Staff Report
PREPARED BY: JIM HARBIN
Facilities & Environmental Services Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and
Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/18/2019
ITEM NO: 9
DATE: JUNE 12, 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 ELITE HEATING AND AIR CONDITIONING, INC. FOR
ROUTINE HEATING, VENTILATION, AND AIR CONDITIONING SERVICES IN
TOWN FACILITIES IN AN AMOUNT NOT TO EXCEED $43,158 ANNUALLY
PLUS AN ADDITIONAL $30,000 FOR UNANTICIPATED REPAIRS WITH A
TOTAL ANNUAL AMOUNT OF $73,158 AND A TOTAL AGREEMENT AMOUNT
NOT TO EXCEED $365,790
RECOMMENDATION:
Authorize the Town Manager to execute a five-year Agreement for Services (Attachment 1)
with Elite Heating and Air Conditioning, Inc. for routine heating, ventilation, and air
conditioning (HVAC) services in Town facilities in an amount not to exceed $43,158 annually
plus an additional $30,000 for unanticipated repairs with a total annual amount of $73,158 and
a total agreement amount not to exceed $365,790.
BACKGROUND:
The Town of Los Gatos has utilized contractual HVAC services for Town-owned facilities for the
past several years. 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 operations housed in these facilities. The current HVAC services
contract with Air Systems, Inc. will expire on June 30, 2019.
PAGE 2 OF 3
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FIVE-YEAR AGREEMENT
FOR SERVICES WITH ELITE HEATING AND AIR CONDITIONING, INC. FOR
ROUTINE HEATING, VENTILATION, AND AIR CONDITIONING SERVICES IN
TOWN FACILITIES IN AN AMOUNT NOT TO EXCEED $43,158 ANNUALLY PLUS
AN ADDITIONAL $30,000 FOR UNANTICIPATED REPAIRS WITH A TOTAL
ANNUAL AMOUNT OF $73,158 AND A TOTAL AGREEMENT AMOUNT NOT TO
EXCEED $365,790
DATE: JUNE 12, 2019
S:\COUNCIL REPORTS\2019\06-18-19\09 HVAC services agreement\Staff Report.FINAL.docx 6/13/2019 9:28 AM
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:
With the existing contract set to expire at the end of this fiscal year, staff initiated a Request for
Proposal (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.
Both firms submitted cost proposals and the results are listed in Attachment 2.
Based on a review of the proposals and reference checks, staff determined that Elite Heating
and Air Conditioning, Inc. was the best qualified and most cost competitive firm to provide the
requested services. Elite Heating and Air Conditioning, Inc. is headquartered in Milpitas and
offers a full range of HVAC services including preventive maintenance, sheet metal fabrication,
and building automation controls.
The agreement term allows for continuity of service and maximizes savings by engaging the
firm for multiple years. The contract language provides for cancellation should the need arise
during the contract term.
CONCLUSION:
Authorize the Town Manager to execute a five-year Agreement for Services with Elite Heating
and Air Conditioning, Inc. for routine HVAC services in Town facilities in an amount not to
exceed $43,158 annually plus an additional $30,000 for unanticipated repairs with a total
annual amount of $73,158 and a total agreement amount of $365,790.
PAGE 3 OF 3
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FIVE-YEAR AGREEMENT
FOR SERVICES WITH ELITE HEATING AND AIR CONDITIONING, INC. FOR
ROUTINE HEATING, VENTILATION, AND AIR CONDITIONING SERVICES IN
TOWN FACILITIES IN AN AMOUNT NOT TO EXCEED $43,158 ANNUALLY PLUS
AN ADDITIONAL $30,000 FOR UNANTICIPATED REPAIRS WITH A TOTAL
ANNUAL AMOUNT OF $73,158 AND A TOTAL AGREEMENT AMOUNT NOT TO
EXCEED $365,790
DATE: JUNE 12, 2019
S:\COUNCIL REPORTS\2019\06-18-19\09 HVAC services agreement\Staff Report.FINAL.docx 6/13/2019 9:28 AM
FISCAL IMPACT:
Funding for the first year of the agreement is included in the Adopted FY 2019/20 Parks and
Public Works Operating Budget. Execution of any options to continue the service in subsequent
years will be contingent upon staff evaluation of the quality 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