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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Amend existing contract for Citywide Maintenance and Repairs of Heating Ventilation and Air Conditioning (HVAC) Systems with ACCO Engineered Systems, Inc., (ACCO)
1. Motion authorizing the City Manager, or his designee, to execute Amendment No. 2, to contract 8001439 for Citywide Maintenance and Repairs of HVAC Systems with ACCO, increasing the contract amount by $852,000 to the total not-to-exceed amount of $2,173,160.
COUNCIL ACTION
Item Type: Consent Calendar
Approved for March 26, 2024 Calendar
EXECUTIVE SUMMARY
The existing 5-year contract with ACCO was established following a formal competitive bid process for maintenance and as-needed repairs of HVAC systems citywide. The initial contract amount was $1,099,544 for 5-years. The amended contract amount of $1,321,160 for 5-years has been nearly exhausted due to several large repairs and a concerted effort to address deferred maintenance at city facilities. The proposed amendment #2 adding $852,000 to the contract will provide sufficient funding to reach the November 2026 contract term date.
RECOMMENDATION
Approve the motion authorizing Amendment No. 2 to contract 8001439 for Citywide Maintenance and Repairs of HVAC Systems with ACCO, increasing the contract amount by $852,000 to the new total not-to-exceed amount of $2,173,160.
ANALYSIS
The Public Works Department is responsible for the maintenance and operation of approximately 1.2 million square feet of occupied building space including libraries, the Police Station, fire stations, the Civic Center, parks, Glendale Water and Power facilities and various other facilities across the city. To provide proper maintenance and ensure operational reliability of the city’s facilities, Public Works utilizes a strategic combination of in-house trades staff and contracted services. The contracted services provide systems experts, equipment and additional resources beyond what Public Works possesses. It 2{{section.number}}e
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also allows the city to keep in-house maintenance staffing minimized. Due to the ongoing need and complexity of these contracted resources, Public Works historically issues five- year maintenance contracts.
On September 14, 2021, following a completive bidding process, the City Council awarded the initial 5-year HVAC maintenance contract to ACCO in the not-to-exceed amount of $1,099,544.00.
On May 4, 2022, the City Council authorized Amendment No. 1 to contract 8001439, increasing the contract amount by $221,616 to $1,321,160 to include additional services at the Alex Theater.
The city owns and operates nine central plant HVAC systems that are primarily managed by a contractor (ACCO). Since the commencement of the ACCO contract, Public Works has focused extensive efforts on addressing deferred maintenance and operational efficiency of HVAC equipment for these primary systems. This effort has included improvements in duct work, air handling units, coil replacements, cooling tower repairs, boilers, and chillers. These improvements have greatly increased the performance, reliability, and efficiency of these systems. In carrying out these improvements, ACCO has been responsive and their quality of work, excellent.
While the repairs that ACCO has performed since the onset of the contract have been both necessary and effective, they have also been relatively costly with some costing as much as $20,000 each. As a result, the contract balance has been depleted faster than anticipated and will not last through November 2026. Increasing the 5-year contract amount will provide adequate funding for the continuation of much needed preventative maintenance and repairs to the city’s HVAC systems.
The Public Works Department recently hired a consultant to perform a thorough assessment of all city buildings with extra attention focused on costly building systems such as the HVAC systems. This assessment noted the improvement in the condition of the city’s HVAC systems. Having newer and well-maintained equipment significantly improves reliability, energy efficiency, and ultimately reduces operating costs. While relatively costly, staff estimates that ACCO has now mitigated the majority of significant HVAC systems deficiencies and we expect that the magnitude and quantity of large repairs will be minimized for the remainder of the contract.
ACCO provides the city with exceptional resources to maintain, troubleshoot, fabricate, and repair the city’s central plant HVAC systems. By amending the existing contract with ACCO, the city will benefit from maintaining the previously established contracted rates for the remainder of the contract.
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STAKEHOLDERS/OUTREACH
N/A
FISCAL IMPACT
The Citywide Maintenance and Repairs of HVAC Systems will cost approximately $400,000 in FY 2023-24. The Public Works budget can absorb the cost and therefore no new appropriation is being requested at this time. The funding for the contract for future years will be included as part of the annual budget process. The funding is outlined below:
Existing Appropriation
Amount Account String Funding Source
$400,000 43110-6070-PWD-7508-P0000 Building Maintenance Fund
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item includes routine maintenance and repairs activities and therefore, not subject to CEQA review.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: Do not approve the contract amendment with ACCO. Doing so would compromise the operation and reliability of the City’s nine central plant HVAC systems while the services are rebid.
Alternative 2: Consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Daniel Hernandez, Interim Director of Public Works
Prepared by:
Kevin C. Todd, Assistant Director of Public Works
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
None