DATE: July 20, 2026
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
FROM: Andrew Brozyna, Public Works Director
Yelena Cappello, Principal Management Analyst
DEPARTMENT: Public Works
SUBJECT: AMENDMENT NO. 1 TO AGREEMENT WITH THERMAL
MECHANICAL INC FOR REPAIRS TO CITYWIDE HEATING,
VENTILATION AND AIR CONDITIONING (HVAC) SYSTEMS IN
THE AMOUNT OF $50,000 FOR A TOTAL NOT TO EXCEED
AMOUNT OF $200,000
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing:
1. Amendment No. 1 to the agreement with Thermal Mechanical, Inc., increasing the annual not-to-exceed amount for citywide heating, ventilation, and air conditioning (HVAC) system repair services by $50,000, from $150,000 to $200,000 annually; and
2. Finding that this action is not subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301 Class 1-Existing Facilities.
EXECUTIVE SUMMARY
Due to aging HVAC infrastructure and the continued need for urgent repairs, additional contract authority is needed under the agreement with Thermal Mechanical, Inc. Staff recommends increasing the annual not-to-exceed amount by $50,000, from $150,000 to $200,000, to support ongoing HVAC repair needs through the remainder of the fiscal year.
BACKGROUND/ANALYSIS
The Building Maintenance Division of the Public Works Department maintains the City’s buildings and facilities. The City contracts for routine HVAC service and repair because this work is specialized. At its meeting in November 2024, the City Council approved an agreement with Thermal Mechanical, Inc. for programmed HVAC maintenance and repairs to existing equipment. The agreement includes $28,277 annually for Citywide HVAC System Programmed Maintenance, and a not to exceed amount of $150,000 for unforeseen repairs, from January 1, 2025 through December 31, 2027, with two optional extensions of one year each.
Due to aging HVAC infrastructure in City buildings, several systems have required urgent repair work to maintain safe and functional operations. Recent work has included emergency troubleshooting, replacement of failed variable air volume (VAV) components and other critical parts, repairs to underperforming and aging units, and work involving systems that circulate hot water. These repairs were necessary to maintain heating, cooling, and ventilation in occupied facilities, including the Council Chambers and recreation spaces used for rentals, classes, and camps.
Many of the City’s HVAC and control components are more than 25 years old and are becoming obsolete, contributing to increasingly frequent and complex repairs. Staff recommends increasing the agreement’s annual not-to-exceed amount by $50,000, from $150,000 to $200,000, to provide contract authority for approximately $38,000 in repairs completed during FY 2025-26 and sufficient annual authority for additional repairs during the remaining term of the agreement.
The HVAC Improvements in City Buildings project, CIP 301-685, will address needed HVAC replacements and is scheduled to begin this fiscal year. Following completion of those improvements, maintenance needs are expected to decrease. The existing agreement does not include the new Community Center, as that HVAC system will remain under warranty maintenance for one year. Staff will return with a contract amendment for the Community Center, if needed, after the warranty period ends.
CEQA
This action is categorically exempt from the requirements of the California Environmental Quality Act (“CEQA") pursuant to Title 14 California Code of Regulations § 15301 as a Class 1 categorical exemption (Existing Facilities) as it involves the maintenance of existing building systems.
FISCAL IMPACT
The fiscal impact of Amendment No. 1, is $50,000 per year, increasing the not to exceed amount of $150,000 to $200,000. There are no changes to the preventative and routine maintenance portion of this contract. There are sufficient funds available in the Building Maintenance budget to cover additional costs. If expenditures are projected to exceed the amount available in the FY 26-27 and FY 27-28 adopted budget, staff will return to the City Council to request an additional appropriation.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
ATTACHMENTS:
Attachment 1 – Resolution
Attachment 2 – Contract Amendment No. 1
Attachment 3 – Agreement with Thermal Mechanical, Inc.