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March 4, 2025
ITEM TITLE
Agreement: Approve a Cooperative Agreement with ACCO Engineered Systems Inc. for HVAC Equipment and Building Management Systems at the Chula Vista Police Department; and Amend the Measure P Infrastructure Spending Plan, and CIP Budget Accordingly
Report Number: 25-0045
Location: Chula Vista Police Department - 315 Fourth Avenue Department: Public Works
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities) . Under National Environmental Policy Act (NEPA), the activity is exempt pursuant to Title 24, Part 58.34(a)(2)(3) & (10) of the Code of Federal Regulations.
Recommended Action
Adopt a resolution:
1. Awarding a cooperative purchasing agreement for the replacement and rehabilitation of the heating, ventilation, air conditioning (HVAC) equipment and building management systems (BMS) for the Chula Vista Police Department (CVPD) to ACCO Engineered Systems Inc. with a not-to-exceed amount of $20.0 million.
2. Amending the Measure P Infrastructure, Facilities, and Equipment Expenditure Plan and the fiscal year 2024-25 CIP Budget by appropriating funds to the CIP Project (GGV0261). (4/5 Vote Required)
SUMMARY
The CVPD building has been in operation since 2004. The HVAC and BMS systems need major repair and rehabilitation. Staff recommends awarding a cooperative purchasing agreement to ACCO Engineered Systems Inc. to repair and rehabilitate the HVAC and BMS systems; the contract term is March 15th, 2025 to January 31, 2026 with a not to exceed amount of $20.0 million (includes contingency amount). The estimated P a g e | 2
cost for this project is $16.3 million ; the recommended contingency is $3.7 million for a total project appropriation of $20.0 million. Staff recommends amending the Measure P Infrastructure, Facilities, and Equipment Plan to include this project and to appropriate $20.0 million to CIP Project GGV0261 HVAC Replacement.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities), because the proposed project would not result in a significant effect on the environment, create a cumulative impact, damage a scenic highway, or cause a substantial adverse change in the significance of a historical r esource.
Thus, no further environmental review is required. Under NEPA, the activity is exempt pursuant to Title 24, Part 58.34(a)(2)(3) & (10) of the Code of Federal Regulations.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
An updated Measure P Infrastructure, Facilities, and Equipment Expenditures Plan, including the funding for this project, was presented at the Measure P Citizens ’ Oversite Committee (COC) meeting on January 23, 2025.
DISCUSSION
Project Overview:
The CVPD building has been in operation since 2004. The HVAC and BMS systems are now in need of major repair and rehabilitation. The CVPD consists of a basement and three floors totaling 148,374 square feet and serves as the primary base of operations for the City’s Police Departm ent. This facility operates 24 hours a day, 365 days in the year, putting significantly more strain on these HVAC systems as compared to other City facilities.
This project will replace and/or rehabilitate all HVAC and ventilation equipment that has failed or is reaching the end of its service life. The scope of work consists of the replacement and/or rehabilitation of the following equipment: chillers, boilers, cooling towers, air handlers, duct work, variable air volume boxes, hot and chilled water piping, building management systems, and exhaust fans.
In addition, this project will significantly improve key aspects of the HVAC and BMS systems to align with the current needs of the Police Department, which have changed since the building began operation in 2004. In particular: this work addresses the need for increased capacity and conditioning in PD Dispatch, leak prevention (especially in the Main Distribution Frame ( MDF) room, which houses the building’s critical network infrastructure ), and better humidity and odor control in the evidence storage portion of the building.
ACCO Engineered Systems Inc. will furnish and install all equipment and labor to replace or to rehabilitate in place existing HVAC equipment, distribution systems, and BMS. The project is slated to start in June 2025 with completion anticipated by June 2026.
Procurement:
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Staff considered various options for the procurement of this project and found that using a cooperative purchasing agreement would expedite the delivery of the project and provide competitive pricing. Using the Sourcewell procurement methodology allows for the use an existing contract that has already been competitively bid. This saves time and money associated with project development, solicitation of request for proposals/ bid package development, review, and the time associated with publicly bidding the project in house. Using a traditional design/bid/build or design/build agreement would add months to the project’s completion date. Given the curren t state of the equipment, staff looked for an option that would allow for faster project delivery. Sourcewell, a State of Minnesota local government entity and public agency, has a cooperative agreement that fits the needs of this project.
On November 22, 2021, Sourcewell issued an Invitation for Bid (IFB) on behalf of its participating entities to create indefinite delivery -indefinite quantity construction (IDIQ) contracts that may be used by those participating entities for projects related to constructio n or the repair, alteration, modernization, or renovation of buildings, structures, or other real property.
Sourcewell is a State of Minnesota local government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statu tes Section 123A.21) that facilitates a competitive public solicitation and contract award process for the benefit of its participating entities across the United States.
Sourcewell's solicitation process complies with State of Minnesota law and policies.
Sourcewell posted Invitation for Bids #CA -123021, for the procurement of Indefinite Delivery Indefinite Quantity Construction Contracts - State of California, on the Sourcewell Procurement Porta l on Monday, November 22, 2021, and the solicitation remaine d in an open status within the portal until December 30, 2021, at4:30 pm CT. The Invitation for Bids required that all bids be submitted through the Sourcewell Procurement Portal no later than 4:30 pm CT on December 30, 2021, the date and time specified in the Solicitation Schedule. All responses received on Invitation for Bids #CA-123021 were submitted through the Sourcewell Procurement Portal, and that each Bidder's response material was digitally sealed upon submission and remained inaccessible until the due date and time specified in the Solicitation Schedule.
ACCO Engineered Systems Inc was one of the companies awarded a contract for HVAC/Mechanical for this region.
Section 2.56.140 of the Chula Vista Municipal Code authorizes the City to contract for goods or services through a cooperative purchase arrangement provided the goods or services were purchased through a competitive process that the Purchasing Agent determines to be consistent with the good purchas ing practices. Upon review of the Sourcewell RFP process, the Purchasing Agent has determined their process to be consistent with good purchasing practices and agrees with moving forward with a cooperative purchasing contract with Sourcewell. Further, the Purchasing Agent found the contract with ACCO Engineered Systems Inc. offers competitive pricing and authorizes cooperative purchasing arrangements .
The use of the cooperative agreement will allow the City to expedite the procurement process; this process also meets Federal procurement guidelines.
Project Summary
Expense Amount
Project Cost - ACCO agreement $ 16,259,572 Contingency $ 3,740,428 P a g e | 4
Total $ 20,000,000
Funding Sources Amount
Measure P (GGV0261) $ 20,000,000 Total $ 20,000,000
Staff recently presented an updated Measure P Infrastructure, Facilities and Equipment Expenditure Plan to the Measure P Citizens’ Oversight Committee on January 23, 2025. The updated plan includes the addition of $20.0 million from the unallocated Measure P fund balance to the Police HVAC project . The $16,259,572 project costs cover all equipment and supporting HVAC infrastructure that has been assessed and is known to need repair or replacement. The proposed contingency amount is due to anticipated unforeseen costs that may arise after demolition starts and access becomes available to perform an in-depth assessment of existing hot water piping/fittings, chilled water piping/fittings and duct work. An additional factor for this project is that Police will continue to operate from this building during construction. Adoption of the resolution will:
a) approve the appropriation of these funds to a CIP project HVAC Replacement (GGV0261), and b) award a cooperative agreement to ACCO Engineered Systems Inc. with a not-to-exceed amount of $20.0 million.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real p roperty-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware and has not been infor med by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Approval of the resolution appropriates $20.0 million from the unallocated fund balance of the Measure P Sales Tax Fund to CIP project HVAC Replacement (GGV0261). There is no fiscal impact to the General Fund.
ONGOING FISCAL IMPACT
There are routine HVAC systems maintenance costs associated with this project. Staff will work with the contractor ACCO Engineered Systems Inc. to develop a recommended maintenance schedule and request additional funding as needed as part of the annual budget development process.
ATTACHMENTS
Cooperative purchasing agreement with ACCO Engineered Systems Inc.
Staff Contact: David White, Building Services Manager; Angelica Aguilar, Assistant Director of Public Works