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.
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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.
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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