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City of San Leandro <br />City Council <br />Meeting Date: July 10, 2023 <br />Agenda Number: 10.p. <br />Agenda Section: ATS Review <br />File Number: 23-260 <br />File Type: Staff Report <br />Adopt a Resolution to Approve and Authorize the City Manager to Execute Amendment No. 2 to the <br />Installation Agreement Between the City of San Leandro and Climatec, LLC to Include Interim <br />Replacement Components of the HVAC System at the Senior Community Center for $123,900 <br />COUNCIL PRIORITY <br />·Maintain and enhance San Leandro’s infrastructure <br />SUMMARY <br />In June 2022, the City Council approved an amendment to Climatec’s Phase 3 scope of work <br />to include replacement of the Senior Community Center’s (SCC) HVAC system. <br />Design/engineering work on the system commenced in July 2022 and was completed in <br />December 2022. In January 2023, Climatec obtained a preliminary lead time of 14 months <br />from the manufacturer for shipment of the new HVAC unit. Given the ongoing impacts to <br />programming caused by the HVAC system, Climatec initiated discussions with City staff and <br />HVAC contractors to ascertain whether certain components could be replaced ahead of the <br />unit replacement that would improve the function of the unit until such time as the unit <br />replacement took place. <br />RECOMMENDATION <br />Staff recommends the City Council approve the amount and adopt a resolution to authorize <br />the City Manager to execute Amendment No. 2 to the Installation Agreement with Climatec, <br />LLC to include interim replacement components for the Senior Community Center’s HVAC <br />system at a cost of $123,900.00. <br />BACKGROUND <br />On December 13, 2021, the City Council held a Public Hearing (pursuant to California <br />Government Code Sections 4217.10 and 4217.18) to approve a new Installation Agreement <br />(referred to as Phase 3) with Climatec, LLC for design and construction of energy-efficiency <br />and resiliency projects at various City locations for a total cost of $4,994,884.00. Of that total, <br />$395,828.00 was allocated from the Building Maintenance Fund, $3,314,916.00 from ARPA <br />funds (over Fiscal Years 2021-2022 and 2022-2023), and $1,284,140.00 through a 1% loan <br />from the California Energy Commission. <br />Amendment No. 1 to the Phase 3 contract was approved by the City Council in June 2022 to <br />add in design/engineering and construction for the SCC’s HVAC system at a cost of <br />$973,525.00 ($600,000.00 from ARPA funds and $375,525.00 of available CIP funds. <br />Page 1 City of San Leandro Printed on 6/14/2023