March 28, 2023
Richmond Housing Authority (RHA)
Economic Development
DATE: March 28, 2023
TO: Chair Martinez and Members of the Richmond Housing
Authority Board of Commissioners
FROM:
Nannette Beacham, Director of Economic Development
Gabino Arredondo, Interim Richmond Housing Authority
Executive Director
Subject:
Emergency Contract with Legacy Mechanical and Energy
Services for a Boiler Replacement
FINANCIAL IMPACT: Funding for this improvement will be derived from the U.S. Housing and Urban Development (HUD) annual
allocation of Operating Subsidy and Capital Fund,
$20,385 (Legacy quote $16,900; 10% Contingency
$1,690; City Permits Fees $1,795) (42141191-400701).
PREVIOUS COUNCIL
ACTION:
N/A
STATEMENT OF THE
ISSUE:
This emergency procurement was initiated after attempts to repair the two heat pumps at Nevin Plaza failed.
Immediate replacement is required to address heating
differentials in the complex.
RECOMMENDED ACTION: ADOPT a resolution authorizing an emergency contract with Legacy Mechanical and Energy Services, in an
amount not to exceed $16,900 plus a 10 percent
contingency of $1,690, for a total contract amount not to exceed $18,590, to replace the two heat pumps at Nevin
Plaza and authorizing the payment of City permit fees in the amount of $1,795, for a total project cost amount of $20,385 - Richmond Housing Authority (Gabino
Arredondo 510-620-6606).
AGENDA
REPORT
March 28, 2023
DISCUSSION:
On December 16, 2022, Richmond Housing Authority (RHA) received inquiries from Nevin Plaza residents regarding low levels of heat in some units. RHA called the HVAC vendor to assess and conduct boiler repairs. After an inspection, it was determined that the cause of the uneven heat distribution derived from malfunctioning heat pumps.
Impacted residents were provided space heaters by RHA maintenance staff while efforts to address the heating issues continued. Ultimately, it was concluded that several components of the system needed to be repaired to bring the system back online. After consulting with various suppliers, RHA staff were made aware that restoration of normal heat service could take many weeks due to supply chain issues in the acquisition of parts, including shipping challenges arising from holiday demands and inclement weather conditions. RHA, however, did receive notice that one part would be delivered by December 25, 2022.
When the part arrived on Christmas day, City Public Works staff mobilized were able to repair one of the pumps. The repair did not completely resolve the heating issues as the heat distribution was still uneven throughout the building once the pumps were turned on.
Further diagnostics revealed that additional repairs were needed to address a leak in the second heat pump. Efforts continued to acquire the necessary parts, but the vendor continued to experience challenges in securing them. Due to the delays, RHA sought additional analysis from other vendors. Replacement of the malfunctioning heat pumps was recommended instead of continued maintenance and repair of the aging parts.
RHA staff reached out to three vendors to obtain bids for the boiler pump replacement.
Quotes were received from Cooper and Hawkins, Bay City Mechanical, and Legacy Mechanical and Energy Services (“Legacy”). Ultimately, due to their pricing and expertise, Legacy was selected to remove and replace the current pumps. Legacy is the City’s current Heating Ventilation and Air Conditioning (HVAC) vendor and was initially chosen through a formal Request for Proposals (RFP) process. Due to the importance of addressing the heat issue, an emergency contract process was initiated.
Legacy has provided a quote of $16,900 incluisive of labor, parts, and freight. RHA staff members are also requesting authority for a ten percent contingency in the amount of $1,690 to account for potential extra repair costs, as well as authority in the amount of $1,795 for City permit fees, for a total project cost in an amount not to exceed $20,385.
Funding for this improvement will be derived from HUD’s annual allocation of Operating Subsidy and the City’s Capital Fund.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Contract