Item 176/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna-Reynosa
Dept:
City Manager Dept: Economic Development and
Housing
Date: 5/27/2025
Subject: Adoption of a Resolution authorizing the City Manager to waive the formal bidding process and approval to proceed with the emergency purchase and installation of a HVAC system at 11277 Garden Grove Boulevard. (Action Item)
OBJECTIVE
For the City Council to adopt a resolution authorizing the City Manager to waive the formal bidding process and proceed with emergency purchase and installation of the HVAC system at 11277 Garden Grove Boulevard (the “Property”).
BACKGROUND
In December 2022, the City retained Therma LLC to conduct a site evaluation of the existing HVAC system of the Property , a City-owned, two-story office building with approximately 32,000 square feet. As part of the assessment, Therma examined the building’s HVAC units, pneumatic controls, boiler system, and ductwork. The evaluation concluded that the HVAC system should be replaced due to the age and deteriorated condition of the equipment.
A summary of the key findings is provided below:
Obsolete Equipment and Technology: Critical equipment, including the boiler and air compressor, are no longer operational and cannot be repaired due to discontinued parts.
Aging Infrastructure and System Degradation : Two of the three AC units exceeded their 15-year life expectancy, with the third nearing the end of its useful life.
In addition, l eaking heating lines, faulty sensors, and deteriorating condenser coils indicate extensive wear and increased risk of major failures. Lack of Zone Temperature Control: Disconnected pneumatic controls in VAV boxes prevent proper heating and cooling controls throughout different areas of the building. Frequent Repairs Due to Lack of Preventative Maintenance : Years of deferred maintenance led to inefficient systems and equipment failu res, leading to constant repairs without a lasting fix.
Item 176/2025
Incompatibility with Current Standards: Multiple units use outdated refrigerants which are no longer compliant with current environmental and efficiency standards In January 2024, the City issued a formal Request for Proposals to solicit professional HVAC engineering consulting, design, and plan preparation services (RFP -GPM-NO.2402). Green MEP Engineering was selected and worked closely with the City team to develop construction drawings of the new HV AC system. Green MEP submitted the final version of the plans in March 2025, and the plans are currently going through the permitting process.
DISCUSSION
The Property currently provides office space for the following seven (7) tenants:
Garden Grove Housing Authority
Garden Grove Police Department
Garden Grove Emergency Operations Center
Garden Grove Channel 3 TV
Be Well OC
Wellness Center West
Clark Construction
With the summer months approaching, the need for a fully operational HVAC system is vital to maintaining safe indoor conditions for both building tenants and visiting members of the public. Proceeding with a formal bidding process would cause delayed installation of the new HVAC system until late summer or possibly early fall , increasing the risk of system failure during peak demand and jeopardizing occupant health and safety.
The current condition of the HVAC system places the City at risk of noncompliance with California regulations that mandate proper ventilation, air quality, and ener gy-efficient operation (CCR Title 8 §5142; California Mechanical and Energy Codes, Title 24 ). An emergency purchase and installation is necessary to safeguard public health, ensure tenant safety, meet regulatory obligations, and avoid ongoing repairs and service interruptions.
FINANCIAL IMPACT
Adopting the Resolution has no immediate financial impact. Once a contractor is selected, project costs will be funded through the existing budget allocated to the Purcell Building Rehabilitation project in the appro ved FY 2024 –25 Capital Improvement Plan (CIP), with additional funding anticipated in the FY 2025 –26 CIP and a potential $200,000 grant. The total cost of the new HVAC system is estimated at approximately $1,000,000.
RECOMMENDATION
It is recommended that the City Council:
Adopt the attached Resolution authorizing the City Manager, or designee, to waive the formal bidding process under emergency condition, declaring the necessity thereof, Item 176/2025
and authorizing staff to proceed with emergency purchase and installation of the HVAC system at 11277 Garden Grove Boulevard; and
Authorize the Finance Director to issue a purchase order for the emergency purchase and installation of the HVAC system at 11277 Garden Grove Boulevard.
By: Eric S. Hong, Administrative Analyst
ATTACHMENT(S)
1. Resolution