Report Prepared by: Wally Broughton, Public Works Manager - Operations
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements and Approval of a Professional Services with PrivITation Consulting Corp. in the not to Exceed Amount of $142,200 (Phases 1 & 2) for Replacement of the Siemens HVAC Automation System at the Civic Center and Central Police Department for the Term Ending June 30, 2023; and Approval of a HVAC Automation Preventative Maintenance Agreement with PrivITation Consulting Corp. in the Amount of $17,250 for the Term Ending July 31, 2022
REPORT IN BRIEF
Considers waiving the City’s competitive bidding requirements and approving two separate agreements with PrivITation Consulting Corp. for Phases 1, 2, & 3 of the HVAC automation system replacement project, as well as maintenance of the HVAC automation system at the Civic Center and Central Police Department.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code Section 3.04.210; and,
B. Approving the agreement for professional services with PrivITation Consulting Corp., in the not to exceed amount of $142,200 for Phases (1 & 2) for replacement of the Siemens HVAC Automation System at the Civic Center and Central Police Station for a term ending June 30, 2023; and,
C. Approving for future Phase (3), contingent on budget, not to exceed $69,900, for replacement of the Siemens HVAC Automation System at the Civic Center and Central Police Station; and,
D. Approving the Automation Preventative Maintenance Agreement with PrivITation Consulting Corp., in the not to exceed amount of $17,250 for HVAC automation system maintenance at the Civic Center and Central Police Station for a term ending July 31, 2022; and,
E. Authorizing the City Manager or the Deputy City Manager, to execute the necessary documents, future amendments to add Phase 3 that are approved as to form by the City Attorney, and to approve change orders not to exceed 10% of the total contract for Phase 2 and Phase 3.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions outlined by Council; or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting.
AUTHORITY
Charter of the City of Merced, Section 200 et seq.
Merced Municipal Code (MMC), Title 3 - Revenue and Finance, Section 3.04.120 - Written contract. The purchase of materials, supplies, equipment, and contractual services of an estimated value greater than $34,000.00, the "contract threshold," shall be made by the purchasing supervisor by written contract.
MMC Section 3.04.210 - Exemptions from competitive bidding. Waivers may be authorized for, but are not limited to, cooperative purchasing in conjunction with other governmental entities, professional services, annual service or supply agreements, or purchases necessary for standardization on particular types of equipment.
CITY COUNCIL PRIORITIES
As provided for in the 2021-2022 Adopted Budget.
DISCUSSION
The Public Works Department started heating, ventilation, and air conditioning (HVAC) upgrades in Fiscal Year 2020/2021 to update the obsolete systems at both the Civic Center and Central Police Department. Phase 1 of the project was designed and completed by PrivItation Consulting Corp. (“PrivITation”) for a cost of $70,900. To allow for continuity of services, staff is requesting Council waive competitive bidding requirements and approve an agreement with PrivITation for the total combined Phases (1, 2 & 3) and approving the project cost of Phase 2 in the amount of $71,300 in FY 2021/2022. As funding becomes available in the future fiscal year(s) it is the recommendation to continue Phase 3 of the project. (The total estimated combined amount for Phase 1, 2 & 3 is $212,100).
Additionally, the maintenance of the HVAC automation services has been contracted out in past fiscal years to different vendors. Traditionally, the cost of these maintenance services falls well below the adjusted bidding threshold and is not brought before Council for approval. In FY 2021/2022, PrivITation provided maintenance services at the Civic Center and Central Police Department, and the Public Works Department has been satisfied with the service and support PrivITation has provided.
Staff is requesting Council approve the proposed maintenance agreement in the amount of $17,250 for FY 2021/2022, in addition to the above referenced professional services agreement for the HVAC automation replacement project.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed. Funding for Replacement of the Siemens HVAC agreement is available under project 122045 and funding for the Automation Preventative Maintenance agreement is available in account 671-1119-532-17-00. Future funding will be needed for the completion of Phase 3 and will be included as part of the budget process.
ATTACHMENTS
1. Agreement for Professional Services
2. Maintenance Agreement