HomeMy WebLinkAboutE-06 Staff Report - Control Air Contract Extension and Blanket IncreaseCONSENT ITEM
E-6
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: DANIEL BOBADILLA, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
DATE: APRIL 1, 2019
SUBJECT: APPROVAL OF FIRST AMENDMENT TO AGREEMENT FOR MAINTENANCE
SERVICES BETWEEN THE CITY OF AZUSA AND CONTROL AIR
CONDITIONING CORPORATION AND CONSIDERATION OF INCREASING
BLANKET PURCHASE ORDER
BACKGROUND:
The City has contracted with Control Air Conditioning Corporation for HVAC maintenance and repair
services since July 1, 2016. This contract is set to expire on June 30, 2019, however, there are two one-
year extensions available. The proposed actions will approve an amendment to the Maintenance
Services Agreement, extending the contract for one year through June 30, 2020. Additionally, due to
aging equipment and several large unit replacements we are requesting an increase to the blanket
purchase order.
RECOMMENDATION:
Staff recommends the City Council take the following actions:
1) Approve the First Amendment to Maintenance Services Agreement between the City of Azusa
and Control Air Conditioning Corporation for HVAC system services; and
2) Approve an increase to the blanket purchase order for Control Air Conditioning Services from
$120,000 to $250,000; and
3)Authorize the City Manager to execute the contract amendment, in a form acceptable to the City
Attorney, on behalf of the City.
ANALYSIS:
On June 6, 2016, City Council awarded the HVAC maintenance and repair contract to Control Air
Conditioning Corporation. This contract is effective through June 30, 2019, with two potential one-year
APPROVED
CITY COUNCIL
4/1/2019
First Amendment to Maintenance Contract/Increase Purchase Order
April 1, 2019
Page 2
extensions available. With the original contract expiring, the City purchasing policy requires a one-year
extension of the contract be considered by City Council.
Additionally, due to the age of the HVAC equipment, several large repairs/replacements, and the
preliminary phase of the Police Department replacement project, the blanket purchase order of $120,000
is not sufficient. Staff is requesting that the blanket purchase order be increased to $250,000 to cover
expenses through the end of the year. Light and Water is funding several of the replacements as they are
energy efficient units.
With the anticipated replacement of the Police Department units and the FY 19-20 budget requests of
replacement of several of the older systems, Staff anticipates that repair costs will significantly decrease
in the future.
FISCAL IMPACT:
There is no fiscal impact for extending the contract for one year or for increasing the blanket purchase
order. Additional funding for repairs in excess of the initial FY18-19 budget was requested and
approved at mid-year budget.
Prepared by: Reviewed and Approved:
Nikki Rosales Daniel Bobadilla, P.E.
Senior Management Analyst Director of Public Works/City Engineer
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1) First Amendment to Maintenance Services Agreement
1
FIRST AMENDMENT TO MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY OF AZUSA
AND
CONTROL AIR CONDITIONING CORPORATION
FOR HVAC MAINTENANCE AND REPAIR
ARTICLE 1. PARTIES AND DATE
This first amendment to the Maintenance Services Agreement (“First Amendment”) is
entered this 1st day of April, 2019, by and between the City of Azusa (“City”) and Control Air
Conditioning Corporation (“Contractor”).
ARTICLE 2. RECITALS
2.1 WHEREAS, the City and Contractor entered into a three year Maintenance
Services Agreement dated July 1, 2016 (“Agreement”) for Contractor to provide HVAC
maintenance and repairs (“Services”) for the City of Azusa; and
2.2 WHEREAS, Section 3.1.2 of Agreement requires written approval of an
extension of the original three year term: and
2.3 WHEREAS, the City and Contractor have mutually agreed to extend the contract
for one year or until June 30, 2020;
NOW, THEREFORE, THE PARTIES DO HEREBY AGREE TO THE FOLLOWING:
1.3.1. Scope of Services and Terms. The first paragraph of Section 3.1.2 is
hereby replaced, in its entirety, with the following:
3.1.2 Term. The term of this Agreement shall be from July 1, 2019 to June 30,
2020, as allowed by adding one additional year extension, unless earlier terminated as provided
herein. One additional one-year extension may be granted. Contractor shall complete the
Services within the terms of this Agreement, and shall meet any other established schedules and
deadlines. The Parties, may, by mutual, written consent, extend the term of this Agreement if
necessary to complete the Services.
2.Continuing Effect of Agreement: Except as amended by this First Amendment,
all provisions of the Agreement shall remain unchanged and in full force and effect. From and
after the date of this First Amendment, whenever the term “Agreement” appears in the
Agreement, it shall mean the Agreement as amended by this First Amendment.
3.Adequate Consideration: The Parties hereto irrevocably stipulate and agree that
they have each received adequate and independent consideration for the performance of the
obligations they have undertaken pursuant to this First Amendment.
Attachment 1
2
4. Counterparts: This First Amendment may be executed in duplicate originals, each of
which is deemed to be an original, but when taken together shall constitute but one and the same
instrument.
SIGNATURES ON NEXT PAGE
3
IN WITNESS WHEREOF, City and Contractor have executed this First Amendment as
of the date first written above.
CITY OF AZUSA CONTROL AIR CONDITIONING CORP
By: By:
Joseph Romero Rocha Scott Havrisik
Mayor Director of Service
Attest:
By:
Jeffrey Lawrence Cornejo, Jr.
City Clerk
Approved as to Form:
By:
Best Best & Krieger LLP
City Attorney