07 Staff Report - ARC Chiller Replacement
PREPARED BY: Dan Keller
Facilities & Environmental Services Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director and Parks &
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: 04/21/2020 ITEM NO: 7
DATE: April 13, 2020
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adult Recreation Center – New Air Conditioning Chiller
a. Authorize the Town Manager to Execute a Purchase and Service
Agreement with Foothill Mechanical Inc. for Installation of a New Air
Conditioning Chiller in the Adult Recreation Center in an Amount Not to
Exceed $55,600 Plus an Additional $11,120 for Unanticipated Costs for a
Total Agreement Amount Not to Exceed $66,720.
b. Approve an expenditure budget adjustment in the Facilities Maintenance
Fund of $66,720.
RECOMMENDATION:
Staff recommends that the Town Council:
a. Authorize the Town Manager to execute a Purchase and Service Agreement with Foothill
Mechanical Inc. (Attachment 1) for installation of a new air conditioning chiller in the Adult
Recreation Center in an amount not to exceed $55,600 plus an additional $11,120 for
unanticipated costs for a total agreement amount not to exceed $66,720.
b. Approve an expenditure budget adjustment in the Facilities Maintenance Fund of $66,720.
BACKGROUND:
The Town of Los Gatos utilizes contractual heating, ventilation, and air conditioning (HVAC)
services for equipment maintenance and replacements in Town-owned facilities. Staff reviews
these contracts and the performance of contractors to ensure that the services provided are
being completed 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 equipment replacements due to the high level of
responsiveness required, the specialized expertise needed, and the essential operations housed
in these facilities.
PAGE 2 OF 2 SUBJECT: Authorize the Town Manager to Execute a Purchase and Service Agreement with Foothill Mechanical Inc. for Installation of a New Air Conditioning Chiller in the Adult Recreation Center in an Amount Not to Exceed $55,600 Plus an Additional $11,120 for Unanticipated Costs for a Total Agreement Amount Not to Exceed $66,720 DATE: April 13, 2020
DISCUSSION:
Regular maintenance and multiple repairs have been performed on the air conditioning chiller
unit at the Adult Recreation Center through staff efforts and contractual services for many
years. The chiller has now reached its serviceable life and has failed, which leaves the facility
with no cooling functionality. To repair this equipment at this stage would not be efficient or
result in a reasonable long-term solution. Installation of a replacement chiller is necessary to
properly air condition the facility and more adequately position the facility for the future.
A request for quotes was sent to four firms, two of which submitted cost proposals and the
results are listed in Attachment 2.
Based on a review of the proposals and reference checks, staff determined that Foothill
Mechanical Inc. is the best qualified and most cost competitive firm to provide the requested
services. Foothill Mechanical Inc. is headquartered in Los Gatos and is a certified contractor in
the HVAC industry.
CONCLUSION:
Authorize the Town Manager to execute a Purchase and Service Agreement with Foothill
Mechanical Inc. (Attachment 1) for installation of a new air conditioning chiller in the Adult
Recreation Center in an amount not to exceed $55,600 plus an additional $11,120 for
unanticipated costs for a total agreement amount not to exceed $66,720 and an expenditure
budget adjustment in the Facilities Maintenance Fund of $66,720.
FISCAL IMPACT:
Staff recommends an expenditure budget adjustment of $66,720. The requested funds are
available in the Facilities Maintenance Fund Balance to complete this work.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Draft Purchase and Service Agreement
2. Cost Proposals