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HomeMy WebLinkAbout06 HVAC SYSTEM 05-20-02NO. 6 AGENDA REPORT o -2o-o2. .... 40045 ~~ MEETING DATE: MAY 20, 2002 ~ TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/FIELD SERVICES CONTRACT RENEWAL FOR MAINTENANCE AND REPAIR SERVICES OF THE CITY'S HVAC SYSTEMS WITH BARR ENGINEERING, INC. SUMMARY Approval of the second contract amendment with Barr Engineering, Inc. extending the agreement for Heating, Ventilating, Refrigeration, and Air Conditioning (HVAC) Systems Maintenance and Repair Services for the period from July 1, 2002 to June 30, 2004, and providing an annual price increase of 2.6%. RECOMMENDATION It is recommended that the City Council approve the second amendment to the contract agreement between Barr Engineering, Inc. and the City of Tustin for Heating, Ventilating, Refrigeration, and Air Conditioning Systems Maintenance and Repair Service. FISCAL IMPACT Adequate funds will be requested in the 2002/2003 and 2003/2004 Fiscal Year's budgets to cover the cost of the proposed 2.6% adjustments, as a result of the allowed increase. DISCUSSION The City has contracted with Barr Engineering, Inc. since January 19, 1998 for Heating, Ventilating, Refrigeration, and Air Conditioning Systems Maintenance and Repair Services at City and Water Operations facilities. The original agreement was for a 33-month period with two 2-year extensions available to the City. This contract amendment would extend the agreement for the second time from July 1, 2002 through June 30, 2004, and would grant the contractor two annual, consecutive increases of 2.6% on July 1, 2002, and July 1,2003 respectively. Barr Engineering, Inc. has provided consistent service of a reasonable quality over the last four years and has been very responsive in the correction of any service that was not up to City standards. The implementation of this extension will allow the contractor to continue to provide the same quality and responsiveness the City has previously received. Director of Public Works/City Engineer Wisam Altowaiji Field Services Manager TDS:WA:ccg:Barr Eng. Contract renewal.doc Attachment SECOND AMENDMENT TO CONTRACT AGREEMENT THIS SECOND AMENDMENT is entered into this__ day of ,2002, by and between the City of Tustin, a Municipal Corporation (herein referred to as "City"), and Barr Engineering, Inc., a California corporation, (herein referred to as "Contractor"). This Amendment is made with reference to the following: RECITALS A. WHEREAS, City and Contractor entered into an Agreement dated January 5, 1998, the "Agreement", wherein Contractor agreed to perform heating, ventilation, and air conditioning (HVAC) services, in accordance with the agreement and specifications entitled "Heating, Ventilating, Refrigeration, and Air Conditioning Systems Maintenance and Repair Program - January 19, 1998 through June 30, 2000"; B. WHEREAS, the initial term of the Agreement was for 33 months with the option to be extended for up to two 2-year extensions; C. WHEREAS, City and Contractor entered into the first Amendment to the Agreement on June 19, 2001 and extended the Agreement until June 30, 2002; D. WHEREAS, City and Contractor desire to exercise the extension clause pursuant to Section B, Page B-3, Item 13 "Length of Contract" to extend the Agreement until June 30, 2004; E. WHEREAS, City and contractor also desire to adjust Contractor's compensation under this Agreement to reflect two consecutive increases of 2.6%, which are less than the maximum allowable annual increases, effective July 1, 2002 and July 1, 2003, pursuant to Section B, Page B-3, Item 14 "Contract Increase". AGREEMENT The Agreement is hereby amended as follows: A. The term of the Agreement is extended through June 30, 2004, unless sooner terminated pursuant to Section B, Page B-l, Item 3, "Termination Prior to Expiration of Term", of the Agreement. B. City shall pay Contractor the following sums for the periods indicated: 1. From July 1, 2002 to June 30, 2003 the City shall pay the Contractor, on a monthly basis, an amount equal to $975.47. 2. From July 1, 2003 to June 30, 2004 the City shall pay the Contractor, on a monthly basis, an amount equal to $1,000.77. C. Except as expressly amended by this Second Amendment, all other terms and conditions of the Agreement and all attachments and exhibits thereto shall remain in full force and effect. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the year and date first above written. THE CITY OF TUSTIN (Seal) BY: Mayor of the City of Tustin ATTEST: City Clerk of the City of Tustin APPROVED AS TO FORM: City Attorney Date APPROVED AS TO CONTENT: Public Works Director Date CONTRACTOR Firm Name: Barr Engineering, Inc. (Seal) BY: Pete Buongiorno TITLE: General Manager ATTACH PROPER NOTARY ACKNOWLEDGMENT FOR SIGNATURES OF AUTHORIZED PERSON (S)