Agenda Item No: U.13
AGENDA REPORT
DATE: December 17, 2024
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2024-294
Authorizing an Update to the Fiscal Year 2024-2025 Budget for the Cordelia Library Maintenance Fund
Funding Source: $103,650; Cordelia Library Maintenance Fund
Contact: Peter Peirce, (707) 428-7563
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
Sections of the heating, ventilation, and air conditioning (HVAC) system at 5050 Business Center Drive (Facility), a City owned and maintained building, requires repairs. Staff is requesting a one- time budget adjustment to increase appropriations by $103,650 ($98,715 plus a 5% contingency of $4,935) in the fiscal year (FY) 2024-2025 Cordelia Library Maintenance Fund operating budget to pay for the repairs.
DISCUSSION
The Facility is a 25,000 square foot two-story building that was constructed in 2007 in the North Cordelia area of Fairfield. The Facility is owned and maintained by the City. The first floor of the Facility is occupied by the Fairfield Cordelia Library br anch of the Solano County Library system, and the second floor is occupied by the Solano Economic Development Corporation (a private tenant) and the City of Fairfield Police Investigations Division. In addition to the Facility’s regular operation as a libr ary and office space, the building also functions as one of Solano County’s cooling centers during summer.
In 2006, the City and the Solano County Library (Library) executed an Agreement for Library Services (Agreement), which included defined Facility o perations and maintenance responsibilities and financial obligations for each party.
In Section 5.0 of the Agreement, the parties agreed to Shared Funding Obligations, as shown in Attachment B of the Agreement, for certain operations, maintenance, capital improvement, and other related costs for which the City would pay 46.7% and the Library would pay 53.3% of eligible costs. In Section 6.2 of the Agreement, the City agreed to coordinate and implement all capital improvement and maintenance services for the Facility and the Library shall reimburse the City for its portion of the Shared Funding Obligations.
In September 2024, sections of the HVAC system at the Facility failed. Public Works Building Maintenance staff determined the HVAC system failures were due to normal mechanical decline over time and that significant repairs were needed, including the replacement of failed condenser coils and compressors. These repairs will help prevent further damage or the complete failure of the HVAC system and will ensure optimal and reliable system function, especially during the high temperatures of the spring and summer seasons.
In October 2024, staff requested proposals from three HVAC contractors as follows: Tradewinds Mechanical Contractors (Tradewinds) ($98,71 5), Bell Products ($101,250), and Matrix HG Inc ($122,335). Tradewinds was selected as the service provider, and work will commence under an existing service contract for recurring services as describe in the City’s Purchasing Policy.
The project is estimated to take a total of four months to complete since certain parts necessary for the repairs have an ordering lead time of two -to-three months. Once the parts are received, repairs may be completed within 30 days. At this time, staff does not anticipate any significant impacts to normal library, tenant, or Police operations prior to or during the repair work.
Staff is requesting authorization for a one-time budget adjustment to increase appropriations by $103,650 ($98,715 plus a 5% contingency of $4,9 35) in the FY 2024 -2025 Cordelia Library Maintenance Fund operating budget to pay for the repairs. This increase will be funded up front using the existing Fund 284 balance, and the City will invoice the Library for its portion (53.3%) of the Shared Fundin g Obligations. The total reimbursement anticipated from the Library is $55,245.
FINANCIAL IMPACT
The funding for HVAC repairs was not included in the FY 2024 -2025 budget and will require a one-time budget adjustment of $103,650 ($98,715 plus a 5% contingency of $4,935) to increase appropriations in the Cordelia Library Maintenance Fund (Organization and Object Code 28445302-8421). This increase will be funded up front using the existing Fund 284 balance, and $55,245 of this amount will be reimbursed by the Library for its portion of the Shared Funding Obligations.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may decide not to approve the budget adjustment. However, if the budget adjustment is not approved, the repair work will not be completed, which may result in further damage or complete failure of the HVAC system.
COORDINATED WITH
Finance
STAFF CONTACT
Chris Lewis, Sr. Management Analyst
(707) 428-7089
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposal
Attachment 4: Solano County Agreement