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Page 1 of 3 Item #13 CITY COUNCIL AGENDA REPORT July 16, 2024 Public Works - Operations Division TITLE: APPROVE AS-NEEDED MAINTENANCE AND TRADE SERVICES AGREEMENTS FOR HEATING, VENTILATION, AND AIR CONDITIONING GENERAL MAINTENANCE INFRASTRUCTURE REPAIRS WITH THE OPTION TO EXTEND TWO ADDITIONAL ONE-YEAR EXTENSIONS WITH SATISFACTORY PERFORMANCE SUMMARY To maintain the heating, ventilation, and air conditioning (HVAC) systems in all City facilities, the City utilizes prequalified and preapproved as-needed service agreements, which allows staff to authorize and direct the work effectively and efficiently. The current five-year HVAC maintenance service agreement expired on June 30, 2024. Staff distributed a Request For Proposal (RFP) for experienced licensed contractors to perform as-needed, necessary HVAC maintenance services for City facilities. Based on the proposals received, staff has established a list of as-needed maintenance and trade services agreements with annual not-to-exceed limits. The proposed as-needed services agreements will commence on August 1, 2024, and expire on June 30, 2027, with an option for two additional one-year extensions with Consumer Price Index (CPI) inceases. Each agreement allows the City to terminate services should the CIty need to reduce costs. RECOMMENDATION Approve and authorize the City Manager to execute four three-year as-needed maintenance service agreements for continued proactive HVAC maintenance and emergency repair services with the option for two additional one-year extensions with CPI increases based on satisfactory performance. BACKGROUND The HVAC maintenance for 32 City facilities and 139 publicly maintained facilities requires ongoing maintenance and as-needed repairs. To meet the City’s needs, as-needed contractors that supplement the work of City staff are essential to supporting the City’s core functions and keeping the City in good operating order. The City has successfully used contracting services to supplement internal resources, especially during emergencies and urgent needs and when the work requires specialized tools, equipment, and skills. The current as-needed service agreements expired on June 30, 2024. In May 2024, an RFP was formally advertised for new agreements for as-needed services by posting a legal publication and notification on the City’s website and through third-party vendor Bidnet Direct. Six proposals were received from licensed contractors; four of the six proposals met or exceeded the minimum qualifications listed in the RFP for the categories listed in Table 1 below. Contractors’ licenses and Department of Industrial Relations (DIR) registration have been verified. Page 259 of 782