AGENDA REPORT
Meeting Date: September 10, 2024
Item Number:
To: Honorable Mayor & City Council
From: Mandana Motahari, City Architect
Karen Domerchie, Project Manager
Subject: AWARD OF A CONTRACT TO AC PROS, INC., FOR THE FIRE STATION NO. 2 VENTILATION UPGRADES PROJECT; AND
APPROVAL OF A CORRESPONDING PURCHASE ORDER IN THE
NOT-TO-EXCEED AMOUNT OF $210,289; AND
APPROVAL OF PLANS AND SPECIFICATIONS THEREFOR WITH
RESPECT TO DESIGN CRITERIA
Attachments: 1. Contract
2. Rejection Letter to Air Conditioning Solutions
RECOMMENDATION
Staff recommends that City Council:
1. Reject the non-responsive bid submitted by Air Conditioning Solutions and approve the award of a contract to the responsible bidder, AC Pros, Inc., for the Fire Station No. 2 Ventilation System Upgrades Project in the amount of $182,860; and
2. Approve a construction contingency in the amount of $27,429 (15%); and
3. Approve the plans and specifications as detailed in the bid documents, which are adopted and approved with respect to design criteria; and
4. Approve a purchase order in the not-to-exceed amount of $210,289.
INTRODUCTION
Fire Station No. 2 was originally constructed in 1981. As part of the ongoing maintenance of the facility, a need has been identified to replace major components of the building’s ventilation system by replacing existing exhaust fans which have reached beyond their useful life. The new system will provide an energy efficient, low maintenance and reliable ventilation system.
Meeting Date: September 10, 2024
DISCUSSION
The mechanical engineering firm of CJTSS Consulting Engineers was engaged to provide an assessment of the ventilation system at Fire Station No. 2 and provide recommendations for system improvements. The ventilation system at this fire station consists of one exhaust fan that feeds the apparatus bay and two exhaust fans that feed the restrooms and showers; exhaust fans are particularly essential for removing carbon monoxide, nitrous oxide and diesel particulates at the apparatus area. Existing exhaust fans were found to be in poor condition and have lost their operational efficiency. CJTSS provided design drawings and specifications for replacement of the building’s exhaust fans with energy efficient units; the scope of work also includes the installation of a new carbon monoxide detection system. The new carbon monoxide detection system will be connected to the City’s Building Management System (BMS) so that it can be monitored 24/7.
On July 22, 2024, bid documents (Bid# 24-350-52) were distributed via Planet Bids to all prequalified mechanical contractors on the City’s list through an informal bidding process permitted by Section 22032 of the Public Contract Code pertaining to public projects.
Three of those companies obtained bid documents and attended the pre-bid job walk held on July 25, 2024. On August 9, 2024, two bids were received as follows:
Basis of Selection Air Conditioning Solutions AC Pros, Inc.
Base Bid $152,615 $180,260
Alternate Bid #1 $ 0 $ 4,200
Alternate Bid #2 $ 7,229 $ 2,600
20 days delay $ 0 $ 0
Basis of Selection: $ 159,844 $182,860
There were two alternates specified for this project. The first alternate is for the replacement of existing electrical feeders to exhaust fans in case the existing feeders are found to be in poor condition. The second alternate is for the installation of a new 12-hour uninterruptible power supply backup unit (UPS) for the new carbon monoxide monitoring system.
The bid documents specify that the low bid is determined by the sum of the base bid, the second alternate, and the compensable delay cost for 20 days. After reviewing bids, Air Conditioning Solutions’ bid has been deemed non-responsive since they did not list a subcontractor for air balancing, nor did they list a subcontractor for the required fire alarm system modifications. Both sub-contract works exceed one half of one percent of the base bid work and are required to be listed pursuant to Public Contract Code Section 4104. Furthermore, Air Conditioning Solutions failed to include required fire alarm modification of the work in their bid.
As a result, staff has therefore determined that AC Pros, Inc. is the lowest responsible bidder and has submitted a responsive bid and, as reported by the State Contractors Licensing Board, maintains a license that is current and in good standing. Furthermore, AC Pros, Inc. has successfully been prequalified for the work and has performed similar work for the City in the past. AC Pros, Inc.’s bid amount is aligned with the engineer’s estimate for the work. Therefore, staff recommends City Council approve an agreement with AC Pros, Inc. for this project.
Meeting Date: September 10, 2024
A contingency of $27,429, 15% of the bid amount, is recommended for changes due to unforeseen conditions in order to successfully complete the work. Expenditures from the contingency will be made utilizing the Change Order process in the Beverly Hills Municipal Code Section 3-3-110 and in the Contract upon adequate written justification and substantiation.
The bid documents specify that all work under the Contract shall be completed within 60 calendar days from the date of the notice to proceed, resulting in an estimated completion of approximately November 2024.
FISCAL IMPACT
The $210,289 for Fire Station No. 2 Ventilation Upgrades is available as part of Fund 405, Capital Improvement Project No. 00811, Major Building Systems Maintenance and Replacement. No additional funding is requested at this time.
Shana Epstein,
Director of Public Works
Approved By
Attachment 1
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CONTRACT
CITY OF BEVERLY
HILLS CONTRACT FOR
FIRE STATION NO. 2 VENTILATION UPGRADES
THIS CONTRACT (“Contract”) is made and entered this 10th day of September, 2024 (“Effective Date”), by and between the CITY OF BEVERLY HILLS, a California municipal corporation (“City”) and AC Pros, Inc. (“Contractor”). Contractor’s license number is 871281.
In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1. Contract Documents. The Contract Documents consist of this Contract, the Notice Inviting Bids, Instructions to Bidders, Bid (including documentation accompanying the Bid and any post-Bid documentation submitted before the Notice of Award), the Bonds, permits from regulatory agencies with jurisdiction, General Provisions, Special Provisions, Plans, Standard Plans, Standard Specifications, Reference Specifications, Addenda, Change Orders, and Supplemental Agreements. The Contract Documents are attached hereto and incorporated herein by reference. In the event of any conflict between the terms of this Contract and any incorporated documents, the terms of this Contract shall control.
2. Scope of Services. Contractor shall perform the Work in a good and workmanlike manner for the project identified as FIRE STATION NO. 2 VENTILATION UPGRADES (“Project”), as described in this Contract and in the Contract Documents.
3. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not to exceed amount of One Hundred Eighty-Two Thousand Eight Hundred Sixty Dollars ($182,860) in accordance with the prices as submitted in Contractor’s Proposal, attached hereto and incorporated herein by this reference.
4. Incorporation by Reference. All of the following documents are attached hereto and incorporated herein by this reference: Workers’ Compensation Certificate of Insurance; Additional Insured Endorsement (Comprehensive General Liability); Additional Insured Endorsement (Automobile Liability); and Additional Insured Endorsement (Excess Liability).
5. Antitrust Claims. In entering into this Contract, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the California Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time the City tenders final payment to Contractor without further acknowledgment by the parties.
6. Prevailing Wages. City and Contractor acknowledge that this Project is a public work to which prevailing wages apply. The provisions of Section 7.A of the General Provisions shall apply and are mandatory for this Project.
7. Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake selfinsurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work of this Contract.”
8. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it. 2 2
9. Authority. Any person executing this Contract on behalf of Contractor warrants and represents that he or she has the authority to execute this Contract on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.
10. Entire Agreement. This Contract, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. This Contract supersedes all prior oral or written negotiations, representations or agreements. This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties which expressly refers to this Contract.
11. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.
IN WITNESS WHEREOF, the parties hereto have executed the Contract the day and year first above written.
CITY OF BEVERLY HILLS
LESTER J. FRIEDMAN
Mayor
ATTEST:
By:
HUMA AHMED
City Clerk
Dated:
(“CONTRACTOR”)
By:
Printed Name:
Title:
By:
Printed Name:
Title:
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
SHANA E. EPSTEIN
Director of Public Works
[Signatures continue]
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MANDANA MOTAHARI
City Architect
SHARON L’HEUREUX DRESSEL
Risk Manager
ANTHONY RODSTEIN
Purchasing Services Manager
Attachment 2
CITY OF BEVERLY HILLS
PROJECT ADMINISTRATION
_____________________________________________________________________________________________ August 23, 2024
Mr. Chino Romo
Account Manager
Air Conditioning Solutions, Inc.
2223 El Sol Avenue
Altadena, CA 91001
RE: FIRE STATION NO. 2 VENTILATION UPGRADES PROJECT
BID NO. 24-350-52 (“PROJECT”) – NOTICE OF REJECTION OF BID Dear Mr. Romo:
On August 15, 2024 the City of Beverly Hills received and opened bids for the above referenced Project.
In accordance with California Public Contract Code 4101, it is mandatory to List all Subcontractors doing Work in an amount in excess of 0.5% of the Contractor’s total Bid or, in the case of Bids or offers for the construction of Streets or highways (including bridges), in excess of 0.5% of the Contractor’s total Bid or $10,000, whichever is greater.
Air Conditioning Solutions, Inc. (ACS) has failed to list fire alarm and air balancing subcontractors.
AC Pros, Inc. has provided documents demonstrating that the amount of the air balancing work and the fire alarm modification work of the subcontractors to the prime contractor is greater than one-half of 1 percent of the prime contractor’s total bid (refer to attached Exhibits A & B).
It also appears that the fire alarm modification cost was not even included in ACS’s bid amount.
In addition, the bid documents page 15, required for the bidders to include subcontractors license numbers and classification, Air Conditioning Solutions did not include the subcontractor’s license classification type, nor subcontractor’s phone numbers, on the List of Subcontractors submitted with their bid.
Consequently, the City is deeming Air Conditioning Solutions’ bid as non-responsive. The City will be presenting the award of contract for the above referenced project to AC Pros, Inc. at the September 10, 2024 City Council meeting.
Please feel free to contact this office should you have any question concerning this matter.
Sincerely,
Mandana Motahari, AIA
City Architect
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cc: Deborah Hakman, Assistant City Attorney