Title
Recommendation to Authorize the City Manager, or Designee, to Execute a Five-Year Agreement with Prime Mechanical Services for Mechanical and Heating, Ventilating and Air Conditioning Preventative Maintenance and Repair at City Facilities for an Amount Not to Exceed $482,687.09.
In accordance with the California Environmental Quality Act (CEQA), this project is exempt from further environmental review pursuant to CEQA Guidelines section 15301 (Maintenance of Existing Facilities). (Public Works 60341590)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda’s (City) 27 facilities all have heating, ventilating and/or air conditioning (HVAC) systems that need continual service and repair to maintain optimal performance. The current agreement to provide these services will expire on December 31, 2022. Staff has recently completed a Request for Proposal (RFP) process and is now recommending the execution of a five-year agreement with Prime Mechanical Systems for mechanical and HVAC preventative maintenance and repair at City facilities for an amount not to exceed $482,687.09.
BACKGROUND
Public Works maintains over 500,000 square feet of City buildings. These buildings include HVAC machinery and associated equipment. The City requires the services of a HVAC specialist to ensure the machinery and equipment remain in good operating condition and is maintained to maximize performance, safety, and life span.
DISCUSSION
On September 29, 2022, the Public Works Department issued an RFP for annual HVAC system maintenance at 27 City facilities. To solicit the maximum number of proposals and most competitive price, the RFP was provided to 19 separate builders’ exchanges throughout the Bay Area, a notice was placed on the City’s web page and published in the Alameda Sun. After a bidding period of 29 days, five companies submitted proposals on October 27, 2022. Two of the proposals were non-responsive.
Staff reviewed the proposals, consistent with the City’s Purchasing Policy guidelines and the selection criteria set forth in the RFP, and selected Prime Mechanical Services as the service provider that best meets the City’s needs.
Staff proposes a new five-year agreement with Prime Mechanical Services with a term expiring June 30, 2027. The associated compensation for this agreement is not to exceed $482,687.09.
ALTERNATIVES
• Authorize the City Manager, or designee, to execute a five-year Agreement with Prime Mechanical Services to provide mechanical and HVAC preventative maintenance and repair at City facilities.
• Do not authorize the agreement with Prime Services and provide additional direction to staff.
FINANCIAL IMPACT
The funds for this agreement are budgeted in the Facilities Internal Service Fund (60341590-52140). Funding for this work is included in the Fiscal Year 2022-23 budget and will be subject to City Council appropriations approval in future years.
|
Contract |
Base Amount |
3% CPI |
Contingency |
Total Authorized Amount |
|
1/1/23-6/30/23 |
$ 44,808.00 |
$ 0.00 |
$ 6,721.20 |
$ 51,529.20 |
|
FY 23-24 |
$ 89,616.00 |
$ 0.00 |
$13,442.40 |
$103,058.40 |
|
FY 24-25 |
$ 89,616.00 |
$2,688.48 |
$13,845.67 |
$106,150.15 |
|
FY 25-26 |
$ 92,304.48 |
$2,769.13 |
$14,261.04 |
$109,334.65 |
|
FY 26-27 |
$ 95,073.61 |
$2,852.21 |
$14,688.87 |
$112,614.69 |
|
5 Year Total |
$411,418.09 |
$8,309.82 |
$62,959.18 |
$482,687.09 |
The yearly amount encumbered for this agreement will be based on the table above and pending future City Council appropriations. Base compensation for this agreement will be increased by 3% annually, and a 15% contingency will be available annually. Use of contingency shall be for items of work outside the original scope and requires prior written authorization by the City.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is exempt from further environmental review pursuant to CEQA Guidelines section 15301 (Maintenance of Existing Facilities).
CLIMATE IMPACT
Maintenance activities can counter potential, near-term, negative impacts of climate change. The repair and maintenance of facility HVAC systems will assist with providing cleaner and more efficient air systems, results that improve local resiliency to potential climate change.
RECOMMENDATION
Authorize the City Manager, or designee, to execute a five-year agreement with Prime Mechanical Systems for mechanical and HVAC preventative maintenance and repair at City facilities for an amount not to exceed $482,687.09.
Respectfully submitted,
Robert Vance, Acting Public Works Director
By,
Ricardo DeLaTorre, Public Works Supervisor
Financial Impact section reviewed,
Margaret L. O’Brien, Finance Director
Exhibit:
1. Agreement
cc: Erin Smith, City Manager