AGENDA REPORT
Meeting Date: June 21, 2022
Item Number:
To:
D-15
Honorable Mayor & City Council
From: Mandana Motahari, City Architect
Martin Nunes, Associate Project Manager
Subject: AWARD OF A CONTRACT TO THERMAL CONCEPTS INC., FOR THE FIRE STATION HEADQUARTERS CHILLER REPLACEMENT PROJECT; AND
APPROVAL OF A CORRESPONDING PURCHASE ORDER IN
THE NOT-TO-EXCEED AMOUNT OF $174,827.52; AND
APPROVAL OF PLANS AND SPECIFICATIONS THEREFOR
WITH RESPECT TO DESIGN CRITERIA
Attachments: 1. Contract
RECOMMENDATION
Staff recommends that City Council move to:
1. Approve the award of a contract to the lowest responsible bidder, Thermal Concepts Inc., for replacement of the chiller at Fire Station Headquarters in the amount of $156,096; and
2. Approve a construction contingency in the amount of $18,731.52 (12%); and
3. Approve the plans and specifications as detailed in the bid documents, which are adopted and approved with respect to design criteria; and
4. Approve a purchase order in the not-to-exceed amount of $174,827.52
INTRODUCTION
Beverly Hills Fire Station Headquarters was originally constructed in 1990. As part of the ongoing maintenance of the facility, a need has been identified to replace a major component of the building’s Heating, Ventilation and Air Conditioning (HVAC) system. •
BEVERLY
HILLS
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Meeting Date: June 21, 2022
As such, the original chiller unit has reached the end of its serviceable life and has been prioritized for replacement.
DISCUSSION
The Fire Station Headquarters building uses a ducted system of internal conditioned air distribution managed by Air Handler Units (AHU’s) located on the rooftop of the facility.
These AHU’s are fed with refrigerant (chilled water) that is circulated through an Air- Cooled Chiller that serves to remove heat from the refrigerant. Recently, four of the last remaining original Air Handler Units (AHU’s) were replaced. However, to bring optimized performance to the system, a new chiller unit is required to deliver a clean, reliable and energy-efficient network of chilled water to and from the AHU’s. There exists a second, auxiliary chiller that will be available for cooling needs while the main chiller unit is being replaced.
Professional engineering services were provided to the City by SPEC Consulting Engineers to produce detailed design and construction documents for the chiller replacement with a base scope of work that includes the following: Remove and replace the existing chiller with a new Air-cooled Scroll Chiller. Upgrade related electrical connections. Provide digital remote controls integrated with the Civic Center Campus Building Management System. Replacement of valves, piping sections, gauges and other auxiliary infrastructure requirements.
Seven HVAC companies on the City’s list of pre-qualified mechanical contractors were invited to bid on this project. Three of those companies obtained bid documents and attended the mandatory pre-bid job walk held on May 4, 2022. On May 18, 2022, three bids were received as follows:
Basis of Selection Air Conditioning Solutions AC Pros Thermal Concepts Inc.
Base Bid $170,756 $169,900 $156,096
20 days delay $ 0 $ 0 $ 0
Basis of Selection: $170,756 $169,900 $156,096
There were no alternates specified for this project.
The bid documents specify that the low bid is determined by the sum of the base bid, alternates and the compensable delay cost for twenty days. After review of the bids, staff has determined that Thermal Concepts Inc. is the lowest responsible bidder and has submitted a responsive bid and, as reported by the State Contractors Licensing Board, maintains a license that is current and in good standing. Furthermore, Thermal Concepts Inc. has performed similar work for the City in the past; therefore, staff recommends City Council approve an agreement with Thermal Concepts Inc. for this work.
A contingency of $18,731.52 (12% of the contract amount), is recommended for changes due to unforeseen conditions in order to successfully complete the work.
Expenditures from the contingency will be made utilizing the Change Order process in the Beverly Hills Municipal Code upon adequate written justification and substantiation.
Meeting Date: June 21, 2022
The bid documents specify that all work under the contract shall be completed within one hundred (100) calendar days from the date of the notice to proceed, resulting in an estimated completion of approximately end of September 2022.
FISCAL IMPACT
The $174,827.52 for Fire Station Headquarters Chiller Replacement is available as part of Fund 405, Capital Improvement Project No. 00811, Major Building Systems Upgrades and Replacement. No additional funding is requested at this time.
Shana Epstein,
Director of Public Works
Approved By
Attachment 1
1 CONTRACT
CITY OF BEVERLY HILLS
CONTRACT FOR
FIRE STATION HEADQUARTERS CHILLER REPLACEMENT PROJECT
THIS CONTRACT (“Contract”) is made and entered this 21 day of June, 2022 (“Effective Date”), by and between the CITY OF BEVERLY HILLS, a California municipal corporation (“City”) and Thermal Concepts, Inc. (“Contractor”). Contractor’s license number is 912887.
In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1. Contract Documents. The Contract Documents consist of this Contract, the Notice Inviting Bids, Instructions to Bidders, Bid (including documentation accompanying the Bid and any post-Bid documentation submitted before the Notice of Award), the Bonds, permits from regulatory agencies with jurisdiction, General Provisions, Special Provisions, Plans, Standard Plans, Standard Specifications, Reference Specifications, Addenda, Change Orders, and Supplemental Agreements. The Contract Documents are attached hereto and incorporated herein by reference. In the event of any conflict between the terms of this Contract and any incorporated documents, the terms of this Contract shall control.
2. Scope of Services. Contractor shall perform the Work in a good and workmanlike manner for the project identified as FIRE STATION HEADQUARTERS CHILLER REPLACEMENT PROJECT (“Project”), as described in this Contract and in the Contract Documents.
3. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not to exceed amount of One Hundred Fifty Six Thousand, Ninety Six Dollars ($156,096) in accordance with the prices as submitted in Contractor’s Proposal, attached hereto and incorporated herein by this reference.
4. Incorporation by Reference. All of the following documents are attached hereto and incorporated herein by this reference: Workers’ Compensation Certificate of Insurance; Additional Insured Endorsement (Comprehensive General Liability); Additional Insured Endorsement (Automobile Liability); and Additional Insured Endorsement (Excess Liability).
5. Antitrust Claims. In entering into this Contract, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the California Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time the City tenders final payment to Contractor without further acknowledgment by the parties.
6. Prevailing Wages. City and Contractor acknowledge that this Project is a public work to which prevailing wages apply. The provisions of Section 7.A of the General Provisions shall apply and are mandatory for this Project. 7. Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to under take self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work of this Contract.” 8. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it. 2 9. Authority. Any person executing this Contract on behalf of Contractor warrants and represents that he or she has the authority to execute this Contract on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.
10. Entire Agreement. This Contract, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. This Contract supersedes all prior oral or written negotiations, representations or agreements. This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties which expressly refers to this Contract. 11. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.
IN WITNESS WHEREOF, the parties hereto have executed the Contract the day and year first above written.
CITY OF BEVERLY HILLS
By:
LILI BOSSE, Mayor
ATTEST:
By:
HUMA AHMED
City Clerk
Dated:
(“CONTRACTOR”)
By:
Printed Name:
Title:
By:
Printed Name:
Title:
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
By: By:
LAURENCE S. WIENER GEORGE CHAVEZ
City Attorney City Manager
By:
SHANA EPSTEIN
Director of Public Works
3 By: ____________________________________
MANDANA MOTAHARI
City Architect
By:
SHARON L'HEUREUX DRESSEL
Risk Manager