City Council Agenda Report
Meeting Date: July 16, 2024
From: Daniel S. Wall, P.E., Director of Public Works
Department: Public Works
Submitted by: Efren Peregrina Renteria, Procurement Specialist Subject
Contract with Harbor Pointe Air Conditioning & Control Systems, Inc. for HVAC System Maintenance Services
Recommendation
A. Find that the proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because the project consists of the maintenance of the existing City Hall HVAC controls and system and involves negligible or no expansion of an existing use;
B. Accept the bid proposal from Harbor Pointe Air Conditioning & Control Systems as the lowest responsive and responsible bidder and reject all other bids; C. Approve and authorize the City Administrator to execute a contract with Harbor Pointe Air Conditioning & Control Systems, in substantially the same form as submitted, for the HVAC System Maintenance Services for a period of three (3) years in an amount not-to-exceed $150,000; and
D. Authorize a contingency amount of ten percent (10%) or $15,000 in the event of unexpected repairs in periods of extreme heat and grant authority to the City Administrator to issue change orders for an amount up to the contingency amount, if necessary.
Background
The existing HVAC system at City Hall was installed in the 1970s and is currently undergoing significant improvements including installation of a new retrofitted mixing box controller and replacement of a total of 40 pneumatic mixing controllers. Based on a competitive bid process, Western Allied Corporation is performing this work for a total cost of $472,169.50. These enhancements, which are scheduled to be completed by December 31, 2024 will enable the existing HVAC controllers to monitor temperature more efficiently and effectively, thereby extending the life expectancy of the units. Given the magnitude and investment in HVAC improvements, as well as increasingly higher temperatures, it is crucial to establish a regular and detailed maintenance program for the HVAC system moving forward. To that end, on March 21, 2024, staff advertised a Notice Inviting Bids (NIB) for necessary HVAC System Maintenance Services.
The NIB for HVAC System Maintenance Services was issued in accordance with Vernon Municipal Code (VMC) Section 3.32.070(A) and was posted on the City’s Planet Bids website.
The Department utilized the template Notice Inviting Bids, Bid form, Project Specifications, Instruction to Bidders, and Specifications and Contract approved by the City Council. Bids for HVAC System Maintenance Services were received and opened on April 23, 2024.
The calculated results were as follows:
1. Harbor Point Air Conditioning & Control Systems $49,637.72
2. ACCO Engineered $49,696.00
3. Western Allied Corporation $56,980.00
4. Diversified Thermal Services, Inc $65,870.00
5. Allison Mechanical, Inc $72,488.50
Staff reviewed the bids and deemed that the bid received by Harbor Pointe Air Conditioning Controls & Systems was the lowest responsive and responsible bid. Based on a thorough bid evaluation, staff recommends the award of the proposed contract to Harbor Pointe Air Conditioning Controls & Systems. The proposed contract has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is estimated at $165,000 including the 10% contingency. Sufficient funds are available in the General Fund, Public Works Department, Facilities Maintenance Division, Repairs and Maintenance Account No. 011-040-415-529000 for the current fiscal year and funds will be budgeted in subsequent years.
Attachments
1. Contract with Harbor Pointe Air Conditioning & Control Systems