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<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Project title: Award an increase to overall spend for Invitation for Bid #2022-047 Unit Price HVAC Services <br />and Repairs <br />Council Bill # interoffice use <br /> <br />Project: Unit Price HVAC Services and Repairs <br />Partner/Supplier: D.K. Systems <br /> Location: Citywide <br /> Preceding action: N/A <br />Fund: 401 Public Works <br />Agenda dates requested: <br /> <br />Briefing <br />Proposed action <br />Consent 7/2/25 <br />Action <br />Ordinance <br />Public hearing <br /> Yes X No <br /> <br />Budget amendment: <br /> Yes X No <br /> <br />PowerPoint presentation: <br /> Yes X No <br /> <br />Attachments: <br /> <br /> <br />Department(s) involved: <br />Procurement & Public Works <br /> <br />Contact person: <br />Theresa Bauccio-Teschlog <br /> <br />Phone number: <br />(425) 257-8901 <br /> <br />Email: <br />tbauccio@everettwa.gov <br />Initialed by: <br /> HB <br />Department head <br /> <br />Administration <br /> <br />Council President <br />Fiscal summary statement: <br />On October 26, 2022, the city issued a Notice to Proceed to D.K. Systems for Invitation for Bid <br />(IFB) #2022-047 Unit Price Heating, Ventilation, and Air Conditioning (HVAC) Services and Repairs <br />in an amount not exceeding $249,999.00. In 2022, when the contract was awarded, the <br />estimated annual value was $200K. Unfortunately, the age and overall service hours on the <br />various HVAC units located around the city have caused an increase in the service calls to repair <br />and service these units to extend their service life, resulting in unforeseen required HVAC <br />services and repairs throughout the city. The contract has exceeded the procurement policy <br />threshold limit, requiring council authorization. Additionally, in reviewing previous years, <br />unexpected repairs accumulated to the following. <br />2023 - $204,602.31 <br />2024 - $485,901.27 <br />Year-to-date spending for 2025: <br />• Invoiced: $147,606.45 <br />• Pending Project Estimate: $220,417.41 <br /> <br />The City’s procurement policy requires the council to approve contract awards greater than <br />$250K. City staff requests increased spending approval to allow the city to complete services on <br />HVAC units throughout the city. The estimated expenditure is $550,000.00 annually. <br />Project summary statement: <br />IFB #2022-047 encompasses complete Heating, Ventilation, and Air Conditioning (HVAC) services <br />and repairs that extend beyond scheduled or planned maintenance and repairs. Examples of <br />required services may include service calls for repairs, repairs to existing systems, or new system <br />installations, and urgent repair services extending beyond scheduled or planned maintenance <br />and repair. <br />This contract is separate from the currently in place Everett IFB #2021-010, Heating, Ventilation, <br />and Air Conditioning (HVAC) Maintenance & Repair Services. The IFB#2021-010 contract is for <br />preventative maintenance and minor repairs, which are below $10,000, resulting from scheduled <br />inspection and maintenance of the city’s HVAC systems. <br />Recommendation (exact action requested of Council): <br />Award an increase to overall spend for Invitation for Bid #2022-047, Unit Price HVAC Services and <br />Repairs, to an estimated $550,000 annually. <br />City Council Agenda Item Cover Sheet