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  ITEM 12.       
Meeting Date: 10/13/2020  
Submitted For: Michelle Woytenko
Department: Field Operations  

Subject
AUTHORIZATION TO ENTER INTO AMENDMENT NO. 4 TO THE LINKING AGREEMENT WITH SUN MECHANICAL CONTRACTING FOR HVAC SERVICE AND REPAIRS  
Presented by: Michelle Woytenko, Director, Field Operations 
Purpose and Recommended Action
This is a request for City Council to authorize the City Manager to enter into Amendment No. 4 to the Linking Agreement with Sun Mechanical Contracting, Contract No. C-10874, for an increase of $1,000,000, for a total not to exceed amount of $3,350,000, for the entire term of the Agreement for heating, ventilation and air conditioning (HVAC) Service and Repairs.  
Background

Field Operations staff oversees 3.5 million square feet of city facilities dispersed over 55 square miles throughout the city.   

Sun Mechanical Contracting was awarded a bid by Maricopa County as described in the HVAC Service and Repairs Contract.  Contract No. 15049-S was awarded on October 21, 2015, and is effective through October 31, 2019, and includes an option to renew the contract an additional two, one-year renewals, allowing the contract to be extended through October 31, 2021. 

On May 24, 2016, the city entered into a Linking Agreement with Sun Mechanical Contracting,  Contract No. C-10874, in an amount not to exceed $150,000 for the full term of the agreement and includes an option to renew the agreement for four, one-year renewals allowing the contract to be extended through October 31, 2021.  

On October 10, 2017, the city entered into Amendment No. 1, C-10874-1, to the Linking Agreement with Sun Mechanical Contracting increasing the compensation to $800,000 for the full term of the Agreement and to ratify expenditures in an amount up to $10,000. 

On November 1, 2017, the city entered into Contract Extension No. 1, C-10874-2, extending the term of the linking agreement through October 31, 2018. 

On November 1, 2018, the city entered into Contract Extension No. 2, C-10874-3, extending the term of the Linking agreement through October 31, 2019. 

On June 25, 2019, the city entered into Amendment No. 2, C-10874-4, to the Linking Agreement with Sun Mechanical Contracting increasing the compensation to $1,600,000 for the full term of the Agreement. 

On November 1, 2019, the city entered into Contract Extension No. 3, C-10874-5, extending the term of the linking agreement through October 31, 2021. 

On May 19, 2020, the city entered into Amendment No. 3, C-10874-6, to the Linking Agreement with Sun Mechanical Contracting increasing the compensation to $2,350,000 for the full term of the Agreement. 

Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative.  Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing.  The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes.  This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.  

Analysis
Field Operations is requesting Council to authorize Amendment No. 4 increasing the amount of the Linking agreement from $2,350,000 to an amount not to exceed $3,350,000 over the term of the contract. The increase allows for the completion of multiple projects including the replacement of the HVAC system at O’Neill Recreation Center, replacement of the HVAC system for the third floor of City Hall, and other projects as needed. 
Previous Related Council Action

On May 19, 2020, the city entered into Amendment No. 3, C-10874-6, to the Linking Agreement with Sun Mechanical Contracting increasing the compensation to $2,350,000 for the full term of the Agreement. 

On June 25, 2019, Council authorized Amendment No. (4), C-10874-4, to the Linking Agreement with Sun Mechanical Contract increasing the compensation in an amount not to exceed $1,600,000 for the full term of the agreement.  

On October 10, 2017, Council authorized Amendment No. 1, C-10874-1, to the Linking Agreement with Sun Mechanical Contract increasing the compensation in an amount not to exceed $800,000 for the full term of the agreement and ratification of expenditures in an amount up to $10,000. 

On May 24, 2016, Council authorized entering into a Linking Agreement, C-10874, with Sun Mechanical Contracting in an amount not to exceed $150,000 for the full term of the agreement.  

Community Benefit/Public Involvement
Cooperative purchasing allows the city to use a contract that was competitively procured by another government entity or purchasing cooperative.  Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts and provides the opportunity to take advantage of volume pricing.

Fiscal Impact
Fiscal Year: FY2020-21
Fiscal Year Amount Requested: $500,000
Budgeted Y/N?: Y
Account: 10804528-550191
Transfer Required? Y/N: N
If Yes, what account will be used?:
Budget and Financial Impacts:
Funding is available in the fiscal year FY2020-21 Capital Improvement Program, Project CIPFC70800 - Building Maintenance Reserve. The amendment increases the contract with Sun Mechanical Contractors by $1,000,000, for a total not to exceed amount of $3,350,000 for the entire term of the agreement. Expenditures beyond the current fiscal year are contingent on Council Budget approval.  
Attachments
Amendment No 4


    

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