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HomeMy WebLinkAbout07 - CC-6 - Amendment No.1 to the Maintenance Servic - 3/2/20211 CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 2, 2021 ITEM NUMBER: CC-6 SUBJECT: AMENDMENT NO. 1 TO THE MAINTENANCE SERVICES AGREEMENT WITH F.M. THOMAS AIR CONDITIONING, INC. DATE: FEBRUARY 9, 2021 FROM: PUBLIC SERVICES DEPARTMENT / ENGINEERING DIVISION PRESENTATION BY: RAJA SETHURAMAN, PUBLIC SERVICES DIRECTOR FOR FURTHER INFORMATION CONTACT: SEUNG YANG, P.E., CITY ENGINEER (714) 754-5633 RECOMMENDATION: Staff recommends that the City Council: 1. Approve proposed Amendment No. 1 (Attachment 1) to the Maintenance Services Agreement with F.M. Thomas Air Conditioning, Inc., 231 Gemini Avenue, Brea, CA, 92821, increasing the annual amount by $30,000 for each year of the agreement (2021 and 2022). 2. Authorize the City Manager and the City Clerk to execute the amendment and future authorized amendments to the agreement. BACKGROUND: On July 21, 2020, the City Council awarded a Maintenance Services Agreement (MSA) to F.M. Thomas Air Conditioning, Inc. to provide basic preventive maintenance services for the heating, ventilation, and air conditioning (HVAC) units at sixteen (16) City facilities, excluding City Hall and the Police Department, for a term of two years. The scope of work includes, but is not limited to, periodic inspections, regular maintenance, periodic meetings, and project management. ANALYSIS: The current MSA with F.M. Thomas, which expires on July 31, 2022, does not include servicing repairs and parts replacement. The proposed Amendment No. 1 adds funds to cover such essential unanticipated repairs, including parts and labor, to the City’s HVAC units that fall outside the scope of the current MSA. 2 A summary of the costs including the proposed Amendment No. 1 is as follows: For Year 2021: Original Contract Amount (MSA): $54,223 Amendment No. 1: $30,000 Total Contract Amount for Year 2021: $84,223 For Year 2022: Original Contract Amount (MSA): $54,223 Amendment No. 1: $30,000 Total Contract Amount for Year 2022: $84,223 ALTERNATIVES CONSIDERED: One alternative would be to create an in-house team to manage and maintain the City’s HVAC system. However, this may not result in savings, as the services are beyond current staff capabilities. FISCAL REVIEW: The amendment will be absorbed from within the Public Services General Fund operating budget. LEGAL REVIEW: The City Attorney’s Office has reviewed and approved this report as to form and prepared the proposed amendment. CITY COUNCIL GOALS & PRIORITIES: This item supports City Council Goal 3: Keep the City fiscally sustainable. To address our long-term obligations as well as immediate needs we will: Take measures to reduce expenditures by including but not limited to: Implementing energy efficiencies and sustainability practices at City Hall, in public buildings, parks and public spaces. CONCLUSION: Staff recommends that the City Council approve proposed amendment No. 1 to the MSA with F.M. Thomas Air Conditioning, Inc., increasing the annual amount by $30,000 for each of the remaining two years of the agreement (2021 and 2022), and authorize the City Manager and the City Clerk to execute the amendment and future authorized amendments to the agreement. 3 SEUNG YANG, P.E. RAJA SETHURAMAN City Engineer Public Services Director CAROL MOLINA KIMBERLY HALL BARLOW Finance Director City Attorney ATTACHMENTS: 1 – 2 – Amendment No. 1 Maintenance Services Agreement 1 Siemens Industry, Inc. Amendment One Rev. 05-20 AMENDMENT NUMBER ONE TO MAINTENANCE SERVICES AGREEMENT WITH F.M. THOMAS AIR CONDITIONING, INC. This Amendment Number One (“Amendment”) is made and entered into this 2nd day of March, 2021 (“Effective Date”), by and between the CITY OF COSTA MESA, a municipal corporation (“City”), and F.M. THOMAS AIR CONDITIONING, INC., a California corporation (“Contractor”). WHEREAS, City and Contractor entered into an agreement on August 1, 2020 for Contractor to provide heating, ventilation and air conditioning (“HVAC”) maintenance and repair services (the “Agreement”); and WHEREAS, City and Contractor desire to amend the Scope of Services to include servicing repairs and parts replacement; and WHEREAS, City desires to increase Contractor’s maximum annual compensation accordingly. NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. The Scope of Services shall be amended to include servicing repairs and parts replacement. 2. Section 2.1 of the Agreement shall be amended to reflect that Contractor’s annual compensation during the first two years of the Agreement shall not exceed Eighty- Four Thousand Two Hundred Twenty-Three Dollars ($84,223.00). Contractor shall be paid according to the fee schedule set forth in the Agreement. 3. All terms not defined herein shall have the same meaning and use as set forth in the Agreement. 4. All other terms, conditions, and provisions of the Agreement not in conflict with this Amendment shall remain in full force and effect. 5. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. Counterpart written signatures may be transmitted by facsimile, email or other electronic means and have the same legal effect as if they were original signatures. [Signature page follows.] Attachment 1 2 Siemens Industry, Inc. Amendment One Rev. 05-20 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and through their respective authorized officers, as of the date first written above. CITY OF COSTA MESA ________________________________ Date: __________________________ City Manager CONTRACTOR ________________________________ Date: __________________________ Signature ________________________________ Name and Title ATTEST: ________________________________ City Clerk APPROVED AS TO FORM: ________________________________ Date: __________________________ City Attorney APPROVED AS TO INSURANCE: ________________________________ Date: __________________________ Risk Management APPROVED AS TO CONTENT: ________________________________ Date: __________________________ Project Manager 3 Siemens Industry, Inc. Amendment One Rev. 05-20 DEPARTMENTAL APPROVAL: ________________________________ Date: __________________________ Public Services Director APPROVED AS TO PURCHASING: ________________________________ Date: __________________________ Finance Director Attachment 2