TO:
VIA:
FROM:
DATE:
Placentia City Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE JULY 11, 2023
SUBJECT: AMENDMENT NO. 1 TO HVAC MAINTENANCE SERVICES AGREEMENT WITH F.M.THOMAS AIR CONDITIONING, INC.
FISCAL
IMPACT: EXPENSE:
AVAILABLE
BUDGET:
SUMMARY:
$ 82,747 AMENDMENT AMOUNT
$ 82,747
$ 25,000 FISCAL YEAR 2022-23 OPERATING BUDGET
(103654-6290)
$ 57,787 FISCAL YEAR 2023-24 OPERATING BUDGET
$ 37,787 (103654-6290)
$ 20,000 (103654-6130)
In November 2021, the City Council awarded a Maintenance Services Agreement to F.M. Thomas Air Conditioning, Inc. ("F.M. Thomas") to provide HVAC maintenance services. Staff is presenting this proposed amendment for City Council consideration to increase the cumulative contract not - to -exceed amount by $82,747 for the remainder of the contract term. The current contract term is set to expire on November 2, 2024; however Staff will soon be soliciting new competitive bids for these services. The recommended actions will allow the City to have sufficient contractual authority for expenditures that will be incurred in the remainder of the contract term. The proposed contract costs for HVAC maintenance services with F.M. Thomas are budgeted in the adopted Fiscal Year ("FY") 22-23 Operating Budget and FY 23-24 Operating Budget.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve Amendment No. 1 to the Maintenance Services Agreement with F.M. Thomas Air Conditioning, Inc., for HVAC Maintenance Services in an amount not -to -exceed $82,747 for a revised cumulative contract amount of $196,108 for the remainder of the contract term; and
1.c.
July 11, 2023
City Council Agenda
July 11, 2023
2. Authorize the City Administrator to approve contract change orders up to 10% of the revised cumulative contract amount; and
3. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
There is no specific Strategic Plan Goal or Objective associated with this Council action.
DISCUSSION:
On November 2, 2021, the City Council approved a Maintenance Services Agreement with F.M.
Thomas Air Conditioning, Inc. ("F.M. Thomas") in the amount of $ $113,361.00 for an initial (3) three-year contract term. Under this contract, F.M. Thomas provides HVAC maintenance services for all City facilities including quarterly and annual preventive maintenance services as well as extraordinary repairs and maintenance. During the term of the agreement, the City has incurred extraordinary expenditures with FM Thomas for emergency repairs to the City's aging HVAC system.
Staff is recommending an agreement amendment to increase the cumulative contract amount by $82,747 to provide sufficient spending authority through the end of the contract. This will allow the City to have contractual authority for additional expenditures incurred in the current fiscal year and for maintenance and emergency repair services for Fiscal Year 2023-24.
All extraordinary work is included in the City's annual City facility maintenance budget and included in the contract scope of work and bid schedule which secures fixed unit bid pricing to control costs. Staff will soon be soliciting new competitive bids for these services to improve service quality provided due to the needed on-going repairs/maintenance of the City's aging HVAC system. The recommended actions will allow the City to have sufficient contractual authority for expenditures that will be incurred in the remainder of the contract term while Staff prepares the requests for proposal to obtain a new contractor.
FISCAL IMPACT:
The recommended actions will approve Amendment No. 1 to the Maintenance Services Agreement with F.M. Thomas increasing the annual contract amount by $82,747 for the remainder of the existing term for a revised annual contract amount of $196,108. The total cost of the services is included in the adopted FY 22-23 Operating Budget and FY 23-24 Operating Budget.
Prepared by:
Reviewed and approved:
Joel Card 'as Jennifer Lampman
Public W• ks Superintendent Director of Finance
City Council Agenda
July 11, 2023
Reviewed an d apprdved:
Luis Estevez
Deputy City Administrator
Reviewed and approved:
Damien R. Arrula
City Administrator
Attachment:
Amendment No. 1— F.M Thomas Air Conditioning, Inc.