07 Desk Item - ARC Chiller Replacement
PREPARED BY: Dan Keller
Facilities & Environmental Services Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director and Parks &
Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/21/2020
ITEM NO: 7
DESK ITEM
DATE: April 21, 2020
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adult Recreation Center – New Air Conditioning Chiller
a. Authorize the Town Manager to Execute a Purchase and Service
Agreement with Foothill Mechanical Inc. for Installation of a New Air
Conditioning Chiller in the Adult Recreation Center in an Amount Not to
Exceed $55,600 Plus an Additional $11,120 for Unanticipated Costs for a
Total Agreement Amount Not to Exceed $66,720.
b. Approve an expenditure budget adjustment in the Facilities Maintenance
Fund of $66,720.
REMARKS:
The following question was received from a Council Member:
Question: Why is the HVAC replacement not part of the efficiency improvement project where
we are able to save money through the program of replacing with more efficient and the power
bill savings used to pay the project administrator?
Response: Good question. There were two reasons this chiller didn’t make the program. First,
it didn’t pencil out for cost recovery from an energy savings perspective (cost versus energy
savings). We tried to keep that program payback positive. Second, we don’t pay the utility bills
for the adult recreation center, that is paid for by Los Gatos Saratoga Recreation. Creating a
deal where their bill showed the cost of the chiller over ten years wouldn’t have made sense for
them.
Attachments Previously Received with Staff Report:
1. Draft Purchase and Service Agreement
2. Cost Proposals