DATE: APRIL 4, 2023
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, DIRECTOR
THRU: JENNY DAVILA, PW ADMIN SUPERVISOR
TITLE: HVAC MAINTENANCE SERVICE AGREEMENT
RECOMMENDED MOTION:
A motion to approve a resolution (1) awarding HVAC service agreement for four city buildings to Environmental Systems Inc; and (2) approve an appropriation of $26,975 from two separate divisions’ operations budgets to cover the services through the end of the fiscal year.
RECOMMENDATION:
It is recommended that the City Council approve a resolution awarding HVAC service agreement to Environmental Systems Inc for the sum of $53,950.00 a year for three (3) years, with the option of five (5) one-year annual renewals; and approving an increase of up to $26,975 to both the General and Measure G Fund appropriations and use of corresponding fund balances to cover the services through the end of fiscal year 22/23.
EXECUTIVE SUMMARY:
On October 18th, 2022, a Request for Proposals (“RFP”) for City Wide HVAC Service was published via Planet Bids, an online bidding tool. Two vendors submitted proposals for evaluation. An evaluation committee was formed to review the proposals for city-wide facilities. Facilities requiring HVAC services are comprised of a mix of, recreation centers and office/public buildings. In evaluating the facilities, Staff has determined that for administrative purposes, ESI will service city facilities as listed in the RFP. Based on cost proposals received, general fund appropriations will be required.
BACKGROUND:
On October 18th, 2022, a Request for Proposals (“RFP”) for City Wide HVAC Services was published via Planet Bids, an online bidding tool. A total of 13 vendors were notified, subsequently 2 registered as prospective bidders. A pre-proposal conference, attended by two prospective bidders, was held on October 24. Proposals were due on November 7th, at which time Two vendors submitted proposals for evaluation.
An evaluation committee, comprised of four cross-departmental City staff members, was formed. The committee conducted a thorough evaluation of the proposals, based on the criteria set forth in the RFP. Proposals’ prices were then evaluated using a points method and a final score assigned to each respondent per facility group. With the Points Method, the proposal with the lowest cost received the maximum points allowed, based on all 4 categories scored. Any local vendor was allotted a 10% point increase as identified in the RFP. For a summary of evaluations, refer to Exhibit A.
The city facilities requiring HVAC services consist of a mix of, recreation centers, office/public buildings. These include:
GROUP/CATEGORY
FACILITY
LOCATION
Facilities
City Hall and Rotunda
200 Lincoln Avenue, 93901
Rec Centers
Sherwood Hall
940 N Main Street, 93906
Aquatic Center
1 E Bernal Dr.
In evaluating the facilities, Staff determined that for administrative purposes, the HVAC services agreement will be awarded to Environmental Systems Inc.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
This item relates to the City Council’s Strategic Plan of Infrastructure and Environmental Sustainability. It’s the City’s goal to safely and efficiently manage the infrastructure with which we have been entrusted.
DEPARTMENTAL COORDINATION:
The Maintenance Services and Administration divisions within the Public Works Department worked hand in hand in the formulation of the RFP and throughout the procurement process. Recreation, Park, and Facilities Staff made up the evaluation committee and worked closely during the RFP submittal review process. Legal staff will review the contract agreement as to form and legality, while Finance will assist Public Works in the issuance of a purchase order and monitoring of progress payments.
FISCAL AND SUSTAINABILITY IMPACT:
The contract with Environmental Systems Inc is for $53,950 per year which will be funded through the departments’ operation budgets or the respective cost centers. Supplemental appropriations totaling $53,950 are requested to cover the cost. A breakdown by GL is listed below.
Available budget and proposed costs are outlined in the table below.
FACILITY
GENERAL
LEDGER BUDGET
PROPOSED ANNUAL COST
AVAILABLE BUDGET (THRU JUNE
2023)
PROPOSED COST
(DEC THRU JUNE
2023)
SHORTFALL
City Hall and Rotunda
1000.50.5232-63.4500
$20,500
$0
$20,500
($20,500)
Sherwood Hall
1200.55.6243-63.4500
$33,450
$0
$33,450
($33,450)
Total
$53,950
$0
$53,950
($53,950)
ATTACHMENTS:
Resolution
Evaluation / Cost Summary
Draft Agreement for Services
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