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05-21-2019 - Item 10 - Consideration of Award of Bid To Allision Mechanical Incorporated For Maintenance of Heating, Ventillation And Air ConditioniAGENDA ITEM NO. 10 AGENDA STAFF REPORT City of West Covina | Office of the City Manager DATE:May 21, 2019 TO:Mayor and City Council FROM:David Carmany Interim City Manager SUBJECT:CONSIDERATION OF AWARD OF BID TO ALLISON MECHANICAL INCORPORATED FOR MAINTENANCE OF HEATING, VENTILATION AND AIR CONDITIONING EQUIPMENT RECOMMENDATION: It is recommended that the City Council authorize the City Manager to negotiate and execute a three- year contract with two one-year extensions with Allison Mechanical Incorporated in the annual amount of $128,604 ($643,020 five-year contract) for heating, ventilation, and air conditioning maintenance services at 22 City facilities. BACKGROUND: Property management consists of the administration, operation, protection, maintenance, repair and improvement of buildings and grounds owned by the city. Responsibility for certain activities in property management resides in the City's Public Services Department. As the City's HVAC equipment is of an age, it is logical in the short term to continue to maintain the equipment in accordance with a definite prescribed plan; and, in the near term future, to review HVAC in the context of a city-wide energy utilization analysis. This service will provide for the ongoing maintenance and operation of the HVAC systems installed at 22 City owned facilities. The City of West Covina provides its facilities with a comprehensive preventive maintenance program that assures the proper operations of their HVAC systems. Since 1974, the Public Works Department has maximized this program's cost savings through the use of outside maintenance companies that are awarded a service contract following the completion of a competitive bid process. DISCUSSION: On March 21, 2019, in line with the City’s effort to competitively bid all contract services and select the most qualified firms, staff issued a Request for Proposal (RFP) for MAINTENANCE OF HEATING, VENTILATION AND AIR CONDITIONING EQUIPMENT AT 22 LOCATIONS RFP #41-002. The RFP was posted on Planet Bids. On April 18, 2019, two proposals were received from the following companies: Company Location Bid Acco Engineered Systems Commerce, CA $72,456 Allison Mechanical Incorporated Redlands, CA $128,604 After receiving bids, staff met with ACCO Engineered Systems to confirm scope of work. In this meeting it was found that ACCO did not include "Emergency Breakdown and Repair Services; with guaranteed On-Call responses to immediately begin work to restore malfunctioning HVAC systems to proper operation". ACCO withdrew its bid when they found out it was realized it would not be able to charge for emergency repairs that were included in the original RFP. Allison Mechanical has worked with the City's HVAC system since 2002, and is familiar with all the City's facilities and equipment. Allison's staff is responsive and repairs are performed efficiently, generally with little down time. OPTIONS: 1. Approve staff's recommendation; 2. Reject received proposals, send out a new RFP and extend current contract with Allison Mechanical month to month while the RFP process is completed; or 3. Provide alternative direction. ENVIRONMENTAL REVIEW: This item is not subject to the California Environmental Quality Act (CEQA) per Sections 15060(c) (2) and 15061(b)(3) of the CEQA Guidelines, which provides that CEQA only applies to activity that results in direct or reasonably foreseeable indirect physical change in the environment and for activity considered to be a project, respectively. Prepared by: Mike Cresap Public Services Superintendent Fiscal Impact FISCAL IMPACT: Funding for HVAC maintenance is currently included in the fiscal year 2019-20 proposed budget under the Public Services Department, Maintenance Division Account No. 110.61.4144.6130. The cost to the General Fund will be $128,604 annually for HVAC services. This is a $2,115 increase from the fiscal year 2018-19 contract. Attachments Attachment No. 1 - Allison Mechanical Agreement HVAC