Staff Report
PREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed by: Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/02/2017
ITEM NO: 8
DATE: MAY 25, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A SECOND AMENDMENT
TO THE AGREEMENT FOR SERVICES WITH AIR SYSTEMS, INC. TO:
A. INCREASE COMPENSATION FOR FY 2016/17 IN THE AMOUNT OF
$13,000, FOR A TOTAL ANNUAL CONTRACT AMOUNT NOT TO EXCEED
$67,996.
B. EXERCISE AN OPTION TO EXTEND THE AGREEMENT FOR FY 2017/18
WITH A TOTAL ANNUAL CONTRACT AMOUNT NOT TO EXCEED $67,996.
RECOMMENDATION:
Authorize the Town Manager to execute a second amendment to the Agreement for Services
with Air Systems, Inc. to:
1. Increase compensation for FY 2016/17 in the amount of $13,000, for a total annual contract
amount not to exceed $67,996.
2. Exercise an option to extend the agreement for FY 2017/18 with a total annual contract
amount not to exceed $67,996.
BACKGROUND:
On October 1, 2015, the Town entered into an Agreement for Services with Air Systems, Inc. for
heating, ventilation, and air conditioning (HVAC) services and repairs . On June 21, 2016, a First
Amendment to the agreement was executed, to provide additional compensation for
unforeseen equipment repairs and replacements.
The Request for Proposal that was prepared for this service allows the agreement to be
renewed through June 30, 2019, contingent upon staff evaluation of the quality of the services
provided, as well as the Town Council’s appropriation of funds.
PAGE 2 OF 2
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A SECOND AMENDMENT
TO THE AGREEMENT FOR SERVICES WITH AIR SYSTEMS, INC. TO:
A. INCREASE COMPENSATION FOR FY 2016/17 IN THE AMOUNT OF
$13,000, FOR A TOTAL ANNUAL CONTRACT AMOUNT NOT TO EXCEED
$67,996.
B. EXERCISE AN OPTION TO EXTEND THE AGREEMENT FOR FY 2017/18
WITH A TOTAL ANNUAL CONTRACT AMOUNT NOT TO EXCEED $67,996.
MAY 25, 2017
S:\COUNCIL REPORTS\2017\06-06-17\08 - Air Systems Inc\Staff Report Air Systems Final.docx 6/1/2017 2:21 PM MM
DISCUSSION:
The Town’s mechanical inventory ranges from state of the art progressive controls (e.g. Library)
to legacy manually controlled and monitored equipment (e.g. Town Hall). The older equipment
requires high levels of maintenance and has higher failure rates while the newer equipment
requires special skills for repairs. The contract provides for routine preventive maintenance
and for corrective repairs.
Due to an increase in equipment failures and modifications needed for proper and efficient
operation with minimal downtime in the current fiscal year, and with the expectation that
these issues will continue, staff is recommending an ongoing increase in the contract amount of
$13,000 beginning in FY 2016/17, for a total annual contract value not to exceed $67,996. The
recommendation includes the extension of the agreement through June 30, 2018 at the same
increased annual contract amount.
CONCLUSION:
The requested increase and contract extension will allow for the provision of ongoing HVAC
services at Town facilities.
FISCAL IMPACT:
Funds for the services for FY 2016/17 are appropriated in the Parks and Public Works Operating
Budget. Funds for the services for FY 2017/18 are included in the proposed FY 2017/18
Operating Budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Second Amendment to Agreement for Services containing the original Agreement and First
Amendment.