HomeMy WebLinkAboutItem 10i - HVAC Preventative Maintenance Services Contract ExtensionExtend HVAC Preventative Maintenance Services Contract
March 19, 2024
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DATE: March 19, 2024
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: Carlos Aguilar, General Services Superintendent
SUBJECT: EXTENSION TO THE CONTRACT WITH SHELDON MECHANICAL
CORPORATION FOR HVAC PREVENTATIVE MAINTENANCE AND
REPAIR SERVICES AT VARIOUS CITY FACILITIES IN AN AMOUNT NOT
TO EXCEED $297,970
CEQA: Not a Project
Recommendation: Approve
SUMMARY
On February 7, 2023, the City Council approved a contract with Sheldon Mechanical
Corporation in the amount of $295,870, with the option of three one-year extensions for
heating, ventilation, and air conditioning system (“HVAC”) preventative maintenance and
extraordinary repair services at various City facilities. Sheldon Mechanical Corporation is
reaching the end of their contract term and has submitted a written offer to extend their
contract for an additional year with a 0.71%, or $2,100 increase, in total contract cost.
This will be Sheldon Mechanical Corporation’s first contract extension; all other contract
terms and conditions will remain in effect.
It is recommended that the City Council approve, authorize, and direct the City Manager
to execute a one-year contract extension with Sheldon Mechanical Corporation for HVAC
preventative maintenance and repair services at various City facilities, in an amount not
to exceed $297,970.
BACKGROUND
The Public Works Services Department (“PWSD”) is responsible for the day-to-day
operation and maintenance of HVAC systems at City facilities. The City utilizes a
contractor to perform 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 lifecycles. The monthly HVAC
Extend HVAC Preventative Maintenance Services Contract
March 19, 2024
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preventative maintenance schedule includes services 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
DISCUSSION
On February 7, 2023, the City Council approved a contract with Sheldon Mechanical
Corporation in the amount of $295,870, with the option of three one-year extensions for
HVAC preventative maintenance and extraordinary repair services. Sheldon Mechanical
Corporation is reaching the end of their initial contract term and has submitted a written
offer to extend the contract for an additional year with an increase of 0.71%, or $2,100, in
total contract cost. Their proposed increase reflects the labor/foreman rate increase from
$112 to $117 and labor/journeyman rate increase from $97 to $101 per hour. This is a
direct result of continuing annual labor rate increases and significant cost increases in
Personal Protective Equipment (“PPE”) and Occupational Safety and Health
Administration (“OSHA”) regulations. Throughout the contract term, Sheldon Mechanical
Corporation has provided quality service to the City of Arcadia.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the
environment.
FISCAL IMPACT
Sufficient funds are available in each Department’s Fiscal Year 2023-24 Operating and
Maintenance budgets for facility maintenance. All extraordinary repair work will be
performed on a time and materials basis and Sheldon Mechanical Corporation will only
be paid for work performed. The total contract cost will be set at a not-to-exceed amount
of $297,970.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a
project under the California Environmental Quality Act (“CEQA”); and approve, authorize,
and direct the City Manager to execute a one-year extension to the Contract with Sheldon
Mechanical Corporation for HVAC preventative maintenance and repair services at
various City facilities in an amount not to exceed $297,970.
Extend HVAC Preventative Maintenance Services Contract
March 19, 2024
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Attachment: Proposed Amendment No. 1 to the Contract
AMENDMENT NO. 1 TO THE HVAC PREVENTATIVE MAINTENANCE AND
SERVICE CONTRACT FOR VARIOUS CITY FACILITIES 2022/2023 BY AND
BETWEEN THE CITY OF ARCADIA
AND SHELDON MECHANICAL CORPORATION
This Amendment No. 1 (“Amendment No. 1”) is hereby entered into this ______ day of
______________, 2024 by and between the City of Arcadia, a municipal corporation of the
State of California, and Sheldon Mechanical Corporation, a California Corporation, with respect
to that certain Contract between the parties dated March 22, 2023 (“Agreement”).
The Parties agree as follows:
1. Section B of the Contract Term is hereby extended to include the period from March 22,
2024 to and including March 22, 2025. (“Extended Term”).
2. Section C of the Contract, during the Extended Term Contract Price shall not exceed
Two Hundred Ninety-Seven Thousand, Nine Hundred Seventy Dollars and No Cents
($297,970.00).
3. All terms and provisions of the Contract not amended by this Amendment No. 1 are
hereby reaffirmed.
In witness whereof the Parties have executed this Amendment No. 1 on the date set
forth below.
CITY OF ARCADIA SHELDON MECHANICAL CORPORATION By: By: Dominic Lazzaretto City Manager Title: Dated: Dated: By: ATTEST: Title: Dated: City Clerk APPROVED AS TO FORM CONCUR: Michael J. Maurer Paul Cranmer City Attorney Public Works Services Director