14-C
TO:Honorable Mayor and Members of the City Council
ATTENTION:Ryan Smoot, City Manager
FROM:Len Gorecki, Assistant City Manager/Director of Public Works Wangsu Lee, Management Analyst
SUBJECT:Consideration and possible action to authorize the City Manager to execute Amendment No. 4 to Agreement File No. 777, in a form approved by the City Attorney, with Thermal Concepts, Inc.
DATE:July 8, 2024
EXECUTIVE SUMMARY
This action would authorize the City Manager to execute Amendment No. 4 to Agreement File No. 777 (“Agreement”) with Thermal Concepts, Inc. (“Contractor”) to increase the not-to-exceed amount from $60,000 to $120,000 per year for air conditioning maintenance services.
RECOMMENDATION TO CITY COUNCIL
1) Authorize the City Manager to execute Amendment No. 4 to Agreement File No. 777, in a form approved by the City Attorney; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
Amendment No. 4 will add $60,000 to Agreement File No. 777, for a total not-to-exceed amount of $120,000 per year. Funds for the air conditioning maintenance services are budgeted in the respective building and grounds maintenance accounts for each facility.
DISCUSSION
On November 17, 2017, the City entered into Agreement File No. 777 with Thermal Concepts, Inc. for air conditioning maintenance services. Per the Agreement, the payment to Contractor for services is not to exceed $60,000 per year; however, due to the increase in labor and materials along with the unforeseen maintenance in various air conditioning units throughout City facilities, $60,000 per year is no longer sufficient to ensure the safety and efficiency of the City-owned air conditioning units. Staff estimates that a not-to-exceed amount of $120,000 per year is sufficient to meet scheduled maintenance of the City-owned air conditioning along with additional services that may be required to ensure safe and efficient functioning of the City-owned air condition units.
ATTACHMENT
Amendment No. 4 to AFN 777 ........................................................................................ 2 -1-
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«In stafteport
AMENDMENT NO. 4 TO
AGREEMENT FILE NO. 777 BETWEEN
THE CITY OF BELLFLOWER AND
THERMAL CONCEPTS, INC.
FOR AIR CONDITIONING MAINTENANCE SERVICES
THIS AMENDMENT No. 4 (“Amendment”) is made and entered into this 8th day of July 2024, by and between the CITY OF BELLFLOWER, a general law city and municipal corporation (“CITY”), and THERMAL CONCEPTS, INC., a California corporation (“CONTRACTOR”).
SECTION 1. Pursuant to Section 20 (“AUTHORITY/MODIFICATION”) of Agreement File No. 777 (“Agreement”), Section 1.C. (“CONSIDERATION”) is amended to read as follows:
“1. C.CONSIDERATION.As additional consideration, CITY agrees to pay CONTRACTOR for CONTRACTOR’s services not to exceed an annual total of $120,000 for the work. City will pay for work on the basis of hourly rates and cost reimbursement rates as specified in the attached Exhibit ‘B,’ which is incorporated by reference.”
SECTION 2. Exhibit B (“Fee Schedule”) is replaced with the attached Exhibit B.
SECTION 3. This Amendment may be executed in any number or counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date.
SECTION 4.ELECTRONIC SIGNATURES. This Agreement may be executed by the Parties on any number of separate counterparts, and all such counterparts so executed constitute one agreement binding on all the Parties notwithstanding that all the Parties are not signatories to the same counterpart. In accordance with Government Code §16.5, the Parties agree that this Agreement, agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by electronic transmission.
Such electronic signature will be treated in all respects as having the same effect as an original signature.
SECTION 5. Except as modified by this Amendment, all other terms and conditions of Agreement File No. 777 remain the same.
[SIGNATURES ON NEXT PAGE]
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City of Bellflower
Agreement File No. 777 - Amendment No. 4
Thermal Concepts, Inc.
IN WITNESS WHEREOF, the parties hereto have executed this contract the day and year first hereinabove written.
CITY OF BELLFLOWER THERMAL CONCEPTS, INC.
_________________________________________________________ Ryan Smoot, City Manager Joey Salgado, President
ATTEST:
_____________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
_____________________________
Karl H. Berger, City Attorney Taxpayer ID No. 71-1043751 ATTACHMENT:
Exhibit B – Fee Schedule
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CITY OF BELLFLOWER
AGREEMENT FILE NO. 777
EXHIBIT B – FEE SCHEDULE
Payment to CONTRACTOR for the Services described in Exhibit A will be as follows:
Fixed Fees:
Routine Air Conditioning Maintenance Services (4 per year) - ($37,640.00/year) ($9,410.00 per Quarter)
On Hourly Basis:
Additional Services (As Requested by Public Works) - ($82,360.00/year) Additional services including emergency responses or assignments requested by CITY’s Public Works Director will be performed by CONTRACTOR. Payment for such additional services will be based upon the following hourly rates:
Regular Rate (Normal Business Hours) ......................................................... ($136/hour) Afterhours/Overtime Rate ............................................................................... ($240/hour) Holiday/Double Time Rate ............................................................................. ($272/hour) Vehicle/Truck Charge .................................................................... ($125/technician/hour) Total Payment ........................................................................................ ($120,000/year) -4-