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HomeMy WebLinkAboutItem 12c - HVAC Preventative Maintenance and Repair ServicesContract for HVAC Preventative Maintenance Services November 6, 2018 Page 1 of 3 DATE: November 6, 2018 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Tyler Polidori, General Services Superintendent SUBJECT: CONTRACT WITH SHELDON MECHANICAL CORPORATION FOR HVAC PREVENTATIVE MAINTENANCE AND REPAIR SERVICES AT VARIOUS CITY FACILITIES IN THE AMOUNT OF $151,046 Recommendation: Approve SUMMARY The Public Works Services Department (“PWSD”) is responsible for the daily operation and maintenance of heating, ventilation, and air conditioning systems (“HVAC”) for all City facilities. The City utilizes a contractor to perform detailed HVAC preventative maintenance work and extraordinary system repairs. To ensure the City is receiving the most competitive prices and quality service for this work, a formal bid was conducted and Sheldon Mechanical Corporation submitted the lowest responsive bid. It is recommended that the City Council approve, authorize, and direct the City Manager to execute a contract with Sheldon Mechanical Corporation for HVAC preventative maintenance and repair services at various City facilities in the amount of $151,046. DISCUSSION The Public Works Services Department is respon sible for the day-to-day operation and maintenance of HVAC systems at City facilities. The contractor is responsible for performing a detailed preventative maintenance schedule and extraordinary system repairs. The monthly preventative maintenance tasks are outlined in the specifications of the contract, while extraordinary repairs are conducted on an as needed basis when equipment failures occur. The preventive maintenance schedule is intended to minimize the occurrence of unscheduled extraordinary repairs, which ensures that equipment functions properly and prolongs equipment life. Contract for HVAC Preventative Maintenance Services November 6, 2018 Page 2 of 3 The monthly HVAC preventative maintenance schedule includes service on the following types of equipment:  Cooling towers  Small HVAC package roof top units under 10 tons  Large HVAC package root top units over 10 tons  Boilers and chillers  Dedicated computer server room air conditioners A Notice Inviting Bids was published in the City’s adjudicated newspaper and bid packages were distributed to contractors that perform HVAC preventative maintenance services. The City Clerk publicly opened two sealed bids on October 23, 2018, with the following results: Rank Bidder Location Bid_____ 1. Sheldon Mechanical Corporation Santa Clarita, CA $ 151,046 2. F.M. Thomas Air Conditioning, Inc. Brea, CA $ 420,102 The bid documents were reviewed for content and the Contractors’ background and recent projects were investigated for competency. Sheldon Mechanical Corporation was determined to be the lowest responsive bidder and is capable of providing HVAC preventative maintenance services. Sheldon Mechanical Corporation is currently the City’s HVAC maintenance contractor and has provided excellent services. Additionally, Sheldon Mechanical Corporation has successfully provided similar services for several municipal agencies in the San Gabriel Valley. A total of nine local HVAC maintenance and service contractors were contacted and informed of the bid advertisement. An inquiry was conducted into the reasons why there were only two firms interested in submitting bids for the contract. The PWSD was informed that the project manager’s estimate of the contract price was substantially lower than the surveyed firms could afford to compete with. Sheldon Mechanical Corporation’s knowledge of City sites and equipment allows them to complete maintenance and service work in a highly efficient manner, which enables them to provide the most competitive contract bid to the City. ENVIRONMENTAL IMPACT The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. Contract for HVAC Preventative Maintenance Services November 6, 2018 Page 3 of 3 FISCAL IMPACT Funds are budgeted in each Department’s contract services accounts in the Fiscal Year 2018-19 Operating Budget. The current contract for annual HVAC preventative maintenance and extraordinary repairs is $138,984. To date, the City has spent approximately $87,300 for these services. The total contract cost will be set at a not-to- exceed amount of $151,046, which reflects an increase of 8.67% to cover an increase in parts costs as well as increasing labor expenses. All work performed is on a time and materials basis and the contractor is only paid for work performed. RECOMMENDATION It is recommended that the City Council approve, authorize and direct the City Manager to execute a contract with Sheldon Mechanical Corporation for HVAC preventative maintenance and repair services at various City facilities in the amount of $151,046. Attachment: Proposed Contract CITY OF ARCADIA HVAC PREVENTATIVE MAINTENANCE AND SERVICE CONTRACT FOR VARIOUS CITY FACILITIES 2018/2019 BETWEEN CITY OF ARCADIA AND SHELDON MECHANICAL CORPORATION CONTRACT (HVAC Preventative Maintenance and Service Contract for Various City Facilities 2018-2019) Contract - 1 CONTRACT FOR THE CITY OF ARCADIA THIS CONTRACT is made this _____ day of _________, 20__, in the County of Los Angeles, State of California, by and between the City of Arcadia, hereinafter called City, and Sheldon Mechanical Corporation, hereinafter called Contractor. The City and the Contractor for the considerations stated herein agree as follows: ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated the Contract and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work requ ired in strict compliance with the Contract Documents as specified in Article 5 below for the following Project: HVAC PREVENTATIVE MAINTENANCE AND SERVICE CONTRACT FOR VARIOUS CITY FACILITIES 2018/2019 The Contractor and its surety shall be liable to the C ity for any damages arising as a result of the Contractor’s failure to comply with this obligation. ARTICLE 2. TIME FOR COMPLETION. 2.1 The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required b y the Contract Documents within 14 calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. 2.2 Contractor shall coordinate the Work with the other work being performed on the Project, in accordance with those schedules as may be issued from time to time during the performance of the Work, and any other scheduling requirements listed in this Contract, so as not to delay, impede, obstruct, hinder or interfere with the commencement, progress or completion of the whole or any part of the Work or other work on the Project. 2.3 The Contractor shall participate and cooperate with the City in the development of sc hedules and other efforts to achieve timely completion of the Work providing information for the scheduling of the times and sequence of operations required for its Work (“Contractor Schedule”) to meet City’s overall master project schedule requirements (“Master Schedule”). The Contractor shall continuously monitor the Master Schedule so as to be fully familiar with the timing, phasing and sequence of operations of the Work and of other work on the Project, and shall execute the Work in accordance with the requirements of the Master Schedule including any revisions thereto. The Contractor shall notify the Engineer within 48 hours of any slippage in the Contractor Schedule and shall submit a detailed recovery plan to the Engineer for approval within five (5) calendar days of such notice. 2.4 Should the progress of the Work or of the Project be delayed disrupted, hindered, obstructed, or interfered with by any fault or neglect or act or failure to act of the Contractor or any of its officers, agents, servants, employees, subcontractors or suppliers so as to cause any additional cost, expense, liability or damage to the City, the Engineer or any consultants retained by the City for the Project, including legal fees and disbursements incurred by the City, the Engineer, or the consultants retained by the City for the Project, (whether incurred in defending claims arising from such delay or in seeking reimbursement and indemnity from the Contractor and its surety hereunder or otherwise) or any damages or additional costs or expenses for which the City, the Engineer or the consultants retained by the City for the Project, may or shall become liable, the Contractor and its surety shall and (HVAC Preventative Maintenance and Service Contract for Various City Facilities 2018-2019) Contract - 2 does hereby agree to compensate the City, the Engineer or the consultants retai ned by the City for the Project,, for and indemnify them against all such costs, expenses, damages and liability. 2.5 The City, in its sole discretion, may direct the Contractor to work overtime and, if so directed, the Contractor shall work said overtime and, provided that the Contractor is not in default under any of the terms or provisions of this Contract or of any of the other Contract Documents, the City will pay the Contractor for such actual additional wages paid, if any, at the prevailing wage rates plus taxes imposed by law on such additional wages, plus workers' compensation insurance, liability insurance and levies on such additional wages if required to be paid by the Contractor. 2.6 If, however, the progress of the Work or of the Project is delayed by any fault or neglect or act or failure to act of the Contractor or any of its officers, agents, servants, employees, subcontractors or suppliers, then the Contractor shall, in addition to all of the other obligations imposed by this Contract upon the Contractor in such case, and at its own cost and expense, work such overtime as may be necessary to make up for all time lost in the completion of the Work and of the Project due to such delay. Should the Contractor fail to make up for the time lost by reason of such delay, the Engineer or City shall have the right to cause other contractors to work overtime and to take whatever other action it deems necessary to avoid delay in the completion of the Work and of the Project, and the cost and expense of such overtime and/or such other action shall be borne solely by the Contractor. ARTICLE 3. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contrac t Documents, and including all applicable taxes and costs, the sum of ONE HUNDRED FIFTY-ONE THOUSAND, FORTY-SIX DOLLARS AND NO CENTS ($151,046.00). Payment shall be made as set forth in the General Conditions. ARTICLE 4. PAYMENTS 4.1 The City shall make monthly progress payments following receipt of undisputed and properly submitted payment requests. Contractor shall be paid a sum equal to ninety-five percent (95%) of the value of Work performed up to the last day of the previous month, less the aggregate of previous payments. 4.2 The Contractor shall, after the full completion of The Work, submit a final payment application. All prior progress estimates shall be subject to correction in the final estimate and payment. 4.3 Unless otherwise required by law, the final payment of five percent (5%) of the value of the Work, if unencumbered, shall be paid no later than sixty (60) Days after the date of recordation of the Notice of Completion. 4.4 Acceptance by Contractor of the final payment shall constitute a waiver of a ll claims against the City arising from this Contract. 4.5 Payments to the Contractor shall not be construed to be an acceptance of any defective work or improper materials, or to relieve the Contractor of its obligations under the Contract Documents. 4.6 The Contractor shall submit with each payment request the Contractor’s conditional waiver of lien for the entire amount covered by such payment request, as well as a valid unconditional waiver of lien from the Contractor and all subcontractors and material men for (HVAC Preventative Maintenance and Service Contract for Various City Facilities 2018-2019) Contract - 3 all work and materials included in any prior invoices. Waivers of lien shall be in the forms prescribed by California Civil Code sections 8132, 8134, 8136, and 8138. Prior to final payment by the City, the Contractor shall submit a final waiver o f lien for the Contractor’s work, together with releases of lien from any subcontractor or materialmen. ARTICLE 5. PAYMENTS WITHHELD AND BACKCHARGES In addition to amounts which the City may retain under other provisions of the Contract Documents the City may withho ld payments due to Contractor as may be necessary to cover: a. Stop Notice Claims. b. Defective work not remedied. c. Failure of Contractor to make proper payments to its subcontractors or suppliers. d. Completion of the Contract if there exists a reaso nable doubt that the Work can be completed for balance then unpaid. e. Damage to another contractor or third party. f. Amounts which may be due the City for claims against Contractor. g. Failure of Contractor to keep the record (“as-built”) drawings up to date. h. Failure to provide updates on the construction schedule. i. Site clean-up. j. Failure of the Contractor to comply with requirements of the Contract Documents. k. Liquated damages. l. Legally permitted penalties. Upon completion of the Contract, the City will reduce the final Contract amount to reflect costs charged to the Contractor, backcharges or payments withheld pursuant to the Contract Documents. ARTICLE 6. CHANGES AND EXTRA WORK 6.1 The City, without invalidating the Contract, may order changes in th e Work consisting of additions, deletions or other revisions, the Contract amount and Contract time being adjusted accordingly. All such changes in the Work shall be authorized by Change Order, in the form attached hereto and incorporated herein as Exhibi t “A,” and shall be performed under the applicable conditions of the Contract Documents. A Change Order signed by the Contractor indicates the Contractor's agreement therewith, including any adjustment in the Contract amount or the Contract time, and the full and final settlement of all costs (direct, indirect and overhead) related to the Work authorized by the Change Order. 6.2 All claims for additional compensation to the Contractor shall be presented in writing before the expense is incurred and will be adjusted as provided herein. No work shall be allowed to lag pending such adjustment, but shall be promptly executed as directed, even if a dispute arises. No claim will be considered after the work in question has been done unless a written contract change order has been issued or a timely written notice of claim has been made by Contractor. Contractor shall not be entitled to claim or bring suit for damages, (HVAC Preventative Maintenance and Service Contract for Various City Facilities 2018-2019) Contract - 4 whether for loss of profits or otherwise, on account of any decrease or omission of any item or portion of Work to be done. Whenever any change is made as provided for herein, such change shall be considered and treated as though originally included in the Contract, and shall be subject to all terms, conditions and provisions of the original Contr act. 6.3 Owner Initiated Change. The Contractor must submit a complete cost proposal, including any change in the Contract time, within seven (7) Days after receipt of a scope of a proposed change order, unless the City requests that proposals be submitte d in less than seven (7) Days. 6.4 Contractor Initiated Change. The Contractor must give written notice of a proposed change order required for compliance with the Contract Documents within seven (7) Days of discovery of the facts giving rise to the proposed change order. 6.5 Whenever possible, any changes to the Contract amount shall be in a lump sum mutually agreed to by the Contractor and the City. 6.6 Price quotations from the Contractor shall be accompanied by sufficiently detailed supporting documentation to permit verification by the City. 6.7 If the Contractor fails to submit the cost proposal within the seven (7) Day period (or as requested), the City has the right to order the Contractor in writing to commence the work immediately on a force account basis and/or issue a lump sum change to the contract price in accordance with the City’s estimate of cost. If the change is issued based on the City estimate, the Contractor will waive its right to dispute the action unless within fifteen (15) Days following completion of the added/deleted work, the Contractor presents written proof that the City’s estimate was in error. 6.8 Estimates for lump sum quotations and accounting for cost -plus-percentage work shall be limited to direct expenditures necessitate d specifically by the subject extra work, and shall be segregated as follows: (a) Labor. The costs of labor will be the actual cost for wages prevailing locally for each craft or type of worker at the time the extra work is done, plus employer payments of payroll taxes and insurance, health and welfare, pension, vacation, apprenticeship funds, and other direct costs resulting from Federal, State or local laws, as well as assessment or benefits required by lawful collective bargaining agreements. The use o f a labor classification which would increase the extra work cost will not be permitted unless the contractor establishes the necessity for such additional costs. Labor costs for equipment operators and helpers shall be reported only when such costs are not included in the invoice for equipment rental. (b) Materials. The cost of materials reported shall be at invoice or lowest current price at which such materials are locally available in the quantities involved, plus sales tax, freight and delivery. Materials cost shall be based upon supplier or manufacturer’s invoice. If invoices or other satisfactory evidence of cost are not furnished within fifteen (15) Days of delivery, then the Engineer shall determine the materials cost, at its sole discretion. (c) Tool and Equipment Use. No payment will be made for the use of small tools, tools which have a replacement value of $1,000 or less. Regardless of ownership, the rates to be used in determining equipment use costs shall not (HVAC Preventative Maintenance and Service Contract for Various City Facilities 2018-2019) Contract - 5 exceed listed rates prevailin g locally at equipment rental agencies, or distributors, at the time the work is performed. (d) Overhead, Profit and Other Charges. The mark -up for overhead (including supervision) and profit on work added to the Contract shall be according to the following: i. “Net Cost” is defined as consisting of costs of labor, materials and tools and equipment only excluding overhead and profit. The costs of applicable insurance and bond premium will be reimbursed to the Contractor and subcontractors at cost only, without mark-up. ii. For Work performed by the Contractor’s forces the added cost for overhead and profit shall not exceed fifteen (15%) percent of the Net Cost of the Work. iii. For Work performed by a subcontractor, the added cost for overhead and profit s hall not exceed fifteen (15%) percent of the Net Cost of the Work to which the Contractor may add five (5%) percent of the subcontractor’s Net Cost. iv. For Work performed by a sub-subcontractor the added cost for overhead and profit shall not exceed fifteen (15%) percent of the Net Cost for Work to which the subcontractor and general contractor may each add an additional five (5%) percent of the Net Cost of the lower tier subcontractor. v. No additional mark up will be allowed for lower tier subcontractors , and in no case shall the added cost for overhead and profit payable by City exceed twenty -five (25%) percent of the Net Cost as defined herein. 6.9 For added or deducted Work by subcontractors, the Contractor shall furnish to the City the subcontractor’s signed detailed estimate of the cost of labor, material and equipment, including the subcontractor markup for overhead and profit. The same requirement shall apply to sub-subcontractors. 6.10 For added or deducted work furnished by a vendor or supplier, the Contractor shall furnish to the City a detailed estimate or quotation of the cost to the Contractor, signed by such vendor or supplier. 6.11 Any change in The Work involving both additions and deletions shall indicate a net total cost, including subcontracts and materials. Allowance for overhead and profit, as specified herein, shall be applied if the net total cost is an extra; overhead and profit allowances shall not be applied if the net total cost is a credit. The estimated cost of deductions shall be based on labor and material prices on the date the Contract was executed. 6.12 Contractor shall not reserve a right to assert impact costs, extended job site costs, extended overhead, constructive acceleration and/or actual acceleration beyond what is stated in the change order for work. No claims shall be allowed for impact, extended overhead costs, constructive acceleration and/or actual acceleration due to a multiplicity of changes and/or clarifications. The Contractor may not change or modify the City’s change order form in an attempt to reserve additional rights. 6.13 If the City disagrees with the proposal submitted by Contractor, it will notify the Contractor and the City will provide its opinion of the appropriate price and/or time extension. If the Contractor agrees with the City, a change order will be issued by (HVAC Preventative Maintenance and Service Contract for Various City Facilities 2018-2019) Contract - 6 the City. If no agreement can be reached, the City shall have the right to issue a unilateral change order setting forth its determination of the reasonable additions or savings in costs and time attributable to the extra or deleted work. Such determination shall become final and binding if the Contractor fails to submit a claim in writing to the City within fifteen (15) Days of the issuance of the unilateral change order, disputing the terms of the unilateral change order. 6.14 No dispute, disagreement or failure of the parties to reach agreement on the terms of the change order shall relieve the Contractor from the obligation to proceed with performance of the work, including extra work, promptly and expeditiously. 6.15 Any alterations, extensions of time, extra work or any other changes may be made without securing consent of the Contractor’s surety or sureties. ARTICLE 7. LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $500.00 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents. ARTICLE 8. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Contractor's Bid Forms Contractor’s Certificate Regarding Workers’ Compensation Bid Bond Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration form Iran Contracting Act Certification form Public Works Contractor Registration Certification form Contract Performance Bond Payment (Labor and Materials) Bond General Conditions Special Provisions (or Special Conditions) Technical Specifications California Building Codes as defined in the General Conditions Addenda Plans and Contract Drawings Approved and fully executed change orders Any other documents contained in or incorporated into the Contract The Contactor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties. (HVAC Preventative Maintenance and Service Contract for Various City Facilities 2018-2019) Contract - 7 ARTICLE 9. PROVISIONS REQUIRED BY LAW. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Project. ARTICLE 10. INDEMNIFICATION. 10.1 To the fullest extent permitted by law, the Contractor shall defend, indemnify and hold harmless the City, its respective officials, officers, agents, employees, and representatives (“Indemnitees”) from any and all claims, demands, cause s of action, costs, expenses, liabilities, losses, damages (including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses) or injuries, in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, to tangible property or persons (including wrongful death, accidents or injuries arising from the alleged failure to inspect or to maintain traffic controllers or traffic signals, injuries or damages occurring during the transport of products or in rendering services under the Contract Documents, such as automobile accidents, trip/slip and fall accidents and third party assaults) arising out of or resulting from the performance of the Work or this Contract (including claims made by subcontractors for nonpayment), to the extent that the acts, omissions or willful misconduct are attributable to the Contractor or anyone employed directly or indirectly by any of them. Contractor shall defend, at Contractor’s own cost, expense and risk, with legal counsel of Indemnitee’s choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its respective officials, officers, agents, employees and representatives. To the extent of its liability, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City and its respective officials, officers, agents, employees, and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City and its respective officials, officers, agents, employees, and representatives for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by Civil Code section 2782. 10.2 The duty to defend and to hold harmless, as set forth above, shall include the duty to defend as established by Section 2778 of the Californi a Civil Code, and the duty to defend shall arise upon the making of any claim or demand against the City, its respective officials, officers, agents, employees and representatives, notwithstanding that no adjudication of the underlying facts has occurred, and whether or not Contractor has been named in the claim or lawsuit. 10.3 Nothing contained in the preceding sections shall be deemed to obligate the Contractor to indemnify the City or any of the other Indemnitees, against liability for damages or any other loss, damage or expense sustained, suffered or incurred on account of death or bodily injury to active persons or injury to property caused by the sole negligence or willful misconduct of the City or any of the other Indemnitees set forth above. There fore, if it is determined by legal proceedings or agreement, that the Contractor has no direct contributory or incidental negligence or other obligation to the City or the other Indemnitees, and the Contractor is in no way a proper party to a particular claim, then the Contractor shall not be obligated to hold the City or any Indemnitees harmless with respect to said claim. However, until such determination is made by legal proceedings or agreement, or if the Contractor is found to have any degree of direct or contributory negligence or if it is determined that the Contractor is in any way or to any degree a proper party to said claim, then the Contractor’s obligations under all of the terms and provisions of the preceding section shall remain in full force and effect. (HVAC Preventative Maintenance and Service Contract for Various City Facilities 2018-2019) Contract - 8 10.4 Nothing in this provision, or elsewhere in the Contract Documents, shall be deemed to relieve the Contractor of its duty to defend the City or any Indemnitee, as specified under this Article, pending a determination of the respective liabilities of the City or any Indemnitee, by legal proceeding or agreement. 10.5 In furtherance to, but not in limitation of the indemnity provisions in this Contract, Contractor hereby expressly and specifically agrees that its obligation to indemnify, defen d and hold harmless as provided in this Contract shall not in any way be affected or diminished by any statutory or constitutional immunity it enjoys from suits by its own employees or from limitations of liability or recovery under workers’ compensation laws. ARTICLE 11. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the Public Works Services Department or may be obtained online at http//www.dir.ca.gov/dlsr and which must be posted at the job site. IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. CITY OF ARCADIA By: Dominic Lazzaretto City Manager SHELDON MECHANICAL CORPORATION By: Signature Print Name and Title Attest: By: City Clerk By: Signature Print Name and Title Approved as to Form: Stephen P. Deitsch City Attorney