City Council
Report
City Council Meeting: May 28, 2024
Agenda Item: 5.A
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Award a Contract with ACCO Engineered Systems, Inc. for the Airport Mechanical Equipment Replacement Project, and a Contract With Same Contractor, ACCO Engineered Systems, Inc., for Citywide On-Call Mechanical Equipment Services.
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15302 (Replacement and Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines;
2. Award Bid # SP2694 to ACCO Engineered Systems, Inc., for Airport Mechanical Equipment Replacement and Additive Alternative Bid for Citywide On-Call Mechanical Equipment Services for the Public Works Department;
3. Authorize the City Manager to negotiate and execute a contract with ACCO Engineered Systems, Inc., in an amount not to exceed $1,993,090 (including a 10% contingency in the amount of $181,190) for Airport Mechanical Equipment Replacement;
4. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority for Airport Mechanical Equipment Replacement;
5. Authorize the City Manager to negotiate and execute an agreement with ACCO Engineered Systems, Inc., in an amount not to exceed $5,000,000 for three years, with one-additional one-year renewal option in the amount of $1,500,000, on the same terms and conditions for a total amount not to exceed $6,500,000 over a four-year period, for citywide as-needed mechanical systems repairs and/or replacements, with future year funding contingent on Council budget approval; and
6. Authorize budget amendment as outlined in the Financial Impacts and Budget Actions section of this report (requires 5 votes).
Summary
In addition to aeronautical operations, the Santa Monica Airport (SMO) provides areas 2 of 6
of business, education and entertainment for community members, visitors, and City staff. The mechanical equipment in many City-owned buildings at SMO and throughout the City have reached the end of their useful life and require replacement. Staff recommends entering into two contracts with ACCO Engineered Systems, Inc., a mechanical contractor. One contract would include the work to replace mechanical equipment at multiple locations at SMO. The second contract would be for on-call, asneeded services for mechanical equipment repair and replacement at City-owned facilities.
Discussion
The current SMO Administration Building, located at 3223 Donald Douglas Loop South, Santa Monica, CA 90405, was constructed in 1986. Since its construction, the building has served as commercial office space, airport administration offices, and restaurant space. The mechanical system at the SMO Administration Building has been repaired multiple times throughout its lifetime, has reached the end of its useful life and needs full replacement. The contract for planned mechanical equipment replacements would include the replacement of the mechanical equipment at the SMO Administration Building’s cooling tower and suites 3233A, 3233B, 3233C, 3233D, 3235, and 3155.
The City of Santa Monica owns facilities at SMO and throughout the City. These facilities range in size and age and need periodic repairs or replacement of their mechanical equipment. The contract for on-call, as-needed services would enable the Public Works Department to provide prompt action on future and on-going mechanical service calls at all City owned facilities including, but not limited to: Santa Monica Public Library, Public Safety Facility and City Hall.
These contracts would support the Santa Monica City Council’s priority of “Cultivating Economic Recovery & Expanding Community & Cultural Offerings” by ensuring the City maintains and improves its facilities for use by the community, local businesses and City staff.
Vendor Selection
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Bidder Recommendation
Best and Only Bidder ACCO Engineered Systems, Inc.
Evaluation Criteria Price; the quality of the material or services offered; the ability, capacity and skill of the bidder to perform or provide the materials or services; the capacity of the bidder to perform the contract or provide the service promptly, within the time specified, and without delay or interference; the sufficiency of the bidder’s financial resources; the character, integrity, reputation, judgment, training, experience and efficiency of the bidder; the ability of the bidder to provide such future maintenance or service as may be needed; any other factor that will further the intent set forth in Section 608 of the City Charter. The City shall have absolute discretion in determining the applicability and weight of the criteria listed above. The City is not required to select the bid with the lowest price.
Municipal Code SMMC 2.24.180
The technical and phasing complexity of the project narrowed down the available contractors that are capable of providing the necessary services that the City requires.
Six vendors attempted to apply. Three vendors submitted no-bids while two did not respond. The three no-bid vendors stated no interest on bidding with no further feedback. ACCO Engineered Systems, Inc., has an extensive history performing mechanical equipment replacement and repairs for the City of Santa Monica and was the only bidder.
Bid Data
Date
Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
02/01/2024 City's Online
Bidding Site
Santa Monica Daily Press 42 04/04/2024
Best Bidder Justification
On April 4, 2024, one bid was received for SP2694 – Airport Mechanical Equipment Replacement Project which includes immediate mechanical equipment repairs and replacement at multiple locations at Santa Monica Airport, and a three-year on-call Submittals Received
ACCO Engineered Systems, Inc. $1,811,900.00
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service contract. ACCO Engineered Systems, Inc., a company based in California with license types A, B, C4, C10, C16, C20, C36, C38, and C42 in the State of California, was determined to be the best and only responsive bidder. Bidder meets all City’s requirements. They offer extensive professional experience, knowledge of working at and for the City of Santa Monica and Santa Monica Airport, a successful track record, stability, similar references to the proposed scope of work, and reasonable pricing.
Environmental Review
The agreement for HVAC equipment and services is categorically exempt from CEQA pursuant to Section 15302 (Replacement and Reconstruction) of the CEQA Guidelines.
Section 15302 exempts Class 2 projects which “consists of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced.” The replacement HVAC would replace existing HVAC system with the same purpose and capacity. Therefore, the contract for HVAC is exempt pursuant to Section 15302.
Financial Impacts and Budget Actions
Staff seeks authority to appropriate additional funds from the Airport Fund for the SP2694 – Airport Mechanical Equipment Replacement Project to include the scope of work to replace the existing mechanical equipment at multiple facilities at the Santa Monica Airport.
Approval of the recommended action requires the following budget amendment.
FY2023-24 CIP Budget Amendment
Additional Funds to be Appropriated
Account # Amount
C5704690.689000 $1,993,090
Staff seeks authority to approve funding from the Airport Building/Facility Refurbishing account to award a contract with ACCO Engineered Systems, Inc. for SP2694 – Airport Mechanical Equipment Replacement.
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Contract Request
FY 2023-24 Budget
Request Amount CIP Account # Total Contract Amount
$1,993,090 C5704690.689000 $1,993,090
Staff also seeks authority to enter into a contract with ACCO Engineered Systems, Inc. for SP2694 – Mechanical Equipment Replacement and Repair On-Call Services. This contract would serve to provide as-needed on-call services for multiple Departments and Divisions in the City of Santa Monica and not committed expenses, allowing the City to be responsive to operational needs. Accounts would be provided by Departments and Divisions when they request mechanical equipment as-needed services. The costs of the services would be covered using existing budgeted funds within the requesting departments’ budgets. The initial contract would be for an amount not to exceed $5,000,000 for a three-year period with the ability to extend the contract amount for an additional $1,500,000 for an additional one-year period, for a total not to exceed $6,500,000 over a four-year period. Future year funding is contingent on Council budget approval.
Contract Request
FY 2023-24 Budget
Request Amount Account # Total Contract Amount
As-Needed per Project Various Accounts $ 5,000,000
Prepared By: William Clerk, Architectural Associate
Approved Forwarded to Council
Attachments:
A. Staff Report - May 8, 2018 ACCO
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B. Oaks Initiative Form - ACCO
C. Levine Act Disclosure Form - ACCO