TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Frank Lucido, Engineering Manager
SUBJECT: Award Construction Contract and Approve a Budget Amendment for the “South Campus Building 4 HVAC Upgrades Rebid” Project, PW 23-10.
RECOMMENDATION
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Award a $3,293,900 construction contract to Lawson Mechanical Contractors, LLC and approve a Budget Amendment in the amount of $4,450,180 for South Campus Building 4 HVAC Upgrades project rebid. (Fiscal Impact: $4,450,180 Expense; Capital Improvement Project Fund; Budget Reallocation; Discretionary)
[4/5 vote required]
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BACKGROUND
The Air Handler Units 1, 2, and 10 in Building 4, the hydronic boiler system, and their control system have exceeded their useful service lives and will be replaced as part of this project. Construction is anticipated to commence in June 2026 and be continue until April 2027. This project will implement a Project Labor Agreement which is intended to support a stable workforce, reduce the risk of work disruptions, and help ensure the project is completed safely, on schedule, and with a qualified local workforce. Some electrical work is sole sourced to assure compatibility with the existing Siemens interface. The project was readvertised on March 24, 2026 and bids were opened on April 14, 2026 with the results listed below:
Lawson Mechanical Contractors, LLC Sacramento, CA $3,293,900
Turnkey HVAC Hayward, CA $3,320,676
Intech Mechanical Company LLC Roseville, CA $3,491,800
Matrix HG, Inc Concord, CA $3,511,590
Staff reviewed the bids, and recommends awarding the contract to Lawson Mechanical Contractors, LLC of Sacramento, CA for their low bid of $3,293,900 which is lower than the Engineer’s construction cost estimate of $3,655,000. The total project budget, including engineering design, construction management, project management, inspections, and construction contingency is $5,100,796. In addition to previous appropriations totaling $650,616, a budget adjustment of $4,450,180 from the Capital Improvement Projects (CIP) Fund is requested. Lawson Mechanical Contractors, LLC is not a local vendor; however, the Public Contract Code requires that the construction contract be awarded to the lowest responsible and responsive bidder, regardless of whether the low bidder is local or not. Staff reached out to the local construction contractor community by advertising the request for bids in the Napa Valley Register and the Solano-Napa Builder’s Exchange, and by posting on the County’s OpenGov website. Staff also sent “Notices to Contractors” to the local construction community.
It is recommended that the Board awards the construction contract to Lawson Mechanical Contractors, LLC for their low base bid of $3,293,900, authorize the Chair to sign the construction contract agreement, and approve a budget amendment reallocating funds from a project that was discontinued.
Requested Actions:
1. Award of Contract to Lawson Mechanical Contractors, LLC of Sacramento, CA for their low base bid of $3,293,900, for the South Campus Building 4 HVAC Upgrades Project and authorize the Chair to sign the construction contract; and
2. Approve a Budget Amendment to reallocate previously approved budget to a different capital project.
a. Reverse Transfers-out (57900) from Accumulated Capital Outlay (Fund 3000, Sub-Division 3000000) of $4,450,180 and the related Transfers-in (49900) to the Facilities Master Plan Project (Fund 3000, Sub-Division 3000560, Project 23045); reduce the budgeted appropriations in Project 23045 accordingly, and
b. Reallocate Transfers-out (57900) appropriations from the Accumulated Capital Outlay (Fund 3000, Sub-Division 3000000) and increase Transfers-in (49900) for the South Campus Building 4 HVAC Upgrades Project (Fund 3000, Sub-Division 3000504, Project 23018); increase Project 23018 appropriations for Construction Services (52360) by $4,052,680, Engineer Services (52145) by $64,827 and Consulting Services (52310) by $332,673.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
This project will provide needed repairs to a county facility with the use of appropriations previously budgeted for a project that was discontinued. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Construction will begin in fiscal year 2025-26 and remaining project funds and budgeted appropriations will be carried forward to fiscal year 2026-27 for completion of the project. |
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Consequences if not approved: |
The building will continue to incur damages and eventually become unusable. |
Strategic Initiative: Elevate County Service and Workforce Excellence
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.