CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 30, 2026 CONSENT CALENDAR
SUBJECT: APPROVE CONTRACT SERVICES AGREEMENT NO. 26B205 WITH HTL MECHANICAL, INC., AND CONTRACT SERVICES AGREEMENT NO.
26B206 WITH RIVCO MECHANICAL SERVICES, INC., FOR HEATING,
VENTILATION, AND AIR CONDITIONING (HVAC) REPAIR AND
INSTALLATION SERVICES FOR THE PALM SPRINGS INTERNATIONAL
AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Aviation Department
SUMMARY:
This action will approve two Contract Services Agreements for on-call HVAC repair and installation services for the Palm Springs International Airport (Airport): Agreement No. 26B205 with HTL Mechanical, Inc. in an amount not to exceed $350,000, and Agreement No. 26B206 with Rivco Mechanical Services, Inc., in an amount not to exceed $150,000.
Each agreement will have an initial three-year term to provide HVAC repair and installation services on an as-needed basis.
RECOMMENDATION:
1) Approve Contract Services Agreement No. 26B205 (Attachment A) with HTL Mechanical, Inc., to provide on-call HVAC repair and installation services in an amount not to exceed $350,000 for an initial three-year term commencing on October 1, 2026, and continuing through September 30, 2029, with two one-year extension options upon mutual written agreement of the parties. 2) Approve Contract Services Agreement No. 26B206 (Attachment B) with Rivco Mechanical Services, Inc., to provide on-call HVAC repair and installation services in an amount not to exceed $150,000 for an initial three-year term commencing on October 1, 2026, and continuing through September 30, 2029, with two one-year extension options upon mutual written agreement of the parties. 3) Authorize the City Manager or designee to execute all necessary documents subject to such changes / revisions agreeable to the City Manager and City Attorney.
City Council Staff Report
September 30, 2026 -- Page 2
Contract Services Agreements for HVAC Repair and Installation Services BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure forms (Attachment C), HTL Mechanical, Inc., and Rivco Mechanical Services, Inc. are registered in the state of California.
BACKGROUND:
In June 2026, the Airport’s on-call HVAC repair services contractor notified Airport staff that they had gone out of business and could no longer provide services. As a result, the Airport required replacement on-call HVAC services to support the Airport’s 157 HVAC systems and related equipment as depicted below in Table 1.
Table 1
Airport HVAC Systems and Equipment Quantity
Chiller Units 2
Cooling Towers 2
Water Circulation Pumps 10
Large Air Handler Units 16
Fan Coil Units 28
Package Units, Rooftop Units (RTUs), Split Systems, Mini-Split, and Multi-Zone Units 37
Variable Air Volume (VAV) Units 25
Boiler Units (Heating) 2
Exhaust Fans 10
Automated Control Panels 10
Motor Control Centers (MCCs) 15
Total HVAC Systems and Equipment 157
The Airport relies on a complex network of HVAC systems to support the passenger terminal, administrative offices, baggage handling areas, passenger boarding bridges, mechanical rooms, and other Airport facilities. These systems require specialized maintenance, emergency repairs, troubleshooting, testing, inspections, replacement, and installation to protect critical Airport infrastructure and support reliable Airport operations.
City Council Staff Report
September 30, 2026 -- Page 3
Contract Services Agreements for HVAC Repair and Installation 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 Aviation 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 agreements with HTL Mechanical, Inc. and Rivco Mechanical Services, Inc. are on- call, as-needed type agreements. 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 agreements is based on the budgeted amount set by the Department and will therefore not match the bid amounts.
HTL Mechanical, Inc., will be the primary contractor and Rivco Mechanical Services, Inc. will be the secondary. When work is required, Airport Staff will reach out to the primary contract holder first and if they are unable to perform the work, Airport Staff will reach out to the secondary contract holder. Having both a primary and secondary contractor provides operational redundancy and ensures that qualified services remain available if one contractor is unavailable or unable to respond. The contractors will furnish all labor, materials, equipment, supervision, and technical expertise necessary to perform HVAC repair and installation services on an as-needed basis. The unit pricing is fixed for the first year and subject to a CPI increase in the following years.
The Airport operates as a self-sustaining enterprise fund subject to Federal Aviation Administration revenue-use requirements. Separate Airport agreements establish dedicated not-to-exceed amounts for Airport facilities, ensure that Airport work does not draw down the contract capacity available to other City departments, and incorporate Airport-specific security and access requirements. Reliable on-call HVAC services support the Airport's mission of "Moving You with Unforgettable Hospitality" by helping maintain safe, comfortable, and fully functional facilities that contribute to a positive travel experience.
Staff recommend approval of Contract Services Agreement No. 26B205 with HTL Mechanical, Inc., in an amount not to exceed $350,000, and Contract Services Agreement No. 26B206 with Rivco Mechanical Services, Inc., in an amount not to exceed $150,000, to provide on-call HVAC repair and installation services at the Airport for an initial three-year term commencing October 1, 2026, and continuing through September 30, 2029, with two one-year extension options. Unit pricing will remain fixed for the first City Council Staff Report
September 30, 2026 -- Page 4
Contract Services Agreements for HVAC Repair and Installation Services year of the Agreements and will be subject to Consumer Price Index (CPI) adjustments in subsequent years in accordance with the terms of the Agreements.
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:
Approval of this action supports the City of Palm Springs’ Strategic Plan Broad Goal of Infrastructure and Facilities, and it also supports the Airport’s 2025-2029 Strategic Plan’s Strategic Priorities for Operational Excellence and Infrastructure.
FISCAL IMPACT:
The amounts of the contracts are based on the budgeted amount set by the Airport and will therefore not match the bid form total amounts.
Funding in the amount of $45,000 is budgeted for the primary contract with HTL Mechanical, Inc., and $30,000 is budgeted for the secondary contract with Rivco Mechanical Services, Inc., in Fiscal Year 2026-27 in the Department of Aviation, Terminal Building Operations Contractual Services Account 4157050-40105. Future amounts will be budgeted in subsequent years.
REVIEWED BY:
Interim Executive Director of Aviation: Victoria Carpenter Procurement and Contracting Manager: Tabitha Richards
City Attorney: Geremy Holm
City Manager: Scott Stiles
ATTACHMENTS:
A. Contract Services Agreement No. 26B205 – HTL Mechanical, Inc.
B. Contract Services Agreement No. 26B206 – Rivco Mechanical Services, Inc.
C. Public Integrity Disclosure – HTL Mechanical, Inc. & Public Integrity Disclosure – Rivco Mechanical Services, Inc.