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HomeMy WebLinkAboutCC 7 HVAC MAINT PROG. 02-21-84 CONSENT CALENDAR NO. 7 2-21-84 · 3 .1984 Inter-Corn THRU: FROH: BILL HUSTON, CITY MANAGER BOB LEDENDECKER, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER MONDA BUCKLEY, ADMINISTRATIVE ASSISTANT S UBJ ECT: HEATING, VENTILATING AND AIR CONDITIONING (HVAC) MAINTENANCE PROGRAM FILE #419 RECOMMENDATION: Request the Tustin City Council, at their meeting of February 20, 1984, to adopt the Resolution authorizing the City Clerk to advertise for proposals for a Heating, Ventilating and Air Conditioning (HVAC) Maintenance contract. BACKGROUND: During the past few years, energy, maintenance and repair costs for heating, ventilating and air conditioning (henceforth referred to as HVAC) in various City facilities has escalated tremendously. Since the original installation of existing HVAC equipment, major alterations and/or additions to the system(s) has occured. These changes greatly restrict the types and amount of maintenance/repair work that can be performed by in-house staff. This statement is not meant to demean the ability of staff, only to point out that Cit~ employees are generalist in the field of maintenance/repair and not trained in this particular specialized technology. Because the City does not have HVAC Specialists on staff, we are forced to rely on outside sources specializing in HVAC repairs. Under these conditions, repairs are made on an emergency basis, i.e., when the entire and/or any significant portion of the system is debilitated or nonoperative. The current operation does not allow for preventative or predicti've maintenance to perhaps reduce the extent of or even prevent some major repairs. The changes /additions to the HVAC System and the current operating procedure also precludes the City from maximizing energy conservation. At present, Public Works Maintenance Staff is alerted to malfunctions in the HVAC System when other employees notify the divisions of excessive cold/heat in a particular area. If the condition is caused by anything other than what might require a minor adjustment, a specialized repair person must be called in. Due to the age of the system, and lack of preventative maintenance, replacement parts and labor costs have exceeded $20,000 in the past three fiscal years; and, the system is still not functioning properly. During this period, Edison costs have exceeded $170,000. A properly maintained HVAC System would reduce these energy costs. None of the aforementioned hard dollar figures reflects costs for in-house labor or other repair materials. HEATING, VENTILATING AND AIR CONDITIONING (HVAC) MAINTENANCE PROGRAM FILE #419 JANUARY 31, 1984 PAGE 2 Recently, staff reviewed a program for the Maintenance and Operations Services for the City's HVAC System as presented by the Honeywell Building Services Division. This program provides the following services: 1. 2C-hour Total Service - Continuous monitoring and operation of mechanical systems from Honeywell's 24-hour building operations center. This is accomplished by the installation of micro-processors that sense the building conditions and relay the data back to the operations center where any adjustments can be made remotely to control/adjust temperatures within the City Hall complex. 2. Preventive/Predictive Maintenance - Provides for regular service calls to diagnose and solve problems before they occur. The City does not currently have a routine/preventive maintenance type program in effect. Free Parts Replacement - This provides for replacement of worn parts with new components of equal or improved design at no additional cost above the contracted service program cost. 4. Emergency Back-up Service - In the event of an equipment breakdown, repair crews are dispatched 24 hours per day at no extra cost. Guaranteed Energy Savings - by reduction of electrical consumption by taking advantage of outside climate conditions, utility rate structures and occupancy patterns. 6. Operational Analysis - Identifies opportunities for building operational improvements. 7. Performance Feedback - Provides computerized energy audits and review meetings to provide improved building management, Staff has recapped a cost comparison between our existing operation and Honeywell's program which is shown below. Also shown is various criteria utilized in this comparison. HEATING, VENTILATING AND AIR CONDITIONING (HVAC) MAINTENANCE PROGRAM FILE #419 JANUARY 31, 1984 PAGE 3 CRITERIA City Hall/Police Complex Council Chamber/Community Bldg. Maintenance Facility 85 Tons 50 Tons 12 Tons Annual cost for equipment replacement *Cost = 147 Tons X 1200 15 Years X 1.10 : $12,936 .*Equation developed by Honeywell Building Services. Energy Savings** First year : $9,206 '(Centennial Way Complex) Second year = $10,307 (Centennial Way Complex) First year : $~,434 (Service Road Complex) Second year = $1,605 (Service Road Complex) **Amounts calculated by Honeywell Building Services. costs. Based on historical Parts, labor for equipment repair*** First year = $6,743 Second year: $6,743 X 1.10: $7,417 ***Amounts based upon historical cost averaged over a 3 year period. Routine in-house staff costs First year = 104 hrs. X $15.64 = $1627 Second year = 52 hrs. X $25.13 = $1307 HEATING, VENTILATING AND AIR CONDITIONING {HVAC) MAINTENANCE PROGRAM FILE #419 JANUARY 31, 1984 PAGE 4 COST COMPARISON First Year Cost Second Year Cost Existing Honeywell Existing Honeywell Program Program Program Program Depreciation (Cost/Replacement) 12,936 - 0 - 12,936 - 0 - Energy Wasted 9,206 - 0 - 10,307 - 0 - Parts, Labor for -Equipment Repair 6,743 - 0 - 7,417 - 0 - In-house Staff Cost 1,627 163 1,708 171 Administration Cost 1,307 131 1,372 137 Honeywell Program - 0 - 40,377 - 0 - 35,315 Additional Cost to City $8,852 $1,883 It appears that as electrical energy costs rise, the City would realize additional savings. In addition, at the present time, we have no equipment replacement fund for the HVAC System. This type of Maintenance Program would eliminate the need for such a fund. HEATING, VENTILATING AND AIR CONDITIONING (HVAC) MAINTENANCE PROGRAM FILE #419 JANUARY 31, 1984 PAGE 5 CONCLUSION: It is imperative that a re-v~mping of the current HVAC Maintenance procedure take place. Under the current system: a. There is no maintenance to deter what is now a rapidly deteriorating HVAC System, which is currently 10 years old. b. Major repairs are becoming necessary on a more frequent basis; the costs for' these repairs are accelerating. c. Electrical costs are higher than need be because of being unable to maximize energy conservation. d. At this rate, the entire HVAC System could need replacing in a very short period of time. Under the proposed Maintenance Program we would have: a. 24 hour service b. Preventative/predictive maintenance c. Reduced energy costs d. Free repair parts and labor e. No replacement of the entire HVAC System f. Continual system analysis g. Better energy management If Council should decide to adopt this Resolution, the following schedule would prevail: Council authorization to advertise for proposals First legal advertisement Second legal advertisement Formal proposal opening Council award of contract Administrative Assistant February 20, 1984. March 1, 1984 March 8, 1984 March 13, 1984 March 19, 1984' MB:jr 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 RESOLUTION NO. 84-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING SPECIFICATIONS FOR THE HEATING, VENTILATING, AND AIR CONDITIONING MAINTENANCE PROGRAM AND DIRECT CITY CLERK TO ADVERTISE FOR BIDS WHEREAS, it is the intention of the City Council of the City of Tustin, California to maintain existing heating, ventilation and air conditioning equipment/systems at various facilites in the City of Tustin, and; WHEREAS, the City Engineer has presented specifications for the purpose of accomplishing the same; NOW THEREFORE, BE IT RESOLVED that the specifications presented by the City Engineer be and are hereby approved as the specifications for: HEATING, VENTILATING AND AIR CONDITIONING MAINTENANCE PROGRAM BE IT FURTHER RESOLVED that the City Clerk is hereby authorized and directed to advertise as required by law for the receipt of sealed bids or proposals for the doing of the work specified in the aforesaid specifications which said advertisement shall be substantially in the following words and figures to-wit: "NOTICE TO CONTRACTORS" SEALED PROPOSALS will be received at the office of the City Clerk, Tustin City Hall, 300 Centennial Way, Tustin, California, until 10:00 A.M. on the 13th day of March 1984, at which time they will be publicly opened and rea~r performing work as follows: HEATING, VENTILATING AND AIR CONDITIONING MAINTENANCE PROGRAM Bids are required for the entire work described herein: SCHEDULE OF WORK ITEMS ITEM NO. 1. DESCRIPTION Twenty-four Hour Total Service - Continuous monitoring and operation services from a twenty-four hour operations center. Preventative/Predictive Maintenance - Providing regular service to diagnose and prevent problems before occurance. A-1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ITEM NO. 3. e e SCHEDULE OF WORK ITEMS DESCRIPTION Free Part Replacement - Provides replacement of worn parts with new components of equal or upgraded quality at no cost. Emergency Service - In the event of equipment failure or malfunction, repair personnel will be dispatched on a twenty-four hour basis and continue to work with due diligence until situation is corrected. Guaranteed Energy Savings - Providing a system that will allow a reduction in electrical consumption by utilizing external climate conditions, utility rate structure(s) and occupancy patterns. Operational Analysis- Identify and make known operational improvement within various buildings/facilities. ~ Performance Feedback - Provides energy audits {computerized or other) and review of same to improve building/facility management.' A-2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The foregoing ~s being given as a basis for the comparison of bids, and the City of Tustin does not, expressly or by implication, agree that the actual amount of work will correspond therewith. The City reserves the right to increase or decrease the amount of any class or portion of the work or to omit portions of the work as is required or as may be deemed necessary to advisable by the Engineer or Maintenance Superintendent. The provisions of Section 4-1.03B, "Increased or Decreased Quantities," of the Standard Specifications shall not apply to this contract. Specifications and proposal forms to be used for bidding on this project can only be obtained by prospective bidders at the office of the City Clerk, Tustin City Hall, 300 Centennial Way, Tustin, California, 92680, upon pa3nnent of $5.00 per set, which amount shall be non-refundable. Specifications will be mailed out upon payment of $5.00 per set, which amount shall be non-refundable. In conformance with Section 37931 of the Govenment Code, all bids shall be presented under sealed cover on the proposal form provided and accompanied by one of the following forms of bidder's security: a. Cash b. Cashier's check made payable to the City of Tustin. c. Certified check made payable to the City of Tustin. d. Bidder's ~ond executed by an accredited surety insurer, made payable to the City of Tustin. The security shall be in an amount equal to'at least ten percent (10%) of the amount of the bid. A bid shall not be considered unless one of the forms of bidder's security is enclosed therewith. A Faithful Performance Bond in the amount of one hundred percent (100%) of the estimated total contract price will be required. Said bonds shall be of the form attached to the contract documents and shall be issued by a Surety Company rated Grade A or better and Class IX or better by the latest edition of Best's Key Rating Guide. City of Tustin reserves the right to reject any or all bids, and/or waive any informality on a bid. No bidder may withdraw his bid for a period of thirty (30) days after the date set for the opening thereof. The contract will be awarded to the lowest qualified bidder.. Provisions of the State Contract Act are not applicable, and prospective bidders will not be required to be prequalified. All work to be done under the direct supervision of the Maintenance Superintendent and City Engineer, City of Tustin. All work to be paid for monthly at the unit prices bid from appropriated monies. A-3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 The City Council of the City of Tustin has obtained frOm the Director of Industrial Relations the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed and a copy of the same is on file in the office of the City Clerk. Not less than said prevailing rates shall be paid to workers employed on this public works contract as required by Labor Code Sections 1771 and 1-774 of the State of California. PASSED AND ADOPTED by the City Council of the City of Tustin, California, this day of , 1984. Mayor ATTEST: Mary E. Wynn City Clerk Advertise in the Tustin News: March 1, 1984 March 8, 1984 A-4