SR-06-23-2015-3C- "Wa City Council Report
441119a Monica'
City Council Regular Meeting: June 23, 2015
Agenda Item: 3—(-
To: Mayor and City Council
From: Susan Cline, Interim Director of Public Works
Subject: Purchase of Heating, Ventilation and Air Conditioning (HVAC) Units and
Supplies
Recommended Action
Staff recommends that the City Council authorize the Purchasing Services Manager to
exercise the first year renewal option of Bid #4162 and issue a purchase order with
Howard Industries, a California -based company, for heating, ventilation and air
conditioning units and supplies in an amount not to exceed $100,000 for one year, with
one additional one -year renewal option with an increase based on manufacturer pricing
for a total amount not to exceed $300,000 over a three year period, with future year
funding contingent on Council budget approval.
Executive Summary
The City purchases a broad variety of heating, ventilation and air conditioning (HVAC)
units and supplies to maintain HVAC systems at City facilities. In May 2014, the City
solicited bids for the purchase of HVAC units and supplies. After reviewing the two bids
received, Howard Industries and Airgas Refrigerants were selected to provide HVAC
units and supplies for FY 2014 -15 in an amount not to exceed $99,455. As Airgas
Refrigerants did not offer renewal options, Howard Industries is recommended as the
best bidder to provide HVAC units and supplies for the next two years through June
2017 for a total not to exceed amount of $300,000 over a three -year period.
Discussion
Staff completes approximately 600 heating, ventilation and air conditioning (HVAC)
work orders per year including repair, replacement and servicing of air conditioners,
boilers, building automation systems, chillers, condensers, ductwork, fans, heaters,
piping, thermostats and other equipment.
Vendor Selection
In May 2014, the City published Notices Inviting Bids to provide HVAC units and
1 of 3
supplies as required by Facilities Services responsible for HVAC repair and
maintenance in accordance with City specifications. The bid was posted on the City's
on -line bidding site, and notices were advertised in the Santa Monica Daily Press in
accordance with City Charter and Municipal Code provisions. A total of 297 vendors
were notified, 24 vendors downloaded the bid (Bid #4162). Two bids were received and
publicly opened on June 6, 2014 per Attachment A. Bids were evaluated based on the
criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality
of product, and compliance with City specifications.
Howard Industries offered the lowest bid pricing on 13 of 15 commonly purchased
HVAC items and has supplied the City for several years at reasonable prices. Airgas
Refrigerants offered the lowest bid pricing on R -22 refrigerant, but offered no renewal
options past FY 2014 -15. Based on these criteria, Howard Industries was
recommended as the best bidder for the purchase of HVAC units and supplies; and
Airgas Refrigerants was recommended as the best bidder for the purchase of R -22
refrigerant in accordance with the City specification.
On December 4, 2014, the Purchasing Services Manager awarded Bid #4162 and
issued purchase order #24290 -OF to Howard Industries to provide HVAC units and
supplies through June 2015 in an amount not to exceed $83,125. On January 21, 2015,
purchase order #24316 -OF was issued to Airgas Refrigerants in an amount not to
exceed $16,330. At the time of issuance, the purchase orders were approved under the
Purchasing Services Manager's authority. This action incorporates purchase orders
#24290 -OF and #24316 -OF and two additional one -year renewal options for a three-
year total not to exceed $300,000.
2 of 3
Financial Impacts and Budget Actions
The renewal option and purchase order to be awarded to Howard Industries is for an
amount not to exceed $300,000. The purchase order will be charged to account
014523.544010 and expenditures will be transferred to departments incurring
maintenance services. Funds in the amount of $100,000 are included in the FY 2015 -17
Proposed Biennial Budget in various department budgets. Future year funding is
contingent on Council budget approval.
Prepared By: Kevin Nagata, Administrative Analyst
Approved Forwarded to Council
Susan Cline, Interim Director of POf11ZCVtTi
Attachments:
Elaine M Polachek, Interim City PAM YO-6—M5,
A. Results for Bid #4162 HVAC Units and Supplies (PDF)
3 of 3
H
D
VI
W
ot
O
m
Em
z
W
qQ
a
m
m
o
ry
n
o
o
m
a
m
r
M
m
n
M
m
O
rl
V
O
M
rn
n
O
6
N
n
N�
m
0
M
M
H
ei
N
O
O
M
0
ei
Q�
N
O
111
a
rc
v
0
o
w
m
o
g
®
o
w
w
z
a
s
z
?
U
O
a
p
¢
O
a
s
G
G
O
=
w
Ol
1�
W
O
ri
C
O
py�
N
1�
fi
O
lV
W
W
W
W
�
n
N
m
m
O
M
M
iB
Z
M
_
O
Z
Q
U
r
m
m
Li
W
N
M
M
�
C
LL
W
K
0
p
Q
O
z
z
z
0
z
z
z
z
z
z
z
z
z
w
w
2
Z
M
Q
O
O
o
p
�ou"i
u
N
rn
o
O
O
y
a
°
m
W
K
K
z
z
z
z
z
p
O
O
O
O
O
O
O
O
O
0 O
0 o
z
i-n
z
z
z
z
z
z
z
z
z
z
z
z Z
Z z
Z z
Z z
¢
O
w
u
3
ur
u
z
u
w
r
a
r
r
m
Y
O
�
✓1
N
O
M
m
H
m
K
p
Z
N
Y
ri
p
m
>
O
xx
O
U
O
6
z
z
o
a
2
o
r
LL
LL
Z
u
m
m
m
o
o
u
r
l9
r
)
V
r
O
m
o
o
O
u
�
Y
�
N O
W
Q
Z
N
m0
u�
2
vl
F
X
�i
N
p
N
w
r
O
in
a
LL
U
z
r W
u
m
G
p
ry
x
O
d
d
G
p
¢
w
a
fi
M
x°
o
p
rc
o
w
w
w
o
o
w
G
3
z
s
>
w
a
z
0
n¢
m
m
00
¢
r
o
I
u
° a
p
Q
Z
,ay
a
a
a
a
i
zz
a
x
r o
O
a
m
o°
u
r
g
�-
r
z
o
Wo w
r¢
r¢
w
a
r
0
in
F
O
s
0
s
ee
'_-'
O
lW9
0
u
w
N
VO
U0
Z
m
""
x
o
a
p
w
z 6
p°
w
M
M
Lx
FFJ�
vwi
LL
u'a
p
z
'^
v
0 u
ZO
O Q
Z
Z Q
W
U
Z
Z
mN
Y
Y
Z
K
K
LL
z
K
Fd
N
M
N vl
1p W
U
w
Y
�=
Z
O
O
Z
Z
X
a
LL'
a
Q
p
p
ei �n w `ui
h
3 z
u
a
¢
O
6
6
a
F
H¢=
x
u
r
G
O
O
E
p o
ug
o
Z
m
a
o
Q
.a
°LL
z
G aG
a
r
x
OY
z
rc
it U F
W
Z.
U
K¢¢
vii
¢
tll
U
N
M
B
N
lO
n
W
m
M
M
M
N
M
Q
W
C1 [O Gl u
�
1�
eat
eW1
d
C
a