July 12, 2005

SUBJECT:      Award of Bid #F0404-60 for the Modification of the Heating, Ventilating and Air Conditioning System at the Public Library

REPORT IN BRIEF

Approval is requested for the award of a contract to Thermal Mechanical, Inc., of Santa Clara for the Sunnyvale Library Heating, Ventilating and Air Conditioning (HVAC) System Modifications Project for the Department of Public Works Engineering Division (Project #PR-95-13D).

BACKGROUND

The original engineering evaluation of the Public Library HVAC system, completed in late 2000, recommended replacement of some of the existing equipment because it has reached the end of its useful life.  In 2001, further assessment of the system identified enough additional problems to warrant a comprehensive design to completely upgrade the system.  This design, completed in 2002, called for replacing the entire HVAC control system, replacing the chiller unit, replacing air conditioning unit # AC-2, replacing cooling tower # CT-2 and supplying a new chemical treatment, replacing the coils and rebalancing air conditioning unit # AC-1 and installing a new dedicated air conditioning unit for the area currently occupied by SCI3 and planned for an alternative use after SCI3 vacates the area.  The scope of work also included the furnishing of temporary heating and cooling equipment during construction.

The project was placed on hold temporarily in 2002 due to budgetary constraints, but was again put on track in late 2004.  A new building permit has been issued for the project to meet the latest building code requirements.

DISCUSSION

Bid specifications were prepared by Public Works and Purchasing staff.  The bid was structured so the upgrades made up the Base Bid, while the dedicated unit for the area currently occupied by SCI3 was listed as an Additive Alternate that could be added to the award if the City receives favorable bid pricing.  

The Notice Inviting Bids was published in The Sun on April 27, 2005.  The bid package was distributed to Bay Area Builders Exchanges and broadcast to potential contractors through the DemandStar by Onvia public procurement network.  Twelve contractors requested bid documents.

Sealed bids were publicly opened on May 18, 2005; and four responsive bids were received:

Staff recommends acceptance of the bid from Thermal Mechanical, Inc., the lowest responsive and responsible bidder.  The bid pricing is favorable enough for staff to recommend award of both Base Bid and the Additive Alternate.

A determination was made that this project will have no significant effect on the environment in accordance with CEQA guidelines for categorically exempt projects.

FISCAL IMPACT

Project costs include:

Funds are available in Public Works Infrastructure Project #817950 - Civic Center Buildings HVAC.

RECOMMENDATION

It is recommended that Council:

1.              Award a contract, in substantially the same form as the attached draft and in the amount of $726,842 (Base Bid plus Additive Alternate), to Thermal Mechanical, Inc., for the Sunnyvale Library HVAC System Modification Project; and

2.              Approve a project contingency in the amount of $104,997.

Prepared by:

Elaine Wesely

Purchasing Officer

Reviewed by:

Mary J. Bradley

Director, Finance

Reviewed by:

Marvin Rose

Director, Public Works

Approved by:

Amy Chan

City Manager

Attachments

Draft General Construction Contract (PDF)