SUBJECT
title
Consideration to award an annual supply and service contract FY25-037 to the following vendors,
a) Ruby’s Air Conditioning, Laredo, TX in an annual amount up to $100,000.00 for a total contract value of $400,000.00
b) Marion Services, LLC, Laredo, TX in an annual amount up to $20,000.00 for a total contract value of $80,000.00
To provide HVAC repair services for various recreation centers. This contract establishes an hourly service rate and cost percentage for parts. The term of this contract shall be for a period of one (1) year beginning as of the date of its execution. The contract may be extended for three (3) additional one (1) year periods, upon mutual agreement of the Parties. Funding for the additional extensions are subject to future budget appropriations. All repair services will be purchased on an as needed basis. Funding is available in the Parks Department Budget.
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PREVIOUS COUNCIL ACTION
None.
BACKGROUND
The City received two (2) bids through Cit-E-Bid for HVAC repair services at various Parks Recreation Centers. This contract establishes hourly and cost plus percentage rate on materials supplied by the contractor. Ruby’s Air Conditioning has a Texas Class License # (TACLA13314C) and Marion Services, LLC has a Texas License # (TACLA86947C) for refrigeration and environmental HVAC repair services. The city reserves the right to just purchase hourly rate services with the city purchasing the HVAC machinery equipment. All repair services will be purchased on an as needed basis.
The term of this contract shall be for a period of one (1) year beginning as of the date of its execution. The contract may be extended for three (3) additional one (1) year periods upon mutual agreement of all Parties. Should the vendor desire to extend the contract for the additional one-year period, it must so notify the City in writing no later than sixty (60) days before the expiration of the prior term. Such notification shall be effective upon actual receipt by the City. Renewals shall be in writing and signed by the City’s Purchasing Manager and City Manager or his designee, without further action by the Laredo City Council, subject to and contingent upon appropriation of funding therefore. All annual contracts shall be bound by the terms of the bid documents. The City shall also have the right to extend this contract under the same terms and conditions beyond the original term or any renewal thereof, on a month-to-month basis, not to exceed three (3) months. Said month-month extensions shall be in writing, signed by the City’s Purchasing Manager and City Manager or his designee, and shall not require City Council approval, subject to and contingent upon appropriation of funding therefore.
Refer to Bid Tabulation for Pricing.
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
Staff recommends approval of these contracts.
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Fiscal Impact
Fiscal Year: 2025
Budgeted Y/N?: Yes
Source of Funds: Click or tap here to enter text.
Account #: Click or tap here to enter text.
Change Order: Exceeds 25% Y/N: Click or tap here to enter text.
FINANCIAL IMPACT:
The purpose of this contract is to establish prices for the commodities or services needed. The City’s obligation for performance of an annual supply contract beyond the current fiscal year is contingent upon the availability of appropriated funds from which payments for the contract purchases can be made. If no funds are appropriated and budgeted during the next fiscal year, these contracts become null and void.
Funding for these contracts is available in the following accounts:
101-3125-553-2030
101-3125-552-3030