Title
Adopt a resolution to authorize and direct the Auditor-Controller to amend the Fiscal Year 2020-21 Adopted Budget to:
a. Increase appropriations by $707,006 in Fund 402, Capital Projects Fund, Appropriation Unit RMA014, for the Chiller Replacement Project-1200 Aguajito Road, Monterey, Project No. 4041, financed by an operating transfer in of $707,006 from the Resource Planning Fund 478, Sub-Fund Building Improvement and Replacement (BIR), Appropriation Unit CAO047 (4/5th vote required); and
b. Increase appropriations and transfer $707,006 from Resource Planning Fund 478, Sub-Fund BIR, Appropriation Unit CAO047, to Capital Projects, Fund 402, Appropriation Unit RMA014, on a reimbursement basis (4/5th vote required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a resolution to authorize and direct the Auditor-Controller to amend the Fiscal Year 2020-21 Adopted Budget to:
a. Increase appropriations by $707,006 in Fund 402, Capital Projects Fund, Appropriation Unit RMA014, for the Chiller Replacement Project-1200 Aguajito Road, Monterey, Project No. 4041, financed by an operating transfer in of $707,006 from the Resource Planning Fund 478, Sub-Fund Building Improvement and Replacement (BIR), Appropriation Unit CAO047 (4/5th vote required); and
b. Increase appropriations and transfer $707,006 from Resource Planning Fund 478, Sub-Fund BIR, Appropriation Unit CAO047, to Capital Projects, Fund 402, Appropriation Unit RMA014, on a reimbursement basis (4/5th vote required).
SUMMARY/DISCUSSION:
In Fiscal Year (FY) 2020-21, the Board of Supervisors approved $402,994 to the Chiller Replacement Project (Project), which included the installation of the new water-cooled chiller, expansion tank, pumps, and ancillary equipment. The Project/costs did not include replacing 150 feet of underground condensing water lines and the cooling tower and temporary cooling of the building during construction.
During the scoping/design of the Project, the engineer recommended replacing not only the 120-ton water-cooled chiller but also the cooling tower. The change in scope increased the Project budget (Attachment A-Project Budget) by $707,006 for a total project cost of $1.11 million.
The existing cooling tower is obsolete, and parts are difficult to locate. Replacement of the cooling tower has been in the County of Monterey Capital Improvement Program (CIP) for five (5) years and was identified in the 2015 Facility Assessment Report as “Critical,” meaning immediate replacement recommended.
The advantages of an air-cooled chiller are:
1. Eliminates the cooling tower and the open-loop part of the piping system and removes all the chemical treatment and ongoing maintenance of keeping the cooling tower operating and free of debris.
2. Eliminates the need to replace the buried condenser water piping or running new piping up the building's exterior following the generator piping path.
3. Eliminates the potential of unassembling and assembling a new water-cooler or creating a larger opening in the exterior wall and areaway to install a new water-cooled chiller in the existing, compact mechanical room. The new air-cooled chiller would be located at grade outside the existing chiller mechanical room.
4. Lowers installation cost between installing a water-cooled chiller, cooling tower, and condensing lines.
5. Meets current codes and space requirements.
The existing Heating, Ventilation, and Air Conditioning (HVAC) system consists of a 120-ton water-cooled chiller, one (1) base-mounted chilled water pump, a cooling tower, and a base-mounted condenser water pump. The chilled water pump and chiller are installed in a basement mechanical room. Chilled water lines are routed from the basement to the mechanical penthouse and serve two (2) air handling units (courthouse unit/probation department unit). Condenser water lines run from the chiller mechanical room into the adjacent emergency generator room and then approximately 150 feet underground to the cooling tower. The cooling tower and condenser water pump are installed in a fenced area north of the site.
The revised Project scope includes demolishing the existing water-cooled chiller, cooling tower, and underground condensing lines, and installing an air-cooled chiller, expansion tank, pumps, ancillary equipment, and fencing. The Project will be constructed using Job Order Contracting (JOC).
Under the Joint Occupancy Agreement (JOA) between the Judicial Council of California, Administrative Office of the Courts (AOC) and the County of Monterey, the AOC’s share of cost is $556,554 (50.14 percent) and the County’s share is $553,446 (49.86%). In accordance with JOA Section 4.3 Notice of Anticipated Excess Costs of the JOA, a formal request for project reimbursement was sent to the AOC (Attachment B-1/14/21 Letter to AOC). Construction activities will not commence until the AOC's commitment to reimburse the County for $556,554 is received.
The Project cost of $1.11 million qualifies as a Capital Project for funding out of Fund 402 Capital Projects, Appropriation Unit RMA014. As there are insufficient funds within the FY 2020-21 Fund 402 Adopted Budget, PWFP requests the Board adopt a resolution (Attachment C-Draft Resolution) to amend the FY 2020-21 Adopted Budget to increase appropriations to provide $707,006 in additional funding to complete the Project’s revised scope of work, financed by an operating transfer in of funds from the Resource Planning Fund 478, Sub-Fund Building Improvement and Replacement (BIR).
OTHER AGENCY INVOLVEMENT:
The Capital Improvement Committee (CIC), Budget Committee (BC), and Board of Supervisors approved the individual projects in the County CIP for FYs 2019-20 through 2023-24. The AOC authorized the Notice to Proceed for the original project scope on November 6, 2019.
The change in Project scope and associated cost increase were presented and approved by the CIC and BC on March 8, 2021 and March 31, 2021, respectively. PWFP notified the AOC of the additional $556,554 in project costs and awaits confirmation that they will reimburse the County their share of the revised Project costs.
FINANCING:
The FY 2020-21 Fund 402 Capital Projects Adopted Budget includes $402,994 for this Project. Due to the change in scope, $707,006 in additional appropriations is required. PWFP requests the financing source, in the form of an operating transfer in, be from the Resource Planning Fund 478, sub-fund Building Improvement and Replacement (BIR), Appropriation Unit CAO047. Fund 478-BIR will be reimbursed 50.14 percent of the total project cost upon receipt from the AOC. Transfers from Fund 478-BIR to Fund 402 for this Project will be made on a reimbursement basis.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The recommended action supports the Board of Supervisors Administration, Infrastructure, and Public Safety Strategic Initiatives. Prompt action by PWFP to effect timely repairs protects the County facility and appurtenances, promotes safety for the building occupants and public, and ensures continuity of County operations.
Economic Development
X Administration
Health & Human Services
X Infrastructure
X Public Safety
Prepared by: Patricia A. Lopez, Project Manager II (831)755-8998
Reviewed by: Lindsay Lerable, Chief of Facilities
Approved by: Shawne E. Ellerbee, Assistant Director of Public Works, Facilities, & Parks
Approved by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities, & Parks
Attachments:
Attachment A-Project Budget
Attachment B-1/14/2021 Letter to AOC
Attachment C-Draft Resolution