TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. Subject
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Award of Contract to Diversified Thermal Services for mechanical services and preventative maintenance for heating, ventilation, and air conditioning equipment at various city buildings and parks; and finding of California Environmental Quality Act exemption; Bid No. 23-24.22 (SP-4277).
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2. Summary
Bids for mechanical services and preventative maintenance of heating, ventilation, and air conditioning equipment at various city buildings and parks were received and opened on January 11, 2024. One bidder, Diversified Thermal Services, LLC, responded to the invitation to bid, for a total of $608,144, which includes a 10% contingency of $55,286 for an initial three-year term.
3. Recommended Action
recommendation
1. Approve the contract with Diversified Thermal Services, LLC in the amount of $608,144 to maintain and repair heating, ventilation, and air conditioning systems in various city buildings and parks; and authorize the Mayor and City Clerk to execute the contract on behalf of the City.
2. Find that the proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15301 “Existing Facilities” Class 1.
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4. Fiscal Impact
The annual expenditure for this contract is $202,714 and will be funded through:
100.7022.51420.00000 General Fund -Maintenance Contracts (Parks) $ 14,792
100.7022.51401.00000 General Fund -Repairs to Building (Parks) $ 53,070
100.5028-51421.00000 General Fund -Maintenance Contract-Htg/Air $ 94,500
100.5028.51700.00000 General Fund -Contractual Services $ 40,352
Total: $202,714
5. Strategic Plan Goals
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. Discussion and Background
An informal bid solicitation was posted on December 14, 2023, seeking preventive maintenance and emergency repairs for heating, ventilation, and air conditioning (HVAC) equipment for city facilities and parks for a five-year term. Diversified Thermal Services, LLC, the sole bidder, proposed an annual bid of $202,714, including a 10% contingency. The initial term of this contract is three years commencing July 1, 2024, and expiring on June 30, 2027, with a two-year option to extend the contract for years four and five. Diversified Thermal Services, LLC will perform the initial three-year term at the base annual contract price for not-to-exceed $608,144. The bid is 19% higher than the current contract, which is set to expire on June 30, 2024. This cost increase is consistent with other service contracts that have seen higher labor and material costs. The final contract year and any subsequent city-approved extensions are subject to a maximum increase of 2% based upon the Consumer Price Index (CPI).
Diversified Thermal Services, LLC is the City's current vendor and has received positive feedback from the Public Works and Community Services departments. They are recommended for the contract as they meet all the qualifications stated in the City's invitation to bid.
7. Environmental review
Categorical Exemption: The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15301 “Existing Facilities” Class 1 because the project involves the repair and maintenance of existing facilities with no expansion of existing use. The CEQA Notice of Exemption will be filed with the County Recorder’s Office upon the City Council’s approval of the plans and specifications.
8. ATTACHMENTS
• Contract with Diversified Thermal Services, LLC
• Bid Abstract