Item No. 5.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: MATTHEW BAUMGARDNER, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER DATE: JANUARY 27, 2026
APPROVAL OF A CONTRACT WITH F.M. THOMAS AIR CONDITIONING, INC. FOR THE SUBJECT: UPGRADING OF THE HEATING, VENTILATION AND AIR CONDITIONING (HVAC)
SYSTEM INCLUDING CONTROLS AT THE MCCAUGHAN GYMNASIUM, CAPITAL IMPROVEMENT PROGRAM (CIP) NO. 26-16
EXECUTIVE SUMMARY
The City Council will consider awarding a contract agreement to F.M. Thomas Air Conditioning, Inc. (F.M. Thomas) for the replacement of the outdated and inefficient HVAC components at the McCaughan Gymnasium Facility, which has exceeded its useful life. The new system will replace several key mechanical components and required controllers that are becoming increasingly difficult to service. If approved, the work is expected to begin in April 2026 and is anticipated to be completed by June 2026.
RECOMMENDATION
That the City Council:
1. Approve a public works contract agreement with F.M. Thomas Air Conditioning, Inc. in the amount of $390,121 and a five percent project contingency in the amount of $19,506 for the upgrade of the HVAC system at the McCaughan Gymnasium Facility; and,
2. Authorize the City Manager to execute all amendments to the agreement.
BACKGROUND
The existing HVAC system at the McCaughan Gymnasium consists of five roof mounted package units. Each unit is over 20 years old. While all of the units are currently functional, there have been several breakdowns resulting in excessive repair costs and downtime. As the gym is frequented by multiple public groups, having the HVAC system out of service creates challenges and inconveniences for the programming scheduled at this facility. In addition, replacement parts are becoming obsolete and difficult to source which creates extended downtime. The existing system controls are analog thermostats which are inefficient by current standards. Upgrading to a digital control system will allow for more precise HVAC control of the multiple areas within the facility.
Public Works staff has maintained the deteriorating HVAC system in an effort to extend its useful life. However, it is a highly inefficient system that requires excessive levels of maintenance and service to keep it running at minimum service levels.
ANALYSIS
In compliance with the City of Downey's Cooperative Purchasing Policy, staff recommends piggybacking on an existing competitively bid contract between the Orange County Sheriff Coroner and F.M. Thomas to replace the HVAC system at the McCaughan Gymnasium. Piggybacking on the agreement from the Orange County Sheriff Coroner allows the City to take advantage of competitively priced labor, materials, and equipment costs.
Additionally, F.M. Thomas is an HVAC company with the personnel and experience necessary to perform the contract work quickly and efficiently. It currently performs routine maintenance on the existing system through a maintenance contract with the City and have recently completed the replacement of a new system at the Barbara J.
Riley Community and Senior Center and the Downey Police Department Facility. Its experience and familiarity with City HVAC systems make the firm best positioned to complete the work in a timely and effective manner.
On December 16, 2025 Public Works staff received a cost proposal from F.M. Thomas in the amount of $390,121 to remove and replace the existing HVAC system and perform related upgrades to ancillary systems at the McCaughan Gymnasium. The cost proposal is based on the unit pricing for labor, equipment, and materials already adopted in the competitively bid contract with the Orange County Sheriff Coroner. The scope of work includes removal and replacement of five rooftop package units, removal of existing analog controls, and replacement with a direct digital control Carrier i-Vu building automation system.
Public Works will coordinate the work between Parks and Recreation staff and F.M. Thomas to limit the impact on the facility's operations. Once approved, F.M. Thomas is expected to begin the contract work in February and, barring any unexpected weather delays, will complete the work by June 2026.
CITY COUNCIL PRIORITIES
Quality of Life, Safety and Infrastructure
FISCAL IMPACT
Approval of the recommended actions will result in an expenditure of $390,121 with an additional five percent contract contingency in the amount of $19,506 for a total estimated project expenditure of $409,627. There are sufficient funds programmed in the Fiscal Year 2025-2026 CIP under account number 40-1-6949 for CIP 26-16:
HVAC Improvements at McCaughan Gymnasium project in the amount of $410,000 for the recommended actions.
Attachments
Docusign Envelope ID:4CF8348B-ADCB-44D1-99C2-F8071F150BFF
CONTRACT AGREEMENT
CAPITAL IMPROVEMENT PROJECT NO.26-16:
MCCAUGHAN GYM HVAC REPLACEMENT PROJECT
THIS CONTRACT is made and entered into at Downey, California this 271" day of January 2026, by and between the CITYOFDOWNEY, a chartered municipal corporation (hereinafter "City") and F.M. THOMAS AIR CONDITIONING, INC., (hereinafter "Contractor").
THE PARTIES HERETO AGREE AS FOLLOWS:
1. CONTRACT DOCUMENTS -Contractor agrees to perform all work specified in the attached Scope of Work included in the Bidder's Proposal for McCaughan Gym HVAC Replacement Project, CIP No. 26-16 ("Project"), in accordance with the documents hereinafter described, which are by reference incorporated herein and made a part hereof, and are in the Office of the City Engineer.
A. Plans for HVAC Improvements at the McCaughan Gym under Capital Improvement Project No. 26-16.
B. Specifications for HVAC Improvements at the McCaughan Gym under Capital Improvement Project No 26-16.
C. Proposal, including ascertainment of prevailing wage.
D. Instructions to Proposers.
E. Proposal for HVAC Improvements at McCaughan Gym under Capital Improvement Project No 26-16, executed by the Contractor.
2. PAYMENT - In consideration thereof the City agrees to pay to the Contractor the sum of Three Hundred Ninety Thousand One Hundred Twenty Dollars ($390,120.00), payable as set forth in the General Conditions, and in accordance with the Contractor's Price Proposal and Unit Prices shown in the Bid Form:
BASE BID
ITEM
DESCRIPTION
QUANTITY &
UNIT PRICE
SUBTOTAL
UNIT
HVAC Units, Materials and DDC Carrier IVu
1 Controls
1 LS
104,946.00
104,946.00
2 Materials marku 20%)
1 LS
20,949.20
20,949.20
3 Sales Tax 10%
1 LS
10,494.60
10,494.60
4 Crane and Rigging
1 LS
10,800.00
10,800.00
5 Ship'
1 LS
9,640.00
9,640.00
6 Sheet metal and roofing misc.
1 LS
25,000.00
25,000.00
[7
Air Balance Testin
1 LS
10,400.00
10,400.00
:8
Bonding Costs
1 LS
11,408.00
11,408.00
Docusign Envelope ID:4CF8348B-ADCB-44D1-99C2-F8071F150BFF
CONTRACT AGREEMENT
MCCAUGHAN GYM HVAC REPLACEMENT PROJECT, CAPITAL IMPROVEMENT PROJECT NO.26-16
ITEM DESCRIPTION QUANTITY & UNIT PRICE SUBTOTAL
UNIT
9 Labor 1,080 Ea 185 186,480.00
TOTAL BASE COST — Items 1 to 11 (in Figures) $390,120.00 ..............................................................................................................................................................................................................................................................................................................................................................................................................................................................--........................................................
TOTAL BASE COST — Items 1 to 11 (in
Words) Three Hundred Ninety Thousand One Hundred Twenty Dollars
Docusign Envelope ID:4CF8348B-ADCB-44D1-99C2-F8071F150BFF
CONTRACT AGREEMENT
MCCAUGHAN GYM HVAC REPLACEMENT PROJECT, CAPITAL IMPROVEMENT PROJECT NO.26-16
INDEMNIFICATION. To the fullest extent allowed by law, Contractor and its subcontractors hereby agree to defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any liability, claims, actions, costs, damages or losses, including reasonable costs and attorney's fees, for injury, including death to any person or damage to any property, arising directly or indirectly from, or in any manner relating to, any of the following:
A. Performance or nonperformance of the Project by Contractor or its subcontractors of any lower tier; B. Performance or nonperformance of any of the obligations under the Contract Documents by Contractor or its subcontractors of any lower tier;
C. The construction activities of Contractor or its subcontractors of any lower tier, either on the Project site or on other properties;
D. The payment or nonpayment by Contractor or any of its subcontractors of any lower tier for work performed on or off the Project site; and
E. Any personal injury, property damage or economic loss to third persons related to and arising from the performance or nonperformance of the Project by Contractor or its subcontractors of any lower tier.
The indemnity obligations of subcontractors provided by this section shall be included in all subcontract documents issued by Contractor. Nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee.
Docusign Envelope ID:4CF8348B-ADCB-44D1-99C2-F8071F150BFF
CONTRACT AGREEMENT
MCCAUGHAN GYM HVAC REPLACEMENT PROJECT, CAPITAL IMPROVEMENT PROJECT NO.26-16
IN WITNESS WHEREOF, the parties have caused this Contract to be executed the date and year first above written.
F.M. THOMAS AIR CONDITIONING, INC.
By: Michael Feyka
Authorized Signatory (Print Name)
-docuSigned by.
By:
Authorized Signatory (Signature)
Date: 12/26/2025
CITY OF DOWNEY
By:
Claudia Frometa , Mayor
Date:
APPROVED AS TO FORM: ATTEST:
Signed by: y�
By: 4i a By:
John M. Funk, City Attorney Maria Alicia Duarte, CMC, City Clerk Date: Date:
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 undertake 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.
F.M. THOMAS AIR CONDITIONING, INC.
By: Michael Feyka
Authorized Signatory (Print Name)
DocuSigned by:
By:
Aut orize Ignatory (Signature)
Date: 12/26/2025
Note: This Contract Agreement must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney -in -fact must be attached.
Docusign Envelope ID:4CF8348B-ADCB-44D1-99C2-F8071F150BFF
PERFORMANCE BOND
CAPITAL IMPROVEMENT PROJECT NO.26-16
MCCAUGHAN GYM HVAC REPLACEMENT PROJECT
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of Downey, California ("City"), has awarded Capital Improvement Project No. 26-16 ("Contract") to F.M. Thomas Air Conditioning, Inc. ("Principal"), for the McCaughan Gym HVAC Replacement Project WHEREAS, Principal is required under the terms of the Contract to furnish a bond for the faithful performance of the Contract.
NOW, THEREFORE, we, the undersigned Principal, and ("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of Three Hundred Ninety Thousand One Hundred Twenty Dollars ($390,120.00), this amount being not less than the total Contract price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, or his/her heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform all the undertakings, terms, covenants, conditions and agreements in the Contract and any alteration thereof made as therein provided, on the Principal's part to be kept and performed, all within the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and hold harmless the City, its officers, agents, and others as therein provided, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.
In case suit is brought upon this bond, Surety further agrees as part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, all to be treated as cost and included in any resolution.
FURTHER, the Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, addition or modification to the terms of the Contract, or of the work to be performed thereunder, or the Specifications for the same, shall in any way affect its obligations under this bond, and it does hereby waive notice of any such change, extension of time, alteration, addition, or modification to the terms of the Contract or to the work or to the Specifications thereunder.
Docusign Envelope ID:4CF8348B-ADCB-44D1-99C2-F8071F150BFF
PERFORMANCE BOND
MCCAUGHAN GYM HVAC REPLACEMENT PROJECT, CAPITAL IMPROVEMENT PROJECT NO.26-16
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
Date:
M
0 "Surety"
Its
Its
Its Its
(Seal) (Seal)
Note: This bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney -in -fact must be attached.
Docusign Envelope ID:4CF8348B-ADCB-44D1-99C2-F8071F150BFF
PAYMENT BOND
(LABOR AND MATERIAL)
CAPITAL IMPROVEMENT PROJECT NO.26-16
MCCAUGHAN GYM HVAC REPLACEMENT PROJECT
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of Downey, California ("City"), has awarded Capital Improvement Project No. 26-16 ("Contract") to F.M. Thomas Air Conditioning, Inc. ("Principal"), for the McCaughan Gym HVAC Replacement Project.
WHEREAS, Principal is required under the terms of the Contract and the California Civil Code to secure the payment of claims of laborer, mechanics, material suppliers, and other persons as provided by law.
NOW, THEREFORE, we, the undersigned Principal, and ("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of Three Hundred Ninety Thousand One Hundred Twenty Dollars Dollars ($390,120.00), this amount being not less than the total Contract price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bound Principal, or his/her heirs, executors, administrators, successors or assigns, or subcontractors shall fail to pay any of the persons named in Section 3181 of the California Civil Code, or any amounts due under the Unemployment Insurance Code with respect to work or labor performed under the Contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Principal and subcontractors pursuant to Section 13030 of the Unemployment Insurance Code, with respect to work or labor performed under the Contract, the Surety will pay for the same in an amount not exceeding the penal sum specified in this bond; otherwise, this obligation shall become null and void.
This bond shall inure to the benefit of any of the persons named in Section 3181 of the California Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon the bond. In case suit is brought upon this bond, Surety further agrees to pay all court costs incurred by the City in the suit and attorneys' fees.
FURTHER, the Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, addition or modification to the terms of the Contract, or of the work to be performed thereunder, or these Specifications for the same, shall in any way affect its obligations under this bond, and it does hereby waive notice of any such change, extension of time, alteration, addition, or modification to the terms of the Contract or to the work or to these Specifications thereunder.
Docusign Envelope ID:4CF8348B-ADCB-44D1-99C2-F8071F150BFF
PAYMENT BOND
MCCAUGHAN GYM HVAC REPLACEMENT PROJECT, CAPITAL IMPROVEMENT PROJECT NO.26-16
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
0 M
"Surety"
Its
Its
Its Its
(Seal) (Seal)
Note: This bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney -in -fact must be attached.
Docusign Envelope ID:4CF8348B-ADCB-44D1-99C2-F8071F150BFF
GENERAL LIABILITY/AUTOMOBILE LIABILITY
INSURANCE DOCUMENTATION FOR CONTRACT AGREEMENT
FOR THE CITY OF DOWNEY, CALIFORNIA
McCAUGHAN GYM HVAC REPLACEMENT PROJECT: CIP 26-16
This document acknowledges insurance provided under the following:
I %1ifi1iytl4;%3/s1111104i 14;1.11A1141VAIZ691 L1►Is] 41%PIA:T_m:8J_11AI ❑ AUTOMOBILE LIABILITY INSURANCE COVERAGE PART
In consideration of the premium charged and notwithstanding any inconsistent statement in the policy to which this document is attached or in any endorsement which now or later attaches to the policy, the Company agrees as follows:
ADDITIONAL INSURED: The City of Downey, its officers, agents and employees are included as additional insured, with respect to liability and defense of claims and suits arising out of the operations and uses performed by or on behalf of the named insured.
CONTRIBUTION WAIVED: This insurance is primary. The City of Downey's insurance program shall be excess of this insurance. The Company shall not seek contribution from the City and its insurers.
SEPARATION OF INSURED: This insurance applies separately to each insured against whom claim is made or suit is brought, except that the naming of multiple insured shall not increase the Company's limits of liability. The inclusion of any person, organization, firm or entity as an insured under the policy shall not affect any right which such person, organization, firm or entity would have as a claimant if not so included.
CANCELLATION NOTICE: If the Company elects to cancel or terminate this insurance before the stated expiration date, or declines to renew a continuous policy, or reduces the stated limits other than by impairment of an aggregate limit, the Company shall mail written notice to the City at least 30 days in advance of such election. For non-payment of premium, the Company shall give the City at least ten (10) days advance written notice of cancellation or termination.
Except as stated above, all other endorsements, provisions, conditions, limits and exclusions of this insurance shall remain unchanged.
COMMERCIAL GENERAL LIABILITY POLICY NUMBER: AUTOMOBILE LIABILITY POLICY NUMBER:
By my signature on this insurance document, I warrant that I have authority to bind the insurance company and do so bind the company to this document:
AUTHORIZED REPRESENTATIVE'S SIGNATURE: DATE SIGNED:
Docusign Envelope ID:4CF8348B-ADCB-44D1-99C2-F8071F150BFF fell ISM I gull I calla1•
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