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Page 2 of 3 DISCUSSION Utilizing prequalified and preapproved as-needed service agreements allows staff to authorize and direct the work effectively and efficiently. When utilizing the as-needed service contractors to perform essential tasks, staff will follow the City Council-approved Procurement Procedures and Manual. Appropriate contractors with the required license and area of expertise will be contacted with a scope of service to provide a quote for those services. For all individual work/projects, the contractor(s) will submit a written estimate detailing the cost of the required work or services. A task order is issued based on the lowest responsible and responsive bids available to meet the City’s specified performance timeline. The costs will be applied against the not-to-exceed limit of the agreement. The City will then issue a Task Authorization letter as a guide for reimbursement when the scheduled work is completed to the City’s satisfaction. As part of the bid process, all as-needed contractors provided labor and equipment rates, markup percentages, and their Department of Industrial Relations (DIR) number where applicable. In addition, as a condition of the agreement, each contractor will provide the required certificates of insurance and verification of a current City of Pleasanton business license. Performance and Payment Bonds may be requested depending on the type of services requested and the risk evaluation by staff. Table 1 below lists each type of as-needed service category, the recommended contractor(s) for that category based on pricing rates and qualifications, and the recommended not-to- exceed limit for year one of each agreement. In many cases, staff recommends entering into an agreement with multiple contractors for a single service category to have the flexibility to obtain the best combination of pricing, trade skills, and response time on a task-by-task basis. Staff will ensure that all cumulative task orders issued against the listed contracts below will not exceed the total approved budget. Table 1 – Recommended As-Needed Services Agreements Service Category Contractor Year One Not-To- Exceed HVAC Services Prime Mechanical $200,000 Airtecks.com $200,000 Environmental Systems $200,000 ACCO $200,000 Total Agreements (4) Total Amount $800,000 Contractor proposals for subsequent years shall be increased based on the San Francisco- Oakland-San Jose Metropolitan Area Consumer Price Index (CPI) for the 12-month period ending in April. Staff recognizes that these as-needed contracts encumber a significant aggregate, not-to- exceed total at a time when the City is implementing cost reductions and related cost containment strategies. At the same time, these contracts support the operations and delivery Page 260 of 782