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Home My WebLink AboutHA34452 - FY 17-18 HVAC Mechanical Systms Maint SvcsCONTRACT NO. HA33450 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 2017/18 HVAC MECHANICAL SYSTEMS MAINTENANCE SERVICES AT THE PALM DESERT HOUSING AUTHORITY PROPERTIES SUBMITTED BY: Veronica Tapia, Senior Management Analyst CONTRACTOR: John Harrison Contracting 1143 W. Lincoln Street, Suite 2 Banning, CA 92220 DATE: June 8, 2017 CONTENTS: John Harrison Renewal Contract Proposal Request (dated May 8, 2017) Recommendation By Minute Motion, that the Housing Authority Board, 1) Approve an extension to Contract No. HA33450 with John Harrison Contracting ("JHC") for the 2017/18 HVAC Mechanical Systems Maintenance Services at the Housing Authority ("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 2017/2018 proposed Authority's replacement reserve budget, in the appropriate Authority accounts. Strategic Plan Objective This request does not apply to a specific strategic plan goal. 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. Prior to ESAP, the average cost to replace an HVAC system ranged between $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 considerable cost savings that ultimately benefits the tenants. The PDHA complexes collectively have 1,050 AC systems. Of those units that qualify, at least 208 have been replaced, with approximately 40 more to be completed by the end of this fiscal year, through ESAP. Even with all those completed, many systems will exist that may or may not require repair and/or replacement in the immediate future. 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. Staff Report Approve Extension Renewal to Contract No. HA33450 - JHC May 25, 2017 Page 2 of 2 Requests 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, for those systems that do not qualify for the ESAP program. JHC was approved as the lowest responsible bidder. The contract with JHC allows for two (2) one-year contract extensions. In 2016, the Authority approved its first extension with JHC. 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. This request will extend JHC's contract for HVAC maintenance services at the properties for an additional twelve (12) months beginning July 1, 2017. 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. Considering this increase, the revised rates, on average are well below the second bid received in 2015. JHC's extension proposal, for those systems that do not qualify, has an average cost of $3,700/system (an average $160 increase/system compared to 2016/17), while the second lowest bidder 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. HA33450 with JHC for an additional twelve (12) months for HVAC mechanical maintenance services, effective July 1, 2017 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 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 2017/2018 Housing Authority's replacement reserve budget. Submitt-• by: • eronica Tapia, Senior Management Analyst Approval: oore, Director of Finance Lauri Aylaian, Executive Director nOCIBY HOUSG AUTH 5-0 VERIFIED BY: Original on file with City C Terk's Offir PVEsr. ,I-Nh-n ((.Qs+ar)Q, weber, Ntirn i . McC : AICn1e G:\rda\Veronica Tapia\Word Files\PDHA\HVAC Bids\Extension Renewal - HA 34450 - Staff Report 6-8-17.doc CONTRACT NO. HA33450 AMENDMENT NO. 1 TO HVAC MECHANICAL SYSTEMS MAINTENANCE, REPAIR, AND REPLACEMENT SERVICES CONTRACT (Contract No. HA33450) Recitals: A. On July 9, 2015 the Palm Desert Housing Authority ("Authority") previously entered into Contract No. HA33450 for HVAC Mechanic Systems Maintenance, Repair, and Replacement Services Contract ("Contract") with John Harrison Contracting ("Contractor"). B. The Contract is set to expire on June 30, 2017, but the parties desire to amend the Contract by extending the term for an additional year. Now therefore, Authority and Contractor agree to amend the Contract as follows: 1. The term of the contract shall be extended one (1) year and shall expire on June 30, 2018. 2. Effective in the extended term, the Schedule of Charges (section 14) in the Contract shall be replaced in its entirety with the a new schedules of charges set forth at Exhibit A to this Amendment, which is attached hereto and incorporated herein by this reference. 3. The total compensation paid to the Contractor during the extended term shall not exceed One Hundred and Fifty Thousand Dollars ($150,000). 4. Except as expressly amended, all other terms shall remain unmodified and in full force and effect. Executed this day of , 2017 at Palm Desert, California. AUTHORITY CONTRACTOR By: Executive Director By: Owner Print Name Print Name Date: Date: G `•rda:Veronica Tapia\Word Files\PDHA'HVAC Bids\Amendment to IIVAC Contract -HA 34450 5-11-17 docz Page 1 of 1 CONTRACT NO. HA33450 REPLACEMENT JHC Current 2015/16 2016/17 2017/18 Increase 15 SEER LAGUNA PALMS PTAC 1,068.00 1,089.00 1,112.00 23.00 w Wall Split 2,520.00 2,568.00 2,662.00 94.00 v, NEIGHBORS 410A-13SEER 2T 3,939.00 4,034.00 4,192.00 158.00 c Alternate - rD ONE QUAIL PLACE 410A-13SEER 2T 4,465.00 4,566.00 4,730.00 164.00 3TAC Heat Pump 4,143.00 4,751.00 4,918.00 167.00 ro Window AC 654.00 701.00 712.00 11.00 5-Ton AC 4,840.00 4,963.00 5,149.00 186.00 -., Wall Split 2,520.00 2,568.00 2,662.00 94.00 o PALM VILLAGE 410A-13SEER 2T 3,536.00 3,618.00 3,764.00 146.00 O1 Wall Split 2,520.00 2,568.00 2,662.00 94.00 z Alternate - c, TAOS PALMS 410A-13SEER 2T 4,423.00 4,509.00 4,673.00 164.00 T rD Alternate a rt. CANDLEWOOD 410A-13SEER 2T 3,536.00 3,618.00 3,764.00 146.00 c, Alternate - o CATALINA 410A-13SEER 2T 4,089.00 4,184.00 5,351.00 1,167.00 c Alternate - LA ROCCA 410A-13SEER 2T 3,536.00 3,618.00 3,764.00 146.00 rt Alternate ro = _ o. 410A-5T 15 SEER 4,165.00 4,267.00 4,267.00 5 LAS SERENAS 410A-13SEER 2T 4,089.00 4,184.00 4,351.00 167.00 0 _ Alternate o, 410A-5T 15 SEER 4,840.00 4,963.00 4,963.00 - PUEBLOS 410A-13SEER 2T 4,657.00 4,750.00 4,920.00 170.00 0 rD Wall AC 654.00 701.00 712.00 11.00 3 ro Alternate - _ SAGECREST 410A-13SEER 2T 4,657.00 4,750.00 4,920.00 170.00 Alternate - ' Total Combined 68,851.00 70,970.00 74,248.00 3,278.00 Average Cost Ea. 3,442.55 3,548.50 3,712.40 163.90 Other Services 2015/16 2016/17 2017/18 Increase Labor Rate 150.00 155.00 159.00 4.00 Emergency Call 171.00 176.00 182.00 6.00 After Normal Hours 171.00 176.00 182.00 6.00 Overtime 171.00 176.00 182.00 6.00 Sunday/Holiday Rate 191.00 196.00 204.00 8.00