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TO:Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM:Len Gorecki, Assistant City Manager/Director of Public Works Kimberly Gonzalez, Public Works Coordinator
SUBJECT: Consideration and possible action to award a contract to Thermal Concepts, Inc. for the HVAC Building Automation Systems at City Hall and Simms Park and authorize the City Manager to execute Agreement File No. 777.4 in a form approved by the City Attorney.
Date:April 27, 2026
EXECUTIVE SUMMARY
This action would award a contract to Thermal Concepts, Inc. (TCI), to install a new HVAC building automation system at City Hall and Simms Park and integrate the City’s multiple HVAC systems into a single enterprise platform (the Project).
RECOMMENDATION TO CITY COUNCIL
1) Authorize the City Manager to execute Agreement File No. 777.4 with Thermal Concepts, Inc., in a form approved by the City Attorney; or 2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
Funding for the Project is included in the Capital Projects Budget for FY2025-2026 in Account Nos. 030-53602-9000 and 011-47250-9000. The total cost for the Project is $70,743.59.
DISCUSSION
On October 24, 2024, the Economic Development Department was notified that its application for the Energy Efficiency and Conservation Block Grant (EECBG) Program Equipment Rebate Voucher was approved by the U.S. Department of Energy. This program provides funding to local government agencies to reduce energy use, improve energy efficiency and cut greenhouse emissions.
In accordance with BMC Section 3.30.030, staff contacted the City’s current HVAC system provider, TCI, and requested a proposal to upgrade the HVAC systems at City Hall and Simms Park. TCI provided a proposal in the amount of $32,011.73 to upgrade the system at City Hall and a proposal in the amount of $26,186.58 to upgrade the system at Simms Park.
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Staff Report – Award of Contract for the HVAC Building Automation Systems at City Hall and Simms Park
April 27, 2026
DISCUSSION – Continued
In addition, staff requested that TCI provide a proposal to unify the City’s multiple HVAC system interfaces. The City currently operates multiple building automation and control systems across its facilities. These systems operate independently therefore limiting centralized visibility by our IT Division. TCI provided a proposal in the amount of $12,545.28 to integrate the City’s multiple building systems and field devices into a single enterprise interface. This will enable centralized monitoring, control, and connect all facilities into one interface across the City’s network. This platform will also allow for integration of future systems.
In an effort to comply with the procurement requirements for the EECBG, staff received a proposal from Air Conditioning Solutions (ACS) for the same services. The table below itemizes the comparison in pricing amongst the proposals received from TCI and ACS:
Contractor City Hall
HVAC System
Simms Park
HVAC System
Enterprise
Platform
Total Cost
Thermal Concepts,
Inc.$32,011.73 $26,186.58 $12,545.28 $70,743.59
Air Conditioning
Solutions $28,695.00 $27,819.00 $25,125.00 $81,639.00
The Public Works Coordinator verified TCI’s contractor’s license status, registration with the Department of Industrial Relations, and their debarment status. The City currently contracts with TCI for maintenance of its HVAC systems therefore the Director recommends that the City contract with TCI for the Project. -2-