REPORT TO COUNCIL
SUBJECT
Title
Action on Agreements for On-Call Heating, Ventilation, Air Conditioning (HVAC) Services with Prime Mechanical, Inc. and Thermal Mechanical, Inc.
Report
BACKGROUND
The Public Works Department oversees maintenance and repairs for approximately 800,000 square feet of buildings throughout the city. In order to continue to provide services in a timely and efficient manner, the Department periodically uses various vendors to assist with the workload.
The scope of these agreements provides HVAC on-call repairs and maintenance for systems at various City facilities. City buildings such as City Hall, the Old Courthouse, Police Department, Central Library and Northside Library, Senior Center and others have mechanical equipment used to heat, ventilate, and air condition these facilities. The HVAC systems are critical components to functionality of the buildings. This equipment needs to be inspected and adjusted on an annual basis as it is important to keep the buildings at proper, stable temperatures. The on-call repairs portion of the Agreement will be used to address problems with the systems that are discovered and repair them on a case by case basis to limit any disruptions.
DISCUSSION
A Request for Proposal (RFP) process was utilized to solicit proposals for HVAC service and on-call repairs. The RFP was advertised in May 2018 and four proposals were opened on June 21, 2018. A summary outlining the costs from each proposer is included in Attachment 1. The qualifications of the proposers were evaluated by staff from the Building Maintenance Division of Public Works. Prime Mechanical Service, Inc. and Thermal Mechanical, Inc. were selected as the top ranked proposals for several reasons including past performance, qualified staffing, experience and cost.
Staff is recommending approval of (2) three-year Agreements not-to-exceed $225,000 with Prime Mechanical Service, Inc. (Attachment 2) and not-to-exceed $125,000 with Thermal Mechanical, Inc. (Attachment 3). Two thirds of the total value of the contracts is being awarded to Prime Mechanical Service, Inc. based on their hourly costs being the lowest. The purpose for having two agreements is to be prepared in case one of the contractors cannot perform work within a given timeframe, then the City would have the ability to reach out to another contractor for the repairs. Staff is also requesting that the City Manager be authorized to amend the Agreement not-to-exceed amount in either agreement as long as the cumulative amount spent does not exceed $350,000, the total three-year cumulative contract amount for the two contractors, subject to annual appropriations. A resolution providing this authority to the City Manager is included in the recommendation.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 “Existing Facilities” as the activity consists of the restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment.
FISCAL IMPACT
The amount to be paid to contractors for HVAC service and on-call repairs over the three-year term of these agreements is $350,000, subject to future budget appropriations. The estimated cost of on-call repairs is based on an estimate of past years’ expenditures. These costs have been included in various departmental budgets for FY 2018/19 and expenditures will be charged as needs arise.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve and authorize the City Manager to execute agreements for the Performance of Services with Prime Mechanical Service, Inc. ($225,000) and Thermal Mechanical, Inc. ($125,000) to perform on-call HVAC repairs for a combined amount not-to-exceed $350,000 over the three year term of the agreements;
2. Adopt a Resolution to authorize the City Manager to make necessary amendments to the agreements, including but not limited to the not-to-exceed amount in either agreement, as long as the cumulative amount spent does not exceed $350,000, subject to annual appropriations.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Comparisons
2. Agreement - Prime Mechanical Service, Inc.
3. Agreement - Thermal Mechanical, Inc.
4. Resolution