City Council
Report
City Council Meeting: May 8, 2018
Agenda Item: 3.A
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Facilities Maintenance Subject: Contractual Services Agreement for Citywide HVAC Maintenance and Repair Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute an agreement with ACCO Engineered Systems for maintenance of City heating, ventilation and air conditioning (HVAC) systems and large-scale repairs. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.080(b) and is for a total amount not to exceed $1,499,064 over a five-year period, with future year funding contingent on Council budget approval.
Executive Summary
The Facilities Maintenance Division contracts out heating, ventilation and air conditioning (HVAC) work for various City facilities including City Hall, the Public Safety Facility, City libraries and City fire stations. This contracted work augments the City’s inhouse HVAC staff and generally focuses on large scale repairs and maintenance of intricate HVAC systems. Staff recommends piggybacking off of a competitive bid completed by the Big Blue Bus (BBB) last year and awarding the contract to ACCO Engineered Systems for an amount not to exceed $1,499,064 over a five-year period.
Background
In June 2017, Facilities Maintenance staff awarded informal bid 53907-OG to ACCO Engineered Systems. Staff executed a contractual services agreement, CT-4395, for a total amount not to exceed $175,000 over a two-year period. Upon the execution of CT4395, it became apparent that the total not to exceed amount would be exhausted in less than two years as the City’s demand for HVAC contractual services has increased due to the addition of facilities at the Santa Monica Municipal Airport and aging HVAC systems citywide.
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Discussion
The City employs five permanent in-house staff to provide various HVAC services at City facilities. Typical services provided by City staff include adjusting air controls, changing fan belts and providing basic preventative maintenance. Due to the large size and complexity of some City HVAC systems, in-house staff cannot meet all citywide HVAC needs. To ensure efficient operation and safe temperature-controlled environments for the public and staff, additional services are contracted out for:
the larger and more complex HVAC systems located at facilities such as the Santa Monica Municipal Airport, Santa Monica Main Library and the City’s fire stations;
large-scale projects that are often long-term and require specialized licensing and equipment; and
addressing equipment failures and emergency repair work in a timely manner to prevent shutdowns.
Immediate contracted services are needed to address a backlog of deferred maintenance which will require significant repairs and replacements to various City HVAC systems. Internal staff will then be able to take on most preventative maintenance throughout the City. The installation of new equipment will also reduce the demand for contractors to complete repairs.
Staff expects to complete the large-scale projects during the first two years of the contract in an amount not to exceed $850,000, for a total amount not to exceed $1,075,000 over a five-year period. Citywide routine preventative maintenance will be performed during the first two years of the contract in an amount not to exceed $164,350, for a total amount not to exceed $424,064 over a five-year period.
Staff recommends piggybacking on BBB’s bid award with ACCO Engineered Systems, at the same hourly rate, in an amount not to exceed $1,014,350 for two years, with one additional three-year renewal option, for a total amount not to exceed $1,499,064 over a five-year period, with future year funding contingent on Council budget approval. 3 of 4
Vendor/Consultant Selection
On March 21, 2017, the City published Notices Inviting Bids to provide maintenance and repair services for BBB’s HVAC and Air Movement systems in accordance with City specifications. The bid was posted on the City’s online bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Twenty-seven vendors downloaded the bid. Two bids were received and publicly opened on April 6, 2017 (Attachment A). ACCO Engineered Systems and Richardson Technologies, Inc. submitted bids, and highlights from each are as follows:
Scope
Acco Engineered
Systems
Richardson
Technologies
Journeyman (per hour) $ 115.00 $ 107.00
Apprentice (per hour) $ 95.00 $ 107.00
Overtime (per hour) $ 156.00 $ 160.50
Total Costs $ 366.00 $ 374.50
Bids were evaluated based on criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product, and compliance with City specifications.
ACCO Engineered Systems, the lowest bidder, was recommended as the best bidder.
On June 13, 2017 Council awarded bid #4266 for the maintenance and repair of HVAC systems to ACCO Engineered Systems (Attachment A). Staff recommends piggybacking on BBB’s bid award with ACCO Engineered Systems, at the same hourly rate. The proposed agreement with ACCO Engineered Systems fully complies with the exceptions to competitive bidding, pursuant to Section 2.24.080(b) of the Santa Monica Municipal Code.
Financial Impacts and Budget Actions
The agreement to be awarded to ACCO Engineered Systems is for an amount not to exceed $1,499,064. Funds of $506,330 are available in the FY 2017-18 budget in the Public Works Department. The contract will be charged to account 01274.570060 and 4 of 4
expenditures will be transferred to departments incurring the contracting services.
Future year funding is contingent on Council budget approval.
Prepared By: Kyla Johnson, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. June 13, 2017 Staff Report
B. 4266 Bid Results
C. ACCO Oaks Initiative Form