Title
Consider a memorandum/resolution authorizing the purchase of maintenance and repairs of HVAC equipment through The Brandt Companies and Johnson Controls, in an amount of $264,215 for Fiscal Year 2025.
Body
DATE: November 19, 2024
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: HVAC maintenance and repair
BACKGROUND AND FINDINGS:
The City has an inventory of approximately 400 heating, ventilation, and air condition (HVAC) units that vary in complexity, size, and type. Building Services uses HVAC vendors to assist in the maintenance and repair of the City’s HVAC units with a budget of $392,427. The Brandt Companies, LLC is used for maintenance and repair of large complex chillers and boiler units. Repair and maintenance services are contracted through the Texas Buyboard purchasing cooperative, contract #720-23. In addition, Building Services uses The Brandt Companies, LLC to service all units within the Police Department buildings. Building Services on behalf of the Police Department contracts with The Brandt Companies, LLC for maintenance and inspection services on a two-year term. The maintenance and inspection agreement with Brandt for the Police Department is $43,115.88 ($21,557.94 annually) and expires December 26, 2025.
The Aviation Department uses Johnson Controls to service the Killeen Regional Airport Facility based off the NJPA-Sourcewell cooperative contract #07012-JHN. The maintenance agreement with Johnson Controls was entered into March 1, 2024, and valid for a one-year term in the amount of $21,861.95. A new agreement will begin March 1, 2025, for a four-year term in the amount of $32,656.34 for the first-year term.
The total estimated HVAC maintenance and repair expenses with The Brandt Companies, LLC and Johnson Controls for Fiscal Year 2025 is $264,215 which includes the Police Department’s and Aviation’s maintenance and inspection agreements. Maintenance and repair of smaller HVAC units will be procured based off the three (3) quote process.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
Yes, purchases made through a cooperative contract are exempt from the competitive bidding process as stated in Texas Local Government Code section 271.102, subchapter F; a local government that purchases goods or services under this subchapter satisfies any state law requiring the local government to seek competitive bids for the purchase of goods or services.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The estimated annual expenses for The Brandt Companies in Fiscal Year 2025 is $231,558 to include the service agreement for the Police Department, in the amount of $21,557.94. HVAC repair and maintenance expenses for future years are expected to be similar.
The annual expense for the Johnson Controls maintenance agreement is as follows.
|
Year |
Annual Cost |
|
Year 1 |
$ 32,656.34 |
|
Year 2 |
$ 34,261.00 |
|
Year 3 |
$ 35,945.00 |
|
Year 4 |
$ 37,712.00 |
|
Total |
$140,574.34 |
Is this a one-time or recurring revenue/expenditure?
Recurring expenditure
Is this revenue/expenditure budgeted?
Yes, funds are available within in each department’s budget in building repair and maintenance account, XXX-53110-XXX-XXX-XXXXXX.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
City Council authorize the City Manager or his designee to authorize the purchase of HVAC maintenance and repair services through The Brandt Companies, LLC and Johnson Controls in an amount of $264,215 for Fiscal Year 2025 and authorize the City Manager, or designee, to execute any and all change orders within the amounts set by State and Local Laws.
DEPARTMENTAL CLEARANCES:
Aviation
Community Development
Finance
Legal
Police Department
ATTACHED SUPPORTING DOCUMENTS:
The Brandt Companies Buyboard Summary
The Brandt Companies Contract Verification
The Brandt Companies Certificate of Interested Parties
The Brandt Companies Agreement 2023-2025
Johnson Controls Agreement 2024-2025
Johnson Controls Agreement 2025-2028
Presentation