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Home My WebLink About7/21/2004 - STAFF REPORTS (12) DATE: July 21, 2004 TO: City Council FROM: Director of Procurement& Contracting and Director of Public Works EXTEND CONTRACT SERVICE AGREEMENT WITH CARRIER BUILDING SERVICES FOR CHILLER SYSTEM MAINTENANCE RECOMMENDATION: It is recommended that City Council approve Amendment 1 to the contract service agreement with Carrier Building Services for maintenance services for HVAC building systems for the Municipal & Sunrise Cogeneration plants and the Palm Springs International Airport for a period of five (5) years in an amount not to exceed $140,000.00, pursuant to the terms and conditions set forth in the agreement (A #4009) as stipulated in Exhibits "A", "B", "C", and "D" respectively. SUMMARY: Carrier Building Services has serviced the City's chillers and HVAC related equipment for over 14 years. They are the manufacturer of the chillers and therefore have the necessary parts and factory trained personnel to maintain the City's equipment with the best cost savings and most reliable service. It is therefore recommended that this agreement be extended for an additional five (5) year term with no changes in the terms or conditions of the existing contract. BACKGROUND: The City filed a lawsuit against the Carrier Corporation on February 19, 1991 contending that Carrier Corporation, through their subcontractor Aquatrol, failed in their commitment to devise, implement and provide proper water treatment for the water in the mechanical system located at the Palm Springs Convention Center which contributed to or caused corrosion to occur, and for subsequent pin hole leaks to develop. The parties negotiated a settlement agreement in favor of the City equating to $110,000.00, to be paid via provision of 5 years of maintenance on City-owned HVAC equipment at the cogeneration plants and the Airport. The City agreed to enter into a five year service agreement with Carrier Building Systems and Services Division to perform the required three (3) quarterly and one (1) annual service maintenance, analysis and tune-up on the chiller units located at the Municipal & Sunrise Cogeneration Plants and Airport mechanical room at rates matching the prevailing rates for that type of work. Other conditions and releases related to repairs of HVAC equipment in the Council Chambers, and the prohibition of specific water treatment chemicals at the Convention Center were agreed upon. In 1998 after almost a year of negotiations between the City's Attorney and Carrier's corporate attorneys, contract language was agreed upon and a subsequent five (5) year contract service agreement was entered into. As in the previous five (5) years Carrier has performed above expectations, being very responsive to the maintenance of the City's chillers and related HVAC equipment. As most of this equipment is manufactured by the Carrier Corporation, parts are more readily available and the City receives the benefit of factory trained personnel with the technical understanding of our equipment. Through these maintenance agreements, equipment life has been extended and expensive repairs have been virtually eliminated. While the terms and conditions of the agreement remain unchanged, compensation for the maintenance services in the extended term reflect a 5% increase over the past term and the inclusion of an additional chiller at the Airport. (The CPI increase over the same term was approximately 19%). For the extension compensation is as follows: Municipal Plant $7,560 annually or $630 per month, Sunrise Plant $6,288 annually or $524 per month and the Airport $12,462 annually or $1038.50 per month. Total cost for the five (5) year contract will be in an amount not to exceed $140,000.00. Funds have been budgeted for this purpose and are available in the following account: 520-5641-48700 Cogan Special Parts/Repairs / � Q r - /i ,��j ce Q ,� � _ L ! .� HAROLD E. GOOD, CPPO DAVID J. BARAKIAN, Director Director of Procurement and Contracting Public Works/City Engineer APPROVED: City Manager ATTACHMENT: Minute Order REVIEWED BY DEFT. OF FINANCE 1 .3 FIRST AMENDMENT TO AGREEMENT WITH CARRIER CORPORATION This FIRST AMENDMENT ("First Amendment") is made and entered into this day of , 2004, by and between the CITY OF PALM SPRINGS, a municipal corporation ("City") and CARRIER CORPORATION ("Contractor"). RECITALS WHEREAS, on or about July 29, 1998 City and Contractor entered into the "Agreement for Tourism Services" ("Agreement"), pursuant to which Contractor agreed, for a tern of five years, to maintain the City's three (3) air conditioning systems. WHEREAS, at this time, the parties desire to extend the Agreement for an additional five-year tern and to add an additional air conditioning unit to the contract. AGREEMENT WHEREAS, the recitals contained above are incorporated herein by reference and the Agreement is hereby amended as follows: SECTION 2.1 "Contract Sum" is hereby amended to read as follows: Contract Sum. For the services rendered pursuant to this Agreement, the Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference, but not exceeding the maximum contract amount of One Hundred Forty Thousand Dollars ($140,000) (herein"Contract Sum"), except as provided in Section 1.8. The method of compensation shall be as set forth on Exhibit "C". Compensation shall not include reimbursement for expenses." SECTION 3.4 "Term" is amended to read as follows: Term. Unless earlier terminated in accordance with Section 7.8 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding five (5) years from the date hereof, except as otherwise provided in the Schedule of Performance." 1003/001/32962.01 Page 1 of 3 EXHIBIT "C" is amended to read as follows: "Contractor shall provide the services set forth in this Agreement and shall be paid for such services by the City as follows: (1) Cost per year to maintain the Municipal Cogen Plant absorption chiller model Carrier 16JB036: Contract# (781A33220) $7,560 payable at$630.00 per month (2) Cost per year to maintain the Sunrise Plant Cogen absorption chiller model Carrier 16JBOI8: Contract# (78IA33221) $7,270 payable at $605.83 per month (3) Cost per year to maintain the two (2) centrifugal chillers at the airport models Trane CVHE036FAN61-U3CJZ99N1 and York I YTG1A3C1-CJHS: Contract# (781A33222) $12,462 payable at $1,038.50 per month For a total first year cost of $ 26,310.00 Starting July 1, 2005, and armually thereafter, all contract pricing shall increase by the annual average Los Angeles County/Riverside County Consumer Price Index, or three percent (3%), whichever is less." EXHIBIT "D" shall be amended to add the attached Exhibit"1". Except as expressly provided herein, all other terms and conditions of the Agreement shall remain in full force and effect. 1003/001/32862 01 Page 2 of 3 IN WITNESS WHEREOF, the parties hereto executed this First Amendment to be effective as of the Date first written above. CITY OF PALM SPRINGS, a municipal corporation By: City Manager ATTEST: Carrier Corporation By: City Clerk Name Title APPROVED AS TO FORM: City Attorney 11,64, 1003i00v32862 01 Page 3 of 3 MINUTE ORDER NO. " `,} r °•, APPROVING AMENDMENT 1 TO AGREEMENT 4009 WITH CARRIER BUILDING SERVICES FOR MAINTENANCE SERVICES FOR HVAC BUILDING SYSTEMS FOR THE MUNICIPAL AND SUNRISE COGENERATION PLANTS AND THE PALM SPRINGS INTERNATIONAL AIRPORT FOR A PERIOD OF FIVE (5) YEARS, IN AN AMOUNT NOT TO EXCEED $140,000, PURSUANT TO THE TERMS AND CONDITIONS SET FORTH IN THE AGREEMENT AS STIPULATED IN EXHIBITS "A", "B", "C", AND "D" RESPECTIVELY. I HEREBY CERTIFY that this Minute Order, approving Amendment 1 to Agreement 4009 with Carrier Building Services for maintenance services for HVAC building systems for the Municipal and Sunrise Cogeneration Plants and the Palm Springs International Airport for a period of five (5) years, in an amount not to exceed $140,000, pursuant to the terms and conditions set forth in Exhibits "A", °B", 'C", and "D° respectively, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 71h day of July, 2004. PATRICIA A. SANDERS City Clerk i