HomeMy WebLinkAboutE-6 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: ROBERT DELGADILLO, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
DATE: MAY 18, 2020
SUBJECT: APPROVAL OF SECOND AMENDMENT TO AGREEMENT FOR MAINTENANCE
SERVICES BETWEEN THE CITY OF AZUSA AND CONTROL AIR
CONDITIONING CORPORATION AND CONSIDERATION OF INCREASING
CONTRACT 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, 2020; however, there is one 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, 2021. Additionally, due to
administrative circumstances staff is requesting an increase to the contract purchase order.
RECOMMENDATION:
Staff recommends the City Council take the following actions:
1) Approve the Second 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 contract purchase order for Control Air Conditioning Services from
$34,162.40 to $44,162.40; and
3)Authorize the City Manager to execute the contract amendment, in a form acceptable to the City
Attorney, on behalf of the City; and
ANALYSIS:
On April 1, 2019, City Council approved an extension to the HVAC maintenance and repair contract
with Control Air Conditioning Corporation. This contract is effective through June 30, 2020, with one
potential one-year extension remaining. With the amended contract expiring, the City purchasing policy
requires a one-year extension of the contract be considered by City Council.
APPROVED
CITY COUNCIL
5/18/2020
Second Amendment to Maintenance Contract/Increase Purchase Order
May 18, 2020
Page 2
Additionally, due to some administrative circumstances, some invoices from the 2018/19 fiscal year
were charged to the 2019/20 budget, which makes amount of the contract purchase order of $34,162.40
inadequate. Staff is requesting that the contract purchase order be increased to $44,162.40 to cover
expenses through the end of the year.
FISCAL IMPACT:
There is no fiscal impact for extending the contract for one year or for increasing the contract purchase
order. Additional funding for maintenance and repairs were included in the adopted annual budget.
Prepared by: Reviewed and Approved:
Robert Delgadillo Sergio Gonzalez
Director of Public Works/City Engineer City Manager
Attachments:
1) Second Amendment to Maintenance Services Agreement
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SECOND 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 second amendment to the Maintenance Services Agreement (“Seond Amendment”)
is entered this 18th day of May, 2020, 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 mutually agreed to amend the Maintenance
Services Agreement on April 1, 2019 to extend the contract for one year or until June 30, 2020;
2.4 WHEREAS, the City and Contractor have mutually agreed to extend the contract
for one year or until June 30, 2021;
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, 2020 to June 30,
2021, as allowed by adding one additional year extension, unless earlier terminated as provided
herein. No 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 Second
Amendment, all provisions of the Agreement shall remain unchanged and in full force and effect.
From and after the date of this Second Amendment, whenever the term “Agreement” appears in
the Agreement, it shall mean the Agreement as amended by this Second Amendment.
Attachment 1
2
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 Second Amendment.
4. Counterparts: This Second 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
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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:
Robert Gonzales 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