CITY OF COMMERCE
AGENDA REPORT
Item No.: ____
TO: Honorable City Council
FROM: City Manager
SUBJECT: Approval of Agreements for On-Call Maintenance, Repair, and Construction Services Meeting Date: September 22, 2026
RECOMMENDATION:
The City Council will consider adopting a resolution approving Agreements with 19 qualified contractors for on-call maintenance, repair, and construction services in an amount not to exceed $100,000 per contractor per fiscal year and ratifying the previously executed Agreement with Siemens Industry, Inc. for heating, ventilation, and air conditioning maintenance services in the amount of $120,375 for the initial one-year term.
BACKGROUND:
The City of Commerce is responsible for maintaining its public streets, sidewalks, pavement markings, landscaping, irrigation systems, municipal buildings, and related infrastructure. These maintenance responsibilities frequently require specialized contractors with the appropriate licenses, equipment, personnel, and availability to respond to routine, urgent, and emergency maintenance needs.
To establish a qualified pool of contractors for these services, the City issued separate Requests for Proposals through PlanetBids for the following maintenance categories:
Pothole repair, asphalt patching, and paving;
Concrete and sidewalk repair and replacement;
Electrical maintenance, repair, and installation;
Heating, ventilation, and air conditioning maintenance; Landscape and irrigation maintenance;
Pavement striping, roadway markings, and curb painting; and Plumbing maintenance, repair, and installation;
Miscellaneous Maintenance Repairs.
The City received interest from several contractors specializing in the respective service categories. Staff reviewed the contractors based on each contractor’s qualifications, experience, personnel, technical capabilities, responsiveness, pricing, and ability to perform public works subject to prevailing-wage requirements.
The City's HVAC equipment requires continuous preventive maintenance and timely repair services to support the safe and reliable operation of City facilities. Because the City continued to require these essential services while the broader on-call maintenance agreements were being finalized for City Council consideration, the Siemens agreement required immediate execution to prevent a lapse in HVAC maintenance coverage and avoid potential disruptions, equipment deterioration, or increased repair costs. Siemens continued providing the necessary HVAC maintenance services under the executed agreement. Staff is therefore requesting that the City Council ratify the Siemens agreement as part of this action.
ANALYSIS:
Establishing a pool of qualified maintenance contractors will allow the City to respond efficiently to planned, urgent, and emergency maintenance needs. Maintaining multiple contractors within each service category will also provide flexibility when a contractor is unavailable, lacks the capacity to meet a required schedule, or is not the most appropriate firm for a specific assignment.
Service category
Recommended contractors
Pothole Repair, Asphalt Patching, and Paving
All American Asphalt, Inc.;
Prestige Paving Company, Inc.
Concrete and Sidewalk Repairs
Martinez Concrete, Inc.;
Ricardo Mejia Construction LLC
Electrical Maintenance
Commerce Electric;
Baker Electric & Renewables LLC;
GA Technical Services, Inc.
HVAC Maintenance
Honeywell International, Inc.;
Mesa Energy Systems, Inc.;
Siemens Industry, Inc.
Landscape and Irrigation Maintenance
ADCO Services, Inc.;
Mariposa Landscapes, Inc.
Striping, Pavement Markings, and Curb Painting
J&S Striping Co., Inc.;
WGJ Enterprises, Inc., dba PCI
Plumbing Maintenance
Arroyo Plumbing, Inc.
ACCO Engineered Systems, Inc.;
CA Plus Plumbing & Engineering, Inc.;
Mattucci Plumbing, Inc.
Misc. Maintenance Repairs
Pacific Welding;
Powder Coating
Except for the Siemens HVAC maintenance agreement, services will be performed on an on-call, as-needed basis through individual written work orders issued by the Director of Public Works or designee. Each work order will identify the location, scope of work, schedule, compensation, and applicable requirements for the assignment. Approval of the agreements does not guarantee a minimum amount of work to any contractor and does not, by itself, authorize the full expenditure permitted under each agreement.
Compensation for the on-call agreements will be based on the applicable unit prices, hourly rates, fee schedules, or negotiated not-to-exceed amounts contained in the contractor’s agreement and individual work order. These agreements for on-call maintenance, repair, and construction services is in an amount not to exceed $100,000 per contractor per fiscal year; provided, however, that if a contractor is unavailable or unable to perform required services, the City may authorize an amount exceeding $100,000 for another qualified contractor, as necessary to meet the City’s service needs, provided that the combined amount authorized for all contractors does not exceed the department’s approved budget for such services. The resolution also ratifies the previously executed Agreement with Siemens Industry, Inc. for heating, ventilation, and air conditioning maintenance services in the amount of $120,375 for the initial one-year term, with the option of subsequent extensions.
Staff will continue to comply with the City’s Purchasing Policy and all applicable provisions of the California Public Contract Code when assigning work under the on-call agreements. The approval of these agreements does not waive or supersede applicable competitive procurement or public works bidding requirements. If the estimated cost of a project or work order exceeds an applicable bidding or contracting threshold, staff will conduct the required competitive procurement and obtain any additional authorization required before proceeding.
The Siemens agreement differs from the work-order agreements because it provides ongoing scheduled HVAC maintenance needed to preserve continuity of service for existing City equipment. The initial one-year compensation is $120,375. The agreement may be extended for four additional one-year periods, for a maximum term of five years, and compensation during each extension year may be adjusted based on the applicable Consumer Price Index increase. Ratification will formally confirm the City's prior execution of the agreement and the services performed under it.
The on-call agreements will have an initial term of five years, with up to two additional one-year extensions at the City's discretion, subject to satisfactory performance, continued need, funding availability, and an appropriate written amendment. All public works assignments will remain subject to applicable contractor licensing, Department of Industrial Relations registration, prevailing-wage, certified-payroll, insurance, bonding, and other statutory and contractual requirements.
Staff recommends approval of the agreements to provide the City with reliable and flexible access to qualified contractors for ongoing maintenance, repairs, and minor construction services.
ALTERNATIVES:
Approve staff recommendation.
Reject staff recommendation.
Provide further direction to staff.
FISCAL IMPACT:
Approval of the 19 on-call agreements does not immediately obligate the City to expend the maximum authorized amounts, and no additional appropriation is required at this time. Costs incurred under these agreements will be funded through available appropriations in the City’s adopted operating budget. Expenditures will occur only when individual work orders are issued and will be charged to the appropriate departmental or project accounts based on the services provided. Each work order will be subject to available funding and compliance with the City’s Purchasing Policy and applicable provisions of the California Public Contract Code.
The Siemens HVAC maintenance agreement has a fiscal impact of $120,375 for the initial one-year term. Funding for this agreement is included in the City’s adopted operating budget; therefore, no additional appropriation is required.
RELATIONSHIP TO STRATEGIC GOALS:
This agenda item relates to the 2016 Strategic Plan, Fiscal Sustainability:
Guiding Principle 2: Implement city business processes and operational efficiencies to streamline the cost of government including the examination and identification of cost of services.
Approved and Recommended by: Andy Ramirez, Interim Director of Public Works Fiscal Impact reviewed by: Alvaro Castellon, Director of Finance Approved as to form by: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manager ATTACHMENTS:
Resolution
Exhibit A- List of Contractors