On January 24, 2017, the City Council authorized the City Manager to execute an annual contract with TB2 Services, dba Aire Dynamics, Inc. for HVAC preventative maintenance and repair services for city facilities with two optional one-year renewals in the amount of $90,000, and awarded a contract with CEC Facilities Group, LLC as the secondary vendor.  The contract includes HVAC preventative maintenance and repair services, consisting of fixed price monthly routine preventative maintenance and on-call repair services for facilities that are maintained by Community Services, Parks and Recreation and the Fire Department.

The January 2017 competitive bidding process resulted in the City selecting a new vendor, Aire Dynamics, for this service.  This contract amendment reflects an increased need for repair services as a result of a combination of aging HVAC systems, more thorough preventative maintenance, and extreme temperatures brought on during the summer months.

Since the initial bid award to Aire Dynamics, the contract has been amended to reflect new HVAC systems added to the contract as well as additional repair costs.  The first two amendments included the addition of the City's K-9 facility and the new HVAC unit for Fire Station #2.  These additional services increased the annual amount to $91,355.

On July 11, 2017, the City Council authorized an amendment to increase the contract amount to $140,000.00 which reflected an increased need for repair services discovered during preventative maintenance.

This contract amendment will increase the annual contract amount to $300,000, which includes $208,645 for repairs and $91,355 for preventative maintenance through the end of this contract term of January 2019.

It is important to note that the fixed-prices approved at initial bid award have remained the same.  Repair costs have increased during this past year due to higher than anticipated system failures than in prior years. Based on this year's experience with an increased number of repairs, staff plans to solicit new bids at the end of this contract year to ensure the city continues to receive competitive pricing.  

Funding for the annual contract for HVAC Maintenance and Repair is available in the Community Services, Parks and Recreation, and Fire Department operating budgets within the General Fund and within the Water and Sewer Fund.

Staff recommends authorizing the City Manager to amend the contract with TB2 Services, dba Aire Dynamics, Inc. as the primary vendor and CEC Facilities Group, LLC as the secondary vendor for HVAC services by increasing the contract to an annual amount of $300,000, reflecting repair services of $208,645 and preventative maintenance services of $91,355.

I make a motion to authorize the City Manager to amend the contract with TB2 Services, dba Aire Dynamics, Inc. as the primary vendor and CEC Facilities Group, LLC as the secondary vendor for HVAC services by increasing the contract to an annual amount of $300,000.