May 16, 2023
Richmond Housing Authority
Economic Development
DATE: May 16, 2023
TO: Chair Martinez and Members of the Richmond Housing
Authority Board of Commissioners
FROM: Nannette Beacham, Economic Development Director
Gabino Arredondo, RHA Interim Executive Director
Subject: First Amendment to the Emergency Contract with Legacy for Boiler Pump Replacement
FINANCIAL IMPACT: Funding for this improvement contract amendment will be derived from the U.S. Housing and Urban Development
(HUD) annual allocation of Capital Fund, $37,108
(Legacy quote $30,825; 10 percent Contingency $3,083;
City Permits Fees $3,200) (42141191-400701).
PREVIOUS COUNCIL
ACTION:
March 28, 2023
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 a First Amendment to
the Emergency Contract with Legacy Mechanical and
Energy Services for $30,825 plus a revised 10 percent
contingency of $3,083, for a total contract amendment
amount not to exceed $33,908, to complete the
replacement of the two heat pumps at Nevin Plaza, and
authorize the payment of City permit fees in the revised amount of $3,200, for a total project cost amount not to exceed $55,698 - Richmond Housing Authority (Gabino
Arredondo 510-620-6606).
AGENDA
REPORT
May 16, 2023
DISCUSSION:
On December 16, 2022, RHA received inquiries from Nevin Plaza residents regarding low levels of heat in some units. RHA called the Heating, Ventilation, and Air Conditioning (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 determined that several components of the system needed to be repaired to bring the system back online. After consulting with various suppliers, it was determined 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 and with the newly arrived component, were able to repair one of the pumps. This did not completely resolve the heating issues. The heat pumps were turned on; however, heat distribution was still not evenly distributed throughout the building.
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. Following site visits from the additional vendors, it was concluded that continued maintenance and repair of aging pumps was not recommended. Instead, the malfunctioning heat pumps should be replaced.
First Amendment to the Emergency Contract with Legacy Mechanical
On March 28, 2023, the RHA Board approved the original emergency contract with Legacy Mechanical and Energy Services to replace the two heat pumps at Nevin Plaza.
However, during the replacement process, the vendor attempted to replace the boiler pumps and found that the valves will not seat, preventing them from replacing the boiler pumps as contracted. The proposed contract amendment includes an additional scope to replace the isolation valves for the inlet of the boiler pumps and the triple duty valves that have failed. Legacy Mechanical proposes turning the boiler and pumps off to freeze the lines and replace the valves before continuing with the replacement of the pumps.
The exposed boiler piping will then be reinsulated.
Legacy has provided a quote in the amount of $30,825 for the additional scope of work for the contract amendment including labor, parts, and freight. City staff is also requesting authority for a 10 percent contingency in the amount of $3,083 to account for potential extra repair costs, as well as authority in the amount of $3,200 for City permit fees resulting in a total contract amendment cost of $37,108. The total project cost will
May 16, 2023
not exceed $55,698. Funding for this improvement will be derived from HUD's annual allocation of Capital Fund.
DOCUMENTS ATTACHED:
Attachment 1 - Resolution
Attachment 2 - Contract Amendment 1
Attachment 3 - Contract