DATE:
January 17, 2023
TO:
Mayor and Council Members
Chair and Board Members, Hesperia Water District
FROM:
Nils Bentsen, City Manager
BY:
Jeremy McDonald, Director of Public Works
Marc Morales, Management Analyst
SUBJECT:
Heating, Ventilation, and Air-Conditioning (HVAC) Contract Amendment
RECOMMENDED ACTION
It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to approve an amendment to the existing contract with Allison Mechanical, Inc., for an additional $50,121 for a revised not-to-exceed contract amount of $317,121, and adopt Resolution No. 2023-05 amending the Fiscal Year (FY) 2022-23 Budget by appropriating an additional $30,121, for heating, ventilation, and air-conditioning (HVAC) preventative maintenance and repair services for City and Water District facilities.
BACKGROUND
The City contracts with an HVAC contractor for preventive maintenance and repairs at various City and Water District facilities, including the Hesperia Branch Library. These services include quarterly filter changes, system adjustments, and repairs to ensure HVAC systems are operating to factory specifications. In July 2020, the City conducted a formal bid for preventative maintenance and repairs for HVAC equipment and Allison Mechanical, Inc. was deemed the lowest responsible/responsive bidder.
ISSUES/ANALYSIS
The current contract with Allison Mechanical, Inc is for a not-to-exceed amount of $267,000 and expires June 30, 2023. During July 2022 and August 2022, there were multiple repairs performed at City Hall and Public Works Yard as there was an excessive heat wave this summer season. With the repairs completed, Allison Mechanical, Inc. also identified 1 of the 4 compressors at City Hall needing replacement. City staff also requested an inspection of the compressor from another HVAC vendor and confirmed that the compressor needed replacement at a similar cost. This compressor replacement to the HVAC systems will result in utilizing the current contract amount. Based on the quarterly preventative maintenance schedule, the replacement of the compressor at City Hall, and estimated repairs performed by the contractor, staff estimates the additional $50,121, $20,000 for estimated repairs and $30,121 for the compressor replacement, for the new not-to-exceed amount of $317,121 will be sufficient for the remainder of the contract term.
FISCAL IMPACT
Funding for $20,000 in estimated repairs has been included in the FY 2022-23 Budget. Staff is requesting approval from the City Council to increase the General Fund Operating Budget by $30,121 via Resolution No. 2023-05 for the compressor replacement at City Hall, which will be funded from City reserves.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT
Resolution No. 2023-05
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Mayor and Council Members, Chair and Board Members, Hesperia Water District Heating, Ventilation, and Air-Conditioning (HVAC) Contract Amendment January 17, 2023