the necessary construction services for the Civic Center HVAC Upgrades Project;
and NOW, THEREFORE, IT IS RESOLVED that the Town Council of the Town of Los Gatos hereby approves the attached Contract (Exhibit A) with Therma Corporation to provide construction services
in connection with the Civic Center HVAC Upgrades Project at a cost not to exceed $358,029. BE IT FURTHER RESOLVED that the Town Manager is hereby authorized and directed to execute
said agreement on behalf of the Council.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 6th day of April, 2009 by the following vote: COUNCIL MEMBERS AYES: NAYS:
ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA
Exhibit A CONTRACT THIS AGREEMENT is between the Town of Los Gatos (hereinafter referred to as "Owner") and Therma Corporation (hereinafter referred to as "Contractor"). Owner and Contractor,
for the consideration hereinafter named, agree as follows: A. SCOPE OF WORK Contractor shall furnish all materials and perform all of the work for the construction of PPW Job No. 09-01
Civic Center HVAC Upgrades Project in accordance with the Contract Documents. B. CONTRACT PRICE As full compensation for furnishing all materials and for doing all the work contemplated
and embraced in this Contract, also for all loss or damage arising out of the nature of the work aforesaid, or from the actions of the elements, or from any unforeseen difficulties or
obstructions which may arise or be encountered in the prosecution of the work until its acceptance by Owner, and for all risks of every description connected with the Work, also for
all expenses incurred by or in consequence of the suspension or discontinuance of work, and for well and faithfully completing the work, and the whole thereof, in the manner and according
to the Contract Documents, Owner shall pay (three hundred fifty eight thousand twenty nine dollars), $358,029, which shall supersede any other amount specified in the Contract Documents.
C. CONTRACT DOCUMENTS All rights and obligations of Owner and Contractor are fully set forth and described in the Contract Documents. All parts of the Contract Documents are intended
to be correlated so that any work called for in one patt and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in all said documents. D. BEGINNING
OF WORK Following the execution of this Contract and the approval of bonds and insurance policies and certificates, Owner shall issue a Notice to Proceed with the Work. Commencing work
or the entrance of equipment or materials on the site of the Work by Contractor before receipt of the Notice to Proceed is at the sole risk and expense of Contractor and the Contractor
shall shall be fully liable for any damage or injury sustained by Owner or third persons resulting therefrom. E. TIME OF COMPLETION The Work called for herein shall be fully completed
within fOlty 0 working days of Contractor's receipt of the Notice to Proceed.
F. CORRECTION OF WORKAFTER ACCEPTANCE AND FINAL PAYMENT BY TOWN Contractor shall remedy any defects due to faulty materials and/or workmanship and pay for any damages to other work and/or
existing facilities resulting therefrom which shall appear within a period of2 years from the date of recording of the Notice ofCompletion. IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of day of ,2009. TOWN OF LOS GATOS, by: Greg Larson, Town Manager RECOMMENDED BY: Todd Capurso, Director Parks and Public Works APPROVED AS TO FORM: Orry P.
Korb, Town Attorney ATTEST: Jackie Rose, Clerk Administrator by: Therma Corporation. (Sigoature) (Print Name) (Address) (City, State, Zip) (Contractor's License Number)