HomeMy WebLinkAboutE-3 Staff Report - Control Air Contract Extension and Blanket IncreaseCONSENT ITEM
E-3
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 3, 2021
SUBJECT: APPROVAL OF THIRD AMENDMENT TO AGREEMENT FOR MAINTENANCE
SERVICES BETWEEN THE CITY OF AZUSA AND CONTROL AIR ENTERPRISES,
LLC
BACKGROUND:
The City has contracted with Control Air Enterprises, LLC for HVAC maintenance and repair services
since July 1, 2016. This contract is set to expire on June 30, 2021; however, given the ongoing
pandemic, staff is not able to host a tour of all City facilities. Without a tour of City facilities to visually
inspect the City’s HVAC systems it would be difficult for interested parties to provide an accurate
proposal which would likely result in inflated bid pricing. The proposed actions will approve an
amendment to the Maintenance Services Agreement, extending the contract for one year through June
30, 2022. Additionally, due to administrative circumstances we are requesting an increase to the contract
purchase order.
RECOMMENDATION:
Staff recommends the City Council take the following actions:
1) Approve the Third Amendment to Maintenance Services Agreement between the City of Azusa
and Control Air Enterprises, LLC for HVAC system services per Section 2-539 of the Azusa
Municipal Code Waiving of Purchasing Procedures; and
2)Authorize the City Manager to execute the contract amendment, in a form acceptable to the City
Attorney, on behalf of the City.
ANALYSIS:
On May 18, 2020, City Council approved an extension to the HVAC maintenance and repair contract
with Control Air Enterprises, LLC. This contract is effective through June 30, 2021, with no potential
one-year extensions remaining.
APPROVED
CITY COUNCIL
05/03/2021
Third Amendment to Maintenance Contract/Increase Purchase Order
May 5, 2021
Page 2
City policy would typically require that the City publish a Request for Proposals (RFP) before awarding
a new contract. However; given the ongoing COVID-19 Pandemic, the City is not able to host a tour of
City facilities which was required of all interested parties prior to submitting proposals in 2015. Without
touring the City’s facilities, the interested parties would not be able to provide accurate bids which will
likely lead to conservative pricing and increased cost to the City. Staff is asking for Council to waive
City Purchasing Procedures per section 2-539 of the Azusa Municipal Code given that the City remains
in a declared state of emergency. This action will assure that there is a continuation of maintenance
service to the City’s HVAC systems.
FISCAL IMPACT:
There is no fiscal impact for extending the contract one year. 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) Third Amendment to Maintenance Services Agreement
1
THIRD AMENDMENT TO MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY OF AZUSA
AND
CONTROL AIR ENTERPRISES, LLC
FOR HVAC MAINTENANCE AND REPAIR
ARTICLE 1. PARTIES AND DATE
This second amendment to the Maintenance Services Agreement (“Second Amendment”)
is entered this 3rd day of May, 2020, by and between the City of Azusa (“City”) and Control Air
Enterprises, LLC (“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 May 18, 2020 to extend the contract for one year or until June 30, 2021;
2.4 WHEREAS, the City and Contractor have mutually agreed to extend the contract
for one year or until June 30, 2022;
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, 2021 to June 30,
2022, 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 Third
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 Third 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 ENTERPRISES, LLC
By: By:
Robert Gonzales Scott Havrisik
Mayor Director of Service and Maintenance
Attest:
By:
Jeffrey Lawrence Cornejo, Jr.
City Clerk
Approved as to Form:
By:
Best Best & Krieger LLP
City Attorney