Agenda #: 5.6
Meeting Date: October 4, 2022
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: AUTHORIZATION TO PARTICIPATE WITH OMNIA PARTNERS TO UTILIZE TRANE U.S. INC. DBA TRANE FOR THE DESIGN OF THE
DIAMOND BAR CENTER HVAC REPLACEMENT PROJECT
THROUGH JUNE 30, 2023.
STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:
A. Adopt Resolution No. 2022-52 authorizing the use of the OMNIA Partners contract with Trane U.S. dba Trane for turnkey services; and B. Approve, and authorize the Mayor, to sign the Consulting Services Agreement with Trane U.S. Inc. dba Trane for the Design of the Diamond Bar Center HVAC Replacement and Air Quality Upgrades Project.
FINANCIAL IMPACT:
The total not-to-exceed amount of this design service for Fiscal Year 2022/23 would be $75,000. Sufficient funds in the amount of $75,000 are included in the Fiscal Year 2022/23 CIP Budget (Project No. FP22501) and are available to cover the cost of design services.
BACKGROUND:
The Diamond Bar Center (DBC) currently operates seven days per week and is a premier setting for a number of large and small events. The consistent and reliable operation of crucial systems of the DBC building, such as ventilation, has become even more of a priority to the groups that utilize the facility. The existing Air Conditioning (AC) equipment is original to the facility, which went online in 2004, and has reached the end of its operational life. This agreement is for the design portion of this Project.
Included in the Fiscal Year 2022/23 CIP budget is the DBC AC Replacement and Air
Quality Upgrades Project (Project), which consists of two phases; design ($75,000) and construction ($750,000). The purpose of this Project is to replace and update the existing mechanical equipment and Building Automation System (BAS) controls, in addition to improving reliability, efficiency, and indoor air quality. This Project will ultimately provide a new comprehensive ventilation system, reduce operational disruptions, and provide a better end-user experience.
The City's Purchasing Ordinance, codified in Chapter 3.24 of the Diamond Bar Municipal Code, generally requires the use of formal bidding procedures for the procurement of goods and services that cost in excess of $45,000. Section 3.24.090 (f) provides an exception as follows: "When supplies, personal property, services or equipment can be more efficiently or more cost-efficient obtained through a cooperative purchasing program with a federal, state, county, local or other government purchasing program. Such purchases through a cooperative purchasing program shall be authorized by resolution of the City Council."
Participation in cooperative bidding programs provides the City with the purchasing power of a much larger organization and a higher economy of scale. This, in turn, can provide the City with more competitive pricing and availability of goods and services.
OMNIA Partners, Public Sector (formerly U.S. Communities) Government Purchasing Alliance is a government purchasing cooperative with the goal of reducing the cost of goods and services by aggregating the purchasing power of public agencies nationwide.
OMNIA Partners, Public Sector provides procurement resources and solutions to cities and towns, other local governments, state agencies, school districts (K-12), higher education, and nonprofits, and is free to register and use. Participants have access to a broad line of competitively solicited contracts with suppliers.
ANALYSIS:
Staff evaluated the OMNIA Partners Contract # USC 15-JLP-023 with Trane U.S Inc. dba Trane, and have determined that the competitive solicitation process meets and, or exceeds, the City’s purchasing requirements. It is recommended that the City utilize the bidding process conducted by the lead agency (Harford County Public Schools, MD), in conjunction with OMNIA Partners.
The use of this turnkey contract, through OMNIA Partners, with Trane, also provides a unique opportunity in which the City has the ability to have the same vendor as the manufacturer, designer, and installer, working on the Project from start to finish, thereby helping to ensure the seamless integration between the new systems to be installed and the existing systems at the Diamond Bar Center. This Project would be the second large-scale HVAC replacement project the City has completed using this method, with the first one being the City Hall HVAC Replacement Project, completed in October of 2018.
Attachment 1 is the proposed resolution required by Diamond Bar Municipal Code authorizing participation with OMNIA Partners to utilize the Trane turnkey contract with OMNIA Partners for the design phase of the Project. Attachment 2 is the proposed agreement with Trane for the design service.
Upon completion and approval of the design, a construction contract utilizing the Trane turnkey contract with OMNIA Partners will be brought before the City Council, along with a tentative construction schedule for consideration and approval. The construction phase of this Project is included in the current fiscal year CIP budget at $750,000.
LEGAL REVIEW:
The City Attorney has reviewed and approved the Resolution and Agreement as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 5.6.a Resolution No. 2022-52 (OMNIA Partners Cooperative Purchase)
2. 5.6.b Professional Services Agreement with Trane U.S. Inc.