Item #04
Date: June 4, 2024
To: Mayor and City Council
From: Jim Schaad, City Manager
Subject: Replacement of HVAC Unit on Annex Building
Recommendation:
Pass a Motion to 1) authorize an agreement in the amount of $46,795 to replace the roof of the City owned annex building located at 429 10th Street to Vardell’s Air Conditioning, and 2) authorize the Finance Director to make a supplemental appropriation for an amount not to exceed $46,795 to 10-122- 5279 (Prop 64 Cohort 3 Contract Services).
Rationale for Recommendation:
The Public Works Department seeks to replace the HVAC on the City-owned annex building 429 10th Street in preparation for occupancy by the Yuba County Office of Education (YCOE), to provide youth related services and activities funded through a grant from the Board of State and Community Corrections (BSCC). The grant provides $300,000 to renovate the building, which has been unoccupied for many years, has deteriorated significantly and has suffered from vandalism and theft. The City solicited quotes from eight (8) HVAC contractors in the area and received written quotes from four (4). Three contractors indicated that they did not perform prevailing wage and/or commercial work and three did not respond to solicitations. Quotations ranged from $46,795 to $79,443, with Vardell’s Air Conditioning submitting the lowest quotation.
Background:
The Annex Building at 429 10th is a city-owned property that has been vacant for many years. In prior years it had been used by the Yuba-Sutter Chamber of Congress and the Gold Sox baseball organization.
Based on its open-space zoning status the City could not locate a suitable tenant. The lack of occupancy has caused significant vandalism, and the building has deteriorated with age. The City had considered demolishing the building in the past but recently had the opportunity to partner with the YCOE to rehabilitate the building and utilize it to provide youth services. The agencies collaborated on a $3 million grant proposal, with $300,000 within the grant to be applied towards the building improvements. The grant was awarded by the BSCC and the City is now in the process of performing improvements, including HVAC replacement. The age of the three HVAC units is estimated to be between 15-30 years old, and all condenser units were stolen.
Discussion & Analysis:
The three HVAC units have exceeded their useful lives and due to copper theft, the systems hermetic refrigeration systems have been damaged and exposed to the elements. Because of this staff Item #04
recommends complete replacement with more reliable, energy efficient units. The quotation from Vardell’s Air Conditioning was the lowest responsive bid. Vardell’s Air Conditioning is a reputable local contractor, experienced in performing both commercial and residential work and is licensed, bonded and insured. The new HVAC is expected to have a 15 to 20-year life. Staff recommends that the City Council approve an award of $46,795 to Vardell’s Air Conditioning, the lowest bidder and a reputable local company, since it is in the best interests of the City.
Fiscal Analysis:
There is a fiscal impact of up to $46,795 for the cost to replace the HVAC. This cost will be funded through a grant from the BSCC. Staff are requesting a supplemental appropriation in an amount not to exceed $46,795 to 10-122-5279 (Prop 64 Cohort 3 Contract Services).
Attachments:
1) Copy of Quotation – All-Rite Roofing Inc.
2) Evaluation of quotations received