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THE CITY OF -'- �'"` CITY COUNCIL AGENDA REPORT 7 pLEASANTON July 16, 2019 Operations Services TITLE: APPROVE AGREEMENT WITH ACCO ENGINEERING SYSTEMS IN THE AMOUNT OF $129,948 FOR HEATING, VENTILATION, AIR CONDITIONING (HVAC) MAINTENANCE SERVICES FOR CITY FACILITIES SUMMARY The Operations Services Department oversees the maintenance of the heating, ventilation and air conditioning (HVAC) equipment for all City facilities. Historically, the maintenance for HVAC systems have been performed on an as-needed basis. The new maintenance agreement will allow for a more pro-active approach that will include quarterly and annual maintenance as well as emergency repair services, thus extending the life of the equipment and reducing repair costs. The current as-needed agreement for HVAC expired on June 30, 2019, therefore staff conducted a competitive bidding process for a new maintenance service agreement that resulted in five (5) contractor bids with ACCO Engineering Systems being selected as the qualified low bidder. The term for the proposed new maintenance service agreement with ACCO Engineering Systems is for three years with the option for two additional one-year extensions. RECOMMENDATION Approve and authorize the City Manager to execute a three-year maintenance service agreement with ACCO Engineering Systems for HVAC maintenance and emergency repairs services with the option for two additional one-year extensions for a not-to- exceed amount of $129,948. FINANCIAL STATEMENT Funding for HVAC maintenance and emergency repairs is appropriated in the Operations Services Department's Support Services Division budget. The total compensation for the first three years of the agreement is $128,948. The contract amount per fiscal year is $41,690 for FY 2019/20, $42,983 for FY 2020/21 and $44,275 for FY 2021/22. The contract amounts include emergency repair services and a 10% contingency for unforeseen circumstances and related extra services as determined to be necessary by the City.