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Home My WebLink About14 HA37273 John Harrison ExtensionSTAFF REPORT PALM DESERT HOUSING AUTHORITY Housing Department MEETING DATE: July 8, 2021 SUBMITTED BY: Jessica Gonzales, Senior Management Analyst REQUEST: Approval of an extension to Contract No. HA37272 with John Harrison Contracting, Inc. for HVAC Mechanical Systems Maintenance Services at the Palm Desert Housing Authority properties in a total annual amount not to exceed $175,000. Recommendation By Minute Motion, that the Housing Authority Board, 1) Approve an extension to Contract No. HA37272 with John Harrison Contracting (“JHC”) for the HVAC Mechanical Systems Maintenance Services at the Palm Desert Housing Authority (“Authority”) properties for a period of twelve (12) months in the total amount not to exceed $175,000 for contract services; and 2) Authorize the Chairman or Executive Director and designee to take all necessary actions to execute the extension and any documents necessary to effectuate the actions taken herewith. Monies have been included in the FY 2021/2022 proposed Authority’s replacement reserve budget in the appropriate Authority accounts. Housing Commission Recommendation The Housing Commission will review this recommendation at its regular meeting of July 7, 2021. Upon request, a verbal report will be provided at the Authority’s regular meeting of July 8, 2021. Executive Summary By authorizing the continued use of John Harrison Contracting, Inc. (“JHC”) for HVAC Mechanical Systems Maintenance Services (“Services”) at the Authority properties, the Authority will work exclusively with JHC to ensure all HVAC systems are repaired and replaced in accordance with the terms of the agreement. The work performed under this contract meets the current prevailing wage requirements. Background On July 12, 2018, the Authority approved a contract with John Harrison Contracting for the purpose of providing Mechanical Systems Maintenance Services at the Authority properties July 8, 2021 – Staff Report Housing Authority – Extension to Contract No. HA37272 with JHC Page 2 of 3 for a one year contract with four (4) one-year extensions. JHC has continued to perform satisfactorily under its current contract obligations, therefore, to maintain continuity in the quality of services that currently exists; staff is requesting the Authority Board to approve extending the contract for one (1) additional year. In addition, as part of the approval, the Authority authorized participation in the Energy Savings Assistance Program (“ESAP”). As a cooperative party to the program, the Authority was required to pay for a small co-pay and coil replacement costs. Prior to participating in the ESAP, the average cost to replace an HVAC system ranged from $5,014 to $6,790 per system (including permits and testing). By participating in the ESAP, the Authority has been able to recognize a cost savings of approximately $5,414 to $5,807 per system. Not all systems qualify, but for those that do, this is a considerable cost savings that ultimately benefits the residents. The Authority properties collectively have approximately 1,114 AC systems. Of those units, at least 382 have qualified through ESAP and have been replaced. Even with all those completed, many systems remain that may or may not require repair and/or replacement in the immediate future. The Services also include equipment maintenance and repair. The equipment to be maintained includes, but is not limited to, air handlers, condensing units, split systems, pumps, gas fired unit heaters, package units and forced air systems. JHC also continues to be an approved contractor for the ESAP program. They have done an exemplary job over the past few years in meeting both the program and Authority’s needs to allow tenants to participate. See average cost breakdown below for benefits of qualifying tenants through ESAP: Fiscal Year No. of Units Replaced* Average Cost/ Unit Total Expensed 2015/16 23 $4,807 $110,563 2016/17 75 $1,819 $136,419 2017/18 99 $1,476 $146,138 2018/19 96 $1,192 $114,454 2019/20 42 $2,001 $84,052 2020/21 23 $1,738 $39,968.15 This request will extend JHC’s contract for HVAC maintenance services at the Authority properties for an additional twelve (12) months beginning July 1, 2021. This will be the third extension to the original contract. While the ESAP participant fees remain relatively the same, the current contract fee per system will increase by approximately 8% to 10% for the extended contract period for those systems that do not qualify. JHC has adjusted the price for their costs of goods, fuel, materials, or required prevailing wages associated with installation of new units. They will not apply any other markup during the extension period. JHC’s extension proposal, for those systems that do not qualify, has an July 8, 2021 — Staff Report Housing Authority — Extension to Contract No. HA37272 with JHC Page 3 of 3 average cost of $6,700/system (an average $495 increase/system compared to FY 2020/2021), while the second lowest bidder (in 2015) required $7,200/system. All other provisions of the contract remain unchanged and continue in full force and effect. Staff is recommending approval of an extension to Contract No. HA37272 with JHC for an additional twelve (12) months for HVAC mechanical maintenance services, effective July 1, 2021 in an annual amount not to exceed $175,000. Fiscal Analvsis The fiscal impact to the Authority of the contract extension is the same as it is currently. Although there has been a slight increase in the per system cost, staff believes the not to exceed amount is sufficient to accommodate the needs of the complexes for the extended contract period. Actual expenditures will be paid from the FY 2021/2022 Housing Authority's replacement reserve approved budget. LEGAL REVIEW N/A DEPT. REVIEW c�ue (�e1a FINANCIAL REVIEW ASSISTANT CITY MANAGER ✓tndy �'iresti�ne �cti,.r�'?�?. ?�?oou Eric Ceja Special Counsel to the Interim Director of Janet Moore Housing Authority Development Services Director of Finance Department City Manager, L. Todd Hileman: L. Todd htil.evu.aw ATTACHMENTS: 1 2 Andy Firestine Assistant City Manager JHC Renewal Proposal Letter (dared��e �i, zozi) Draft Extension Agreement CiTl' COiP,VCiL ACTTON APPROVTP X DF,NiTPN RECEIVGD OTFICR MGCTING DATE d� -n� — 2�2� AYF,S:.�ini�!-. �P�4j�,.c�n, �[t�Mc�! NOF,S• Nov.2 � Ai35i;NT: Nov.e Ai3STAIN• n�o��- VF,RICIf:D13Y• M[aC /lw� Original on Bile witl� City Clcrk's Of ice Q�;w�,� �11�, �,�ll y [This page has intentionally been left blank.] www.jhcontracting.com 1143 W Lincoln St #2, Banning, CA 92220 760-322-2653 June 11, 2021 City of Palm Desert Attn: Jessica Gonzales 73-510 Fred Waring Drive Palm Desert, CA 92260 RE: HA37270 – HVAC Mechanical Systems Maintenance Services Dear Ms. Gonzalez, I am pleased to inform you that we at John Harrison Contracting, Inc accept the extension for contract HA37270 – HVAC Mechanical Systems Maintenance Services. The fee schedule has been updated to reflect fiscal year 2021-2022 (effective July 2021 through June 2022 ). We recognize that other than the fee schedule, all other terms and conditions remain the same. We thank you for the opportunity to continue servicing the Palm Desert Housing Authority buildings. Should you have any questions or need additional information, please do not hesitate to contact me at 760-322-2653. Sincerely, Mauricio Blanco President / CEO Mjb@jhcontracting.com 760-322-2653 1 | Page CONFIDENTIAL 2021-2022 FEE SCHEDULE 1143 W Lincoln St, Ste 2, Banning, CA 92220 www.jhcontracting.com P# 760-322-2653 License # 697530 RPM / PDHA FEE SCHEDULE Effective July 2021 – June 2022 SCOPE OF WORK FOR SYSTEM CHANGE OUTS • Remove and recycle existing equipment • Flush out existing refrigerant lines and condensate lines • Install new 410A, 14 SEER HVAC equipment (see models below) • Install new o New 220V outlet for air handler (when applicable) o Service disconnect, o Drain pan (when applicable), o Roof curb (when applicable), and o System air filter Required by code • Install service receptacle • Conduct duct testing, and seal all accessible ducts to meet or exceed Title-24 requirements o Submit form CF-6R to HERS rater o HERS rater will complete and submit form CF-4R to the building department • Secure permit from local jurisdiction NOTE: Replacement of existing refrigerant line set, sealed condensate lines, and duct system, or additional construction / retro fit is outside of the system replacement scope. These items would be charged independently of the system replacement. New programmable thermostats may be required and can be installed at an additional cost. JHC will complete all work in a professional manner guaranteed to meet or exceed standard industry practices. JHC may execute alterations or deviations from specifications described in the Scope of Work section involving extra costs OR use a different model only upon written approval from the Authority or agent authorized to act on behalf of the Authority. The Authority understands any additional work may result in a charge over and above the estimate. Warranty JHC offers a one-year parts and labor warranty on the product(s) it offers. The manufacturer offers a limited warranty on parts for a period of 1 to 10 years, depending on the part and installation location. For more information on the manufacturer’s warranty, visit www.icpusa.com. 2 | Page CONFIDENTIAL 2021-2022 FEE SCHEDULE SYSTEM REPLACEMENT COST FORM Description Fuel Source Size Brand Model Cond/Package Model Coil/Ah Total Cost Split Small Spaces Heat Pump 2 Ton AlliedAir 4HP15L24 FCME32924 $6,666 Split Small Spaces Heat Pump 2.5 Ton AlliedAir 4HP15L30 FCME31930 $6,747 SPLIT W/Ceiling Mount AH Heat Pump 2 Ton Day & Night N4H424GK 24HXO $6,618 SPLIT W/Ceiling Mount AH Heat Pump 2.5 Ton Day & Night N4H430GK 30HXO $6,857 Split Gas/Electric 2 Ton Day & Night N4A524GK FG33636D145 $4,903 Split Gas/Electric 2.5 Ton Day & Night N4A530GK FG33636D145 $4,979 Split Gas/Electric 3 Ton Day & Night N4A536GK FG33636D145 $5,037 Split Gas/Electric 3.5 Ton Day & Night N4A542GK FG84648D175 $5,432 Split Gas/Electric 4 Ton Day & Night N4A548GK FG84648D175 $5,591 Split Gas/Electric 5 Ton Day & Night N4A560GK FG84660D210 $5,653 Split Heat Pump 2 Ton Day & Night N4H424GK FEM4X2400 $6,030 Split Heat Pump 2.5 Ton Day & Night N4H430GK FEM4X3000 $6,157 Split Heat Pump 3 Ton Day & Night N4H436GK FEM4X3600 $7,015 Split Heat Pump 3.5 Ton Day & Night N4H442GK FEM4X4200 $6,859 Split Heat Pump 4 Ton Day & Night N4H448GK FEM4X4800 $7,191 Split Heat Pump 5 Ton Day & Night N4H460GK FEM4X6000 $7,326 Package Gas/Electric 2 Ton Day & Night PGD424060K N/A $6,725 Package Gas/Electric 2.5 Ton Day & Night PGD430060K N/A $6,790 Package Gas/Electric 3 Ton Day & Night PGD436060K N/A $7,134 Package Gas/Electric 3.5 Ton Day & Night PGD442060K N/A $7,316 Package Gas/Electric 4 Ton Day & Night PGD448090K N/A $7,633 Package Gas/Electric 5 Ton Day & Night PGD460090K N/A $8,052 Package Heat Pump 2 Ton Day & Night PHD424000K N/A $6,768 Package Heat Pump 2.5 Ton Day & Night PHD430000K N/A $6,907 Package Heat Pump 3 Ton Day & Night PHD436000K N/A $7,297 Package Heat Pump 3.5 Ton Day & Night PHD442000K N/A $7,643 Package Heat Pump 4 Ton Day & Night PHD448000K N/A $7,865 Package Heat Pump 5 Ton Day & Night PHD460000K N/A $8,162 3 | Page CONFIDENTIAL 2021-2022 FEE SCHEDULE OTHER SERVICES Description Size / Type Brand Model Total Cost Notes PTAC 15,000 BTU 230 V Frigidaire FFRP152HT4 $2,342 Room AC 12,000 BTU Koldfront KWTC12002WCO115V $973 Room AC 14,000 BTU Koldfront KWTC14012WCO230V $1,049 Ductless Mini Split 9,000 BTU Day & Night SP-IDLCSRAH09AAK SP-IDLFSHAH09XAK $3,467 D&N Single Zone Ductless Mini Split 12,000 BTU Day & Night SP-IDLCSRAH12AAK SP-IDLFSHAH12XAK $3,515 D&N Single Zone Ductless mini split 18,000 BTU Day & Night SP-IDLCSRAH18AAK SP-IDLFSHAH18XAK $3,893 D&N Single Zone Ductless mini split 24,000 BTU Day & Night SP-IDLCSRAH24AAK SP-IDLFSHAH24XAK $4,470 D&N Single Zone Ductless Mini Split 30,000 BTU Day & Night SP-IDLCSRAH30AAK SP-IDLFSHAH30XAK $5,071 D&N Single Zone Ductless Mini Split 36,000 BTU Day & Night SP-IDLCSRAH36AAK SP-IDLFSHAH36XAK $5,571 D&N Single Zone Thermostat Programmable Honeywell TH4110 $274 Thermostat Smart Nest Eco $364 Ultra-Low Nox Furnace 1.5 - 3 Ton Day & Night N80ESU0401712A $1,313 When installed at the time of AC replacement Ultra-Low Nox Furnace 3.5 - 4 Ton Day & Night N80ESU0601716A $1,318 When installed at the time of AC replacement Ultra-Low Nox Furnace 5 Ton Day & Night N80ESU0802120A $1,388 When installed at the time of AC replacement Gas Furnace Filter Base $108 When installed with furnace Ceiling Mounted Air Handler 2 to 2.5 Ton First Co $1024 When installed at the time of AC replacement Crane for Roof Mounted Units $300 Diagnostic and repairs will be billed on a time and material basis, utilizing the labor fees below: Labor Rate P/H $212 Emergency Call P/H $234 After Normal Business Hours P/H $234 Overtime Rate P/H $234 Sunday / Holiday Rate P/H $255 Contract No. HA37273 Page 1 of 4 BBK: August 2014 - 77802.00000\24392264.1 Palm Desert Housing Authority – HVAC Mechanic Systems Maintenance, Repair, and Replacement Services PALM DESERT HOUSING AUTHORITY EXTENSION TO HVAC MECHANICAL SYSTEMS MAINTENANCE, REPAIR, AND REPLACEMENT SERVICES CONTRACT CONTRACT No. HA37272 This THIRD EXTENSION (“Extension”) to the HVAC Mechanic Systems Maintenance, Repair, and Replacement Services Contract No. HA37270 is made as of July 1, 2021, (“Effective Date”) by and between the PALM DESERT HOUSING AUTHORITY, a public body, corporate and politic having a principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, (the "Authority") and JOHN HARRISON CONTRACTING, INC., a corporation, having a principal place of business at 1143 West Lincoln Street, Suite 2, Banning, California 92220 (the "Contractor"). The Authority and the Contractor may be referred to herein individually as a "Party" and collectively as the "Parties." RECITALS A. The Authority is a public body, corporate and politic. B. The Contractor is engaged in the business of HVAC Mechanic Systems Maintenance, Repair, and Replacement Services, and has represented to the Authority that the Contractor is experienced and competent in said business. C. The Authority and Consultant desire to enter into this Extension to the Agreement. D. The Parties entered into that certain HVAC Mechanic Systems Maintenance, Repair, and Replacement Services Contract No. HA37270, by and between Palm Desert Housing Authority and John Harrison Contracting, Inc., dated July 12, 2018 (“Contract”). E. The Parties entered into that certain HVAC Mechanic Systems Maintenance, Repair, and Replacement Services Extension Contract No. HA37271, by and between Palm Desert Housing Authority and John Harrison Contracting, Inc., dated June 13, 2019 (“First Extension Contract”). F. The Parties entered into that certain HVAC Mechanic Systems Maintenance, Repair, and Replacement Services Extension Contract No. HA37272, by and between Palm Desert Housing Authority and John Harrison Contracting, Inc., dated June 13, 2020 (“Second Extension Contract”). NOW, THEREFORE, the Parties agree to amend the Contract as follows: 1. Term. The parties agree that the term ("Term") of the Contract shall be extended, for an additional twelve (12) month term beginning July 1, 2021 and ending June 30, 2022 Contract No. HA37273 Page 2 of 4 BBK: August 2014 - 77802.00000\24392264.1 Palm Desert Housing Authority – HVAC Mechanic Systems Maintenance, Repair, and Replacement Services or to such later date as may be agreed in writing between parties. The Contract allows for an option of an extension based on Contractor’s performance and mutual agreement, this Extension is the Third Contract extension. Any additional extensions will be contemplated based on performance. 2. Compensation. Compensation shall be paid on an on call basis for actual work performed and shall not exceed One Hundred Seventy Five Thousand Dollars and Zero Cents ($175,000) annually, including any related fees associated with the repairs performed. 3. Schedule of Charges. For furnishing services, as specified in the Contract, the Authority will pay and Contractor shall receive in full compensation, for all Work rendered under the Contract at the rates as amended and set forth in Exhibit “A” to this Extension of the Contract which is attached hereto and incorporated herein by reference. All other terms of the Contract to remain unchanged and in full force and effect. [Signatures to follow on the next page] Contract No. HA37273 Page 3 of 4 BBK: August 2014 - 77802.00000\24392264.1 Palm Desert Housing Authority – HVAC Mechanic Systems Maintenance, Repair, and Replacement Services IN WITNESS THEREOF, the Parties have executed this THIRD Extension on the date first above written. CONTRACTOR: JOHN HARRISON CONTRACTING, INC., a corporation By: ______________________________ ___________________________________ Name and Title By: ______________________________ ___________________________________ Name and Title ___________________________________ Contractor’s License Number and Classification ___________________________________ DIR Registration Number AUTHORITY: PALM DESERT HOUSING AUTHORITY, a public body, corporate and politic By: _______________________________ Kathleen Kelly, Chairman ATTEST: By: __________________________________ M. Gloria Sanchez, Acting Secretary APPROVED AS TO FORM: By: Best Best & Krieger LLP Authority Counsel Contract No. HA37273 Page 4 of 4 BBK: August 2014 - 77802.00000\24392264.1 Palm Desert Housing Authority – HVAC Mechanic Systems Maintenance, Repair, and Replacement Services State of California ) ) SS. County of Riverside ) On , 20 before me, , a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. __________________________________ Signature State of California ) ) SS. County of Riverside ) On , 20 before me, , a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. __________________________________ Signature A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. DRAFT FOR DISCUSSION - Contract No. HA37273 Page 1 of 4 BBK: August 2014 - 77802.00000\24392264.1 Palm Desert Housing Authority – HVAC Mechanic Systems Maintenance, Repair, and Replacement Services Exhibit A DRAFT FOR DISCUSSION - Contract No. HA37273 Page 2 of 4 BBK: August 2014 - 77802.00000\24392264.1 Palm Desert Housing Authority – HVAC Mechanic Systems Maintenance, Repair, and Replacement Services DRAFT FOR DISCUSSION - Contract No. HA37273 Page 3 of 4 BBK: August 2014 - 77802.00000\24392264.1 Palm Desert Housing Authority – HVAC Mechanic Systems Maintenance, Repair, and Replacement Services DRAFT FOR DISCUSSION - Contract No. HA37273 Page 4 of 4 BBK: August 2014 - 77802.00000\24392264.1 Palm Desert Housing Authority – HVAC Mechanic Systems Maintenance, Repair, and Replacement Services