07 Staff Report - Award of HVAC Maintenance Contract~VZ4 N 0 MEETING DATE: 8/7/06
ITEM NO:
cosos COUNCIL AGENDA REPORT
DATE: JULY 26, 2006
TO: MAYOR AND TOWN COUNCIL `
FROM: DEBRA J. FIGONE, TOWN MANAGEk,
SUBJECT: PROJECT 06-31 - AWARD OF HVAC MAINTENANCE CONTRACT
ADOPT RESOLUTION DECLARING THERMA CORPORATION TO BE
THE LOWEST RESPONSIBLE BIDDER ON THE PROJECT AND
AWARDING A THREE YEAR CONTRACT IN THE AMOUNT OF
$22,020.00 PER YEAR PLUS CPI INCREASE IN YEARS 2 AND 3
RECOMMENDATION:
Adopt resolution declaring Therma Corporation to be the lowest responsible bidder on the
project and awarding a three year contract in the amount of $22,020.00 per year plus CPI
increases in years 2 and 3
BACKGROUND:
One year from the date of this agreement and each anniversary thereafter, the monthly price paid
for such services shall be adjusted upward or downward, increased or decreased, according to the
percent change in the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price
Index. All Items, All Urban Consumers, San Francisco-Oakland-San Jose, 1982-84-100 Index.
DISCUSSION:
Periodically, the Town solicits proposals from qualified firms to perform various services. As a
part of this process, staff evaluates the cost effectiveness of continuing to contract for services.
At this time Town staff cannot adequately respond to the technical needs of the Town's HVAC
system needs and recommends continuing contractual services.
The scope of work under the Town's request for bids calls for the contractor to provide all labor,
materials. and equipment and to perform all work necessary to repair and maintain the HVAC
equipment at various Town facilities.
PREPARED BY: JOHN E. CURTIS
Director of Parks and Public Works
N,AL3&E\COUNC11 REPORTS\06-31.award.of.HVAC.maint. contract. DOC
Reviewed by:Assistant Town Manager _LLTown Attorney
Clerk Administrator finance Community Development -ky
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: PROJECT 06-31 - AWARD OF HVAC MAINTENANCE CONTRACT
JULY 26, 2006
One sealed proposal for contractual services for the repair and maintenance of the Heating,
Ventilating, and Air Conditioning (HVAC) equipment was received and opened by the Clerk
Administrator on July 26, 2006
Staff sent requests for proposals to the following contractors and Therma Corporation was the
only bidder.
Therma Corporation $22,020.00 per year
Foothill Heating and Air Conditioning No Bid
Ray L. Hellwig Plumbing and Air Conditioning No Bid
O. C. McDonald, Inc. No Bid
It is recommended that the Council adopt the attached Resolution that would declare Therma
Corporation to be the lowest responsible bidder on the project and award a three year HVAC
Maintenance contract to this company in the amount of $22,020.00 per year plus CPI increases
in years 2 and 3. Staff has checked the bid received and has determined that Therma Corporation
is responsible and that its bid is responsive to the Town's informal bid process.
CONCLUSION:
It is recommended that the proposal submitted by Therma Corporation be accepted by the Town
Council. Therma Corporation's proposal satisfactorily responds to each of the criteria contained
in the RFP, and is the most competitive from a cost standpoint.
It is recommended that the Town Council accept and authorize the Town Manager to execute a
three year Contract with Therma Corporation in the amount of $22,020.00 per year for services
through the end of FY 07/08.
ENVIRONMENTAL ASSESSMENT:
This is not a project as defined under CEQA.
FISCAL IMPACT:
Full funding for the HVAC contract for Fiscal Year 06/07 exists in the adopted budget for
Building Maintenance, Fund 695.
Attachments:
1. Resolution awarding the HVAC contract to Therma Corporation (with Exhibit A) HVAC
Maintenance Contract
2. Bid Summary
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AWARDING A CONTRACT TO
THERMA CORPORATION
FOR PROJECT 06-31
HVAC MAINTENANCE CONTRACT
WHEREAS, proposals were sought in conformance with State and Town law for Project
#06-31 - HVAC Maintenance Contract; and
WHEREAS, Therma Corporation submitted the only proposal which the Town Council
deems to be the most responsive to the Town's solicitation dated June 22, 2006.
BE IT RESOLVED by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that Therma Corporation is declared to be a responsible bidder for
Project #06-31 - HVAC Maintenance Contract.
BE IT FURTHER RESOLVED that the Town Manager is hereby authorized and
directed to execute a HVAC Maintenance three year contract with Therma Corporation
(Attached as Exhibit A) on behalf of the Town in the amount of $22,020.00 per year plus CPI
increases in years 2 and 3.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 7th day of August, 2006, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED: MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
AGREEMENT
THIS IS AN AGREEMENT between the Town of Los Gatos (hereinafter referred to as
"Owner") and Therma Corporation (hereinafter referred to as "Contractor").
Owner and Contractor, for the consideration hereinafter named, agree as follows:
7-01. SCOPE OF WORK
Contractor shall furnish all materials and perform all of the work for PROJECT # 06-31
Contractual Services for Repair and Maintenance of the Heating, Ventilating and Air
Conditioning (HVAC) Equipment, in accordance with the Contract Documents.
7-02. CONTRACT PRICE
A First Year
As full compensation for furnishing all materials and equipment and for doing all the
work contemplated and embraced in this agreement, also for all loss or damage arising
out of the nature of the work aforesaid, or from the actions of the elements, or from any
unforeseen difficulties or obstructions which may arise or be encountered in the
prosecution of the work until its acceptance by Owner, and for all risks of every
description connected with the work, also for all expenses incurred by or in
consequence of the suspension or discontinuance of work, and for well and faithfully
completing the work, and the whole thereof, in the manner and according to the
Contract Documents, Owner shall pay an amount not to exceed $22,020.00 the first
year.
B. Successive Years
One year from the date of this agreement and each anniversary thereafter, the monthly
price paid for such services shall be adjusted upward or downward, increased or
decreased, according to the percent change in the U.S. Department of Labor, Bureau of
Labor Statistics Consumer Price Index, All Items, All Urban Consumers, San
Francisco-Oakland-San Jose, 1982-84-100 Index.
7-03. CONTRACT DOCUMENTS
All rights and obligations of Owner and Contractor are fully set forth and described in the
Contract Documents. All parts of the Contract Documents are intended to be correlated so that
any work called for in one part and not mentioned in the other, or vice versa, is to be executed
the same as if mentioned in all said documents. The Contract Documents are defined in Section
8-01.A of these Specifications and are incorporated herein by reference the same as though set
out in full.
7-04. BEGINNING OF WORK
Following the execution of this agreement and the approval of bonds and insurance policies and
certificates, Owner shall issue a Notice to Proceed with the work. Commencing work or the
entrance of equipment or materials on the site of the work by Contractor before receipt of the
Notice to Proceed is at the sole risk and expense of Contractor, and the Contractor shall be fully
liable for any damage or injury sustained by Owner or third persons resulting there from.
7-05. TERM OF THIS AGREEMENT
The term of this agreement shall begin on August 14, 2006 and end on June 30, 2009 unless
modified with the consent of both parties.
7-06. LIQUIDATED DAMAGES
The undersigned has reviewed and is thoroughly familiar with the appropriate sections of the
Contract and Section 8-06.C. of these Specifications pertaining to liquidated damages.
7-07. TERMINATION OF AGREEMENT
A. Failure to perform satisfactorily - All work shall be performed to the satisfaction of the
Director of Parks and Public Works. If performance is not satisfactory, Owner shall
give Contractor written notice including a reasonable time (15 days) for meeting the
necessary standards. If Contractor fails to perform satisfactorily after written notice,
Owner may terminate this agreement on five (5) days written notice.
B. Failure to meet security clearance requirements - Failure to meet security clearance
requirements shall be grounds for termination on thirty (30) days written notice by
Owner.
C. Termination without cause - The Owner may terminate this agreement without cause on
thirty (30) days written notice.
TOWN OF LOS GATOS
By
Town Manager
CONTRACTOR
By
Title
Business Address
Contractor's License Number
RECOMMENDED BY:
JOHN E. CURTIS
Director of Parks and Public Works
APPROVED AS TO FORM:
ORRY P. KORB
Town Attorney
ATTEST:
MARLYN RASMUSSEN
Clerk Administrator