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HomeMy WebLinkAboutHA34451 - FY 2016/17 HVAC Mechanical Systms Maint Svcs PDHAContract No. HA33451 PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: APPROVAL OF AN EXTENSION TO CONTRACT NO. HA-33450 WITH JOHN HARRISON CONTRACTING IN AN AMOUNT NOT TO EXCEED $150,000 FOR THE 2016/17 HVAC MECHANICAL SYSTEMS MAINTENANCE SERVICES AT THE PALM DESERT HOUSING AUTHORITY PROPERTIES SUBMITTED BY: Veronica Tapia, Management Analyst II CONTRACTOR: John Harrison Contracting 1143 W. Lincoln Street, Suite 2 Banning, CA 92220 DATE: May 12, 2016 CONTENTS: John Harrison Renewal Contract Proposal Request (dated April 28, 2016) Recommendation By Minute Motion, that the Housing Authority Board, 1) Approve an extension to Contract No. HA33450 with John Harrison Contracting for the 2016/17 HVAC Mechanical Systems Maintenance Services at the fifteen (15) Palm Desert Housing Authority properties for a period of twelve (12) months in the total amount not to exceed $150,000.00 for contract services; and 2) Authorize the Executive Director and/or the Chairman to execute the extension and any documents necessary to effectuate the actions taken herewith. Monies have been included in the FY 2016/2017 proposed Palm Desert Housing Authority's ("Authority") replacement reserve budget, in the appropriate Authority accounts. Housing Commission Recommendation The Housing Commission will review the recommendation at its regular meeting of May 11, 2016. Staff will provide a verbal report upon request. Strateciic Plan Objective This request does not apply to a specific strategic plan goal. Executive Summary Approval of this request will authorize an extension to Contract HA33450 ("Contract") with John Harrison Contracting ("JHC") for the 2016/17 HVAC mechanical systems maintenance services at the Palm Desert Housing Authority ("Authority") properties for an additional twelve (12) months, beginning July 1, 2016, with a minimal increase to the current rates primarily due to increased costs associated with prevailing wage and the cost of materials/equipment. 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. The existing Contract terminates on June 30, 2016 and allows the parties to the Contract to extend the Contract No. HA33451 Staff Report Approve Extension Renewal to Contract No. HA33450 - JHC May 12, 2016 Page 2 of 2 term for an additional two (2) one-year terms. JHC has been the Authority's HVAC maintenance contractor for Palm Desert Housing Authority properties since July 1, 2015 and has been performing satisfactory in all phases of maintenance under its current Contract obligations. Staff recommends that the Authority continue to contract with JHC for these services for the upcoming fiscal year. Backaround In 2013 both the Housing Commission and the Authority Board authorized the approval to participate 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 replacements. Previously in order for the Authority to replace a unit, the cost ranged between $3,500 to $4,000 per system (including permits and testing). By participating in the ESAP, the Authority was 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 huge consideration that ultimately benefits the tenants. JHC continues to be the contractor approved for this program. They have done an exemplary job over the past couple of years in meeting the program and Authority's needs to allow tenants to participate. The PDHA complexes collectively have 1,050 ac units. Of those units, at least 195 have been replaced recently through the ESAP, leaving 855 units that may or may not require repair and/or replacement in the immediate future. Request for Proposals were sought in June, 2015 in order to develop a plan to facilitate the HVAC needs of the complexes in an effective and efficient manner. This request will extend JHC's Contract for HVAC maintenance services at all fifteen (15) properties for an additional twelve (12) months beginning July 1, 2016. The current Contract fee per unit will increase slighty for the extended contract period. That said, the revised rates on average are well below the second bid received in 2015. JHC's extension proposal has an average cost of $3,500/unit (an average $100 increase/unit compared to 2015/16), while the second lowest bidder last year required $7,200/unit. All other provisions of the contract remain unchanged and shall continue in full force and effect. Staff has reviewed the proposal from JHC to enter into a renewal contract to continue providing HVAC maintenance services and finds it acceptable as well that it will provide the same level of performance and continuity in the quality of HVAC standards. Staff is herein recommending approval of an extension to Contract No. HA33450 with JHC for an additional twelve (12) months for HVAC mechanical maintenance services, effective July 1, 2016 in an amount not to exceed $150,000. Fiscal Analysis 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 unit 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 fr• the FY 2016/2017 Housing Authority's replacement reserve budget. Sub itted by: Depalrtment Head: Veronica Tapia, Management Analyst II Approval: /Jet' p�tg at :Nutillg0, ON. .0 � - l .2-- .?� CCf'a+.a HHUU 11 yyjj E'ER+ -AED BY: 0 insl on file with City Clerk's Obi^ r cCarthy, Executive ctr ‘f, s" trn t k; m i ct F l nica Tapia\Word Files\P C Bids\EM= sion Renewal - HA 34450 - Staff Report 5-12-16.doc ktO es crn Tapia, Veronica From: M Blanco <mjb@jhcontracting.com> Sent: Thursday, April 28, 2016 4:19 PM To: Tapia, Veronica Subject: Revised Pricing Schedule Attachments: CostForm2016.pdf Good afternoon Veronica, Attached for your review is the revised pricing schedule proposed for the 2016/2017 contract extension. Most of the service fees only increased 1-3%, but the room ACs and preventive maintenance went up a bit more. We continue to leverage the utilities' programs to help keep our fee schedule as low as possible. The primary drivers for the change in the pricing schedule are 1) Increase in the cost of goods (equipment and material), and 2) increase in prevailing wage rate. Should you have any questions, please feel free to contact me. Thank you, Mauricio Blanco JHC, Inc 1 7a 5 m n C n = n co 5 C O C CD P3? n (D • a 01 H S (D 0) S O_ (D (D 5. v m m O (D3 0, 3 N O u, m m m z 3 —3 a° e 3 C CD co 1. 00 Ve N lJe 0000 OO CO OC OC C C C C 0 O ^1XX"3X v vC7CV SE Sr� 0) 0)0� a° ° aa. a.a. a zzz � N � 00 ra 0 o 0 69 69 69 69 69 69 69 69 69 69 '.O -.l -.l �1 tJ� vNi 00 0 0 N O\ O\ 0 0 VA OTC T..)►-� 00 0 O O O O O 00 O O O © 69 CT 00 00 •0 O 1 EA O 0 C` C` o CD 0 0 CD S S S S y O. 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