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  2.       
City Council Regular Meeting
Meeting Date: 03/08/2022  

BACKGROUND
The Schertz Civic Center has been providing rental space for the community since 2006. Recently, the HVAC system in the facility is experiencing outages and performance and reliability issues. In addition to having the City's on-staff HVAC Technician diagnose the ongoing issues, the City also entered into a task order with M&S Engineering (one of the City's on-call engineering firms) to do a full redesign of the facility's HVAC system.

The new system being proposed for the Civic Center is a system that is more conventional for a facility of this size. New package units will be installed on-grade on the exterior of the building. The variable air volume (VAV) units will be distributed to each zone within the facility by VAV terminal units. A large portion of the existing duct work will be able to remain in place allowing for less disruption within the facility during construction. The new system has been fully designed and is currently in the permit review process.

To help address the impacts of long lead times, City Council approved a Resolution in January awarding the HVAC equipment procurement to Sullivan Contracting Services prior to the final design being completed. Now that the final design has been completed, City Staff is recommending City Council award the remaining construction contract to Sullivan Contracting Services to complete the construction and installation associated with the HVAC replacement project. As done with the equipment procurement, City Staff is recommending awarding the construction contract to Sullivan Contracting through a job order contract. Sullivan has a Job Order Contract agreement with the Choice Partners Group Purchasing Cooperative (“CP”). CP completed a Request for Proposals for Job Order Contracts in February 2018. A total of 571 vendors were invited to participate in the procurement process.  Twenty-five responses were received and evaluated by a three member evaluation team. Evaluations were done on the basis of Price, Vendor’s experience and reputation, Quality of products/services, Compliance with local, state, and federal law, safety record, financial capability, marking plan, and value add products/services. The program intended to award to all vendors scoring an overall score of 70 or better to allow for a variety of specialties including roofing, fencing, interior/exterior construction, and HVAC. A total of 15 vendors were awarded under this procurement. Although Sullivan was not the highest ranked vendor in the procurement it is due to the limited scope of services they proposed. This procurement was for a wide range of services from building construction, renovation, plumbing and HVAC. Vendors who could provide services across all categories were scored higher.  Sullivan proposed services specifically related to HVAC which led to a lower overall score. In addition, Sullivan comes highly recommended by M&S Engineering, the Design Engineer for this project, based on Sullivan's work for Comal County, the City of New Braunfels, and the City of Seguin.  

By contracting with Sullivan via the Choice Partners Group Purchasing Cooperative, the City will save significant time and resources on this project. City Staff is recommending awarding the construction phase of the contract as part of the two phase approach laid out by staff in January. By awarding the project in two phases, City Staff anticipates being able to cut the construction schedule by 6 weeks due to current equipment lead times.

With approval from City Council, City Staff and City Management will finalize negotiations on the contract award with Sullivan Contracting Services in an amount not to exceed $964,000.
GOAL
The goal of this resolution is to award a job order contract to Sullivan Contracting for the construction portion of the Civic Center HVAC Replacement Project with a negotiated not to exceed amount of $964,000.
COMMUNITY BENEFIT
Replacing the existing HVAC system will allow the Civic Center to continue to provide high-end event rental space to the community. By contracting with Sullivan Contracting Services via the Choice Partners Group Purchasing Cooperative, the City will save significant time and resources on this project.  
SUMMARY OF RECOMMENDED ACTION
Staff recommends that the City Council approve Resolution 22-R-28 to allow the City Manager to enter into a job order contract with Sullivan Contracting Services for the construction of the Civic Center HVAC Replacement Project.
FISCAL IMPACT
Funding for the equipment procurement and construction of the project will be paid for using existing Hotel Occupancy Tax Funds which are permitted to be used on Capital Improvements at the Civic Center.

The funding has been approved in two phases:
  • 22-T-03: $250,000
  • 22-T-09: $900,000
  • Total Project Funding: $1,150,000
RECOMMENDATION
Staff recommends that the City Council approve Resolution 22-R-28 to allow the City Manager to enter into a job order contract with Sullivan Contracting Services for the construction of the Civic Center HVAC Replacement Project.
Attachments
22-R-28
Schertz Civic Center HVAC Replacement - Final Design Estimate
Sullivan JOC - Choice Partners Contract
05_18-029JN JOC IDIQ_Eval Summary
06_18-029JN JOC IDIQ_Bid Tabulation

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