Agenda Item
City Council
Item #: 3.35. 6/14/2022 File #: 22-0362
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Second Amendment to Contract with Diversified Thermal Services, Inc. for preventive maintenance for heating, ventilation and air conditioning (HVAC) equipment at various City facilities, Bid No. 189- 19 (SP4076).
2. SUMMARY
The proposed Second Amendment authorizes a two-year contract extension with Diversified Thermal Services, Inc. in the amount of $310,063.
3. RECOMMENDED ACTION
Approve Second Amendment with Diversified Thermal Services, Inc. in the amount of $310,063 for preventive maintenance for HVAC at various City facilities, and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this two-year agreement is $310,063 and will be funded through General Fund (100).
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
a: Provide staffing and resources to deliver services that ensure public safety.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. DISCUSSION AND BACKGROUND
The Public Works Department currently has a preventative maintenance contract for HVAC at various City facilities with Diversified Thermal Services, Inc. for an annual amount of $134,810. An additional fifteen percent contingency in the amount of $40,443 is included in the Second Amendment to allow for emergency service requests. The total not to exceed amount is $310,063 for two years.
Diversified Thermal Services, Inc. has provided excellent maintenance services to the City of Orange and has always been very responsive to the City’s routine service as well as emergency needs.
The City Council approved the First Amendment to the Contract with Diversified Thermal Services, City of Orange Printed on 6/9/2022Page 1 of 2
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Item #: 3.35. 6/14/2022 File #: 22-0362
The City Council approved the First Amendment to the Contract with Diversified Thermal Services, Inc. in November 2021 for unforeseen major repairs at various facilities. The original term of the contract is expiring on June 30, 2022. The Contract has the option for one two-year extension, as agreed upon by both parties. Staff is recommending the City Council approve a Second Amendment to the Contract to enact the one and final extension.
7. ATTACHMENTS
· Second Amendment
City of Orange Printed on 6/9/2022Page 2 of 2
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