Staff Report
PREPARED BY: Jim Harbin
Superintendent
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Director
of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 12/17/2019
ITEM NO: 13
DATE: December 5, 2019
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Five-Year Agreement for Services
with Air Systems, Inc. for Routine Heating, Ventilation, and Air Conditioning
(HVAC) Services in Town Facilities in an Amount Not to Exceed $29,183 for
Year 1 and $50,028 Annually Thereafter, Plus an Additional $30,000 Annually
for Unanticipated Repairs for a Total Agreement Amount Not to Exceed
$379,295
RECOMMENDATION:
Authorize the Town Manager to execute a five-year Agreement for Services with Air Systems,
Inc. (Attachment 1) for routine heating, ventilation, and air conditioning (HVAC) services in
Town facilities in an amount not to exceed $29,183 for Year 1 and $50,028 annually thereafter,
plus an additional $30,000 annually for unanticipated repairs for a total agreement amount not
to exceed $379,295.
BACKGROUND:
The Town of Los Gatos utilizes contractual heating, ventilating, and air conditioning
infrastructure services for Town-owned facilities. Staff reviews these maintenance contracts
regularly to ensure that the services provided are being performed satisfactorily, competitively
priced, and continue to meet the Town’s expectations and contract terms. Staff has
determined that contractual HVAC services are the most effective service delivery method for
this component of building maintenance due to the high level of responsiveness required, the
specialized expertise needed, and the essential Town operations housed in facilities requiring
HVAC.
PAGE 2 OF 3
SUBJECT: Authorize the Town Manager to Execute a Five-Year Agreement for Services
with Air Systems, Inc. for Routine Heating, Ventilation, and Air Conditioning
(HVAC) Services in Town Facilities in an Amount Not to Exceed $29,183 for Year
1 and $50,028 Annually Thereafter, Plus an Additional $30,000 Annually for
Unanticipated Repairs for a Total Agreement Amount Not to Exceed $379,295
DATE: December 5, 2019
BACKGROUND (continued):
The approved budget for Fiscal Year 2019/20 includes funding for HVAC services at the Police
Operations Building, Civic Center, Library, Parks and Public Works Service Center, Adult
Recreation Center, and the Youth Recreation Center.
DISCUSSION:
In May of 2019, staff initiated a Request for Proposals (RFP) for contract HVAC services at six
main municipal facilities, including emergency and after-hours response and repair. Firms were
asked to provide their capability and qualifications across services and to provide line item costs
per hour for additional services and repairs as needed, such as upgrades, modifications, and
replacements due to failure.
The RFP was sent to five firms, two of which attended the mandatory walk-through meeting,
Elite Heating and Air Conditioning and Air Systems, Inc. Both firms submitted cost proposals
and the results are listed in Attachment 2.
Based on a review of the proposals and reference checks, staff originally determined that Elite
Heating and Air Conditioning, Inc. was the best qualified and most cost competitive firm to
provide the requested services. On June 18, 2019, Town Council authorized the Town Manager
to execute an Agreement for Services with Elite Heating and Air Conditioning.
Elite Heating and Air Conditioning provided services for the Town beginning July 1, and on
November 15, the owner informed staff that the company would no longer be able to provide
services, as it was going out of business.
In order to provide continuity of services, staff is recommending executing an agreement with
Air Systems, Inc. as the new HVAC service provider based on the results of the prior RFP for the
services. Air Systems, Inc. was the former HVAC service provider for the Town from October 6,
2015 to June 30, 2019 and provided thorough and efficient maintenance and repairs during
their tenure.
PAGE 3 OF 3
SUBJECT: Authorize the Town Manager to Execute a Five-Year Agreement for Services
with Air Systems, Inc. for Routine Heating, Ventilation, and Air Conditioning
(HVAC) Services in Town Facilities in an Amount Not to Exceed $29,183 for Year
1 and $50,028 Annually Thereafter, Plus an Additional $30,000 Annually for
Unanticipated Repairs for a Total Agreement Amount Not to Exceed $379,295
DATE: December 5, 2019
CONCLUSION:
Authorize the Town Manager to execute a five-year Agreement for Services with Air Systems,
Inc. for routine heating, ventilation, and air conditioning (HVAC) services in Town facilities in an
amount not to exceed $29,183 for Year 1 and $50,028 annually thereafter, plus an additional
$30,000 annually for unanticipated repairs for a total agreement amount not to exceed
$379,295.
FISCAL IMPACT:
Funding for the first year of the agreement is included in the Adopted FY 2019/20 Parks and
Public Works Facilities Maintenance Budget. Execution of any options to continue the service in
subsequent years will be contingent upon staff evaluation of the qu ality of the services
provided, as well as the Town Council’s appropriation of funding through the budget process in
subsequent fiscal years.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Draft Agreement for Services
2. Bid Proposal Results