REPORT TO COUNCIL
SUBJECT
Title
Action on a Service Agreement with Prime Mechanical Service, 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, Building Maintenance periodically uses various vendors to assist with the workload.
The scope of this agreement (Attachment 1) provides boiler preventative maintenance and on-call repairs for mechanical boilers. City Buildings such as City Hall, Old Courthouse, Police Department, Central & Northside Library, Senior Center and others have hot water boilers used for heating. This is a critical component of a buildings heating, ventilation, and air conditioning system (HVAC). These boilers need to be inspected and adjusted on an annual basis as it is important to keep the buildings at proper, stable temperatures. Typical preventative maintenance includes safety inspections, replacing the pilot assembly, inspecting operating ranges and cleaning burners. The on-call repairs portion of the agreement will be used to trouble shoot any problems that arise 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 boiler preventative maintenance and on-call repairs. The RFP was advertised in March 2018 and three proposals were received on April 11th, 2018. The qualifications of the proposers were evaluated by staff from the Building Maintenance Division of Public Works. A summary outlining the costs from each proposer is included in Attachment 2. Prime Mechanical Service, Inc. was selected as the top ranked proposal for several reasons including past performance, qualified staffing, experience and cost. Staff is recommending approval of a three year agreement not to exceed $200,000 with Prime Mechanical Service, Inc.
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 Prime Mechanical Service, Inc. shall be for an amount not-to-exceed $200,000 over a three year term. The subject agreement contains $86,566 for the preventative maintenance during the term of the agreement and an additional amount of $113,434 for on-call repairs. 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 an Agreement for the Performance of Services with Prime Mechanical Service, Inc. to perform annual boiler preventative maintenance and on-call boiler repairs for an amount not-to-exceed $200,000 over the three year term of the agreement; and
2) Authorize the City Manager to make minor modifications to the agreement, if necessary.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Agreement
2. Proposal Cost Comparison