AGENDA REPORT
Meeting Date: April 21, 2026
Item Number:
To: Honorable Mayor & City Council
From: Mandana Motahari, City Architect
Phillip Trigas, Architectural Services Manager
Subject: AWARD OF A CONTRACT TO AIR CONDITIONING SOLUTIONS, INC. FOR THE DATA CENTER HVAC EQUIPMENT
REPLACEMENT PROJECT; AND
APPROVAL OF A CORRESPONDING PURCHASE ORDER IN
THE NOT-TO-EXCEED AMOUNT OF $2,231,294.40; AND
APPROVAL OF PLANS AND SPECIFICATIONS THEREFOR
WITH RESPECT TO DESIGN CRITERIA; AND
PURSUANT TO THE PROVISIONS OF THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA), CITY COUNCIL WILL
ALSO CONSIDER FINDING THE PROJECT EXEMPT FROM
FURTHER REVIEW UNDER CEQA
Attachments: 1. Contract
2. Plans
RECOMMENDATION
Staff recommends that City Council:
1. Approve the award of a contract to the lowest responsible bidder, Air Conditioning Solutions, Inc., for replacement of the Data Center HVAC Equipment Replacement Project in the amount of $1,992,227.14; and
2. Approve a construction contingency in the amount of $239,067.26 (12%); and
3. Approve the plans and specifications as detailed in the bid documents, which are adopted and approved with respect to design criteria; and
4. Approve a purchase order in the not-to-exceed amount of $2,231,294.40; and
5. Consider finding the project exempt from further review under the California Environmental Quality Act.
BEVERL
HILLS
id
Meeting Date: April 21, 2026
INTRODUCTION
The Beverly Hills Main Library houses the City’s Data Center, located in the subterranean B-level. The Data Center was built in 1994, and the Computer Room Air Conditioning (CRAC) is original and is now over 30 years old. The CRAC units are supplemented by Direct Expansion (DX) units for redundancies. Both cooling unit types are beyond their useable life expectancy and are due for replacement. The Data Center relies on the Civic Center chilled water supplied by the Central Plant located in the Police Facility. While this shared system has been functional, it ties the Data Center’s cooling stability to the broader Civic Center’s HVAC demands and maintenance schedules.
The Data Center HVAC Replacement Project will modernize the cooling infrastructure and decouple the server from the Central Plant as the primary chilled water source by establishing a new dedicated, independent chiller system. The Central Plant chilled water system will be retained to only provide redundancy as needed. The project is planned to be performed in phases to ensure the Data Center remains operational throughout the construction process.
DISCUSSION
The Project includes the replacement of the existing CRAC and DX units at the City of Beverly Hills Data Center with new water-based CRAC units. Work will be performed in phases such that the operating capacity of the HVAC system is always maintained without interruption during construction. Chilled water to the new CRAC units will be provided by four new modular chillers located at the level B subterranean garage close to the Data Center, and chilled water will be circulated to the CRAC units through a new pair of circulating pumps and piping system. Electrical service will be modified to provide power feed to the new pumps, chillers, CRAC units and all associated controls. The project also includes a scope to promote improved air flow at the Data Server Room racks. All work will be coordinated without causing any disruption or downtime of the Data Center.
Staff engaged the professional licensed mechanical engineering services of Digital Energy, Inc. to prepare construction documents, including design and specifications.
On March 5th, 2026, bid documents (Bid# 26-350-36) were distributed via PlanetBids to the City’s pre-qualified mechanical contractors with experience in data center HVAC installations. Three of those companies obtained bid documents and attended the mandatory pre-bid job walk held on March 12th, 2026, as well as a second job walk on March 17th, 2026. On April 6, 2026, two bids were received.
Basis of Selection
The bid documents specify that the low bid is determined by the sum of the base bid, plus all the alternates, plus the amount of per diem for compensable delay cost for twenty (20) days.
Meeting Date: April 21, 2026
ACCO Engineered
Systems
Air Conditioning
Solutions, Inc.
Base Bid $ 2,355,000.00 $1,955,909.00
Alternate #1 ($ 110,000.00) ($ 117,779.05)
Alternate #2 $ 110,000.00 $ 25,291.85
Alternate #3 $ 40,000.00 $ 11,026.29
Alternate #4 $ 240,000.00 $ 85,693.53
20 days delay $ 5,000.00 $ 0.00
Basis of
Selection:
$ 2,640,000.00 $1,960,141.62
There are four alternates listed on the bid documents as follows:
Alternate #1: Provide a Deductive Alternate to remove Chiller #4 from the scope of work.
Alternate #2: The “bridge pipes” from the existing central plant chilled water supply and return lines in the parking garage in level A to the new chilled water supply and return lines located in level B of the parking garage shall be included as an additive alternate.
Alternate #3: The “emergency connection” points including / stub-outs / associated valves and blind flanges, and manifolds to accommodate a temporary connection to the four CRAC units from the common manifold shall be included as an additive alternate.
Alternate #4: The Economizing Air Cooler package, including equipment, supports, piping installation, electrical wiring conduits and breakers, and controls and related programing to add this functionality shall be an additive Alternate.
Additionally, the base bid includes an allowance of $30,000 for miscellaneous items related to controls integrations, such as software upgrades, network infrastructure upgrades, etc.
The mechanical contractor will be the prime contractor for this contract and shall include electrical, plumbing, controls and other trades required for a turnkey HVAC replacement project.
After review of bid submittals, staff has determined that Air Conditioning Solutions, Inc. is the lowest responsible bidder and has submitted a responsive bid, and as reported by the State Contractors Licensing Board, maintains a license that is current and in good standing. Air Conditioning Solutions, Inc. has successfully been prequalified for the work and has performed similar work for the City in the past; therefore, staff recommends City Council approve an agreement with Air Conditioning Solutions, Inc. for this work.
In the best interest of the city, staff recommends including Alternates #2 and #3, as the cost seems to be reasonable for the work, not to include the deductive Alternate #1 since the cost of additional chiller for redundancy purposes is reasonable and beneficial to the project, and not to include Alternate #4, since the cost variation is large and the unit is nice to have but not necessary at this point.
The bid documents specify that the low bid is determined by the sum of the base bid, the selected alternates, and the compensable delay cost for twenty days.
Meeting Date: April 21, 2026
A contingency of $239,067.26, 12% of the contract amount, is recommended for changes due to unforeseen conditions in order to successfully complete the work. Expenditures from the contingency will be made utilizing the Change Order process in Beverly Hills Municipal Code § 3-3-110 upon adequate written justification and substantiation.
Selected Bid
Base bid $ 1,955,909.00
Alternate #2 $ 25,291.85
Alternate #3 $ 11,026.29
Sub Total $ 1,992,227.14
12% Contingency $ 239,067.26
Total $ 2,231,294.40
The bid documents specify that all work under the contract shall be completed within 197 calendar days from the date of the notice to proceed, resulting in an estimated completion of approximately early December 2026.
ENVIRONMENTAL REVIEW
Approval of the Data Center HVAC Equipment Replacement Project was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines and the environmental regulations of the City. Staff believes the approval of the proposed improvements is exempt from CEQA pursuant to the ‘Existing Facilities’ Section 15301 of Title 14 of the California Code of Regulations because the work involves no expansion of use within the existing facilities.
Based on the foregoing, staff recommends City Council find that the project is exempt from further review under the provisions of CEQA pursuant to CEQA Guidelines Section 15301 Existing Facilities.
FISCAL IMPACT
The $2,231,294.40 for the Data Center HVAC Equipment Replacement Project is available as part of Fund 405, Capital Improvement Project No. 00811, Major Building Systems Upgrades and Replacement. No additional funding is requested at this time.
Shana Epstein,
Director of Public Works
Approved By
Attachment 1
1 CONTRACT
CITY OF BEVERLY HILLS
CONTRACT FOR
DATA CENTER HVAC EQUIPMENT REPLACEMENT PROJECT
THIS CONTRACT (“Contract”) is made and entered this 21st day of April, 2026 (“Effective Date”), by and between the CITY OF BEVERLY HILLS, a California municipal corporation (“City”) and Air Conditioning Solutions, Inc. (“Contractor”). Contractor’s license number is 863580.
In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1. Contract Documents. The Contract Documents consist of this Contract, the Notice Inviting Bids, Instructions to Bidders, Bid (including documentation accompanying the Bid and any post-Bid documentation submitted before the Notice of Award), the Bonds, permits from regulatory agencies with jurisdiction, General Provisions, Special Provisions, Plans, Standard Plans, Standard Specifications, Reference Specifications, Addenda, Change Orders, and Supplemental Agreements. The Contract Documents are attached hereto and incorporated herein by reference. In the event of any conflict between the terms of this Contract and any incorporated documents, the terms of this Contract shall control.
2. Scope of Services. Contractor shall perform the Work in a good and workmanlike manner for the project identified as DATA CENTER HVAC EQUIPMENT REPLACEMENT PROJECT (“Project”), as described in this Contract and in the Contract Documents.
3. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not to exceed amount of One Million, Nine Hundred Ninety-Two Thousand, Two Hundred Twenty-Seven Dollars and Fourteen Cents ($1,992,227.14) in accordance with the prices as submitted in Contractor’s Proposal, attached hereto and incorporated herein by this reference.
4. Incorporation by Reference. All of the following documents are attached hereto and incorporated herein by this reference: Workers’ Compensation Certificate of Insurance; Additional Insured Endorsement (Comprehensive General Liability); Additional Insured Endorsement (Automobile Liability); and Additional Insured Endorsement (Excess Liability).
5. Antitrust Claims. In entering into this Contract, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the California Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time the City tenders final payment to Contractor without further acknowledgment by the parties.
6. Prevailing Wages. City and Contractor acknowledge that this Project is a public work to which prevailing wages apply. The provisions of Section 7.A of the General Provisions shall apply and are mandatory for this Project.
7. Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to under take self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work of this Contract.”
8. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it. 2 9. Authority. Any person executing this Contract on behalf of Contractor warrants and represents that he or she has the authority to execute this Contract on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.
10. Entire Agreement. This Contract, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. This Contract supersedes all prior oral or written negotiations, representations or agreements. This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties which expressly refers to this Contract.
11. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.
IN WITNESS WHEREOF, the parties hereto have executed the Contract the day and year first above written.
CITY OF BEVERLY HILLS
By:
CRAIG A. CORMAN, Mayor
ATTEST:
By:
HUMA AHMED
City Clerk
Dated:
(“Contractor”)
By:
Printed Name:
Title:
By:
Printed Name:
Title:
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
By: By:
LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
By:
SHANA E. EPSTEIN
Director of Public Works
By: ____________________________________
MANDANA MOTAHARI
City Architect
[Signatures continue]
3 By:
SHARON L'HEUREUX DRESSEL
Risk Manager
By:
ANTHONY RODSTEIN
Purchasing Services Manager
Attachment 2
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DATA CENTER
HVAC EQUIPMENT
REPLACEMENT PROJECT
BID SET
JA
DIGITAL ENERGY, INC.
MARCH 3, 2026
444 N. Rexford Drive
Beverly Hills, CA 90210
City of Beverly Hills
"LEVEL B"
MECHANICAL
OVERALL PLAN
M2.1
1/8" = 1'-0"
CRAC 1
CRAC 2
CRAC 3
CRAC 4
DATA CENTER
SEE SHEETS:
- M2.2A (E) FLOOR PLAN
- M2.2B (N) MECHANICAL PLAN
- M2.3 (N) CEILING PLAN
CHILLER SYSTEM
SEE SHEETS:
- M2.4 CHILLER PLAN
- M3.1 CHILLER SYSTEM ELEVATIONS
- M3.2 CHILLER SYSTEM 3D VIEW
CRU-4 CRU-5 CRU-6
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CH2
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CH3
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SEE SHEET M2.2
FOR PIPE ROUTE
2 3 4 5 6 7 8 9
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A
DIGITAL ENERGY, INC,
Project Management
Energy Engineering
555 Marin Street, Suite 230
Thousand Oaks, CA 91360
www.digitalenergy.com
Tel:
(805)
374-1777
B
"LEVEL B"
MECHANICAL
OVERALL PLAN
Sheet Title
Scole 1/8" = 1'-0"
Submittal BID SET
Date MARCH 3, 2026
Approved
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Designed
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30 SI 3/3/2026
Submittal De
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Mechanical
Project Title
444 N. Rexford Drive
Beverly Hills, CA 90
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City of Beverly Hills
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