City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JANUARY 23, 2024 FROM: GENERAL SERVICES WARDS: 1
SUBJECT: APPROVE THE SERVICES AGREEMENT FOR EMERGENCY RE-PIPING OF CHILLER LINES TO THE NEW CHILLER AT THE CONVENTION CENTER WITH TCB INDUSTRIES, LLC., OF BANNING, CA IN THE AMOUNT OF $72,300, PLUS 15% CHANGE ORDER AUTHORITY IN THE AMOUNT OF $10,845 FOR A TOTAL AMOUNT OF $83,145.
ISSUE:
Approve the emergency Services Agreement for the re-piping of the chiller water lines to accommodate the connections for the new chiller and complete the Convention Center HVAC Project with TCB Industries, LLC, of Banning, CA, in the amount of $72,300, plus 15% change order authority in the amount of $10,845 for a total amount of $83,145.
RECOMMENDATIONS:
That the City Council:
Approve the Services Agreement for TCB Industries, LLC, of Banning, California, for the re-piping of the chiller water lines for Riverside Convention Center Chiller Replacement Project in the amount of $72,300; and Authorize 15% change order authority in the amount of $10,845 for unforeseen issues; and, Authorize the City Manager or his designee to execute the Agreement with TCB Industries, LLC, of Banning, CA, including making minor and non-substantive changes.
BACKGROUND:
The City of Riverside (City) owns the Riverside Convention Center (Convention Center), located at 3637 5th Street, and per terms of the Qualified Convention Center Management Agreement with Raincross Hospitality Corporation, the City is responsible for all facilities maintenance and repairs exceeding $10,000.
The Convention Center has two chillers to support the building’s heating, ventilation, and air conditioning (HVAC) system, a primary larger unit, and a secondary backup. The primary chiller has been inoperable since 2017 but had not been replaced due to funding constraints. On April 4, 2023, the City Council approved a supplemental appropriation in the amount of $600,000 from Infrastructure Reserves for replacement of the primary chiller at the Convention Center, including the purchase of one Daikin Water-Cooled Chiller from NSWC Mechanical Service, LLC of Anaheim, California, for $370,897 pursuant to Purchase Resolution 23914 Section 602 (f).
DISCUSSION:
A chiller is a device that controls the temperature of a heating, ventilation, and air conditioning system. Water-cooled chillers are more efficient, offer quieter operation, and are an excellent solution for space-constrained facilities. Water-cooled chillers perform more constantly for commercial and industrial air conditioning because of their relative independence from ambient temperature fluctuations. Also, the higher return on investment is among the benefits of a water-cooled chiller. Once installed, these chillers are a worthwhile long-term investment with fewer maintenance costs and equipment component replacements.
The Riverside Convention Center is more than a venue for large conventions and events; it is a premier gathering space where meetings, banquets, and commercial and social functions are held for the members of our community. As part of good environmental stewardship, clean air is essential. Cleaner indoor air improves cognition and productivity, reduces the spread of airborne disease, and decreases the number of environmental triggers like asthma and allergies.
The Convention Center has two chillers, one of which has been inoperable since 2017 and could not be repaired due to funding constraints, which has resulted in excessive wear and tear on the second chiller and leaves the Convention Center without a backup chiller in the event of equipment failure. As a preventive measure, the Convention Center has been leasing a temporary backup chiller at an estimated cost of $15,390 per month.
To mitigate the monthly expense for a temporary cooling system and facilitate the installation of the new chiller, the City Council is asked to approve the Emergency Agreement for re-piping of the existing chiller supply and return lines to the new chiller to complete the Convention Center HVAC replacement project with TCB Industries, LLC, of Banning, CA. The Emergency Agreement covers the materials and installation cost of $72,300, plus a 15% change order authority of $10,845 for a total of $83,145.
Once the failed larger chiller has been replaced, the second smaller chiller shall be utilized as a redundant backup system. With the proper maintenance and repair, the backup chiller shall last approximately an additional 10-15 years. With the required maintenance, the new chiller should continue to operate at the Convention Center for approximately 40 - 50 years.
Three informal quotes were solicited for the Chiller Water Line Re-Piping and Re-Routing, and TCB Industries, LLC, of Banning, CA, was the lowest bid.
Vendor
Amount
Quotes Status
TCB Industries, LLC
$72,300.00
Lowest Bid
Courtesy Air
$79,950.00
Second Lowest
Top Tier Plumbing
$0.00
Unresponsive
Per Purchasing Resolution 23914, Section 702 (a), Acquisition of Services states, “Competitive Procurement through the Informal Procurement and Formal Procurement process shall not be required in any of the following circumstances, (a) When an emergency arises and Emergency Procurement is undertaken pursuant to Article Three hereof.” The Purchasing Manager concurs that the recommendation is in accordance with Purchasing Resolution 23914, Section 702 (a).
STRATEGIC PLAN ALIGNMENT:
This item supports Strategic Priority Infrastructure, Mobility & Connectivity, and Goal 6.2: Maintain, protect, and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
This item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – Purchase of the water-cooled chiller was agendized for review by the City Council, as is the additional work needed for re-piping and re-routing outlined in the agreement, ensuring community stakeholders understand clearly how the money is being spent.
Equity – This item is neutral towards this cross-cutting thread.
Fiscal Responsibility – Three quotes were obtained for the re-piping and re-routing work, ensuring the best available pricing.
Innovation – The combination of cooperative purchasing for the equipment, competitive bidding and in-house installation by City staff provides an innovative solution for a costly project.
Sustainability & Resiliency – The new water-cooled chiller will be energy efficient and help to ensure the Convention Center’s post pandemic business recovery is not impacted by cancelled events due to HVAC issues.
FISCAL IMPACT:
The total fiscal impact for this action is $83,145, which includes the 15% change order authority in the amount of $10,845. Funds are budgeted and available in the Convention Center Fund, Convention Center Chiller Project account no. 9924900-450310.
Prepared by: An-Chi Filiar, Senior Administrative Analyst Approved by: Carl Carey, General Services Director
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Edward Enriquez, Assistant City Manager/Chief Financial Officer/Treasurer
Approved as to form: Phaedra A. Norton, City Attorney
Attachments: Agreement
NSWC Mechanical Service, LLC - Convention Center Chiller Re-Piping ● Page 2