Attachment 3TO:
FROM: MATT MORLEY, DIRECTOR ")
SUBJECT: MANAGER AUTHORITY — 3RD AMENDMETO AGREEMENT WITH AIR
SYSTEMS, INC.
MEMORANDUM
Parks and Public Works Department
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LAUREL PREVETTI, TOWN MANAGER MAYOR REVIEW`q6c 4-(6i 1�
DATE: June 29, 2017
RECOMMENDATION:
Staff recommends that the Town Manager execute a third amendment to the agreement dated
June 6, 2017 with Air Systems, Inc. to increase compensation for unanticipated maintenance in
an amount of $15,000 for a total contract amount of $82,996 in FY 2016/17, and to increase
compensation in FY 2017/18 for unanticipated maintenance in an amount of $30,000 for a total
one year contract amount of $97,996.
BACKGROUND:
In October of 2015, the Town entered into a four year agreement with Air Systems Inc. to
provide HVAC maintenance services for the Town's facilities including the Civic Center, Library,
Police Operations Building, Adult Recreation Center, and Corporation Yard at a cost of $42,996
per year. In June of 2016, the Town Manager executed a first amendment to the agreement
increasing compensation by $12,000 for unanticipated maintenance, repairs, and replacements
for a total contract amount not to exceed $54,996 per year. In June of 2017, the Town Manager
executed a second amendment to the agreement increasing compensation by $13,000 for a
total contract amount of $67,996.
DISCUSSION:
Air Systems, Inc. has provided quality services at a competitive price as determined through the
RFP process that resulted in a Council awarded contract on October 1, 2015. Town HVAC
PREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed as necessary: Town Manager, Assistant Town Manager, Town Attorney, Finance Director
110 E. Main Street Los Gatos, CA 95030 • 408-354-6832
www.losgatosca.gov
PAGE 2 OF 2
DATE: JUNE 29, 2017
SUBJECT: MANAGER AUTHORITY - AIR SYSTEMS, INC.
DISCUSSION (cont'd):
systems are aging and have experienced increased systems modifications and failure
replacements necessary to maintain proper indoor air quality. Currently, there are several
modifications needed to restore reasonable control over specific areas, as well as a larger
equipment replacement at the Town library facility where the equipment has failed.
The additional funding request will allow for repairs to allow for functional HVAC systems.
CONCLUSION:
While the Town's Adopted Operating Budget for FY 2016/17 and FY 2017/18 includes funding
for HVAC services, under the Town's Procurement Policy, the amount exceeds the Town
Manager's contract approval authority of $50,000. To ensure continuous indoor air quality in
the Town's facilities, staff recommends that the Town Manager execute the third amendment
and provide a report of this action to the Town Council on August 1, 2017.
ENVIRONMENTAL ASSESSMENT:
The approval of the third amendment is not a project under the California Environmental
Quality Act.
FISCAL IMPACT:
There are sufficient funds available for this project through the PPW Program Budget.
Attachments:
1. AGR: 15.228
2. AGR: 16.132
3. 2nd Amendment
N:\PPW\AGREEMENTS\Agreements - working copies (Misc. - No Project Numbers)\Air Systems\TMAuthorityMemo Air Systems.doc