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March 21, 2006, Item B-15

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March 21, 2006, Item B-15 THE BOARD OF SUPERVISORS OF THE COUNTY OF STANISLAUS ACTION AGENDA SUMMARY DEPT: Chief Executive Office BOARD AGENDA # *B-15 Urgent Routine &a AGENDA DATE March 21,2006 CEO Concurs with Recommendation YES 415 Vote Required YES NO SUBJECT: Approval for the Emergency Replacement of the Boiler System in the Courthouse Pursuant to Public Contract Code Section 22050, and Related Actions STAFF RECOMMENDATIONS: 1. By a 415 vote, make the following findings: a) that the sudden loss of the boiler system at the Courthouse on March 15, 2006 resulted in the inability to heat the courthouse; b) that the replacement of the boiler system is necessary to permit the continued conduct of essential county operations or services; (Continued on Page 2) FISCAL IMPACT: It is estimated that the cost to lease temporary boiler equipment, abate the asbestos in the boiler room, replace the boiler, and administer the project will not exceed $322,280. The cost to install a temporary boiler system which includes preparing the area for installation, actual installation, installation of temporary fencing and four months of rental costs is projected to be $31,830. (Continued on Page 2) BOARD ACTION AS FOLLOWS: NO. 2006-194 On motion of Supervisor -----E;~ye! IIIIIIIIIIIIIIIIIII. , Seconded by Supervisor ----MIadieId ----------------- and approved by the following vote, Ayes: Supe~isors:~Q1B~:nMa~~1~d.~JQY~1~~~B~~~nL~and~Chairman~S'~mQn~..................................... Noes: Supervisors:Nm .................................................................................... Excused or Absent: Supervisors:N~oe........................................................................ Abstaining: SIIpe~isOr:N00%................................................................................ I) X Approved as recommended 2) Denied 3) Approved as amended 4) Other: MOTION: ATTEST: 0 TALLMAN, Clerk File No. Approval for the Emergency Replacement of the Boiler System in the Courthouse Pursuant to Public Contract Code Section 22050, and Related Actions Page 2 RECOMMENDATIONS (Continued): c) that the emergency will not allow for a delay which would result if the project were competitively bid, and that the action to immediately replace the boiler system on an emergency basis is necessary. 2. Delegate to the Chief Executive Officer the authority to order any action appropriate to replace the boiler system, and to take any directly related and immediate action required by that emergency, and to procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts. 3. Direct the Chief Executive Officer to report to the Board on the status of the emergency project in 14 days, as required by the Public Contract Code. 4. Direct the Auditor-Controller to transfer $130,170 of General Fund appropriations and cash to the Courthouse Construction Fund budget unit consistent with the budget journal. FISCAL IMPACT (Continued): This cost will be funded in the General Services Agency Building Maintenance budget. A review at third quarter will be conducted to determine whether these costs can be absorbed in the budget or whether a transfer from Appropriations for Contingencies will be necessary to fund these unanticipated costs. The cost to prepare the site, including full abatement of asbestos in the boiler room, dismantle and remove the old boiler system, install a new boiler system, air quality and inspection permits, administrative costs and a 15% contingency is estimated to be $290,450. Appropriations in the amount of $160,280 were carried over from the prior fiscal year in the Courthouse Construction fund budget for the boiler project. The Administrative Office of the Courts (AOC) must approve use of the Courthouse Construction funds. While a request had been sent to the AOC for use of $190,000 for the boiler system replacement, the AOC stipulated that use of the funds was contingent upon review of plans and specs for the project and that the cost be pro-rated based upon the percentage of actual Superior Court occupancy in the Courthouse. Staff is working with the AOC to receive approval for use of these funds for all or a portion of the permanent replacement project. At this time available funding in the amount of $60,000 has been identified in the County Facilities budget and an additional $70,170 has been identified in the Plant Acquisition budget, that would be available to fund the project costs including the current appropriation in the Courthouse Construction Fund. It is anticipated that Approval for the Emergency Replacement of the Boiler System in the Courthouse Pursuant to Public Contract Code Section 22050. and Related Actions Page 3 approval for use of the Courthouse Construction Fund to cover all or a portion of the boiler system replacement should be known by the next report to the Board. If the full request for funding is not approved, it will be necessary to identify an additional funding source either within existing appropriations in Plant Acquisition or Appropriations for Contingencies. Public Contract Code Section 20134 provides that a contractor who provides equipment and materials on an emergency basis shall be paid the actual cost of the use of machinerv and tools and of material. and labor and of workers' compensation insurance expended by him or her in doing the work, plus not more than 15 percent to cover all profits and administration. No more than the lowest current market prices shall be paid for materials whenever possible. Staff will work to ensure that these limitations are maintained. DISCUSSION: On March 15, 2006, the 50 year old boiler in the courthouse failed, and it has been determined it cannot be repaired. As a result of the loss of the boiler, the Courthouse building was without heat, resulting in a potential loss of essential services. Temporary heat was restored to the Courthouse facility by March 17, 2006. In order to permit the continued conduct of County operations and services at the Courthouse, the following actions are required to be taken on an emergency basis: a) rent and install a temporary boiler system; b) abate hazardous asbestos in the boiler room; c) dissemble and remove the failed boilers and associated non-reusable equipment; and d) procure and install a new boiler system. Public Contract Code Section 20134 and 22050 authorize the County to repair or replace facilities without adopting plans and specifications and without the necessity of going through the competitive bid process. Typically, it would take over 60-90 days to obtain design documents, and an additional 60 days to competitively bid and award a contract for this type of work. Public Contract Code Section 22050 provides that the Board of Supervisors must make the finding, by a 415 vote, that the emergency will not permit a delay resulting from the competitive solicitation for bids and that the action is necessary to respond to an emergency. That section also provides that the Board, by a 415 vote, may delegate to a County administrative officer the authority to order any action relating to the replacement of the boiler, to take any directly related and immediate action required by that emergency, and to procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts. Approval for the Emergency Replacement of the Boiler System in the Courthouse Pursuant to Public Contract Code Section 22050, and Related Actions Page 4 Public Contract Code Section requires staff to report on the emergency action every 14 days until the action is terminated. Staff recommends the County contract with RGA Environmental for the asbestos abatement and with Champion Industrial Contractors for the boiler system. RGA Environmental had previously surveyed the Courthouse for hazardous materials and is familiar with the facilities. Champion Industrial Contractors, a Modesto firm, has worked with the County for many years, has mechanical engineers on staff who will assist with any design requirements, has a local fabrication shop to support the work, has an existing service contract with Stanislaus County and is familiar with the facility. It is anticipated that the total cost of the project including temporary replacement and installation of a leased boiler system will be $322,280. The costs associated with the temporary installation of a backup system including four months of lease costs for the temporary boiler will be funded within existing appropriations in the General Services Agency Building Maintenance budget at an approximate cost of $31,830. The cost to prepare the site, including full abatement of asbestos in the boiler room, removal of the old svstem. ~urchaseand installation of a new boiler system, air quality and in~~ection'~ermits,a project contingency for unanticipated costs and projected administrative costs is estimated to be $290,450. It is anticipated that contingent upon final approval from the AOC the costs will be funded from a combination of Courthouse Construction funds previously budgeted, and other existing appropriations. The new boiler system will be designed to operate at the latest energy efficiencies reducing the cost of utilities and reducing the County's annual operating cost. The new system may qualify for an energy rebate from PG & E. Staff will involve PG & E in the initial design. Chief Executive Office, District Attorney and Superior Court staff are working together to ensure that the project is completed in a manner that does not negatively impact court operations and staff. POLICY ISSUES: Approval of this action will address an emergency situation and promote efficiency in the administration of the courthouse and criminal justice system. Additionally, this action supports the Board's priorities of promoting a safe and healthy community. Approval for the Emergency Replacement of the Boiler System in the Courthouse Pursuant to Public Contract Code Section 22050, and Related Actions Page 5 STAFFING IMPACT: Existing Chief Executive Office Capital Projects staff and General Services Agency Building Maintenance staff will assist in the procurement of the new boiler system for the Courthouse.
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