AGENDA REPORT
Meeting Date: May 24, 2022
Item Number:
To: Honorable Mayor & City Council
From: Michael Hensley, Deputy Director of Public Works, Operations Craig Crowder, Fleet & Facilities Manager
Judi Tamasi, Senior Management Analyst
Subject: AMENDMENT NO. 3 TO AN AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND DMS FACILITY SERVICES, LLC FOR
MECHANICAL-ELECTRICAL SERVICES; FIRE AND LIFE
SAFETY; HEATING, VENTILATING, AND AIR CONDITIONING
SYSTEMS (HVAC); AND
APPROVAL OF A PURCHASE ORDER FOR FISCAL YEAR
2022/23 IN THE NOT-TO-EXCEED AMOUNT OF $482,666; AND
AUTHORIZE THE CITY MANAGER TO APPROVE ADDITIONAL
AMENDMENTS TO THE AGREEMENT IN AN AMOUNT NOT- TO-EXCEED $965,332; AND
AUTHORIZE THE CITY MANAGER TO APPROVE CHANGE
PURCHASE ORDERS IN AN AMOUNT NOT-TO-EXCEED THE
TOTAL VALUE OF THE AGREEMENT
Attachments: 1. Amendment No. 3
RECOMMENDATION
With the competitive bidding process already underway, staff recommends that City Council move to waive the formal bidding process for this amendment; approve Amendment No. 3 to Agreement #267-17 between the City of Beverly Hills and DMS Facility Services, LLC for Mechanical-Electrical Services, Fire and Life Safety, Heating, Ventilating, and Air Conditioning Systems (HVAC); approve a purchase order for Fiscal Year 2022/23 in the not-to-exceed amount of $482,666; authorize the City Manager to approve additional amendments to the agreement in an amount not to exceed $965,332; •
BEVERLY
HILLS
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Meeting Date: May 24, 2022
and authorize the City Manager to approve change purchase orders in an amount not to exceed the total value of the agreement.
INTRODUCTION
The City provides building maintenance services to approximately 65 buildings and facilities with a total area of approximately 3,200,000 square feet. The Public Works Department maintains these buildings using a combination of City staff and service providers through ongoing maintenance agreements and capital projects. In 2017, the City selected DMS Facility Services, LLC (“DMS”) after a competitive selection process and entered into the current agreement. The scope of services includes mechanical- electrical services; fire and life safety; and heating, ventilating, and air conditioning (HVAC) systems. The proposed agreement extension and purchase order for Fiscal Year 2022/23 is to provide coverage for these critical facilities maintenance services during the current competitive bidding process.
DISCUSSION
DMS provides engineering services in the areas of mechanical-electrical systems, fire and life safety, and HVAC systems through their direct work and through oversight of specialized service providers (subcontractors). DMS’ work includes, but is not limited to, the following: Operate, maintain and repair all components of the Civic Center central HVAC system including the Central Plant, water treatment and the Central Plant automation system; Maintain and repair all other HVAC systems and building-related water or waste water pumping systems (sump pumps); Assure proper functioning of carbon monoxide exhaust systems, emergency power transfer switching systems, select emergency lighting uninterruptible power supply systems and City-owned architectural water features, including pumps, plumbing, electrical systems and lighting and control systems; Maintain/test/inspect/monitor/certify fire and life safety systems.
DMS works throughout the City, including at City-owned and City-occupied buildings (e.g., City Hall, Library, Police Department, etc.), parking structures, tenant spaces, community centers, parks and reservoirs. The contractor provides ongoing/regular services, such as, scheduled preventative maintenance and implements other unplanned work on an as- needed basis.
City Council approved the current five (5) year agreement with DMS on June 20, 2017. (The City previously had contracted with DMS for these services since 2011.) The current agreement was amended by Amendment #192-21, primarily to incorporate text required by Federal Emergency Management Agency (FEMA) to qualify for reimbursement of COVID-19 expenses (e.g., installation of enhanced air filtration equipment to abate the spread of COVID-19). That amendment also incorporated standard text that the City has added to other agreements, addressing infectious disease (i.e., COVID-19) by requiring self-monitoring and recording by the contractor.
The City published a new Request for Proposal 22-350-30 for Facilities Engineering Operations and Mechanical Maintenance at City Properties to cover the services that DMS provides. The large and varied scope of services in the RFP has been more specifically defined and enhanced compared with the scope of service in the current agreement. The Meeting Date: May 24, 2022
preparation of the RFP was a complex process. City staff is evaluating the comprehensive proposals and wants to ensure that the service continues to be provided during the evaluation process.
Due to the need for uninterrupted services, staff recommends City Council waive the bidding requirements for the amendment pursuant to Beverly Hills Municipal Code section 3-3-204. It is in the best interest of the City to execute this amendment in order to continue ongoing and responsive facilities engineering operations and mechanical maintenance services while the competitive bidding process is completed.
If approved, this amendment would increase the consideration by $482,666 and extend the termination date through September 30, 2022. This is a three-month pro-rated estimate, based on the Fiscal Year 2021/22 blanket purchase order. The amendment and purchase order as well as the request to authorize the City Manager to approve additional amendments to the Agreement in an amount not to exceed $965,332 would provide coverage for these critical facilities maintenance services during the competitive bidding process.
FISCAL IMPACT
The proposed purchase order amount of $482,666 is expected to cover the additional three months of services during Fiscal Year 2022/23. The request to authorize the City Manager to approve additional amendments to the Agreement in an amount not to exceed $965,332 would provide coverage for these critical facilities maintenance services during the competitive bidding process. Funding for this purchase order comes from the operating budgets and does not require appropriations. These consist of the Capital Assets Fund (405 Facilities Maintenance) and Parking Enterprise Fund (810 Parking Operations).
Shana Epstein, Director of Public Works
Approved By
Attachment 1
1 B0785-0001\2660738v3.doc
AMENDMENT NO. 3 TO AN AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND DMS FACILITY SERVICES, LLC FOR
MECHANICAL-ELECTRICAL SERVICES; FIRE AND LIFE
SAFETY; HEATING, VENTILATING, AND AIR CONDITIONING
SYSTEMS (HVAC)
NAME OF CONTRACTOR: DMS Facility Services, LLC
RESPONSIBLE PRINCIPAL OF CONTRACTOR: Jeff Magann, Vice President/General Manager
CONTRACTOR’S ADDRESS: 1040 Arroyo Drive
South Pasadena, CA 91030
Attention: Jeff Magann
CONTRACTOR’S E.I.N/TAX I.D. NO.: 95-4702231
CITY’S ADDRESS: City of Beverly Hills
455 N. Rexford Drive
Beverly Hills, CA 90210
Attention: Director of Public Works
COMMENCEMENT DATE: July 1, 2017
TERMINATION DATE: June 30, 2022 (original termination date) September 30, 2022 (amended pursuant to
Amendment No. 3)
CONSIDERATION: Original Agreement:
Total Not to Exceed $686,000.00 per Fiscal
Year (FY), subject to any cost increases,
additions or deletions as authorized in the
Contract Documents, payable as provided
in the Contract Documents.
Amendment No. 1: No additional
Consideration Amendment
Amendment No. 2: No additional
Consideration Amendment
DocuSign Envelope ID: 246D115C-C1C1-4DBE-9660-3CEDA10C3C20 2 B0785-0001\2660738v3.doc
Amendment No. 3: An additional
$482,666.00 for Fiscal Year 2022-23 and an
additional amount not to exceed
$965,332.00 which may be approved by
purchase order by the City Manager
Total Not to Exceed: $4,877,998.00
DocuSign Envelope ID: 246D115C-C1C1-4DBE-9660-3CEDA10C3C20 3 B0785-0001\2660738v3.doc
AMENDMENT NO. 3 TO AN AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND DMS FACILITY SERVICES, LLC FOR
MECHANICAL-ELECTRICAL SERVICES; FIRE AND LIFE
SAFETY; HEATING, VENTILATING, AND AIR CONDITIONING
SYSTEMS (HVAC)
This Amendment No. 3 is to that certain Agreement between the City of Beverly Hills (hereinafter called "CITY") and DMS FACILITY SERVICES, LLC (hereinafter called "CONTRACTOR") dated June 20, 2017 and identified as Contract No. 267-17, amended by Amendment No. 1 dated June 4, 2021 and identified as Contract No. 192-21, and further amended Amendment No. 2 dated December 29, 2021 and identified as Contract No. 592-21 (“Agreement”).
NOW, THEREFORE, the parties agree as follows:
Section 1. Agreement Documents. The Agreement Documents consist of this Amendment No. 3 and all prior amendments; and the CONTRACT DOCUMENTS, dated June 20, 2017 and identified as Contract No. 267-17, including:
Section 1: Notice Inviting Bids
Section 2: Instructions to Bidders
Section 3: Special City Requirements
Section 4: General Specifications
Section 5: Bidder’s Bid
Section 6: Signature Page and Legal Status
Section 7: Additional Forms
Section 8: Scope of Services
Section 9: Bid Form
Section 2. Incorporation by Reference. The Agreement Documents are incorporated herein by reference. In the event of any conflict between the terms of this Amendment No. 3 and any incorporated Agreement Documents, the terms of this Amendment No. 3 shall control.
DocuSign Envelope ID: 246D115C-C1C1-4DBE-9660-3CEDA10C3C20 4 B0785-0001\2660738v3.doc
Section 3. Titles. The titles used in this Agreement are for convenience only and shall in no way define, limit or describe the scope or intent of this Agreement or any part of it.
Section 4. Section 3, “PERFORMANCE PERIOD”, shall be replaced in its entirety to read as follows:
“3. PERFORMANCE PERIOD. CONTRACTOR shall commence Work under this Agreement, after execution of the Contract, as provided in the Notice to Proceed, and CONTRACTOR shall continue to provide contract services for a minimum period of One Year, with services renewable by the City Manager or his designee in writing under the same terms and conditions of this Agreement for five additional one (1) year periods, or such other time period as agreed upon in writing by the City Manager or his designee and CONTRACTOR, unless terminated sooner pursuant to the terms of the Contract.” Section 5. Section 4, “PAYMENT”, shall be replaced in its entirety to read as follows:
“4. PAYMENT. CITY shall pay CONTRACTOR as full consideration for the satisfactory performance by CONTRACTOR of all Work required under this Contract the total not to exceed amount of Three Million, Nine Hundred Twelve Thousand, Six Hundred Sixty-Six Dollars ($3,912,666.00), subject to any cost increases, additions or deletions as authorized in the Contract Documents, payable as provided in the Contract Documents. In addition, the City Manager shall have the authority to approve purchase orders for an additional Nine Hundred Sixty-Five Thousand, Three Hundred Thirty Two Dollars ($965,332). In no event shall the total amount exceed Four Million, Eight Hundred Seventy Seven Thousand, Nine Hundred and Ninety Eight Dollars ($4,877,998.00)”
Section 6. Except as specifically amended by this Amendment No. 3, the remaining provisions of the Agreement shall remain in full force and effect.
EXECUTED the _____ day of __________________, 2022, at Beverly Hills, California.
CITY OF BEVERLY HILLS
A Municipal Corporation
____________________________
LILI BOSSE
Mayor
(SEAL)
HUMA AHMED
City Clerk
[Signatures continue]
DocuSign Envelope ID: 246D115C-C1C1-4DBE-9660-3CEDA10C3C20 5 B0785-0001\2660738v3.doc
CONTRACTOR: DMS FACILITY SERVICES, LLC
JEFF MAGANN
Vice President/General Manager
CAROLE THORSELL
Secretary/Treasurer
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
___________________________ ____________________________ LAURENCE S. WIENER GEORGE CHAVEZ
City Attorney City Manager
SHANA E. EPSTEIN
Director of Public Works
MICHAEL V. HENSLEY
Deputy Director of Public Works
SHARON L’HEUREUX DRESSEL
Risk Manager
DocuSign Envelope ID: 246D115C-C1C1-4DBE-9660-3CEDA10C3C20 Certificate Of Completion
Envelope Id: 246D115CC1C14DBE96603CEDA10C3C20 Status: Sent Subject: Please DocuSign: DMS Facility Services, LLC (267-17) Amendment No. 3 Source Envelope:
Document Pages: 5 Signatures: 6 Envelope Originator:
Certificate Pages: 3 Initials: 0 Erin Justus
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.169
Record Tracking
Status: Original
5/18/2022 4:53:38 PM
Holder: Erin Justus
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Carole Thorsell
[email protected]
Secretary
DMS Facility Services
Security Level: Email, Account Authentication
(None)
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[email protected]
Using IP Address: 107.185.192.118
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Jeff Magann
[email protected]
VP/GM
DMS Facility Services
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Sharon L'Heureux Dressel
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Risk Manager
Sharon Dressel
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Deborah R. Hakman for
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Michael V. Hensley
[email protected]
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Shana E. Epstein
[email protected]
Director of Public Works
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Logan Phillippo
[email protected]
Senior Management Analyst
City of Beverly Hills
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George Chavez
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