February 4, 2025, Item #7
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA REPORT CityofPoway
February 4, 2025
Honorable Mayor and Members of the City Council
Eric Heidemann, Director of Public Works ( ~
Michael Obermiller, Public Works Operations Manager~
(858) 668-4722 or [email protected]
CITY COUNCIL
Award of Agreement to ACCO Engineered Systems Inc. dba ACCO Engineered Systems for Chiller Replacement; Bid No. 25-006
A request for bid (RFB) for Chiller Replacement, Bid No. 25-006, was duly advertised on November 14 and November 21, 2024. A mandatory pre-bid meeting was held on December 4, 2024, and attended by five (5) potential bidders. Three (3) bids were received and publicly opened on December 19, 2024.
Staff reviewed the bids and determined the lowest responsible bidder to be ACCO Engineered Systems Inc. dba ACCO Engineered Systems (ACCO Engineered Systems).
Recommended Action:
It is recommended City Council award the Agreement for Chiller Replacement to ACCO Engineered Systems Inc. dba ACCO Engineered Systems and authorize the City Manager to execute the necessary documents.
Discussion:
As part of the annual budget process, funds are allocated for capital projects through the Capital Improvement Program (CIP) for investment in City infrastructure, including City facilities. During the Fiscal Year (FY) 2023-24 budget process, funds were allocated to Public Facilities Renovation HVAC Replacement (MN041 ). It was determined a portion of the funds would be utilized for HVAC infrastructure replacements.
Poway City Hall building (City Hall) is currently serviced by an air-cooled McQuay AGS160CH27-ER10 chiller, located in the parking lot behind the Council Chambers building (Council Chambers). This unit provides chilled water for both City Hall and Council Chambers, which is circulated through the building's piping system to provide air conditioning to individual rooms by transferring heat away from the air. The existing chiller is 17 years old and has reached the end of its useful life, resulting in decreased operational efficiency. The chiller was originally equipped with two compressors. One failed in 2024, leaving the unit to operate with the remaining compressor. Replacing the compressor is not 1 of 12
February 4, 2025, Item #7
a feasible option due to the high cost and an extended lead time of over one (1) year. The decreased operational efficiency led to unplanned shutdowns, increased repair costs, depletion of resources, and staff discomfort. The proposed project involves removing the existing chiller and installing a new chiller to improve efficiency and reduce ongoing maintenance demands. The estimated construction timeline is seven (7) working days, with no impact on access to City Hall or the Council Chambers.
The City issued a request for bid for Chiller Replacement on November 14 and November 21, 2024. A mandatory pre-bid meeting was held on December 4, 2024, and attended by five (5) potential bidders.
Three (3) bids were received and publicly opened on December 19, 2024. After reviewing the bids, City staff determined ACCO Engineered Systems to be the lowest responsible bidder to provide chiller replacement to the City. A summary of the responsive bid results received is listed in Table 1 below.
Table 1:
Chiller Replacement Results
Company Total Bid Amount
ACCO Engineered Systems, Inc. $187,888
Retrofit Technology, Inc. $238,600
Process Group America, Inc. $296,558
The bid received by ACCO Engineered Systems was responsive and met the required bid specifications. Based on the bids received and the work required to complete the project, ACCO Engineered Systems is qualified, and the price is fair and reasonable. Staff recommends the Agreement be awarded to ACCO Engineered Systems for the removal and replacement of the air cooled McQuay AGS160CH27-ER10 chiller in the total amount of $187,888.
Environmental Review:
This action is not subject to review under the California Environmental Quality Act (CEQA).
Fiscal Impact:
Sufficient funds are available in the relevant Capital Improvement Project account MN041 to award the Agreement as recommended. The City proactively planned for this chiller replacement project as part of the budget development process for the FY2023-24 budget, which resulted in unspent funds being rolled into the current FY2024-25 budget, with funds appropriated from the Capital Facilities Fund (6170).
Public Notification:
None.
Attachments:
A. Construction Contract
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February 4, 2025, Item #7
Reviewed/ Approved By:
v-
aserman
Assistant City Manager
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Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
Chris Hazeltine
City Manager
February 4, 2025, Item #7
CONSTRUCTION CONTRACT
CITY OF POWAY
CHILLER REPLACEMENT
This Contract made and entered into this 5th day of February 2025, by and between City of Poway, a municipal corporation of the State of California, hereinafter referred to as "City" and ACCO Engineered Systems Inc. dba ACCO Engineered Systems., hereinafter referred to as "Contractor."
The City and the Contractor, for the consideration hereinafter named, mutually agree as follows:
1. The complete Contract includes all of the Contract Documents, which are incorporated herein by this reference, and include:
a. This Contract
b. Contract Addenda
c. Contract Change Orders
d. Instructions to Bidders, Proposal Requirements and Conditions e. Contract Specifications
f. Contract Plans
g. General Condition
h. Special Conditions
i. Standard Specification for Public Works, most current edition,
2. The Contract Documents are complementary, and that which is required by one shall be as binding as if required by all.
3. Contractor shall provide and furnish all labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the following work of improvement: Chiller Replacement.
4. Contractor agrees to perform all the said work and furnish all the said materials at his own cost and expense that are necessary to construct and complete in strict conformance with Contract Documents and to the satisfaction of the City Engineer, the work hereinafter set forth in accordance with the Contract adopted by the City Council.
5. City agrees to pay, and Contractor agrees to accept in full payment for performance of this work of improvement as described, the stipulated not-to-exceed sum of one hundred ninety thousand dollars and no cents ($187,888) the "Contract Price." 4of12 ATTACHMENT A
February 4, 2025, Item #7
6. Contractor shall begin work within 15 (fifteen) days after the start date indicated in the Maintenance Notice to Proceed. The Contractor shall begin any Extra Work performed under Section 12 of the Contract Specifications within five (5) days after the start date indicated in the applicable Extra Work Notice to Proceed. Should the City fail to issue a Notice to Proceed, said Notice shall be deemed given upon the date of mailing to the Contractor of the full executed Contract (in the case of maintenance work) or Change Order (in the case of Extra Work). The Contractor shall diligently prosecute the maintenance work to completion from the date of said Maintenance Work Notice to Proceed. The Contractor shall diligently prosecute the Extra Work under Section 12 to completion within the numbers of days set forth in the Extra Work Notice to Proceed. Regardless of whether the Contractor begins work on the date specified above or not, the Contract time shall begin on that date unless a written extension of time has been granted by the Project Manager pursuant to Section 6-6 of the Standard Specification.
7. In the case of Extra Work performed, time is of the essence of this Contract, and it is agreed that it would be impracticable or extremely difficult to ascertain the extent of actual loss or damage which the City will sustain by reason of any delay in the performance of this Contract. It is, therefore, agreed that Contractor will pay as liquidated damages to the City the following sum: Five Hundred Dollars ($500) per Calendar Day, for each and every Calendar Days delay in finishing the Work in excess of the number of Working Days prescribed above. If liquidated damages are not paid, as assessed by the City, the City may deduct the amount thereof from any money due or that may become due the Contractor under this Contract in addition to any other remedy available to City. By executing this Contract, Contractor agrees that the amount of liquidated damages is reasonable and shall not constitute a penalty.
8. In accordance with State of California Senate Bill No. 854, Contractor will maintain and will require all subcontractors to maintain valid and current Department of Industrial Relations (DIR) Public Works Contractor registration during the term of this project. Contractor shall notify the City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contractor's or any of its Subcontractor's DIR registration status has been suspended, revoked, expired, or otherwise changed.
9. Contractor will pay, and will require all subcontractors to pay, all employees on said Contract a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations and wage standards applicable to this work, a copy of which is on file in the office of the City Clerk of the City of Poway. Federal prevailing wage rates apply for federally funded projects.
Travel and subsistence pay shall be paid in accordance with Labor Code§ 1773.1.
10. Contractor shall be subject to the penalties in accordance with Labor Code of § 1775 for each worker paid (either by him or by any subcontractors under him) less than the prevailing rate described above on the work provided for in this Contract. 5 of 12
February 4, 2025, Item #7
11. Contractor
and
subcontractors
shall
comply
with
Labor
Code
§
1810
and
§
1811
which
stipulates
that
eight
hours
labor
constitutes
a
legal
day's
work
, and
§
1812
which
stipulates
that
the
Contractor
and
subcontractors
shall
keep
an
accurate
record
showing
the
name
of
and
actual
hours
worked
each
calendar
day
and
each
calendar
week
by
each
worker
employed
by
him
in
connection
with
the
work
performed
under
the
terms
of
the
Contract.
Failure
to
comply
with
these
sections
of
the
Labor
Code
will
subject
the
Contractor
to
penalty
and
forfeiture
provisions
of
the
Labor
Code§
1813.
12. Contractor
will
comply
with
the
provisions
of
Labor
Code§
1777.5
pertaining
to
the
employment
of
apprentices
to
the
extent applicable
to
this
Contract.
13. Contractor,
by
executing
this
Contract,
hereby
certifies:
"I
am
aware
of
and
will
comply
with
the
Labor
Code
§
3700
by
securing
payment
for
and
maintaining
in
full
force
and
effect
for
the
duration
of
the
contract,
complete
Workers'
Compensation
Insurance,
and
shall
furnish
a
Certificate
of
Insurance
to
the
City
before
execution
of
the
Contract.
The
City,
its
officers,
or
employees,
will
not
be
responsible
for
any
claims
in
law
or
equity
occasioned
by
failure
of
the
Contractor
to
comply
with
this
paragraph."
Contractor
further
agrees
to
require
all
subcontractors
to
carry
Workers'
Compensation
Insurance
as
required
by
the
Labor
Code
of
the
State
of
California.
14. Contractor
shall,
concurrent
with
the
execution
of
this
Contract,
furnish
two
bonds
approved
by
the
City,
one
in
the
amount
of
One
Hundred
Percent
(100%)
of
the
Contract
Price,
to
guarantee
the
faithful
performance
of
the
work
("Performance
Bond"),
and
one
in
the
amount
of
One
Hundred
Percent
(100%)
of
the
Contract
Price
to
guarantee
payment
of
all
claims
for
labor
and
materials
furnished
("Payment
Bond").
This
Contract
shall
not
become
effective
until
such
bonds
are
supplied
to
and
approved
by
the
City.
15. a.
Contractor
shall
procure
and
maintain
at
its
own
expense,
until
completion
of
performance,
commercial
general
liability
insurance
of
not
less
than
One
Million
Dollars
($1,000,000)
combined
single
limit
per
occurrence,
and
Two
Million
Dollars
($2,000,000)
in
the
aggregate,
for
bodily
injury,
personal
injury,
death,
loss
or
damage
resulting
from
the
wrongful
or
negligent
acts
by
the
Contractor
or
its
officers,
employees,
servants,
volunteers
and
agents
and
independent
contractors.
Contractor
shall
provide
insurance
on
an
occurrence,
not
claims-made
basis.
Contractor
acknowledges
and
agrees
that,
for
purposes
of
clarification
with
the
intention
of
avoiding
gaps
in
coverage
with
any
umbrella
or
excess
insurance,
personal
and
advertising
injury
coverage
shall
be
triggered
by
an
"offense"
while
bodily
injury
and
property
damage
coverage
shall
be
triggered
by
an
"occurrence"
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February 4, 2025, Item #7
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during the policy period.
b. Contractor shall further procure and maintain at its own expense, until completion of performance, commercial vehicle liability insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) combined single limit per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, covering any vehicle utilized by Contractor or its officers, employees, servants, volunteers and agents and independent contractors in performing the services required by this Agreement.
c. Contractor shall further procure and maintain at its expense, until completion of performance, workers' compensation insurance providing coverage as required by the California State Workers' Compensation Law. If any class of employees employed by the Contractor pursuant to this Agreement is not protected by the California State Workers' Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Contractor has no employees performing work under this Agreement. Contractor agrees to waive its statutory immunity under any worker's compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved with the Project to do the same.
Worker's Compensation Insurance:
o Contractor has no employees and is exempt from workers' compensation requirements.
o Contractor carries workers' compensation insurance for all employees. d. All policies required by this section shall be secured from insurers authorized to do business in the State of California with an "A" policyholder's rating or better and a financial rating of at least Class VII, in accordance with the current Best's Ratings.
e. Contractor agrees to require that all parties, including but not limited to subcontractors, architects, engineers or others with whom Contractor enters into contracts or whom Contractor hires or retains pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required herein, at minimum, and, except for worker's compensation coverage, name as additional insureds the parties to this Agreement. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. f. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Contractor agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City's review and determination that all liability posed under this Agreement as to the party providing insurance has been eliminated.
February 4, 2025, Item #7
g. Contractor agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any subcontractors or others involved in any way with the Project, Contractor shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City, and/or its officers, employees, servants, volunteers, agents and independent contractors, that result from such failure by Contractor.
16. a. Contractor shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times until completion of performance and acceptance by the City.
b. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the commercial general liability and commercial vehicle liability policies shall bear endorsements whereby it is provided that the City, and its officers, employees, servants, volunteers, agents and independent contractors are named as additional insureds. Additional insureds shall be entitled to the full benefit of all insurance policies in the same manner and to the same extent as any other insureds and there shall be no limitation to the benefits conferred upon them other than policy limits to coverages. c. Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the City, and its officers, employees, servants, volunteers, agents and independent contractors.
d. Each policy required herein must be endorsed to provide that the policy shall not be cancelled in coverage or limits (except by paid claims) unless the insurer has provided the City with 30 days prior written notice of cancellation. Contractor agrees to provide the City with 30 days written notice prior to any non-renewal or reduction in coverage or limits.
e. All insurance policies required to be provided by Contractor or any other party must be endorsed to provide that the policies shall apply on a primary and noncontributing basis in relation to any insurance or self-insurance, primary or excess, maintained or available to the City, and its officers, employees, servants, volunteers, agents and independent contractors.
17. a. Contractor shall defend, indemnify and hold harmless the City, its officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therewith) to the extent actually caused by the negligence of Contractor, Contractor's employees, subcontractors or 8 of 12
February 4, 2025, Item #7
independent contractors except for any such claim arising out of the negligence or willful misconduct of the City, or its officers, agents, employees or volunteers. b. The City does not, and shall not, waive any rights that it may have against Contractor under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein.
18. Any amendments to any of the Contract Documents, including but not limited to Contract Change Orders, must be in writing executed by the Contractor and the City. Any time an approval, time extension, or consent of the City is required under the Contract Documents, such approval, extension, or consent must be in writing in order to be effective.
19. The Contract Documents contain all of the agreements and understandings of the parties and all previous understandings, negotiations, and contracts are integrated into and superseded by this Contract.
20. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Contract shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Contract which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 21 . The persons executing this Contract on behalf of the parties hereto warrant that they are duly authorized to execute this Contract on behalf of said parties and that, by so executing this Contract, the parties hereto are formally bound to the provisions of this Contract.
22. This Contract shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and assigns.
23. In performing its obligations and duties under this Contract, each party shall comply with all applicable local, state, and federal laws, regulations, rules, standards and ordinances.
24. This Contract may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument.
25. After completion of the work contemplated by this Contract, Contractor shall file with the City Manager an affidavit stating that all workers and persons employed, all firms supplying materials, and all subcontractors upon the project have been paid in full, and that there are no claims outstanding against the project for either labor or 9 of 12
February 4, 2025, Item #7
materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice that has been filed under the provision of the laws of the State of California.
26. All work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including, without limitation, the plans of Contractor and any of its suppliers.
Contractor shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the work. The Work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections.
Such final inspection shall be made with a reasonable time after completion of the work.
27. Whenever Contractor has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of the Contract, Contractor shall immediately give notice thereof, including all relevant information with respect thereto, to City.
28. Contractor agrees to contact the appropriate regional notification center in accordance with Government Code Section 4216.2.
29. Contractor shall submit its detailed plan for worker protection during the excavation of trenches required by the scope of the work in accordance with Labor Code Section 6705.
30. a. Contractor shall, without disturbing the condition, notify City, in writing, as soon as Contractor, or any of Contractor's subcontractors, agents, or employees have knowledge and reporting is possible, of the discovery of any of the following conditions:
i. The presence of any material that Contractor believes is hazardous waste, as defined in Section 25117 of the Health and Safety Code;
ii. Subsurface or latent physical conditions at the site differing from those indicated in the specifications; or
iii. Unknown physical conditions at the site of any unusual nature, different materially for those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract.
b. Pending a determination by City of appropriate action to be take, Contractor shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person. c. City shall promptly investigate the reported conditions. If City, through and in the exercise of its sole discretion, determines that the conditions do materially differ or do involve hazardous waste, and will cause a decrease or increase in 10 of 12
February 4, 2025, Item #7
Contractor's cost of, or time required for, performance of any part of the work, then City shall issue a change order.
d. In the event of a dispute between City and Contractor as to whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date, and shall proceed with all work to be performed under the contract. Contractor shall retain any and all rights that pertain to the resolution of disputes and protests between the parties.
31. This Contract is to be governed by the laws of the State of California.
32. All work shall be guaranteed for a period of one (1) year from the date of acceptance by the City. Contractor shall promptly make all needed repairs arising out of defective materials, workmanship, and equipment.
City is hereby authorized to make such repairs if within ten (10) days after giving written notice to Contractor, or its agent, Contractor should fail to make or undertake with due diligence the aforesaid repairs; provided, however, that in case of an emergency, where, in the opinion of City, delay would cause serious loss or damage, repairs may be made without notice being sent to Contractor, and Contractor shall pay the costs thereof.
(Remainder of page intentionally left blank)
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February 4, 2025, Item #7
IN WITNESS WHEREOF, the said Contractor and the City Manager, City Clerk and City Attorney have caused the names of said parties to be affixed hereto, the day and year first above written.
Contractor's Name:
ACCO Engineered Systems Inc. dba ACCO Engineered Systems By: -------------
Signature
Print Name
Contractor information:
Address for Notices and Payments
Telephone Number: ______ _
Email: ------------
CITY OF POWAY
a Municipal Corporation
Chris Hazeltine, City Manager
ATTEST:
Carrie Gallagher, CMC, City Clerk
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
Alan Fenstermacher, City Attorney
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