DATE: June 18, 2024
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: SEAN SCHMIDT, FACILITIES MANAGER
TITLE: HVAC MAINTENANCE SERVICE AGREEMENT AMENDMENT NUMBER 2 RECOMMENDED MOTION:
A motion to approve a resolution authorizing the City Manager to execute Amendment No. 2 with Environmental Systems Inc. for HVAC Maintenance Services to modify the compensation terms to increase the annual rate of compensation by Two Hundred Eighty Dollars ($280) for a total not to exceed amount of Seventy Thousand Seven Hundred Fifty Dollars ($70,750).
EXECUTIVE SUMMARY:
The City entered into an agreement with Environmental Systems Inc. on April 4, 2023, for a not-to-exceed amount of Fifty-Three Thousand Nine Hundred Fifty Dollars ($53,950) annually, plus an hourly rate for emergency call backs. Amendment No.1 added $16,800 to the agreement for services at the permit center. There was a miss calculation to amendment No.1, by $280. Totaling $70,470, when the amount should be $70,750. Amendment No. 2 is to add those additional services to 65 West Alisal (Permit Center) and increase compensation by Two Hundred Eighty Dollars ($280) for a total not-to-exceed amount of Seventy Thousand Seven Hundred Fifty Dollars ($70,750). The amendment is requested to ensure services may continue and that the City infrastructure is managed correctly and safely.
BACKGROUND:
On October 18, 2022, a Request for Proposals (“RFP”) for City 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 7, 2022, 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. Respondents’ prices were then evaluated using a points method and a final score assigned to each respondent per facility group. Local vendors were allotted a 10%-point increase as identified in the RFP. On February 20, 2024, an amendment was approved to add 65 West Alisal St to the HVAC Services agreement. On initial inspection, it was found that the need for service was of greater extent than anticipated and an increase of funding is required.
The City facilities requiring HVAC services consist of a mix of, recreation centers, & office/public buildings facilities. These include the following:
GROUP/CATEGORY
FACILITY
LOCATION
Facilities
City Hall and Rotunda
200 Lincoln Avenue, 93901
Rec Centers
Community Development
Sherwood Hall
940 N Main Street, 93906
Aquatic Center
1 E Bernal Dr.
Permit Center
65 West Alisal
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). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
This item relates to the City Council’s Strategic Plan to have a Well-Planned City and Excellent Infrastructure. It’s the City’s goal to safely and efficiently manage the infrastructure with which we have been entrusted.
DEPARTMENTAL COORDINATION:
The Maintenance Services division within Public Works Department worked hand in hand in the formulation of the amendment and throughout the process. Facilities Staff made up the evaluation submittal review process. Legal staff reviewed the amendments 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 agreement with Environmental Systems Inc. is for $70,750 per year which will be funded through the Departments’ operation budgets within their respective cost centers. A breakdown by fund and appropriation is listed below.
Available budget and proposed costs are outlined in the table below.
FACILITY
(FUND/APPROPRIATION)
PROPOSED ANNUAL COST
AVAILABLE BUDGET (THRU JUNE
2024)
PROPOSED COST
(DEC THRU JUNE
2024)
City Hall and Rotunda
1000.50.5232
$20,220
$20,220
$20,500
Sherwood Hall
1200.55.6243
$33,450
$20,220
$33,450
Permit Center
1000.80.8003
$16,800
$19,428
$16,800
Total
$70,750
$59,868
$70,750
ATTACHMENTS:
Resolution
Amendment No. 2
Agreement for Services
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