TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:April 25, 2023
SUBJECT: Building Mechanical Systems Service Agreements RECOMMENDATION:
1. Award service contract to Sunbelt Controls, Inc., of Azusa, CA, for Automated Logic Building Automation Software (BAS) Services at various City-owned facilities effective May 1, 2023, and ending April 30, 2026, with two one-year options to extend the agreement. The not-to-exceed amount is $272,173 over the lifetime of the contract, which includes $100,428 for base contract services and $171,745 reserve for additional services and optional contract years four and five.
2. Award service contract to ACCO Engineered Systems, Inc. of Thousand Oaks, CA, (ACCO) for Building Mechanical Systems Services at various City-owned facilities effective May 1, 2023, and ending April 30, 2026, with two one-year options to extend the agreement. The not-to-exceed amount is $1,963,230 over the lifetime of the contract, which includes $560,748 for base contract services and $1,402,482 reserve for additional services and optional contract years four and five.
3. Award service contract to Mesa Energy Systems, Inc., DBA Emcor Services Mesa Energy, of Thousand Oaks, CA (Mesa), for Building Mechanical Systems Services at the Municipal Service Center and Hill Canyon Treatment Plant effective May 1, 2023, and ending April 30, 2026, with two one-year options to extend the agreement. The not-to-exceed amount is $558,854 over the lifetime of the contract, which includes $196,522 for base contract services and $362,332 reserve for additional services and optional contract years four and five.
4. Award service contract to Siemens Industry, Inc. of Cypress, CA (Siemens), for Desigo BAS Services at the Grant Brimhall and Newbury Park Branch Libraries effective May 1, 2023, and ending April 30, 2026, with two one-year options to extend the agreement. The not-to-exceed amount is $237,690 over the lifetime of the contract, which includes $106,540 for base contract services and $131,150 reserve for additional services and optional contract years four and five.
Building Mechanical Systems Service Agreements
April 25, 2023
5. Authorize expenditure in the total amount of $91,994 from various General Fund (001) accounts for remaining FY 2022-23 budget cycle for May and June 2023 combined contract services. A full account breakdown is outlined in the staff report.
6. Approve budget appropriation and authorize expenditure in the total amount of $120,000 in FY 2022-23 from A/C #001-0000-311-1000 (General Fund - Fund Balance) to the following accounts: $60,000 to A/C #001-3570-612-5621 (Contracted Services – HVAC), $20,000 to A/C #001-3574-677-5621 (Contracted Services – HVAC) and $40,000 to A/C #001-3592-631-5621 (Contracted Services – HVAC).
7. Find that this action is not a project as defined under the California Environmental Quality Act.
FINANCIAL IMPACT:
$120,000 Increase to Adopted FY 2022-23 General Fund Budget. $120,000 increase to the Adopted FY 2022-23 General Fund Budget is requested to supplement available budget for HVAC services at certain locations due to increased and unexpected costs. A full account breakdown of contract costs for the remainder of FY 2022-23 is included as (Attachment #1) The remaining funds for the agreement’s terms will be requested during the upcoming biennial budget process.
BACKGROUND:
The Facilities Division manages multiple City-owned buildings (Attachment #2), which have complex mechanical systems to maintain the buildings’ indoor air quality. These systems require ongoing preventative maintenance and repairs as needed to keep the equipment operating properly and efficiently. The systems’ equipment principally includes building automation software systems (BAS), chillers, boilers, cooling towers, exhaust fans, pumps, fan coils, and split systems.
Multiple buildings utilize Automated Logic BAS software. The BAS automates the scheduling for the mechanical system’s equipment (chillers, boilers, fans, pumps, etc.). This type of software has custom programming and must be maintained by technicians certified and trained for that particular software.
The City currently has multiple contracts for building mechanical preventative maintenance and repairs at various facilities, as well as contracts for on-call building mechanical services. Two of these contracts were expiring soon, so staff determined it would be prudent to issue Requests for Proposals/Qualifications (RFP/Qs) to encompass all the mechanical services needed.
Building Mechanical Systems Service Agreements
April 25, 2023
DISCUSSION/ANALYSIS:
In accordance with Government Code section 4526 and Thousand Oaks Municipal Code section 3-10.401, unlike the low bid requirements of the Public Contract Code, contracts for professional, management, general, or special services should only be awarded to firms or persons who have demonstrated an adequate level of experience, competence, training, credentials, resources, staffing, and other professional qualifications necessary to perform the services solicited. The award of an RFP/Q is based upon a variety of factors that demonstrate best value to the City for the solicited scope of work or service. The cost of the service may be considered as one of those factors; however, the lowest cost is not the sole factor in deciding who be awarded the contract.
Automated Logic Service Provider
Staff published a formal RFP/Q for Automated Logic BAS Maintenance and Services at various City facilities on February 3, 2023. The solicitation was published using OpenGov procurement software where it was viewed and downloaded by nine total service providers. From this effort, one proposal was received. Sunbelt Controls, Inc., of Azusa, CA (Sunbelt) was the only proposer and meets the needs of the services required based on their qualifications, background, price, and client references.
Sunbelt has provided on-call services for the Automated Logic BAS systems for six years and has proven their capability to provide effective service with knowledgeable technicians for a reasonable cost.
Building Mechanical Systems Service Providers
Staff published a formal RFP/Q for Building Mechanical Systems Services at various City facilities on February 10, 2023. From this effort, four proposals were received:
Company City, State
1. ACCO Engineered Systems, Inc. (ACCO) Thousand Oaks, CA
2. Mesa Energy Systems, Inc., DBA
Emcor Services Mesa Energy (Mesa) Thousand Oaks, CA
3. ABM Building Solutions, LLC Tustin, CA
4. Siemens Industry, Inc. (Siemens) Cypress, CA
The staff evaluation committee, consisting of representatives from the Public Works and Finance departments, reviewed the proposals and rated them based Building Mechanical Systems Service Agreements
April 25, 2023
on qualifications, background, and client references. Vendors were then invited for interviews. The consensus of the committee was that it would be prudent to execute multiple contracts for the services as explained below.
Mesa is currently performing services at the Municipal Service Center (MSC) and Hill Canyon Wastewater Treatment Plan (HCTP) and has provided on-call services for many years with the City. They have proven to be a cost-effective and reliable vendor. They have familiarity with the two locations and were best qualified to continue providing services at those locations. Based on past experience and demonstration of their capabilities, staff recommends awarding the contract for all maintenance and repairs at those two City facilities to Mesa.
ACCO has been performing on-call services for the City for ten years. They have proven to be a reliable vendor with qualified technicians and reasonable costs.
They have ten+ technicians in the area who are able to provide after-hours service.
For these reasons, staff recommends awarding the contract for maintenance and repairs to ACCO at all other City facilities where Mesa is not providing service.
Both the Grant R. Brimhall and Newbury Park Branch libraries utilize the BAS software Desigo, which is proprietary to Siemens. Migrating to another BAS software would require extensive changes to the entire system, including physical equipment replacement in addition to the software. Both libraries had major mechanical system upgrades approximately 10 years ago and are not due for a major upgrade for another 10+ years. To change the BAS software would be expensive and not prudent to change at this time. For these reasons, staff recommends entering into an agreement with Siemens to continue performing regular maintenance and repairs for that software.
Summary
Sunbelt, Mesa, ACCO, and Siemens are licensed to perform the HVAC services as described. Staff has verified their Department of Industrial Relations registration, and state contractor’s license and finds them all to be qualified and able to perform the services of their contracts.
The mechanical systems are essential and need to remain functioning at all times to ensure indoor air quality standards are met, and the operations at these City- owned facilities are maintained. It is critical that systems at the Civic Arts Plaza (City Hall and theatre performances and events) are not impacted by failures due to inadequate maintenance of the system. Various operations at HCTP are also critical and must have proper mechanical ventilation at all times.
For these reasons, staff recommends the award of all four contracts (Attachment Nos. 3 through 6) and the budget request as described. Based on historical costs, Building Mechanical Systems Service Agreements
April 25, 2023
anticipated cost increases and expenses, staff deems the not-to-exceed contract costs (Attachment #7) as appropriate.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Elizabeth Perez, Facilities Manager
Attachments:
Attachment #1 – FY 2022/23 General Fund Requested Expenditure Attachment #2 – List of Locations
Attachment #3 – Agreement with Sunbelt Controls, Inc.
Attachment #4 – Agreement with ACCO Engineered Systems, Inc.
Attachment #5 – Agreement with Mesa Energy Systems, Inc.
Attachment #6 – Agreement with Siemens Industry, Inc.
Attachment #7 – Contract Costs and Account Breakdown
FIN:201-10\edp\cp\H:\COMMON\Council\2023\Facilities\042523 Building Mechanical Systems Services Staff Report.docx