HomeMy WebLinkAboutItem 13e - HVAC Preventative Maintenance and Repair ServicesContract for HVAC Preventative Maintenance Services February 07, 2023 Page 1 of 3 DATE: February 07, 2023 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Dave McVey, Acting General Services Superintendent SUBJECT: CONTRACT WITH SHELDON MECHANICAL CORPORATION FOR HVAC PREVENTATIVE MAINTENANCE AND REPAIR SERVICES AT VARIOUS CITY FACILITIES IN THE AMOUNT OF $295,870. CEQA: Not a Project 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 $295,870, with the option of three one-year extensions. BACKGROUND The Public Works Services Department is responsible for the day-to-day operation and maintenance of HVAC systems at City facilities. The City utilizes a contractor to perform preventative maintenance 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 February 07, 2023 Page 2 of 3 DISCUSSION 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 roof top units over 10 tons • Boilers and chillers • Dedicated computer server room air conditioners • Chilled water pumps • Variable speed drives 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 five sealed bids on January 17, 2023, with the following results: Rank Bidder Location Bid 1. Sheldon Mechanical Corporation Santa Clarita, CA $ 295,870 2. Pacific West Industries, Inc. Anaheim, CA $ 358,169 3. South Coast Facility Services Anaheim, CA $ 397,832 4. Control Air Enterprises, LLC Anaheim, CA $ 510,598 5. ABM Building Solutions, LLC Anaheim, CA $ 576,128 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 can provide HVAC preventative maintenance services. Sheldon Mechanical Corporation is currently the City’s HVAC maintenance contractor and has provided excellent service. Sheldon Mechanical Corporation’s knowledge of City sites and equipment allows them to complete maintenance and service work in a highly efficient manner. Additionally, Sheldon Mechanical Corporation has successfully provided similar services for several municipal agencies in the San Gabriel Valley. 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 February 07, 2023 Page 3 of 3 FISCAL IMPACT Funds are budgeted in each Department’s contract services account in the Fiscal Year 2022-23 Operating Budget. The current contract for annual HVAC preventative maintenance and extraordinary repairs is $151,046. To date, the City has spent approximately $150,000 for these services. The total contract cost will be set at a not-to- exceed amount of $295,870 and reflects a market increase in labor and material costs, a broader scope of work, and additional emergency calls for labor and installation of parts. 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 determine that this action does not constitute a project and is, therefore, exempt under the California Environmental Quality Act; and 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 $295,870, with the option of three one-year extensions. Attachment: Proposed Contract CITY OF ARCADIA HVAC PREVENTATIVE MAINTENANCE AND SERVICE CONTRACT FOR VARIOUS CITY FACILITIES 2022/2023 BETWEEN CITY OF ARCADIA AND SHELDON MECHANICAL CORPORATION CONTRACT Contract - 1 CONTRACT FOR THE CITY OF ARCADIA This CONTRACT, No. ________ is made and entered into this ____ day of ___________, 2023, by and between City of Arcadia, sometimes hereinafter called “City,” and Sheldon Mechanical Corporation, sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: A. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required 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 2022/2023 The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. B. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 30 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. C. 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 Contract Documents, and including all applicable taxes and costs, the sum of TWO HUNDRED NINETY- FIVE THOUSAND, EIGHT HUNDRED SEVENTY DOLLARS AND NO CENTS ($295,870.00). Payment shall be made as set forth in the General Conditions. D. LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum set forth in Special Conditions, Article 1.11 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. E. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Form Bid Bond Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor Registration Certification Contract - 2 Performance Bond Payment (Labor and Materials) Bond General Conditions Special Conditions Technical Specifications Addenda Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Applicable Local Agency Standards and Specifications, as last revised Approved and fully executed change orders Any other documents contained in or incorporated into the Contract The Contractor 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. F. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. 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 Work. G. INDEMNIFICATION. Contractor shall provide indemnification and defense as set forth in the General Conditions. H. 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 City’s Administrative Office or may be obtained online at dir.ca.gov and which must be posted at the job site. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Contract - 3 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: Michael J. Maurer City Attorney