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3 DATE: November 4, 2024
TO: Mayor and Members of City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Andrew Brozyna, Public Works Director
Kurt Zander, Building and Vehicle Maintenance Manager
DEPARTMENT: Public Works
SUBJECT: AWARD OF AN AGREEMENT TO THERMAL MECHANICAL INC.
FOR PROGRAMMED MAINTENANCE AND SET TIME AND
MATERIALS RATES FOR REPAIRS TO CITYWIDE HEATING,
VENTILATION AND AIR CONDITIONING (HVAC) SYSTEMS
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing the award of an agreement to Thermal Mechanical Inc. in the amount of $28,277 annually for Citywide HVAC System Programmed Maintenance and System Repair from January 1, 2025, through December 31, 2027, with the option to extend through December 31, 2029 and authorizing time and materials rates for unforeseen repairs, not to exceed $60,000, or any future limit that may be adopted by the Council, for each single repair for an amount not to exceed $150,000 annually; and finding that this action is not subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301 (c) (Class 1-Existing Facilities).
EXECUTIVE SUMMARY
A Request for Proposal (RFP) was developed to address routine HVAC maintenance and to allow the City to engage the same vendor to repair unforeseen issues on existing HVAC equipment. The scope of work requested included routine service and standard repairs to existing equipment. It did not include “stand alone” replacement projects or improvement projects. The lowest proposal was submitted by Thermal Mechanical, Inc., which is the City’s current HVAC service provider and is well acquainted with the City’s HVAC systems.
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3 BACKGROUND/ANALYSIS
The Building Maintenance Division of the Public Works Department maintains all of the City’s buildings and facilities. The City contracts for routine HVAC service and repair for these buildings and facilities, which is specialized work that requires certifications not held by Building Maintenance Division staff.
At its meeting on August 19, 2024, City Council authorized the issuance of a Request for Proposal (RFP), inclusive of both programmed maintenance and system repairs to existing equipment in order to identify an HVAC maintenance contractor that will provide the City with the services needed at the best value. In response to the Request for Proposal, the City received proposals from three (3) HVAC vendors. No proposals were disqualified based on staff assessment of the proposals and previous experience with the vendors. The lowest proposal was submitted by Thermal Mechanical Inc., which is the City’s current HVAC service provider and is well acquainted with the City’s HVAC systems.
Table 1 summarizes the programmed maintenance cost proposals from the three (3) companies. At the time the RFP was issued, the timing of the Recreation Center closure had not been finalized. Therefore, the RFP included the Recreation Center in the scope of work. Now knowing that the existing Recreation Center facility will be fully decommissioned this calendar year, proposed service on this facility is removed from the total contract cost as shown below.
Table 1: HVAC Vendor Proposals
Thermal
Mechanical
United
Mechanical
A & B
Mechanical
Controls Annual Maint
All buildings 2x annual
$1,475.50 x2=
$2,951.00
$13,474.00 $14,500.00
(by Syserco)
City Hall
4x annual
$1,881.60 x4=
$7,526.40
$22,013.00 $6,975.00
Council Chambers
3x annual
$910.80 x4=
$2,732.40
$2,863.00 $17,900.00
Police Station
4x annual
$1,771.20 x4=
$7,084.80
$9,411.00 $35,000.00
Library/Comm Cntr
4x annual
$1,208.40 x4=
$4,833.60
$12,093.00 $5,400.00
Rec Center
4x annual
$2,889.60 x4=
$11,558.40
$15,002.00 $39,500.00
VIBE/Teen Center
3x annual
$331.20 x3=
$993.60
$3,316.00 $3,500.00
Corporation Yard
4x annual
$538.80 x4=
$2,155.20
$12,169.00 $3,500.00
TOTAL COST PER
YEAR QUOTES
$39,835.40 $90,341.00 $126,275.00
Subtract Recreation
Center 4x Annual
-$11,558.40 -$15,002.00 -$39,500.00
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3 Total Net Cost Per
Year
$28,277.00 $75,339.00 $86,775.00
The new Recreation Center Building is anticipated to be completed and open by June 2026. Staff will engage in discussions with the selected vendor regarding service to the new Recreation Center and may need to bring a contract amendment to City Council at that time.
In addition to routine and preventative maintenance, proposers provided a set time and materials rate for unforeseen repairs to the system up to the City Manager, or their designee’s signing authority, which is currently $60,000, but may be increased to $75,000 as of January 1, 2025, and additionally through the contract term, as allowed under the state Public Contracts Code and authorized by City Council at a future meeting. Thermal Mechanical provided the lowest hourly rates for time and material repairs as well.
This agreement is not intended to encompass “stand alone” replacement or improvements projects, or major repairs which will continue to be performed pursuant to State law, the City’s Purchasing Ordinance, and the City’s purchasing policy.
CEQA
This action is categorically exempt from the requirements of the California Environmental Quality Act (“CEQA") pursuant to Title 14 California Code of Regulations § 15301 (c) as a Class 1 categorical exemption (Existing Facilities) as it involves the maintenance of existing building systems.
FISCAL IMPACT
The annual cost for preventative and routine maintenance under this agreement is $28,277 per year. Additional costs for identified unanticipated repairs will be charged at the time and materials rate within the City Manager’s signing authority, which is currently $60,000, but may be increased to $75,000 as of January 1, 2025, as allowed under the state Public Contracts Code and authorized by City Council at a future meeting. The total annual cost for repairs is not to exceed $150,000 in total. The City Council would have to authorize repair costs over the $150,000 limit in any given calendar year prior to work being performed.
There is sufficient funding for this agreement in the FY 2024-2025 Annual Building Maintenance Budget.
ATTACHMENTS:
Attachment 1 - Resolution
Attachment 2 - Agreement