HomeMy WebLinkAbout11 - Approval of Amendment to HVAC Services Agreement (Contract No. 7960-1)TO:
FROM
CITY OF
NEWPORT BEACH
City Council Staff Report
October 11, 2022
Agenda Item No. 11
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Melissa Hartson, Library Services Director - 949-717-3801,
mhartson@newportbeachca.gov
PREPARED BY: Rebecca Lightfoot, Acting Library Services Manager
rlightfoot@newportbeachca.gov
PHONE: 949-717-3852
TITLE: Approval of Amendment to HVAC Services Agreement with Western
Allied Corporation (Contract No. 7960-1)
ABSTRACT:
Staff is requesting approval of an amendment to the contract for HVAC services with
Western Allied to increase the compensation by $120,000, for a not -to -exceed amount of
$240,000.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060 (c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Approve Amendment No. One to the HVAC Services Agreement with Western Allied
Corporation for a not -to -exceed amount of $240,000, with the Agreement ending on
February 7, 2024.
DISCUSSION:
The HVAC system at the Central Library is 27 years old, and the system at the Mariners
Branch is 16 years old. Both systems require frequent maintenance above the amount in
the current Agreement. Metal components are exposed to the outside elements and as
they age, they break down. During heat waves, both locations function as cooling centers
and it is important that the libraries provide this service to our community. Throughout the
duration of the existing contract, there have been several unexpected system failures and
aging components needing to be replaced, resulting in costly repairs to both the Central
and Mariners Library HVAC systems. Placement of the Mariners system components in
the high ceiling requires higher labor costs and specialized equipment rentals to perform
scheduled maintenance and unanticipated repairs. With the age of the systems and
recent maintenance needs, staff will be evaluating the systems for replacement. In the
meantime, staff recommends increasing the funding in this agreement to ensure the
ability to fix critical issues in a timely manner. The vendor has also provided a new
schedule of billing rates.
Approval of Amendment to HVAC Services Agreement with
Western Allied Corporation (Contract No. 7960-1)
October 11, 2022
Page 2
FISCAL IMPACT:
The adopted budget includes sufficient funding for this agreement. It will be expensed to
the respective maintenance budgets for each facility in the Library Services Department.
Central Library 0106023-851016
Mariners Library 0106022-851016
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Amendment No. One to On -Call Maintenance/Repair Services Agreement
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ATTACHMENT A
AMENDMENT NO. ONE TO
ON -CALL MAINTENANCE/REPAIR SERVICES AGREEMENT
WITH WESTERN ALLIED CORPORATION FOR
HEATING, VENTILATION AND AIR CONDITIONING MAINTENANCE & REPAIR
SERVICES
THIS AMENDMENT NO. ONE TO ON -CALL MAINTENANCE/REPAIR
SERVICES AGREEMENT ("Amendment No. One") is made and entered into as of this
8th day of September, 2022 ("Effective Date', by and between the CITY OF NEWPORT
BEACH, a California municipal corporation and charter city ("City"), and WESTERN
ALLIED CORPORATION, a California corporation ("Contractor"), whose address is
12046 E. Florence Avenue, Santa Fe Springs, CA, 90670, and is made with reference to
the following:
RECITALS
A. On February 8, 2021, City and Contractor entered into an On -Call
Maintenance/Repair Services Agreement ("Agreement") to engage Contractor to
perform on -call maintenance and/or repair services for City ("Project").
B. Since entering into the Agreement, Contractor was asked to perform a higher
volume of Work than was originally anticipated.
C. The parties desire to enter into this Amendment No. One to update the Billing
Rates, increase the total compensation, and update the administration and notices
sections.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. COMPENSATION TO CONTRACTOR
Exhibit B to the Agreement shall be amended in its entirety and replaced with the
Schedule of Billing Rates, attached hereto as Exhibit B and incorporated herein by
reference.
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "City shall pay Contractor for the Services on a time and expense not -to -exceed
basis in accordance with the provisions of this Section and the Letter Proposal and the
Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by
reference. Except as otherwise provided herein, no rate changes shall be made during
the term of this Agreement without the prior written approval of City. Contractor's
compensation for all Services performed in accordance with this Agreement, including all
reimbursable items, shall not exceed Two Hundred Forty Thousand Dollars and
00/100 ($240,000.00), without prior written amendment to the Agreement."
The total amended compensation reflects Contractor's additional compensation for
additional Services to be performed in accordance with this Amendment No. One,
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including all reimbursable items and subconsultant fees, in an amount not to exceed One
Hundred Twenty Thousand Dollars and 001100 ($120,000.00).
2. ADMINISTRATION
Section 6 of the Agreement is amended in its entirety and replaced with the
following:
"This Agreement will be administered by the Library Services Department. City's
Circulation and Technical Processing Coordinator or designee shall be the Project
Administrator and shall have the authority to act for City under this Agreement_ The
Project Administrator shall represent City in all matters pertaining to the Services to be
rendered pursuant to this Agreement."
3. NOTICES
Section 25.3 of the Agreement is amended in its entirety and replaced with the
following:
"All notices, demands, requests or approvals from City to Contractor shall be
addressed to Contractor at:
Attn: Mike Gallagher
Western Allied Corporation
12046 E. Florence Avenue
Santa Fe Springs, CA 90670"
4. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
Western Allied Corporation Page 2 11-4
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTOR EY'S OFFICE
Date: q1 l2
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By: By:
7{n_ A n C. _6��� Kevin Muldoon
City Attomey "'(5-or Mayor
ATTEST:
Date:
Los
Leilani I. Brown
City Clerk
CONSULTANT: WESTERN ALLIED
CORPORATION, a California corporation
Date:
By:
Michael Gallagher
Chief Executive Officer
Date:
By:
Geoffrey Juwono
Secretary
[END OF SIGNATURES]
Attachments: Exhibit B — Schedule of Billing Rates
Western Allied Corporation Page 3 11-5
EXHIBIT B
SCHEDULE OF BILLING RATES
Western Allied Corporation Page B-1 11-6
EXHIBIT B
SCHEDULE OF BILLING RATES
Recurring Maintenance Services
HVAC Maintenance Services $2,915 $34,980
(All Units) every month every year
Although the Scope of Services lists certain monthly, bi-monthly, semi-annual and annual tasks
based on AC unit, the rates above represent a fiat annual and monthly rate for recurring maintenance
services. The City expects to be billed on a regular (monthly) basis even though specific tasks may
fall under different intervals.
On -Call Repair Services
On -Call HVAC Repair Services
$1641hour
(Regular Hours: 7:00am to 4:00pm)
On -Call HVAC Repair Services
$246/hour
(After Hours)
Parts Markup: List Less 10%
Pricing provided shall include any and all labor, materials; equipment; supervision; travel and
expenses; Prevailing Wage; bonding; and insurance to provide the services described in this RFP
solicitation.
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