Reso No. 7525 Approve the Purchase Order with
Carrier Corporation
September 05, 2023
DATE: September 05, 2023
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: Carmen Masud, Deputy Public Works Director
SUBJECT: RESOLUTION NO. 7525 AUTHORIZING A SUPPLEMENTAL BUDGET
APPROPRIATION FOR THE REPLACEMENT OF THE HVAC
COMPRESSOR IN THE COUNCIL CHAMBERS IN THE AMOUNT OF
$23,778, OFFSET BY A REDUCTION IN THE GENERAL FUND
RESERVE; AND RATIFY THE PURCHASE ORDER WITH CARRIER
CORPORATION FOR THE REPLACMENT OF THE HVAC
COMPRESSOR IN THE COUNCIL CHAMBERS IN THE AMOUNT OF
$30,000
CEQA: Exempt
Recommendation: Adopt and Ratify
SUMMARY
The Heat Ventilation and Air Conditioning (“HVAC”) Compressor in the Council Chambers experienced a catastrophic failure during the apex of the summer season. The Public Works Services Department (“PWSD”) issued an emergency Purchase Order with Carrier Corporation for the replacement of the HVAC Compressor.
It is recommended that the City Council adopt Resolution No. 7525 authorizing a supplemental budget appropriation for the replacement of the HVAC Compressor in the Council Chambers in the amount of $23,778, offset by a reduction in the General Fund Reserve; and approve the Purchase Order with Carrier Corporation for the replacement of the HVAC Compressor in the Council Chambers, in the amount of $30,000.
BACKGROUND
On Friday, July 21, 2023, the compressor on the HVAC Unit in the Council Chambers experienced a catastrophic failure. Unsuccessful attempts were made to repair the compressor, but the compressor was not repairable and had reached the end of its useful life. The replacement of the entire HVAC unit in the Council Chambers is scheduled in the Fiscal Year 2023-24 Capital Improvement Program; however, replacement of the entire unit needs to be ordered and will take several months to arrive. The HVAC compressor for the Council Chambers was imperative to replace for the HVAC unit to work properly and provide cooling to the building. The City Council Chambers is the only
Reso No. 7525 Approve the Purchase Order with
Carrier Corporation
September 05, 2023
building capable of properly broadcasting City Council meetings; therefore, time was of the essence in replacing the broken part.
DISCUSSION
Since it was necessary to replace the HVAC compressor to utilize the Council Chambers, an emergency Purchase Order in the amount of $30,000 was issued to Carrier Corporation for compressor acquisition, delivery, and installation. Carrier Corporation is the City’s current HVAC supplier and is also a member of Sourcewell, a cooperative purchasing program. Under City Code Section 2846.1, a purchase order could be issued without complying with normal bidding procedures when an emergency situation occurs.
Based on the factors identified above, it was determined that replacement of the HVAC compressor in the Council Chambers qualified as an emergency situation.
Although a PO was issued for $30,000, the actual cost to replace the HVAC compressor in the Council Chamber was $23,778. For emergency purchase orders, a report on the emergency and work performed is to be provided at the next regular meeting of the City Council. 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(a) “Existing Facilities” projects of the California Environmental Quality Act (“CEQA”), which exempts projects consisting of the minor alteration of existing public structures.
FISCAL IMPACT
An emergency Purchase Order in the amount of $30,000 was issued to Carrier Corporation based on estimated equipment/material, delivery, and labor cost. The total cost to replace the HVAC compressor in the Council Chamber was $23,778 and was not budgeted. An appropriation of $23,778 from the General Fund Reserve is being requested. The General Fund Reserve exists to address unforeseen expenditures such as this and sufficient funds are available to cover this request.
RECOMMENDATION
It is recommended that the City Council determine this project is a Class 1 exemption under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7525 authorizing a supplemental budget appropriation for the replacement of the HVAC Compressor in the Council Chambers in the amount of $23,778, offset by a reduction in the General Fund Reserve; and ratifying the Purchase Order with Carrier Corporation for the replacement of the HVAC Compressor in the Council Chambers, in the amount of $30,000.
Reso No. 7525 Approve the Purchase Order with
Carrier Corporation
September 05, 2023
Attachment: Resolution No. 7525