Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: MATTHEW BAUMGARDNER, DIRECTOR OF PUBLIC WORKS/CITY
ENGINEER
DATE: AUGUST 12, 2025
SUBJECT: PROJECT FUND TRANSFER FOR THE REPLACEMENT OF HEATING
VENTILATION AND AIR CONDITIONING (HVAC) SYSTEM AT THE
POLICE DEPARTMENT FACILITY, CAPITAL IMPROVMENT PROJECT
(CIP) 25-11
EXECUTIVE SUMMARY
The City Council will consider transferring $60,000 from the McCaughan Gym HVAC Replacement Project, CIP 26-16 and $60,000 from the City Hall Improvement Project, CIP 19-21, to the Replacement of the HVAC System at the Police Department Facility, CIP 25-11. It is anticipated that there will be sufficient funds remaining in the McCaughan Gym and City Hall accounts to complete those projects later in Fiscal Year 2025-2026.
RECOMMENDATION
That the City Council:
1. Approve the transfer of project funds $60,000 from the McCaughan Gym HVAC Replacement Project, CIP 26-16, and $60,000 from the City Hall Improvement Project, CIP 19-21, to the Replacement of the HVAC System at the Police Department Facility, Capital Improvement Project, CIP 25-11 in the total amount of $120,000; and,
2. Authorize the City Manager to make the necessary fund transfers.
BACKGROUND
On September 24, 2024, the City Council awarded a contract to F.M. Thomas Air Conditioning, Inc. in the amount of $1,769,205 for the Replacement of the HVAC System at the Police Department Facility, CIP 25-11. The work consists of replacement of the roof top units, upgrade of the controls system, and replacement of the boiler and ductwork.
ANALYSIS
Working on existing facilities may present unknown situations, since internal structures are not readily visible for inspection. Work on the Police Department HVAC
PROJECT FUND TRANSFER FOR THE REPLACEMENT OF HEATING VENTILATION AND AIR
CONDITIONING (HVAC) SYSTEM AT THE POLICE DEPARTMENT FACILITY, CAPITAL IMPROVMENT PROJECT (CIP) 25-11
AUGUST 12, 2025
PAGE 2
improvements commenced on October 28, 2024 in the interior of the facility. Such work included upgrading ducts, installing variable air volume system, and replacing the existing hydraulic system to an electrical system while waiting for the HVAC roof top units to arrive around mid-May 2025.
In preparation for the installation of these units, structural issues were discovered at the seven (7) roof top units. It was determined that the existing curbs and pads that support the weight of the roof top units needed to be replaced. Replacing the curbs and pads required additional structural upgrades, removal and replacement of sections of the ketone ethylene ester roof material, in addition to specialty trades (roofing and structural framing contractors), increase crane use, and temporary cooling units to maintain a comfortable environment during replacement of the roof top units. It is anticipated that the work will be completed by the end of September 2025.
CITY COUNCIL PRIORITIES
Quality of Life, Safety & Infrastructure
FISCAL IMPACT
The cost for the additional needed work is $225,309 and the available project contingency is $130,795. This requires an additional funding in the amount of $94,514.
Staff has identified two current facility projects from which funds can be transferred to the project, as noted below. Staff is requesting a total of $120,000, monies are going to CIP 25-11, using monies from Fund 40, in the event there are any other unforeseen issues. It is anticipated that there will be sufficient funds remaining in the McCaughan Gym and City Hall accounts to complete those projects later in Fiscal Year 2025-2026.
Account No. Funding Source Amount
40-1-3304-0520 City Hall Improvements $60,000
40-1-6949-0520 McCaughan Gymnasium HVAC
Replacement $60,000
Total Funding: $120,000