AGENDA TITLE:
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Adopt a Resolution Authorizing City Manager to Execute Amendment No. 4 to Professional Services Agreement with ICR Refrigeration, Inc., of Lodi, for On-Call Heating, Ventilation, and Air Conditioning Services ($100,000) (PW)
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MEETING DATE:
February 5, 2025
PREPARED BY:
Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing the City Manager to execute Amendment No. 4 to Professional Services Agreement with ICR Refrigeration, Inc., of Lodi, for on-call heating, ventilation, and air conditioning services, in the amount of $100,000.
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BACKGROUND INFORMATION:
The Public Works Facilities Division has a contract for maintenance and replacement of the heating, ventilation, and air conditioning (HVAC) systems citywide on an as-needed basis. The background of the current contract is described below.
On May 19, 2021, Council authorized the City Manager to execute the Professional Services Agreement with ICR Refrigeration, Inc. in the amount of $500,000. This was based on needing approximately $250,000 per year for citywide maintenance. The original agreement included a two-year term with options for three (3) one-year extensions.
On April 19, 2023, Council authorized Amendment No. 1, which extended the term through June 30, 2024 and increased funding by $250,000 for a total not-to-exceed contract amount of $750,000. This increased amount coincided with the extension for Fiscal Year 2023/24.
On December 26, 2023, the City Manager executed Amendment No. 2, which increased funding by $320,000, for a total not-to-exceed contract amount of $1,070,000. This amount was added primarily to cover the cost of replacing Police Department AC Unit #3 ($270,000) that after 20+ years of service, had reached its useful life. ICR was the lowest bidder for AC Unit #3’s replacement, so that work was added to this contract to expedite the unit’s replacement.
On July 30, 2024, the City Manager executed Amendment No. 3, which extended the contract through June 30, 2026. At that time, a portion of the funding was still available from Amendment No. 2 and additional funds were not added.
There is currently $1,450 remaining on the contract which is insufficient to address anticipated Citywide HVAC needs through the contract term. If approved, Amendment No. 4 will increase the contract by $100,000 for a total not-to-exceed amount of $1,170,000. The additional funding will be utilized for preventative maintenance and unforeseen maintenance/repair needs through the remainder of the Fiscal Year.
Because this contract is funded through various operating accounts, future funding will be dependent on the Fiscal Year 2025-26 adopted budget, and will be added to the contract at a later date. Additionally, as part of that upcoming budget cycle, Public Works is developing a Facility Maintenance Plan (FMP) that will identify a building and equipment maintenance replacement schedule for all City Facilities. Implementation of the FMP is meant to improve proactive routine maintenance and reduce the costs associated with facility-related emergencies.
STRATEGIC VISION:
5C. Infrastructure: Address deferred maintenance.
FISCAL IMPACT:
The repair and replacement of the HVAC system is necessary to ensure the comfort and safety of City staff and the public. Additionally, the useful life of the HVAC system is extended by performing the necessary preventative maintenance activities.
FUNDING AVAILABLE:
This contract, including this additional amount, is funded through various operating accounts that were previously approved in the adopted Fiscal Year 2024/25 Budget.
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Charles E. Swimley
Public Works Director
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Scott R. Carney
City Manager