| | | | | | | | Agenda Item - 3.i.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | William E. Murray
| | Dept.: | City Manager
| Dept.: | Public Works
| | Subject: | Approval of an agreement with Carrier Corporation, Inc., and ratification of an agreement with ACCO Engineered Systems, Inc. for on-call heating, ventilation, and air conditioning system repair services. (Cost: $75,000 each) (Action Item) | Date: | 8/24/2021 |
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| | | | | | | | OBJECTIVE
For City Council to approve an agreement with Carrier Corporation, Inc. (Carrier) for $75,000 and to ratify an agreement with ACCO Engineered Systems, Inc. (ACCO) for $75,000 for on-call heating, ventilation, and air conditioning system (HVAC) repair services. |
| | | | | | | | BACKGROUND
The Public Works Department maintains and operates HVAC systems in city-owned buildings. These buildings include the Police Station, City Hall, the Community Meeting Center, and the Senior Center. These, as well as other city-owned buildings, require repairs, improvements and monthly maintenance that support mission critical temperature control systems and mechanical systems. These systems require a higher level of technical expertise to maintain than what is currently available in-house. As a result, the majority of this work requires on-call contractors. This responsibility necessitates that Public Works secure more than one vendor to respond in the event of an emergency system failure. |
| | | | | | | | DISCUSSION
The City’s current primary contract for on-call HVAC repair services has exhausted its funds, therefore a new contract is required. To meet this need, staff consulted Sourcewell, which nationally solicits, evaluates and awards contracts through a competitive bid process to leverage the best possible pricing. As a Sourcewell member, the City is able to utilize these bid awards to secure competitive pricing, satisfy purchasing requirements, and streamline the procurement process. For this reason, it is recommended piggybacking on the results of Sourcewell Contract #030817-CAR with Carrier, effective through 05/08/2022, and Contract #CA-REN-SCR-M01-062718-AES with ACCO, effective through July 9, 2022. Following the initial contract period, the City will extend each contract up to a maximum of four (4) one-year extensions provided these agreements are contractually extended with Sourcewell. |
| | | | | | | | FINANCIAL IMPACT
The financial impact for each contract will be $75,000 for the initial contract term and $75,000 for each contractual year thereafter, for a total of $375,000 over a five-year period. Funds for on-call HVAC repairs are available in the FY 2021-22 Building Maintenance operating budget and contract expenditures will adhere by appropriation limits. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Approve the agreement with Carrier Corporation to provide on-call HVAC repair services in the amount of $75,000 for the initial term, with the option to renew the contract for four (4) one-year extensions;
- Ratify the agreement with ACCO Engineered Systems, Inc. to provide on-call HVAC repair services in the amount of $75,000 for the initial term, with the option to renew the contract for four (4) one-year extensions;
- Authorize the City Manager to execute the agreement with Carrier Corporation Inc., and ratification of the agreement with ACCO Engineered Systems, Inc., on behalf of the City and to allow minor modifications as necessary; and
- Authorize the City Manager to exercise each option year extension and sign the corresponding amendments, valued at $75,000 per option year per contract, provided sufficient funds are budgeted.
By: Ana V. Neal, Principal Administrative Analyst
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