Coversheet


Item Number 12.

City Council
Staff Report

Subject:	Awarding the Contract for HVAC Replacements at Fire Station 23 to B&M Builders Inc.

Date:	April 12, 2022

Submitted By:	Justin Nartker, Director of Public Services Matt McClure, Public Services Manager

Department:	Public Services

Staff Recommendation:

Adopt a Resolution of the City Council of the City of Rocklin Awarding the Contract for HVAC Replacements at Fire Station 23 to B&M Builders, Inc. and Authorizing the City Manager to Execute an Agreement with B&M Builders, Inc.

BACKGROUND:

On June 22, 2021, the City Council approved the Fiscal Year (FY) 2021/22 Operating Budget. Included in the budget is a project to remove and replace the existing Heating, Ventilation and Air Conditioning (HVAC) Units at Fire Station 23 located at 4060 Rocklin Road (See Exhibit 1 for a Location Map). The replacement of the existing HVAC system has been deferred for multiple years.

The bid for the HVAC Replacements was advertised on February 4, 2022, and February 11, 2022, with the bid opening Thursday, March 3, 2022. Three (3) bids were received from the following (Exhibit 2).

CONTRACTOR BID

B&M Builders, Inc. (Rancho Cordova) $ 81,125

California Environmental Systems, Inc. (Auburn) $ 127,846

Air 9 (Carmichael) $ 157,600

Staff has reviewed the bids for sufficiency, determined they were responsive, and determined B&M Builders, Inc. submitted the lowest responsible bid. Staff recommends that the City Council award the contract to B&M Builders, Inc. and establish the City Manager’s change order authority at Fifteen (15) percent of the contract ($12,169 rounded). The amount for this project including Fifteen (15) percent change order authority brings the total cost to $93,293.75 (93,294 rounded).

A new HVAC system will allow for increased ventilation that can mitigate the transmission of COVID-19. According to the U.S. Department of Treasury's Final Rule, ventilation system installation and improvements are an allowable use of American Rescue Plan Act (ARPA) funds. Under the Final Rule, Capital Expenditures must be related and reasonably proportional to the public health impact. In this case, replacing these HVAC systems will allow for increased ventilation and improve mitigation of COVID-19 in areas that are accessed by the public and City staff.

On September 28, 2021 and February 22, 2022, the City Manager’s Office presented reports to the City Council outlining program options and/or candidate projects for American Rescue Plan Act (ARPA) funds. At the conclusion of the February 22, 2022 meeting, the City Council approved the ARPA project framework and the proposed funding plan, which included HVAC replacements at various facilities.

Fiscal Impact:

The total estimated project cost is $93,294. Staff recommends increasing the revenue and expenditure budgets in the amount of $93,294 in the FY 2021/22 Budget in the American Rescue Plan Act Fund (266) for the HVAC Replacements at Various Locations Project. Additionally, in the FY 2021/22 Budget included the HVAC budget of $105,000 in the Capital Construction Fund (304). Staff recommends reducing the expenditure budget by $105,000 (Fund 304) in the FY 2021/22 Budget and increasing the Fund 304 fund balance by the same amount. These recommended actions will be implemented as part of the next Quarterly Financial Report.

ATTACHMENTS:
	Description
	Exhibit 1 - Location Map
	Exhibit 2 - Bid Summary
	Resolution
	Resolution Exhibit A - Agreement with B&M Builders, Inc.


This Staff Report has been reviewed by the City Attorney for legal sufficiency and by the City Manager for content.


The Finance Department has reviewed this staff report and certifies that budgeted funds are available, unless a budget amendment is being requested as part of this action item.