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Home My WebLink About12 - Budget Amendment - Air Conditioning RepairCITY OF NEWPORT BEACH POLICE DEPARTMENT January 25, 1999 January 25, 1999 Item No. 12 TO: Honorable Mayor, Members of the City Council and City Manager FROM: Bob McDonell, Chief of Police SUBJECT: Budget Amendment for Air Conditioning Repair RECOMMENDATION: Approve a General Fund Budget amendment and transfer $19,500 to Capital Improvement Projects Budget #7011- C1820037 for the critical repairs of 28 air conditioning units at the Police Department. BACKGROUND: In 1994, as part of a Public Works Capital Improvement Project, 28 new "Carrier Corporation" (CARRIER) air - conditioning units were installed on the roof of the police facility. The general contractor for the project was selected by Public Works in a competitive bid process and the units to be installed met the City's specifications. At no time did the general contractor, the manufacturer or distributor (Southern California Air Conditioning Distributors - SCACD), mention to anyone involved in the project at the City, that there existed an option to vinyl coat the coils on the air conditioning units, nor did they recommend that a vinyl coating be placed on the coils to prevent deterioration from occurring. Since installation of the units, they have been regularly inspected and serviced by our service provider, Hurliman Heating and Air Conditioning. Within the last year, Pat Hurliman (the individual who actually performs our service), has reported a steady degradation of the condenser coils in a large number of the units. Hurliman has extensively documented the visible damage in his work records and has taken periodic photographs depicting the progressive damage of the coils. Hurliman also wrote CARRIER with our knowledge, describing the rapid deterioration of the coils, provided them with photographs and on our behalf, requested a resolution. Budget Amendment for Air Conditioning Repair Page 2 DISCUSSION: In November of 1998, Lieutenant Andy Gonis, Fiscal Services Manager Lisa McBroom, Captain Tim Riley from the Police Department and Fong Tse of the Public Works Department met with Les Karcher from CARRIER, Phil Batterson from SCACD and Pat Hurliman at the Police Department. We discussed the problems with the condenser coils and together inspected each air conditioning unit. After viewing the photographs, reviewing the documents, inspecting the units and discussing the issues, Karcher from CARRIER and Batterson from SCACD told us the damage was the result of coastal corrosion (salt air and air pollutants — see attached letters). The representatives were not surprised by the damage and said it is a normal problem with their units in our type of environment. They said the general contractor should have included a recommendation to specify vinyl coating for the coils when the units were originally purchased. As an aside, Fong Tse told the Police Department the general contractor for the air conditioning project declared bankruptcy and is no longer in business. At our meeting, Karcher from CARRIER and Batterson from SCACD agreed verbally and later provided the attached written offers to replace the damaged coils at no cost (excluding labor), with new ones manufactured by CARRIER, which will have vinyl coating. They agreed to the replacement as a good will gesture even though the units are out of warranty. They are confident these new coils will provide the required protection from the harsh coastal elements. CARRIER and SCACD together will pay for the new coils and the delivery to the Police Department (estimated to be nearly $50,000). The City will have to pay the cost of installation (including crane charges to lift the coils on the roof) at a total cost of $19,500.00. Fong Tse agreed with the recommendation that the coils should be replaced with the vinyl coated ones as soon as possible. A decision not to replace the coils at the present time may ultimately result in a number of less than desirable and costly scenarios. Among them, we are likely to encounter a substantial increase in maintenance costs, outright failure, a loss of energy efficiency in the very near future, and a shorter life expectancy overall for the units, with inevitable replacement at a substantially higher cost, since the manufacturer's present offer would no longer be available. For all of these reasons, it is highly recommended the City approve funding of the maintenance work. Time is of the essence in accepting the replacement offer, since the particular units required are in short supply. The manufacturer has located 21 of the 28 required, and has placed them on hold pending the acceptance of the terms of the offer. The remaining units must still be located or remanufactured at their expense. Budget Amendment for Air Conditioning Repair Page 3 In an effort to identify funds for this project in our 98 -99 budget, we have closely examined our capital projects and expenditures. Unfortunately, we have a number of competing priorities involving projects which are already underway, such as the ongoing locker and briefing room construction. As a result, we are unable to divert the necessary funds for the critical repairs. Respectfully submitted, Tim Riley, Captain Support Services Division Commander Approved by, Bob McDonell CHIEF OF POLICE Dec-15 °8 09:44a Pat / Teresa Hurliman 714 - 632 -9629 P,2 SnurxeAnt� Ant00.x1A _ Southern California Air Conditioning Distrihutors 16900 Chestnut street, City of Industry, Califomia 91748 -1012 Date: 11 -17 -98 Post Office Box I I11. U Puente, California 91749 -1111 • (818) 854.4500 A Fax (818) 8543550 To: Burliman Beating and Air Conditioning 3152 E. La Palma Avenue Suite E Anaheim, Ca. 92806 Attn.: Pat Burliman Re.: Resolution to condensing coil degradation at the Newport Beach Police Department. Pat, Pursuant to our conversation, SCACD and Carrier are collectively making an offer to assist the Newport Beach Police Department in replacing Ole condensing coils. As a review, the untreated (or non - protected) coils were found to be failing due to coastal corrosion. The building in question is located within close proximity to a salt -water body, causing the rapid deterioration. An agreement was made with the representatives of the City of Newport Beach (Fong Tse -PE, Lisa McBroom- Facilities Manager and Captain Tim Riley) that firture installations will include the specification of protective coatings. In response to this, SCACD and Carrier will provide pre - coated condensing coils- The offer specifically provides Carrier's vinyl pre- coated condensing coils as replacements to the degrading (existing) condensers The offer is specific in that it does not include any monies for labor, soldering supplies or refrigerant. We hope that this meets with your approval as we hoped to make this a winning solution for all involved. If you should have any questions on this matter, please feel free to contact me directly at (626) 854 -4643. Regards, ` n` �1 - Phil Batterson Mgr., Customer Assurance and Warranty Group Cc.: Les Karcher - Carrier Corporation Lisa McBroom, Captain Riley - Newport Beach Police Department '' Worlds Largest Air Conditioning Equipment Distributor HURLIMAN HEATING & AIR CONDITIONING, INC. 3152 E. La Palma Avenue, #E • Anaheim CA 92806 -2807 • 714- 666 -8477 • Fax: 714- 632 -9629 • License #694681 December 27, 1998 Ms. Lisa McBroom Fiscal Services Facilities Manager Newport Beach Police Department 870 Santa Barbara Drive Newport Beach, CA 92660 Dear Lisa: We propose installing the coated condenser coils to be supplied by Carrier and Southern California Air Conditioning Distributors in the 28 existing Carrier air - conditioning units at the Newport Beach Police Department for a total sum of $19,500. This includes all additional material, labor, crane services and shipping and handling to facilitate the removal and replacement of the 28 condenser coils. If you have any questions or concerns, please call me at (714) 666 -8477. Sincerely, ? b �_ -- Pat Hurliman President PJH:mth City of Newport Beach BUDGET AMENDMENT 1998 -99 MCT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X I Increase Budget Appropriations AND Transfer Budget Appropriations from existing budget appropriations from additional estimated revenues PX from unappropriated fund balance EXPLANATION: NO. BA- 038 AMOUNT: $�e,soo.00 Increase in Budgetary Fund Balance Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To purchase replacement coils for the Newport Beach Police Department roof ceiling air conditioning units. This purchase should prevent future expensive repair and replacement costs. There have been no prior budget amendments to this Capital Project Account this fiscal year. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account ,eneral Fund 010 3605 REVENUE APPROPRIATIONS (3601) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Description Fund Balance Control Description Signed: ,ad: L Signed: City Council Approval: City Clerk ger Amount Debit Credit $19,500.00 ' ' Automatic $19,500.00 / D7a Date ' Date Description Division Number 7011 Facilities Rehab /Remodel Account Number C1820037 Police Facilities Maintenance Program Division Number Account Number Division Number Account Number Division Number Account Number Division Number Account Number Signed: ,ad: L Signed: City Council Approval: City Clerk ger Amount Debit Credit $19,500.00 ' ' Automatic $19,500.00 / D7a Date ' Date