Agenda Item
City Council
Item #: 3.17. 6/13/2023 File #: 23-0365
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Award of Contract to Diversified Thermal Services, LLC for the Main Library HVAC Replacement Project; Bid No. 22-23.34.
2. SUMMARY
Bids for the Main Library HVAC project (SP-4049) were received and opened on May 18, 2023. Two bidders responded to the notice inviting bids. The apparent low bidder is Diversified Thermal Services, LLC of Anaheim, California in the amount of $598,791.
3. RECOMMENDED ACTION
1. Waive minor public works bidding irregularity in the bid proposal received by Diversified Thermal Services, LLC.
2. Approve contract with Diversified Thermal Services, LLC in the total amount of $658,670, representing an original amount of $598,791 plus a 10% contingency of $59,879, for the Main Library HVAC Replacement Project; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this project is $658,670 and will be funded in “HVAC Replacement - Library” (30056) through:
Capital Projects (500) $283,835
Library Facility Fees (573) 142,835
Reimbursable Capital Projects (550) 232,000
Total: $658,670
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. DISCUSSION AND BACKGROUND
The City of Orange Public Library and History Center, located at 407 E. Chapman Avenue, was originally built as the “Main”Library in 1961 and consisted of approximately 17,000 square feet. In City of Orange Printed on 6/5/2023Page 1 of 3
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Item #: 3.17. 6/13/2023 File #: 23-0365
originally built as the “Main”Library in 1961 and consisted of approximately 17,000 square feet. In 1998, the “Main”Library was re-modeled, which included modifications to the Heating, Ventilation and Cooling (HVAC) system such as reconfiguring ductwork and replacement of the air handling and condensing units with a
“Seasons 4” package system. In 2007, the “Main”Library was expanded to the 45,000 square feet space as it exists today. During this expansion, the building’s HVAC system was modified and expanded as well.
The “Seasons4”package system that was installed in 1998 consists of a custom built, multi-zone air handler with evaporator coil and gas-fire heating section, and an air-cooled condensing unit, configured in 2 modules and located in the mechanical room on the mezzanine level of the original building. As this unit is nearing the end of its service life, its performance has become inefficient and replacement parts are becoming difficult to locate and procure. As a result, controlling and maintaining comfortable interior temperatures for the library patrons and staff is becoming more and more difficult to achieve.
The City Council previously approved advertisement of bids for the Main Library HVAC Replacement Project on March 14, 2023. Bid solicitation was advertised on April 13, 2023, for a period of five weeks and bids were opened on May 18, 2023. Two bids were received as follows:
1. Diversified Thermal Services, LLC, Anaheim $598,791
2. Pardess Air Inc., Los Angeles $626,000
There was a minor irregularity in the Diversified Thermal Services, LLC (Diversified) bid. Diversified submitted a PDF copy but not a wet signed bid bond by the bid submittal deadline. The wet signed bid bond was subsequently submitted after the bid opening, so staff is recommending the City Council waive this minor public works bidding irregularity.
The low bid is about 8.9% higher than the Engineer’s Estimate of $550,000. Staff checked the references and qualifications for Diversified Thermal Services, LLC. and found them to be acceptable, with adequate years of experience in completing contracts of similar nature to this project. The City has a separate contract with Diversified for annual HVAC preventative maintenance and minor repairs. A Second Amendment to this agreement was approved by Council in June 2022 for their first contract extension to June 2024 at an annual cost of $155,031. Staff recommends that Diversified Thermal Services, LLC. be awarded the contract in the amount of $658,670, representing an original amount of $598,791 plus a 10% contingency of $59,879, for the Main Library HVAC Replacement project.
The project is being partly funded through Southern California Edison (SCE) On-Bill Financing (OBF) program for an amount of $232,000. The OBF program requires customer participation in an Energy Efficient (EE) program. The monthly loan repayment amount will be approximately equal to the estimated monthly dollar savings the City is expected to receive through SCE utility bill based on the energy savings.
The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under CEQA guidelines Section 15301 “Existing Facilities” Class 1 (c). The CEQA Notice of Exemption has been filed with the County Recorder’s Office.
Execution of the contract is expected to be complete in July 2023. Once the contract is executed, material procurement is anticipated to begin and is anticipated to take approximately 1-year.
Construction start-date is dependent on material procurement lead times and construction will begin City of Orange Printed on 6/5/2023Page 2 of 3
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Item #: 3.17. 6/13/2023 File #: 23-0365
Construction start-date is dependent on material procurement lead times and construction will begin as soon as material is available.
7. ATTACHMENTS
· Bid Abstract
· Contract with Diversified Thermal Services, LLC
City of Orange Printed on 6/5/2023Page 3 of 3
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