Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute A Construction Management At Risk Phase II Construction Services Agreement With Lebolo Construction Management, Inc. For The Fire Station 74 HVAC System Replacement Project, Phase A, For A Total Guaranteed Maximum Price In An Amount Up To $1,900,000.00.
Strategic Plan Focus
Infrastructure & Facilities
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
On September 21, 2022, the City Commission passed and adopted Resolution No. R-2022-271 authorizing City officials to execute Continuing Service Agreements with the highest-ranked firms in each tier level to provide Construction Management at Risk services, with Lebolo Construction Management, Inc. (“Lebolo”) being one of the firms.
Fire Station 74 serves as the City’s Emergency Operations Center (“EOC”) and the main office headquarters for the Fire Rescue team. It is essential that this building operates at peak performance and has reliable, efficient HVAC equipment to maintain a safe, healthy, and comfortable environment for personnel.
The HVAC system at Fire Station 74, including air handling units and associated mechanical equipment, is at or beyond the end of its useful life. On February 28, 2026, one of the air handling units became fully inoperable, impacting critical operational areas and living quarters. Additional units and components are also operating in a deteriorated condition and are no longer effectively conditioning the building.
The City recently completed substantial work on the Fire Station 74 chiller replacement project, which is now in the closeout phase. While the new chiller system is capable of operating at peak performance, the existing air handling units and associated components are unable to reliably meet system demand, creating an immediate need for a comprehensive HVAC replacement project.
Lebolo has provided the Department of Design and Construction Management (“DCM”) with a Guaranteed Maximum Price (“GMP”) Phase II proposal for the Fire Station 74 HVAC System Replacement project, in an amount up to $2,800,639.00, which staff has reviewed and determined to be fair, reasonable, and in accordance with current industry standards. The GMP includes an Owner’s Contingency of $320,195.00 to address unforeseen conditions that may arise during construction.
The full scope of work includes replacement of the air handling units and associated components, including but not limited to: Variable Air Volume (VAV) boxes, Variable Frequency Drives (VFDs), duct heaters, dampers, airflow measuring stations (AMS), louvers, fans, pumps, and full integration into the City’s existing HVAC control system.
Due to Lebolo’s familiarity with the facility, experience coordinating the chiller replacement project, and active presence on-site, staff has determined that proceeding with Lebolo for this Phase II work is in the best interest of the City. Utilizing Lebolo ensures continuity of construction services, minimizes coordination risks, and expedites project delivery at this critical public safety facility.
The Director of DCM recommends that the City Commission approve and authorize the execution of the attached Construction Management at Risk Phase II Construction Services Agreement for the Fire Station 74 HVAC System Replacement project, Phase A in an amount up to $1,900,000.00, including 18% of the cost of work as Owner’s Contingency to address unforeseen conditions that may arise given the age and existing condition of the building.
When funding is available, we will go back to City Commission for consideration for additional funds to proceed with Phase B of this project. We estimate Phase B to cost an amount up to $900,639.00
Fiscal Impact:
Funding for Phase A of the project was included in the amended FY 2026 Capital Improvement Plan and is available in account number 334.519901.52200.564531.001586.000.000.
Recommended for inclusion on the agenda by:
Steve Stewart, Director, Office of Procurement & Contract Compliance
Marc Gambrill, Director, Design and Construction Management
Raelin Storey, City Manager