G.8 - Professional Services Agreement_HVAC Preventative MaintenancePlanning Commission
Professional Services Agreement Between the
City of Grand Terrace and Loma Linda Heat
and Air Conditioning Inc.
May 10, 2022
2030 Vision Goals
1.Ensure Our Fiscal Viability
-Commit to a Balanced Budget
-Identify Additional Revenue Sources
-Review Expenditures and Seek Savings
-Explore Creative Means to Provide Services
-Ensure Appropriate Cost Recovery for Services
Background
•On November 15,2016,the City entered into a 3-year
Maintenance Service Agreement with ACCO Engineered
Systems for heating,ventilation,and air conditioning (HVAC)
Preventative Maintenance Services and Air Filter and Boiler
Wate r Treatment Services.
•The contract expired on November 15,2019.
Background
•City staff issued bid documents for HVAC Services in
accordance with the City’s purchasing ordinance.On April 12,
2022,the City issued a Notice Inviting Bids for HVAC
Maintenance and Repair Services,and two (2)bids were
submitted.The companies and their total base bids are as
follows:
Notice of Inviting Bids
Annual
Compensation
Total
Compensation for
Initial 3 years
Bid 1 Honeywell Building
Solutions
$50,099.00 $150,297
Bid 2 Loma Linda Heat
and Air
Conditioning Inc.
$14,183.36 $42,550.08
Background
•As previously shown,Loma Linda Heat and Air Conditioning
Inc.is the lowest bidder.The contractor’s and subcontractor’s
licenses are valid and in good standing and references
provided positive feedback.
•The contract will have an initial term of three years with a
maximum of (2)one-year automatic extensions .The annual
compensation for each of the one-year extensions will also be
$14,183.36.
•The total compensation for Loma Linda Heat and Air
Conditioning Inc.for all 5 years would be $70,916.80.
Recommendation
•Staff is recommending that Council award to and approve an
Agreement with Loma Linda Heat and Air Conditioning Inc.in
an amount not to exceed $14,183.36 annually (total
compensation for the initial three-year term:$42,550.08;total
compensation for the entire 5 years:$70,916.80)for HVAC
Preventative Maintenance and Repair Services and authorize
the City Manager to execute agreement subject to City
Attorney approval as to form .
•Alternatively,the City Council may also reject all bids.
Fiscal Impact
•There are funds budgeted in the FY 2021-2022 Adopted
Budget General Fund (10-195-257)to cover the remaining
quarterly cost of HVAC Maintenance Services ($3,545.84).
•There will be no fiscal impact in the current fiscal year budget
with awarding the contract to Loma Linda Heat and Air
Conditioning Inc.
Planning Commission
Professional Services Agreement Between the
City of Grand Terrace and Loma Linda Heat
and Air Conditioning Inc.
May 10, 2022