Staff Report
PREPARED BY: JIM HARBIN
Facilities and Environmental Programs 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 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 03/20/2018
ITEM NO: 7
DATE: MARCH 5, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FOURTH AMENDMENT
TO THE AGREEMENT FOR SERVICES WITH AIR SYSTEMS, INC. TO:
A. INCREASE COMPENSATION FOR FY 2017/18 IN THE AMOUNT OF
$30,000, FOR A TOTAL ANNUAL CONTRACT AMOUNT NOT TO EXCEED
$127,996.
B. EXERCISE THE FINAL OPTION TO EXTEND THE AGREEMENT THROUGH
JUNE 30, 2019.
RECOMMENDATION:
Authorize the Town Manager to execute a fourth amendment to the Agreement for Services
with Air Systems, Inc. to:
1. Increase compensation for Fiscal Year (FY) 2017/18 in the amount of $30,000, for a total
annual contract amount not to exceed $127,996.
2. Exercise the final option to extend the agreement through June 30, 2019.
BACKGROUND:
On October 1, 2015, the Town entered into a four-year Agreement for Services with Air
Systems, Inc. to provide routine preventive maintenance and corrective repairs for heating,
ventilation, and air conditioning (HVAC) services annually subject to the appropriation of funds,
for the period of October 1, 2015 through June 30, 2019 .
PAGE 2 OF 3
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FOURTH AMENDMENT
TO THE AGREEMENT FOR SERVICES WITH AIR SYSTEMS, INC. TO:
A. INCREASE COMPENSATION FOR FY 2017/18 IN THE AMOUNT OF
$30,000, FOR A TOTAL ANNUAL CONTRACT AMOUNT NOT TO EXCEED
$127,996.
B. EXERCISE THE FINAL OPTION TO EXTEND THE AGREEMENT THROUGH
JUNE 30, 2019.
MARCH 5, 2018
S:\COUNCIL REPORTS\2018\03-20-18\07 Air Systems - Amendment to Agreement\Staff Report.FINAL.docx 3/15/2018 4:26 PM MM
BACKGROUND (cont’d):
The Town’s HVAC inventory ranges from state of the art progressive controls (e.g. Library) to
heritage 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. During the course of the contract with Air Systems, there
have been a number of Town equipment failures which have resulted in unanticipated repairs
and replacements.
The original agreement anticipated monthly charges of $3,583, for a partial first year total of
$32,247 and $42,996 annually thereafter through June 30, 2019.
Following is a chronology of amendments to the original agreement authorized to address the
additional funding needs for unanticipated maintenance:
Original Agreement - $42,996
First Amendment (June 21, 2016) – increased $12,000 due to an increase in
unanticipated service calls, equipment failures and replacements.
Second Amendment (June 6, 2017)- increased $13,000 due to an increase in equipment
failures and modifications.
Third Amendment (June 29, 2017) – increased $30,000 due to an increase in systems
modifications and failure replacements necessary to maintain proper indoor air quality
and to restore reasonable control over specific areas, as well as a larger equipment
replacement at the Town library facility.
DISCUSSION:
Due to a recent promotion to another agency of the Town Maintenance Worker with expertise
in HVAC, the Town will need to increase the reliance on contract services to respond to day to
day maintenance needs. To accomplish this, staff is recommending an ongoing increase in the
contract amount of $30,000 in both Fiscal Years 2017/18 and 2018/19, for a total annual
contract value not to exceed $127,996. The recommendation includes the extension of the
agreement through June 30, 2019 at the same increased annual contract amount. The
requested increase and contract extension will allow for the provision of ongoing HVAC services
at Town facilities.
PAGE 3 OF 3
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FOURTH AMENDMENT
TO THE AGREEMENT FOR SERVICES WITH AIR SYSTEMS, INC. TO:
A. INCREASE COMPENSATION FOR FY 2017/18 IN THE AMOUNT OF
$30,000, FOR A TOTAL ANNUAL CONTRACT AMOUNT NOT TO EXCEED
$127,996.
B. EXERCISE THE FINAL OPTION TO EXTEND THE AGREEMENT THROUGH
JUNE 30, 2019.
MARCH 5, 2018
S:\COUNCIL REPORTS\2018\03-20-18\07 Air Systems - Amendment to Agreement\Staff Report.FINAL.docx 3/15/2018 4:26 PM MM
CONCLUSION:
Authorize the Town Manager to execute a fourth amendment to the Agreement for Services
with Air Systems, Inc. to increase compensation for Fiscal Years 2017/18 and 2018/19 in the
amount of $30,000, for a total annual contract amount not to exceed $127,996 and exercise an
option to extend the agreement for FY 2018/19.
FISCAL IMPACT:
Funds for the services for FY 2017/18 are appropriated in the Parks and Public Works Operating
Budget. Funds for the services for FY 2018/19 will be included in the proposed FY 2018/19
Operating Budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project as defined under CEQA, and no further action is required.
Attachment:
1. Fourth Amendment to Agreement for Services containing the original agreement and
amendments.