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Home My WebLink AboutHA37272 Extension FY 20-21 HVAC Mechanical Systms Maint SvcsCONTRACT NO. HA37272 X lV STAFF REPORT ----�' PALM DESERT HOUSING AUTHORITY Housing Department MEETING DATE: June 11, 2020 SUBMITTED BY: Jessica Gonzales, Senior Management Analyst REQUEST: Approval of second extension to Contract No. HA37270 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. HA37270 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 her 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 2020/2021 proposed Authority's replacement reserve budget in the appropriate Authority accounts. Housinq Commission Recommendation The Housing Commission will receive the Authority Board's action on this request as information once the Housing Commission resumes. The Chair, was conferred on this item and concurred the request could move to the Authority Board for consideration. Strateqic Plan This request does not apply to a specific strategic plan goal. 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 June 11, 2020 —Staff Report Housing Authority — Extension to Contract No. HA37270 with JHC Page 2 of 3 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 for a one year contract with four (4) one-year extensions. Additionally, on June 13, 2019, the Authority approved a one-year extension to the contract for FY 2019/2020. 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 $3,500 to $4,000 per system (including permits and testing). By participating in the ESAP, the Authority has been able to recognize a cost savings of approximately $2,600 to $3,100 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 359 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 ESAP program has been temporarily suspended due to Covid- 19 with the commitment to resume by the end of June 2020. Although staff does not anticipate any replacements to be completed by the end of the current fiscal year, any emergency replacement or repair that arises will still be completed without ESAP participation and at full cost. 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: 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 $1,121 $84,052 June 11, 2020 —Staff Report Housing Authority — Extension to Contract No. HA37270 with JHC Page 3 of 3 This request will extend JHC's contract for HVAC maintenance services at the Authority properties for an additional twelve (12) months beginning July 1, 2020. While the ESAP participant fees remain relatively the same, the current contract fee per system will increase slightly 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 average cost of $4,700/system (an average $405 increase/system compared to FY 2019/2020), 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. HA37270 with JHC for an additional twelve (12) months for HVAC mechanical maintenance services, effective July 1, 2020 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 2020/2021 Housing Authority's replacement reserve approved budget. LEGAL REVIEW RWig Special Counsel to the Housing Authority DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER Ry,a-K -Moo w Ryan Stendell Janet Moore Director of Community Director of Finance Development City Manager, Lauri Aylaian: 28 AndY firestine Andy Firestine Assistant City Manager CONTENTS: JHC Renewal Proposal Letter Draft Extension No. 2 Agreement (HA37272) DRAFT FOR DISCUSSION - Contract No. HA PALM DESERT HOUSING AUTHORITY EXTENSION TO HVAC MECHANICAL SYSTEMS MAINTENANCE, REPAIR, AND REPLACEMENT SERVICES CONTRACT This SECOND EXTENSION ("Extension") to the HVAC Mechanic Systems Maintenance, Repair, and Replacement Services Contract No. HA37270 is made as of June 11, 2020, ("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"). 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, 2020 and ending June 30, 2021 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 second Contract extension. Any additional extensions will be contemplated based on performance. Page 1 of 7 RK: August 2014.77802.00000\24392264.1 Palm Desert Housing Authority — HVAC Mechanic Systems Maintenance, Repair, and Replacement Services DRAFT FOR DISCUSSION - Contract No. HA 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. IN WITNESS THEREOF, the Parties have executed this second Extension on the date first above written. CONTRACTOR: AUTHORITY: JOHN HARRISON CONTRACTING, INC., PALM DESERT HOUSING AUTHORITY, a corporation a public body, corporate and politic la in Name and Title Gina Nestande, Chairman ATTEST: in Name and Title Grace L. Rocha, Secretary Contractor's License Number and Classification APPROVED AS TO FORM: DIR Registration Number Robert W Hargreaves, City Attorney Page 2 of 7 BBK: August 2014 - 77802.00000\24392264.1 Palm Desert Housing Authority — HVAC Mechanic Systems Maintenance, Repair. and Replacement Services DRAFT FOR DISCUSSION - Contract No. HA 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. 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 dnrttmPnt. 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 Page 3 of 7 BBK: August 2014 - 77802.00000\24392264.1 Palm Desert Housing Authority — HVAC Mechanic Systems Maintenance, Repair, and Replacement Services DRAFT FOR DISCUSSION - Contract No. HA Exhibit A j pNO&M qc JOHN HARRI" CONTRACTING May 29, 2020 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. Gon2alez, 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 2020-2021 (effective July 2020 through June 2021). 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 Blanca President / CEO Mjb@jhcontracting.com 760.322-2653 www.ihcontractinR.com 1143 W Lincoln St #2, Banning, CA 92220 760-322-2653 Page 4 of 7 BBK: August 2014 - 77802.00000\24392264.1 Palm Desert Housing Authority - HVAC Mechanic Syslems Maintenance, Repair, and Replacement Services DRAFT FOR DISCUSSION - Contract No. HA ■�� ijrqq.��JOHN HARRISON CONTRACTING 1143 W Lincoln St, Ste 2, Banning, CA 92220 www.ihcontractin¢com PN 760-322.2653 License it 697530 RPM I PDHA FEE SCHEDULE Effective July 2020 - June 2021 SCOPE OF WORK FOR SYSTEM CHANCE OUTS a Remove and recycle existing equipment • Flush out existing refrigerant lines and condensate lines • Install new 410A,14 SEER Ff VAC equipment (see models below) • Install new o New 220V outlet for air handler (when applicable) ❑ Service discon nect. o Drain pan [when applicable], ❑ Roof curb [when applicable], and o System air filter Regximdby rade • Install service receptacle ■ Conduct duet testing, and seal all accessible ducts to meet or cxm-d TiIle- 24 requirements o Submit form CF-6R to HERS rater o HERS rater will complete and submit form CF4R to the building department 9 Secure permit from local juri sd iction NOTE: Replacement of existing refrigerant line set, sealed condensate lines, and duet system, or additional construction i 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 or Work section involving extra costs 0R use a dif Brent model only upon written approval from the Authority or agent authorized to act on behalf orthe Authority. The Authority understands any additional work may result in a charge over and above the estimate- W arrunty 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 I to 10 years, depending on the part and installation location. For more information on the manufacturer's warranty, visit w�-v.icpusa.com. CONFIDENTIAL 2020-2021 FEE SCHEDULE Page 5 of 7 11Fag 138K: August 2014.77802.00000124392264.1 Palm Desert Housing Authority — HVAC Mechanic Systems Mainlenance, Repair, and Replacement Services DRAFT FOR DISCUSSION - Contract No. HA CONFIDENTIAL SYSTEM REPLACEMENT COST FORM Split Small Spaces Heat Pump 2Ton AI%edAir 4HPISL24 FCME32924 $ 6,172 split small spaces Heat Pump 2-5 Ton AlliedAir 4HP15130 FCME31930 $ 6,226 !i SPLIT W/CeilingMountAH Heat Pump 2Ton Day&Night N44424GK 74HXO $ 6,113 SPLIT W/Ceiling Mount AH Heat Pump 2.5 Ton Day & Night N4H430GX 30HKO $ 6,321. Split Gas/Electric 2Ton Day&Night N4A524GK FG33636D145 $ 4,554 Split Gas/Electric 2.5 Ton Day & Night N4A530GK FG33636D145 $ 4,619 f Split Gas/Electric 3Ton Day&Night N4A536GK FG33616DI45 $ 4,670 Split Gas/Electric 3.5 Ton Day & Night N4A542GK FG846QD175 $ 5,014 Split GaslElectric 4 Tan Day & Night N4A548GK FG84WD175 $ 5,152. Split Go mec[ric 5 Ton Day & Night N4A560GK FG84WD210 $ 5,206 Split Heat Pump 2Ton Day &Night N4H424Gk FEM4X2400 $ 5,533 Split Heat Pump 2.5 Ton Day & Night N4H430GK FEM4k34D0 $ 5,687 Split Heat Pump 3Ton Day & Night N4H436GK FEM03600 $ 6,502 split Heat Pump 3.57on Day & Nigh[ N4H442GK FEM4x4200 $ 6,254 Split Heat Pump 4Tan Day & Nigh[ N4H448GK FEM04800 $ 6,543 Split Heat Pump 5Ton Day & Hight N4H460GK FEM4k6000 $ 6,834 Package Gas/Electric- 2Ton Day & Nighu PGD424060K N/A $ 6,149 Package Gas/Electric 2.5 Ten Day& Nigh[ PGD4300601( NIA $ 6,205 Package Gas/Electric 3 To Day & Hight PG0436060K NIA 5 6,504 Package Gas/Electric 3.5 Ton Day & Night PGD442060K NIA $ 6,663 Package Gas/Electric 4 Ton Day & Night PGD448090K NIA $ 6,938 Package Gas/Electric 5 Ton Day& Night PGD4600901( NIA S 7,303 i Package Heat Pump 2 Ton Day& Night PHD4240001( NIA S 6,186 Package Heat Pump 2.5 Ton Day &Might PHD430000K NIA $ 6.307 Package Heat Pump 3 Ton Day & Night FIHD4360ODK NIA $ 6,646 Package Heat Pump 3.5 Ton Day & Night PHD442000K NIA $ 6,947 Package Heat Pump 4 Ton Day& Night PHD448000K N/A $ 7,140 Package Heat Pump 5 Ton Day& Night PHD460DOOK N/A $ 7,398 2020.2021 FEE SCHEDULE 2' !' .: : Page 6 of 7 BBK: August 2014 - 77802,00000\24392264.1 Palm Desert Housing AulhOty - HVAC Mechanic Systems Maintenance, Repair, and Replacement Services DRAFT FOR DISCUSSION - Contract No. HA OTHER SERVICES PTAC 15,000 BTU 230 V Frigidaire FFRP152HT4 $2,t195 Room AC 12,WO STU Koldfront KWTC12002WCOIISV $872 /bloom AC 14,DDO BTU Koldfront KWTC14017WCO230V $938 Ductless Mini Split 9,000 BTU Day& Night g SP-IDLCSRAH09AAK $3,255 SP-IDLFSHAH09XAK Ductless Mini Split 12.000 BTU Day& Night SP-IDLCSRAHI2AAK $3,299 SP-IDLFSHAHI2KAK Ductless mini split 18,000 BTU Day& Night SP-IDLCSRAH18AAK $3 644 SP-IDLFSHAH18XAK Ductless mini split Z4,000 BTU Day& Night SP-IDLCSRAH24AAK c�4 171 I SP-I DLFSHAH24XAK Ductless Mini Split 30,0WO BTU Day & Night SP-IDLC5RAH3nAAK 54,719 SP-IDLFSHAH30XAK Ductless Mini SplK .6,000 BTU Day & Night SP-IDLCSFAH36AAK $5,176 SP-IDLF5HAH36XAK f Thermostat `rwrommable Honeywell TH4110 5258 f Thermostat mart Nest Eco $334 f Ultra -Low Nox Furnace 1.5 - 3 Ton Day & Night NgOESU0401712A $1,153 f Ultra -Low Nox Furnace _5.4 Ton Day & Night NBOM0601716A $1,158 f Ultra -Low Nox Furnace Ton Day & Night NSOESU0802120A $1,219 Gas Furnace Filter Base $99 Ceiling Mounted Air Handler to 2.5 Ton First Co $890 'Diagnostic and repairs will be billed on a time and materia€ Wsis, utilizing the labor fees below: „Labor Rate P/H $Z02 tEmergency Call P/H $227 After Normal Business Hours P/H 227 Overtime Rate P/H $227 Sunday / Holiday Rate P/H $249 D& N Single Io ne D&N Single Zone D&N Single Zone D&N Single Zane D&N Single Zone D&N Single Zone When installed at the time of AC replacement When installed at the time of AC replacement When installed at the time of AC replacement When installed wi th furnace When installed at the time of AC replacement 3 1 P a g e CONFIDENTIAL 2020.2021 FEE SCHEOUI-E Page 7 of 7 BBK: August 2014 - 77802-00000\24392264-1 Palm Desert Housing Authority - HVAC Mechanic Systems Maintenance, Repair. and Replacement Services