City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council 1) waive the formal competitive bidding
procedures; and 2) approve an Agreement with Trane, Inc. for the purchase of an
air-cooled liquid chiller in the amount of $67,274.69.
BACKGROUND:
From 1996-2009, heating and cooling for the Police Facility was serviced by co-
generation units that were installed by Honeywell, Inc. Due to increased
maintenance issues and South Coast Air Quality Management District (AQMD)
required emission standards, staff determined it was in the City’s best interest to
decommission the existing co-generation units and replace them with a more energy
efficient heating, ventilation and air conditioning (HVAC) system.
Upon decommissioning of the co-generation units, a chiller was rented on a short-
term basis to provide heating and cooling to the facility while Public Works staff
solicited proposals from various vendors for a more efficient HVAC system to
replace the co-generation units. Based on quotes and proposals received, staff
determined that adequate funding is currently not available to proceed with such a
project. The most feasible option at this time will be to purchase a new chiller rather
than continuing to rent a chiller to provide heating and cooling to the facility until
funding can be secured at a later date through the budget process for the installation
of an entirely new HVAC system. Also, the City is currently assessing the adequacy
of the existing Police Station. Staff believes that it is prudent to complete this study
Meeting Date: 05/26/09 Item Number: C-6
AGENDA ITEM: 1) Wavier of Formal Competitive Bidding Procedures; and 2)
Approval of an Agreement with Trane, Inc. for the Purchase of an Air-cooled
Liquid Chiller to Provide Heating and Cooling to the Police Facility.
Contact Person/Dept.:
Eric Mirzaian
Public Works-Maintenance Operations
Phone Number:
(310) 253-6410
Fiscal Impact: Yes [x] No [] General Fund: Yes [] No [x]
Public Hearing: [] Action Item: [] Attachments: [X]
Public Notification: Master E-Mail Notification List (05/20/09); Trane, Inc. 5/19/09
Department Approval:
Charles D. Herbertson (05/15/09)
City Attorney Approval:
Carol Schwab (by H. Baker) (05/19/09)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball) (05/19/09)
City Manager Approval:
Jerry B. Fulwood (05/20/09) City of Culver City, California
City Council Agenda Item Report
before making any major investments to rehabilitate the current building. The
installation of this new chiller will be performed by Public Works staff to reduce the
financial impact to the City.
DISCUSSION:
Public Works Staff received the following three quotes for the air-cooled liquid chiller:
Trane, Inc…….……………………$67,274.69 (includes sales tax)
Carrier Corporation……………….$76,167.00 (includes sales tax)
DMG Corporation…………………$95,947.00 (does not include sales tax)
Staff is recommending this award be made without a formal bid process in
accordance with Culver City Municipal Code Sections 3.07.065.D, since the new
chiller will be a component of the existing heating, ventilation and air conditioning
system for the building and is necessary to repair the existing system and return it to
proper operation.
FISCAL ANALYSIS:
Sufficient funding is available in the Capital Improvement Project P-132, Building
Repairs account (42000132), to cover the requested purchase of an air-cooled liquid
chiller at a cost of $67,274.69.
ATTACHMENTS:
1. Quote from Trane, Inc.
MOTION:
That the City Council:
1. Waive the formal competitive bidding procedures; and
2. Approve an agreement with Trane, Inc. in the amount of $67,274.69; and,
3. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.
MEETING DATE: 5/26/09
AGENDA ITEM:
Approval of the Purchase of a Trane Air-cooled
Liquid Chiller from Trane, Inc. to Provide Heating
and Cooling to the Police Facility
ATTACHMENTS
Pages|109| Quote from Trane, Inc.
1-2124.-Z„
TRANE
Proposal
Prepared For:
Culver City
Job Name:
Culver City Police Department
Bid Date: March 01, 2030
Delivery Terms:
Freight Allowed and Prepaid - F.O.B. Factory
Ta Data - Air-Cooled Scroll (Qtv 1
Date: April 13, 2009
Proposal Number: W2-110063-1
Engineer: replacement (OTC)
Payment Terms:
Net 30 Days
Item Tag(s) .Qty Description Model Number
Al CH-70T 'I Air-Cooled Scroll ( CGAM ) CGAM070F2-2AXD1-1A1A1AX-A2C1AX
XXX00X-XA3X1D-XX—X
Product Data - Air-Cooled Scroll
Item: Al Qty: 1 Tag(s): CH-70T
• Air-Cooled Scroll Packaged Chiller
• 70 nominal tons
• 460 volt 3 phase 60 hertz
• High efficiency/performance
• Full fact. refrigerant charge (HFC-410A)
• With Freeze Prot. (Ext. T-STAT Control)
• Refr. isolation valves (discharge valve)
• UL listed to US and Canadian safety std
• Canadian eff - CSA C743-02 compliant
• ARI certified
• Std cooling (42 to 65F/5.5 to 18C)
• Factory insulation - all cold parts
NOT included are the following:
• Owner training
• Hauling, Rigging and Setting the Machine
• Miscellaneous Insulation other than Chiller
Barrel
• Controls and Accessories other than those
listed in this proposal
• Water
• Wide ambient (0 to 125F/-18 to 52C)
• Lanced aluminum fins
• Across the line starter/direct on line
• Dual point power connection
• Circuit breaker
• Water tight (per UL1995 standard)
• With water strainer factory installed
• Super quiet
• Factory Installed Pump Package
• Start Up Supervision and First Year Parts &
Labor Warranty
• isolation (unit should be mounted on neoprene
isolation pads)
• Power Wiring
• Flow Switch
• Alarm Package
• Four (4) Year Extended Compressor Warranty
? Any items not mentioned above
Total Net Price (Excluding Sales Tax) $ 56,375.00
Years 2-5 Extended Compressor Parts and Labor Warranty $ 5,685.00
This proposal and pricing are based on shipment of all products (not including field labor) by no later than 4th
quarter of 2009 year.
Sincerely,
Beau GL Broomen LEEir AP
Account Manager - Owner Direct
Southern California Trans [Lie. # 5418211
(T) 6261435-1104
(F) 6261513-7923
This proposal is subject to your acceptance of the attached Trane terms and conditions.
JAJOBS1115111006310Culver City Police Department 4-19-09 P.docCulver City Police Department April 13, 2009
Trane New Equipment Terms and Conditions
1. Acceptance and Prices. These terms and conditions are an integral part of Trans
U.S. Inc. (Seller')'s firm offer and form the basis of any agreement resuiting.from
Seller's proposal_ The proposal is subject to acceptance within thirty days from its
date, and the prices are subject to change without notice prior to acceptance by the
party to whom this offer is made, or its authorized agent ("Buyer"). Following
acceptance without addition of any other terms and conditions of sale or any other
modification by Buyer, the prices stated are firm provided that notification of release for
immediate production and shipment is received at Seller's factory not later than three
months from order receipt. If such release is received later than three months from
order receipt date, prices will be increased a straight 1% (not compounded) for each
one-month period (or part thereof) beyond the three-month firm price period up to the
date of receipt of such release. If such release is not received within six months after
the date of order receipt, at Seller's option, the order may be cancelled by Seller. Any
delay in shipment caused by Buyer's ections will subject prices to increase equal to the
percentage increase in list prices during that period of delay. In no event will prices be
decreased_
Acceptance will have occurred if Buyer signs Seller's proposal; issues written order
pursuant to submission of proposal; or permits or accepts performance; or other
commercially reasonable manner. If Buyer's order is arm acceptance of Seller's
proposal, Seller's return of such order with these terms and conditions attached serves
as an acknowledgement and confirmation of receipt of order. If order is expressly
conditioned upon Seller's acceptance or assent to terms other than those expressed
herein, return of order by Seller with these terms and conditions attached serves as
notice of objection to such terms and a counter-offer to provide equipment in
accordance with scope and terms of the original proposal. If Buyer does not reject or
object within ten days, counter-offer will be deemed accepted. If Buyer permits or
accepts performance, such terms will be deemed accepted. In order for Seller's
acknowledgement of order to be valid it must be made at the corporate level.
2. Performance. Seller shall be obligated to furnish only the goods described in
Seller's proposal, and submittal data (if such data is issued in connection with this
Order), and Seller may rely on the acceptance of proposal and submittal data as
acceptance of the suitability of the equipment for the particular project. Seller's duty to
perform under any order and the price thereof is dependent upon Seller's corporate
approval of the order and Seller shall not be responsible for delays in contract
formation caused by inclusion of new or different terms by Buyer, or delays in credit
approval due to delayed or incomplete credit information by Buyer. Seller's duty to
perform is contingent upon the non-occurrence of an Event of Force Majeure. If the
Order is not approved at the corporate level, Seller may elect to delay performance or
to renegotiate with Buyer. If Seiler and Buyer are unable to agree on revised prices or
terms, the order may be canceled without any liability. If Seller shall be unable to carry
out any material obligation under this Agreement due to an Event of Force Majeure,
this Agreement shalt at Seller's election (i) remain in effect but Seller's obligations shall
be suspended until the uncontrollable event terminates or (ii) be terminated upon ten
(10)days notice to Buyer, in which event Buyer shall pay Seller for all parts of the Work
furnished to the date of termination. An 'Event of Force Majeure" shall mean any
cause or event beyond the control of Seller. Without limiting the foregoing, "Event of
Force Majeure" includes: acts of God; acts of terrorism, war or the public enemy; flood;
earthquake; tornado; storm; fire; civil disobedience; pandemic insurrections; note;
labor disputes; labor or material shortages; sabotage; restraint by court order or public
authority (whether valid or invalid); and action or non-action by or inability to obtain or
keep in force the necessary governmental authorizations, permits, licenses,
certificates or approvals if not caused by Seller, and the requirements of the United
States Government in any manner that diverts either the material or the finished
product to the direct or indirect benefit of the Government.
3. Taxes. To the prices and terms quoted, add any manufacturer's gross receipts,
sales, or use tax, Federal, State, or Local, payable on the transaction under any
applicable statute, code, or regulation.
4. Warranty arid Liability. Seller's warranty obligation is limited to the following:
Seller warrants for a period of 12 months from initial start-up or 18 months from date of
shipment, whichever is less, that products manufactured by Seller covered by Buyer's
order (1) are free from defects in material and manufacture and (2) have the capacities
and ratings set forth in Seller's catalogs and bulletins ("Warranty"). Exclusions from
this Warranty include damage or failure arising from: wear and tear; corrosion, erosion,
deterioration; Buyer's failure to follow the Seller-provided maintenance plan;
modifications made by others to Seller's equipment, Seller shall not be obligated to
pay for the cost of lost refrigerant. Seller's obligations and liabilities under this
Warranty are limited to furnishing replacement equipment or parts, at its option, f.o.b,
factory or warehouse at Seller-designated shipping point, freightmllowed to Seller's
warranty agent's stock location, for all non-conforming Seller-manufactured products
which have been returned by Buyer to Seller. Returns must have prior written approval
by Seller and are subject to restocking charge where applicable. SELLER MAKES
NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, REGARDING
PREVENTION OF MOLD, FUNGUS, BACTERIA, MICROBIAL GROWTH, OR ANY
OTHER CONTAMINATES.
No liability whatever shall attach to Seller until products have been paid for and Seller's
liability under this Warranty shall be limited to the purchase price of the equipment
shown to be defective. This Warranty is voidable in the event of non-payment. Further
warranty protection is available on an extra-cost basis. Any further warranty must be in
writing and agreed to by an authorized signatory of the Seller.
5. Warranty Disclaimer. This warranty is given in lieu of all other warranties, express
or implied, including IMPLIED WARRANTIES OF MERCHANTABILiTY AND
FITNESS FOR A PARTICULAR PURPOSE and/or others arising from course of
dealing or trade.
6. Indemnity. Seller and Buyer shall indemnify and hold each other harmless from
any and all claims, actions, costs, expenses, damages and liabilities, including
reasonable attorneys' fees, resulting from death or bodily injury or damage to real
or tangible personal property, to the extent caused by the negligence or misconduct
of their respective employees or other authorized agents in connection with their
activities within the scope of this Agreement Neither party shall indemnify the other
against claims, damages, expenses or liabilities to the extent attributable to the
negligence or misconduct of the other party. The duty to indemnify will continue in
full force and effect, notwithstanding the expiration or early termination hereof, with
respect to any claims based on facts or conditions that occurred prior to expiration
or termination.
7. insurance. Seller agrees to maintain the following insurance during the term of
the contract with limits not less than shown below and will, upon request from
Buyer, provide a Certificate of Insurance evidencing this coverage:
Commercial General Liability $2,000,000 per occurrence
Automobile Liability $2,000,000 CSL
Workers Compensation Statutory Limits
In the event Seller agrees to name Buyer or others scan additional insured, Seller
will do so but only under its primary Commercial General Liability policies to the
extent of the indemnity obligation assumed herein. In no event does Seller waive
its right of subrogation.
8. Liability Disclaimer. NOTWITHSTANDING ANY PROVISION TO THE
CONTRARY, IN NO EVENT SHALL SELLER BE LIABLE FOR ANY SPECIAL,
INCIDENTAL, CONSEQUENTIAL (INCLUDING WITHOUT LIMITATION LOST
REVENUE OR PROFITS), OR PUNITIVE DAMAGES. This exclusion applies
regardless of whether such damages are sought based on breach of warranty,
breach of contract, negligence, strict liability in tort, or any other legal theory.
Should Seller nevertheless be found /table for any damages they shall be limited to
the purchase price of the equipment under the order. SELLER DISCLAIMS ANY
LIABILITY FOR DAMAGES OF ANY KIND (WHETHER DIRECT OR INDIRECT)
ARISING FROM MOLD, FUNGUS, BACTERIA, MICROBIAL GROWTH, OR ANY
OTHER CONTAMINATES OR AIRBORNE BIOLOGICAL AGENTS.
9. Patent Indemnity. The Seller shall protect and indemnify the Buyer from and
against all claims, damages, judgments and loss arising from infringement or
alleged infringement of any United States patent by any of the articles or material
delivered hereunder, provided that in the event of suit or threat of suit for patent
infringement Seller shall promptly be notified and given full opportunity to negotiate
a settlement. Seller does not warrant against infringement by reason of Buyer's
design of the articles or the use thereof in combination with other materials or in the
operation of any process. In the event of litigation Buyer agrees to reasonably
cooperate with Seller. In connection with any proceeding under the provisions of
this Article all parties concerned shall be entitled to be represented by counsel at
their own expense.
10. Shipment Dates. Shipment dates are estimates only. No valid contract may
be made to ship within or at a specified time unless in writing, signed by an
authorized signatory of Seller. Shipments shall be f.o.b. factory or warehouse at
named shipping point with title and risk of loss passing to Buyer upon delivery to the
carrier.
11. Cancellation. le following acceptance of proposal by Buyer, all or any portion
of the resulting order is canceled by Buyer without default on the part of Seller or
without Seller's written consent, Buyer shall be liable to Seller for cancellation
charges including but not limited to Seller's incurred costs and such profit as would
have been realized by Seller from the transaction had the agreement not been
breached by Buyer.
12. Payment Payment terms are 100% net 30 days of shipment unless otherwise
expressly agreed to in writing by Seller. Seller reserves the right to add to any
account outstanding for more than 30 days a service charge the lesser of 1-1/2% of
the principal amount due at the end of each month, or the maximum allowable legal
interest rate. Buyer shall be liable to Seller for all collection expenses, including
reasonable attomey's fees and court costs, incurred by Seger in attempting to
collect any amounts due from Buyer. If requested, Seller will provide appropriate
lien waivers upon receipt of payment. Seller reserves the right to suspend or
terminate performance in the event of Buyer's non-payment.
13. Returns. Products may be returned only with permission of Seller and may be
subject to discount
14. Applicable Law. Any agreement resulting from Seller's proposal will be
governed and construed according to Wisconsin law.
15. U.S. Government Work. This provision applies only to indirect sales by
Seller to the US Government As a Commercial Item Subcontractor, Trane
accepts only the following mandatory flow down provisions: 52.219-8; 52.222-26;
52.222-35; 52.222-36; 52_222-39; 52.247-64. If the Work is in connection with a
U.S. Government contract, Buyer certifies that it has provided and will provide
current, accurate, and complete information, representations and certifications to
all government officials, including but not limited to the contracting officer and
officials of the Small Business Administration, on all matters related to the prime
contract. including but not limited to all aspects of its ownership, eligibility, and
performance. Anything herein notwithstanding, Seller will have no obligations to
Buyer unless and until Buyer provides Seller with a true, correct and complete
executed copy of the prime contract Upon request, Buyer will provide copies to
Seiler of all requested written communications with any government official related
to the prime contract prior to or concurrent with the execution thereof, including but
not limited to any communications related to Buyer's ownership, eligibility or
performance of the prime contract. Buyer will obtain written authorization and
approval from Seller prior to providing any government official any information
about Seller's performance of the work that is the subject of this offer or agreement,
other than this written offer or agreement
Trans U.S. Inc.
'1,26.130-4(0808)
Supercedes 1 -26 . 1304(0205)
FLO = Furnished by Trane / Installed by Others Trane Equipment Proposal Page 2 of 2