HomeMy WebLinkAboutStaff Report 2303-1078CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, May 15, 2023
Council Chambers & Hybrid
5:30 PM
Agenda Item
4.Approval of a three-year General Services contract with Johnson Controls Fire Protection,
totaling $423,830, for Automatic Fire Extinguishing Systems Inspection, Testing, and
Repair Services; and Approval of a Budget Amendment in the General Fund.
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: May 15, 2023
Report #:2303-1078
TITLE
Approval of a three-year General Services contract with Johnson Controls Fire Protection,
totaling $423,830, for Automatic Fire Extinguishing Systems Inspection, Testing, and Repair
Services; and Approval of a Budget Amendment in the General Fund.
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager, or their designee, to execute contract
C23187159, for a term of June 1, 2023 through May 31, 2026, with Johnson Controls
Fire Protection in the amount of $423,830 for Automatic Fire Extinguishing Systems
Inspection, Testing, and Repair Services; and
2. Authorize the City Manager, or their designee, to negotiate and execute one or more
change orders to the contract with Johnson Controls Fire Protection in an amount not to
exceed $42,383 for related, additional but unforeseen work which may develop during
the contract period; and
3. Amend the Fiscal Year 2023 budget appropriation for the General Fund (requires a 2/3
vote) by:
a) Increasing the Public Works Department Public Services Division operating budget
ongoing contract expenses expenditure by $95,825; and
b) Decreasing the Budget Stabilization Reserve by $95,825.
BACKGROUND
The automatic fire extinguishing systems in City facilities require quarterly, annual, and five-
year inspections to ensure functionality. These inspections are done in accordance with the
2013 Edition of the California Code of Regulations (CCR), Title 19, NFPA 25 Chapters 5, 6, and 8.
Under the recommended contract1, Johnson Controls Fire Protection will be responsible for the
inspections and for correcting any deficiency repairs found during these inspections.
ANALYSIS
Scope Overview
The City has 30 facilities that have automatic fire extinguishing systems. Inspections at these
facilities are performed during the first two weeks of March, June, September, and December
each year. The contractor will use inspection forms from the 2013 Edition of the CCR. Copies of
all completed inspection forms will be emailed to Public Works Facilities Management within
five days. Required deficiency repairs are noted after each inspection and proposals to make
these repairs are sent to Facilities Management shortly thereafter. For annual and five-year
inspections, the contractor will apply the proper inspection stickers per CCR requirements.
Bid Process
On February 1, 2023, a notice inviting formal bids for Automatic Fire Extinguishing Systems
Inspection, Testing, and Repair Services was posted on the PlanetBids website. The bidding
period was 23 days. Bids were received from two qualified contractors on February 23, 2023, as
listed on the attached Bid Summary (Attachment A).
Summary of Bid Process
BID NAME/NUMBER
AUTOMATIC FIRE EXTINGUISHING SYSTEMS
INSPECTION, TESTING, AND REPAIR
SERVICES
RFQ #187159
Proposed Length of Contract Three Years
Total Days to Respond to Bid 23
Number of Bids Received 2
Bid Price Range $423,830 to $899,700
Staff has reviewed the submitted bids and recommends that the bid of $423,830 submitted by
Johnson Controls Fire Protection be accepted and that Johnson Controls Fire Protection be
declared the lowest responsible bidder. The award of contract includes the base bid. The
change order amount of $42,383 (which equals 10 percent of the total contract) is requested
for related, additional but unforeseen work which may develop during the contract term. Staff
confirmed with the Contractor's State License Board that the contractor has an active license on
file. Staff also confirmed with the California Department of Industrial Relations (DIR) that the
1 Johnson Controls Fire Protection for Automatic Fire Extinguishing Systems Inspection C23187159;
https://www.cityofpaloalto.org/files/assets/public/public-works/public-services/contracts/c23187159-automatic-
fire-extinguishing-final-approved.pdf
contractor has an active DIR registration.
Contract Cost Increases
The prior three-year contract was initially for a not-to-exceed amount of $178,737. However,
there were two Amendments to the prior contract to add the cost of unforeseen repairs.
Amendment No. 1 was for $87,207 and Amendment No. 2 was for $113,466. Including the two
amendments, the total three-year amount of the contract was $379,411. The new three-year
contract total as recommended in this report is $466,213. The cost increase for the new
contract can be partially attributed to an increased labor rate which went from $268/hour to
$293/hour, a 9.3% increase. The new contract also includes an allowance for unforeseen
repairs so the City can potentially avoid contract amendments during the three-year contract
term.
FISCAL/RESOURCE IMPACT
Funding for a portion of the first year of this contract is available in the Fiscal Year 2023 Public
Works Department operating budget. For the remaining portion, staff recommends increasing
the Fiscal Year 2023 budget appropriation by $95,825 and decreasing the Budget Stabilization
Reserve by the same amount. Subsequent years of the contract are subject to appropriation of
funds through the annual budget process.
STAKEHOLDER ENGAGEMENT
Ten contractors were notified through Planetbids for this procurement. Staff will be notified if
repair work will be disruptive in their workspace.
ENVIRONMENTAL REVIEW
This contract is categorically exempt from the California Environmental Quality Act (CEQA)
under Sections 15301 and 15302 of the CEQA guidelines as an alteration to an existing facility
and no further environmental review is necessary.
ATTACHMENTS
Attachment A: Bid Summary
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
Bid Summary
Automatic Fire Extinguishing Systems Inspection, Testing, and Repair Services
RFQ187159
Vendor Name Bid Amount
Johnson Controls Fire Protection $423,830
Majestic Fire, Inc $899,700