City hall is getting a $1-million upgrade.

Simi Valley residents won’t be able to see the improvement, but if they enter the building, they’ll be able to feel it.

On March 21, the City Council awarded a construction contract to Simi Valley-based KFY United Mechanical Contractors Inc. in the amount of $923,000 for the replacement of the heating, ventilation and air conditioning (HVAC) systems at city hall.

If necessary, the city manager can amend that contract to cover unforeseen and associated costs up to $92,000—about 10 percent of the contract amount—which could bring the total cost to about $1.02 million.

According to Public Works Director Ron Fuchiwaki, the existing HVAC systems at city hall and the Development Services Building (DSB) are outdated and inefficient. They need to be replaced to conserve energy, reduce utility costs and improve comfort for those who work in and those who visit the buildings.

The ci ty was awarded $895,000 for the project under the Energy Efficiency and Conservation Block Grant Program, part of the American Recovery and Reinvestment Act of 2009.

Last fall, the department of public works solicited bids for the replacement of HVAC systems at city hall and the DSB. The engineer’s cost estimates for city hall and the DSB were $960,000 and $340,000, respectively.

Since the estimated total cost significantly exceeds the grant funds available for the project— United’s bid to replace the HVAC systems at both buildings was nearly $1.4 million—only city hall will be getting an upgrade.

City staff will continue to look for other funding sources to replace the DSB’s HVAC systems at a later date.

After deducting the cost of structural engineering, mechanical engineering and energy-efficient lighting improvements, the remaining grant funding for the project is $772,800.

To cover the rest of the project costs, the City Council approved a supplemental budget request of $242,200. This amount includes the transfer of $11,100 of unused Energy Efficiency Conservation Block Grant funds from another project as well as new appropriations: $125,000 from the building improvement fund and $106,100 from the general fund.

While the project represents a new expense for already-cashstrapped city coffers, Fuchiwaki said the utilities budget will see a yearly savings of about $25,000 in future years and additional costs to the city funds will be paid off in under 10 years.

“Obviously the city is looking to enhance its energy efficiency and improve its energy efficiency, and by doing this project over time we’ll be able to recover any costs we pay now in energy savings down the road,” Fuchiwaki said.

The fact that a Simi contractor was tapped to do the work—United was the lowest bidder—is an “excellent” bonus, Fuchiwaki said.

Work will begin early this month and is expected to be finished in July, he said.

The contractor is required to perform major construction activities on weekends to minimize disruption at city hall.

The city’s contract with United also requires the contractor to enroll and participate in the federal E-Verify program, a free online tool that can be used by businesses to determine the legal status of a job applicant.