CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 9, 2026 CONSENT CALENDAR
SUBJECT: APPROVE CONSTRUCTION CONTRACT NO. 26B203 WITH HTL MECHANICAL, INC., AND NO. 26B204 WITH RIVCO MECHANICAL
SERVICES, INC., FOR HVAC REPAIR AND INSTALLATION SERVICES FROM: Scott C. Stiles, City Manager
BY: David McAbee, Director of Public Works
SUMMARY:
This action will approve two Construction Contracts for on-call HVAC repair and installation services for the Public Works department – Contract No. 26B203 with HTL Mechanical, Inc. in an amount not to exceed $975,000, and Contract No. 26B204 with Rivco Mechanical Services, Inc. in an amount not to exceed $417,856. Each contract will have an initial one-year term beginning September 10, 2026, through September 9, 2027, with four additional one-year extension options at the City’s sole discretion.
RECOMMENDATION:
1) Approve Construction Contract 26B203 (Attachment A) with HTL Mechanical, Inc., to provide on-call HVAC repair and installation services for the Public Works department in an amount not to exceed $975,000 for an initial one-year term beginning September 10, 2026, through September 9, 2027, with four one-year extension options at the City’s sole discretion; and
2) Approve Construction Contract 26B204 (Attachment B) with Rivco Mechanical Services, Inc., to provide on-call HVAC repair and installation services for the Public Works department in an amount not to exceed $417,856 for an initial one- year term beginning September 10, 2026, through September 9, 2027, with four one-year extension options at the City’s sole discretion; and 3) Authorize the City Manager or his designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure forms, HTL Mechanical, Inc. and Rivco Mechanical Services, Inc., are registered in the state of California (Attachment C).
City Council Staff Report
September 9, 2026 -- Page 2
Approve HVAC Repair and Installation Agreements
BACKGROUND:
The Public Works Department is responsible for the maintenance, repair, and replacement of heating, ventilation, and air conditioning (HVAC) systems at various City- owned facilities, including administrative offices, community centers, and operational buildings. Reliable HVAC systems are essential to providing safe, comfortable, and energy-efficient environments for both City staff and the public. To support ongoing HVAC needs, the Department requires as-needed, on-call contractor services.
Due to the volume and extent of HVAC repair and installation services required to maintain and repair existing infrastructure, along with planned improvements, the current contracts are nearing their not-to-exceed limit prior to their scheduled expiration. As a result, staff elected to resolicit bids to ensure continuity of services and avoid delays in completing necessary HVAC work.
To meet both scheduled maintenance needs and unforeseen HVAC demands, the Public Works Department recommends awarding two construction contracts. These contracts are critical to protecting City assets, enhancing operational reliability, and supporting the year-round, safe, and efficient delivery of public services.
STAFF ANALYSIS:
An Invitation for Bids (IFB 26-11) was initiated by the City’s Procurement and Contracting Department on July 20, 2026, based on the Department of Public Works specifications, for HVAC Repairs and Installation Services. Bids were solicited directly via the City’s procurement vendor portal, PlanetBids. Bids were received by the August 18, 2026, deadline as follows:
Vendor Bid Amount
HTL Mechanical, Inc. – Palm Desert, CA $69,050.00
Rivco Mechanical Services, Inc. – Indio, CA $82,000.00
Allison Mechanical, Inc. – Redlands, CA $91,932.00
F.M. Thomas Air Conditioning – Brea, CA $97,860.00
EMCOR Services Mesa Energy – Irvine, CA $107,030.00
The contracts with HTL Mechanical, Inc. and Rivco Mechanical Services, Inc. are on-call, as-needed type contracts. The bids were used to determine the lowest, responsive, responsible bidders and to set the unit rates for the contracts; however, the actual amount of the contracts is based on the budgeted amount set by the Department and will therefore not match the bid amounts. Unit pricing will remain fixed for the first year and will be subject to CPI adjustments in subsequent years.
The department’s intent for this solicitation was to award two contracts to the two lowest, responsive, responsible bidders. HTL Mechanical, Inc. will be the primary contract holder and Rivco Mechanical Services, Inc. will be the secondary. The department will reach out to the primary contract holder first and, if it is unable to perform the work, the department City Council Staff Report
September 9, 2026 -- Page 3
Approve HVAC Repair and Installation Agreements
will reach out to the secondary contract holder.
Staff therefore recommends approval of Construction Contract No. 26B203 in the amount not to exceed $975,000 with HTL Mechanical, Inc. (Attachment A) and Construction Contract No. 26B204 in the amount not to exceed $417,856 with Rivco Mechanical Services, Inc. (Attachment B) for initial one-year terms effective September 10, 2026, through September 9, 2027, subject to four one-year optional renewals at the sole discretion of the City.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve contracts for the above-mentioned services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities.
FISCAL IMPACT:
The total not-to-exceed amount of both contracts for the initial three-year term is $1,392,856. This includes $975,000 for HTL Mechanical, Inc. and $417,856.00 for Rivco Mechanical Services, Inc. Funding is available in the 2026-27 budget and will be budgeted in subsequent years.
Public Works: 5206570-40105 & 50119
Measure J: 2603080-80000
Measure J Deferred Maintenance: 2603205-50119
REVIEWED BY:
Assistant Director of Public Works: Daniel Martinez
Director of Public Works: David McAbee
Procurement and Contracting Manager: Tabitha Richards
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
City Council Staff Report
September 9, 2026 -- Page 4
Approve HVAC Repair and Installation Agreements
ATTACHMENTS:
A. Construction Contract No. 26B203 – HTL Mechanical, Inc.
B. Construction Contract No. 26B204 – Rivco Mechanical Services, Inc.
C. Public Integrity Disclosures
D. Invitation for Bids (IFB 26-11)