COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

March 13, 2008

BOARD MEETING DATE:

March 25, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

James Porter, Director of Public Works

SUBJECT:

Amendment to Agreement with Carrier Commercial Service for Service and Repair of the Cogeneration and Absorption Chiller Equipment at the Youth Services Center

RECOMMENDATION:

Adopt a resolution authorizing the execution of an amendment to the agreement with Carrier Commercial Service for the service and repair of the cogeneration and absorption chiller equipment installed at the Youth Services Center, to change the start and end dates, and to authorize the Director of Public Works to execute an optional one year extension.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal 20: Government decisions are based on careful consideration of future impact rather than temporary relief of immediate gain.

The proposed amendment changes the term of the agreement to account for the actual start of services under the contract.

BACKGROUND:

PREVIOUS BOARD ACTION

Adopted Resolution No. 068153 on July 18, 2006, authorizing the execution of an agreement with Carrier Corporation to provide maintenance services for the COGEN and related equipment at the Youth Services Center.

HISTORY

Sixteen micro-turbine cogeneration units and the associated compressors and absorption chillers were incorporated into the plans for the Youth Services Center (YSC) and were installed per plans.

A three-year maintenance and extended warranty agreement was necessary in order to qualify and receive a self-generation incentive from PG&E, and the agreement with Carrier meets that requirement.

DISCUSSION:

The Board executed the original maintenance and support agreement on July 18, 2006. The term of that contract was based on the anticipated beneficial occupancy date of the Youth Services Center. However, though County agencies began occupying the facility in August 2006, the contractor was not able to demonstrate acceptable performance of the cogeneration system until July 31, 2007. Therefore, Carrier was unable to perform under the terms of the original agreement until
August 1, 2007. Carrier has agreed to hold all rates contained in the original agreement and has agreed to postpone both the start and end dates of the contract to account for the delay in the start of services under the contract. The proposed amendment changes the term from July 1, 2006 through June 30, 2010, to August 1, 2007 through July 31, 2011.

The contract amendment and resolution have been approved as to form by County Counsel and the Contractor has executed the agreement.

FISCAL IMPACT:

There is no additional impact to the General Fund.