AUTHORIZED_RED_DOT_SERVICE_AND_PARTS_BOND_WAIVER_APPROVAL.pdf
PDF 184 KB Posted
- Solicitation number
- 2026-IFB-LM-0001
- Issued by
- Los Angeles County, California
About this file
This is a bond waiver approval memorandum from the City of Pasadena Department of Public Works requesting the Director of Finance to waive labor, materials, and performance bond requirements for an Authorized Red Dot Air Conditioning Service, Repair, Maintenance, and Original Equipment Manufacturer (OEM) Parts contract. The Building Systems and Fleet Management Division (BSFMD) intends to release a formal solicitation through OpenGov to establish a contract for as-needed diagnostic, maintenance, repair, refrigerant system services, and OEM parts supply for Red Dot HVAC systems installed on City-owned fleet vehicles and equipment, including refuse trucks, sewer maintenance vehicles, street sweepers, and construction equipment. The contract will be service-based with no construction or fabrication activities involved, and services will be performed on an as-needed basis with payment issued only upon satisfactory completion of work. The solicitation was approved for publication on May 28, 2026, with the related state and local contract opportunity indicating a five-year contract term intended to be awarded to provide reliable maintenance and repair services while minimizing equipment downtime.
The bond waiver was justified based on Section 4.08.140 of the Pasadena Municipal Code, which allows the Director of Finance to waive bond requirements when such waiver will not be detrimental to the City. Public Works determined that bond requirements would not provide significant practical benefit since the contract involves service delivery rather than capital improvements, risk exposure is minimal due to the as-needed nature of work with no guaranteed quantities, and the City retains the ability to suspend or terminate services and reassign work to another qualified vendor without operational impact. Risk mitigation is further achieved through required insurance coverage and the use of manufacturer-authorized Red Dot service providers, which ensures compliance with manufacturer standards and proper refrigerant handling procedures. The memorandum was approved by Greg de Vinck, Director of Public Works on May 28, 2026, and subsequently signed by Karin Schnaider, Finance Director on June 17, 2026.
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Text version
DEPARTMENT OF PUBLIC WORKS
MEMORANDUM
TO: Karin Schnaider, Finance Director
FROM: Greg de Vinck, P.E., Director of Public Works
DATE: May 28, 2026
SUBJECT: Request Bond Waiver for Authorized Red Dot Air Conditioning Service, Repair, Maintenance and Original Equipment Manufacturer Parts
The purpose of this memorandum is to request a waiver of the labor and materials bond and the performance bond requirements for the Authorized Red Dot Air Conditioning Service, Repair, Maintenance and Original Equipment Manufacturer (OEM) parts contracted by the Public Works Department, Building Systems and Fleet Management Division (BSFMD).
Background
BSFMD is responsible for maintaining and repairing City-owned fleet vehicles and equipment to ensure safe and reliable operation. Various medium-duty and heavy-duty City vehicles and equipment are equipped with Red Dot heating, ventilation, and air conditioning (HVAC) systems that require manufacturer-authorized diagnostics, repairs, maintenance, and OEM parts support.
These HVAC systems are utilized in refuse trucks, sewer maintenance vehicles, street sweepers, construction equipment, and other heavy-duty fleet applications operating in demanding environments and extended-duty cycles. Due to the specialized components, refrigerant system requirements, proprietary control systems, and technical expertise associated with Red Dot HVAC systems, certain repairs and services must be performed by manufacturer-authorized service providers. These services support operator safety and comfort, maintain proper climate control for vehicle operation, and ensure the continued reliability of critical City fleet assets used for daily municipal operations.
Procurement Summary
BSFMD intends to release a formal solicitation through OpenGov for Authorized Red Dot Air Conditioning Service and OEM Parts for City-owned fleet vehicles and equipment. The solicitation will establish a contract for as-needed diagnostic, maintenance, repair, refrigerant system services, and OEM parts supply services necessary to maintain the safe and reliable operation of Red Dot HVAC systems installed on City fleet assets. Due to the service-based nature of the work and the absence of construction installation activities, BSFMD is requesting approval of the labor
Gregory De Vinck https://cityofpasadena.na2.adobesign.com/verifier?tx=CBJCHBCAABAAW614OsIeoiB2EUSK83B9OS4PKs0HB6p3
Request Bond Waiver for Authorized Red Dot Air Conditioning Service, Repair, Maintenance, and OEM Parts May 28, 2026 and materials bond and performance bond waiver prior to solicitation publication.
Current Work Practices and Risk Assessment
The proposed contract is primarily service-based and does not involve construction or fabrication.
The scope consists of HVAC diagnostics, repairs, refrigerant recovery and recharge services, leak detection, electrical diagnostics, removal and replacement of HVAC system components, and OEM parts supply for Red Dot HVAC systems and related components. Parts are purchased as-needed in connection with repairs, however, the primary purpose of the contract is to provide service and maintenance rather than a standalone materials contract. Services will be performed on an as-needed basis, and payment will only be issued upon satisfactory completion of services rendered. The City retains the ability to suspend or terminate services if contractor performance standards are not met. Risk exposure is minimal as no physical infrastructure or capital improvements are involved. Risk is further mitigated through the City’s insurance requirements, as well as the use of authorized Red Dot service providers, which ensures adherence to manufacturer requirements, proper refrigerant handling procedures, and reduces the risk of improper repairs or incompatible parts.
Justification for Bond Waiver
Section 4.08.140 of the Pasadena Municipal Code (PMC) requires adequate security for the faithful performance of contracts and further requires a contractor’s bond when a contractor furnishes both labor and materials. The PMC also provides that the Director of Finance may waive these requirements when such waiver will not be detrimental to the City. For this contract, the requirement for labor and materials bonds and performance bonds is not applicable due to the nature of the services. For this contract, the work consists primarily of HVAC maintenance, diagnostics, repair, refrigerant support services, and OEM parts support for existing fleet equipment. While parts are furnished in the course of performing repairs, they are provided as part of service delivery and are not associated with a capital improvement or standalone materials contract. Therefore, the labor and materials bond and performance bond requirements would not provide a significant practical benefit or additional protection to the City.
The City’s risk exposure is minimal because services are performed on an as-needed basis with no guaranteed quantities, and payment is only issued after satisfactory completion of work. In the event of non-performance, the City retains the ability to discontinue services and reassign the work to another qualified vendor without operational impact. Risk is further mitigated through required insurance coverage, and by requiring authorized Red Dot service providers, which ensures compliance with manufacturer standards and supports reliable operation of City fleet HVAC equipment.
Request Bond Waiver for Authorized Red Dot Air Conditioning Service, Repair, Maintenance, and OEM Parts May 28, 2026
Recommendation
Public Works respectfully requests that the Director of Finance approve the waiver of both the labor and materials bond and performance bond requirements for the Authorized Red Dot Air Conditioning Service, Repair, Maintenance, and OEM Parts contract.
APPROVED BY:
KARIN SCHNAIDER
Finance Director cc: Elena Olimpio, Management Analyst I Gabriel Silva, BSFMD Administrator Phyllis Hallowell, ASD Administrator Erika Alvarez, Purchasing Administrator
Erika Alvarez
AUTHORIZED RED DOT SERVICE AND
PARTS BOND WAIVER
Final Audit Report 2026-06-17
Created: 2026-05-28
By: Elena Olimpio (eolimpio@cityofpasadena.net)
Status: Signed
Transaction ID: CBJCHBCAABAAW614OsIeoiB2EUSK83B9OS4PKs0HB6p3
"AUTHORIZED RED DOT SERVICE AND PARTS BOND WAIV
ER" History
Document created by Elena Olimpio (eolimpio@cityofpasadena.net) 2026-05-28 - 11:02:06 PM GMT- IP address: 204.89.11.201
Document emailed to Gregory De Vinck (gdevinck@cityofpasadena.net) for approval
2026-05-28 - 11:02:41 PM GMT
Email viewed by Gregory De Vinck (gdevinck@cityofpasadena.net) 2026-05-28 - 11:21:32 PM GMT- IP address: 104.47.64.254
Document approved by Gregory De Vinck (gdevinck@cityofpasadena.net) Approval Date: 2026-05-28 - 11:22:33 PM GMT - Time Source: server- IP address: 204.89.11.209 - Signature Appearance Selected: TYPE
Document emailed to Erika Alvarez (ealvarez@cityofpasadena.net) for approval
2026-05-28 - 11:22:35 PM GMT
Document approved by Erika Alvarez (ealvarez@cityofpasadena.net) Approval Date: 2026-06-17 - 7:07:20 PM GMT - Time Source: server- IP address: 104.1.143.107 - Signature Appearance Selected: TYPE
Document emailed to Erika Alvarez (ealvarez@cityofpasadena.net) for delegation
2026-06-17 - 7:07:22 PM GMT
Document signing delegated to Karin Schnaider (kschnaider@cityofpasadena.net) by Erika Alvarez (ealvarez@cityofpasadena.net) 2026-06-17 - 7:08:02 PM GMT- IP address: 104.1.143.107
Document emailed to Karin Schnaider (kschnaider@cityofpasadena.net) for signature
2026-06-17 - 7:08:03 PM GMT
Email viewed by Karin Schnaider (kschnaider@cityofpasadena.net) 2026-06-17 - 7:14:05 PM GMT- IP address: 146.75.146.1
Document e-signed by Karin Schnaider (kschnaider@cityofpasadena.net) Signature Date: 2026-06-17 - 10:27:18 PM GMT - Time Source: server- IP address: 204.89.11.120 - Signature Appearance Selected:
IMAGE
Agreement completed.
2026-06-17 - 10:27:18 PM GMT
| 2026-08-05T15:21:40+0000 | |
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