COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: September 15, 2026
SUBJECT: Adoption of a Resolution approving a Sourcewell Job Order Contract Agreement with Newton Construction & Management for the City of Santa Maria Police Department IT Room HVAC Project
Description:
The City Council will consider adopting a Resolution approving a Job Order Contract Agreement with Newton Construction & Management for the City of Santa Maria Police Department IT Room HVAC Project.
Environmental Notice: The project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 – Existing facilities (operation, repair, maintenance, leasing, etc.) of the California Environmental Quality Act State Guidelines because the scope of work to be conducted is an existing public facility with negligible expansion of the existing uses.
RECOMMENDATION:
1. Adopt a Resolution approving a Sourcewell J ob Order Contract Work Order Agreement with Newton Construction & Management for the City of Santa Maria Police Department IT Room HVAC Project in the amount of $902,594;
2. Authorize the City Manager or designee to execute the agreement and any future amendments or change orders necessary, provided such amendments are within the scope of the project and consistent with the adopted project budget; and
3. Authorize the City Manager or designee to execute necessary project amendments to the agreement not to exceed the contingency amount.
BACKGROUND:
The Santa Maria Police Department (PD) I nformation Technology (IT) room, located at 1111 W. Betteravia Road, is served by aging heating, ventilating and air -conditioning (HVAC) units that are not specifically designed for IT environments and do not provide sufficient airflow, cooling, or expansion capacity to adequately support the room's operational needs. The City requested Newton Construction & Management to provide a proposal to replace the existing units with two new COMPU-AIRE MKA-2034-RTU rooftop HVAC units.
The proposed units are designed for computer and technology environments and will provide increased airflow and cooling performance, reliable temperature control for critical 2 technology equipment, and additional capacity for future expansion. Associated ductwork and electrical systems will also be upgraded to accommodate the new equipment.
DISCUSSION:
The City’s Public Works Engineering Division utilizes four methods to construct City projects in the most cost-effective and efficient manner possible: Formal Bidding, Informal Bidding, Job-Order Construction Contracting (JOC), and construction performed by in - house City crews. Utilizing a JOC has proven to be an effecti ve method and useful tool to construct and implement City projects rapidly.
Due to the multifaceted nature of the City of Santa Maria PD IT Room HVAC Project (thermal and moisture protection, fire suppression, HVAC and electrical work), the Public Works Department determined that using a pre -solicited JOC with Newton Construction & Management through Sourcewell consortium contract would be the most beneficial.
This approach streamlines the procurement process, accelerates project delivery, and ensures competitive pricing. Sourcewell's contracts are competitively solicited and meet local, state, and federal procurement requirements, helping the municipality stay compliant with regulations.
Alternative(s)
1. Issue formal bid: City Council may choose to deny entering into a Sourcewell Job Order Contract Agreement and request the Department of Public Works to issue a Formal Bid in-house. This alternative is not recommended because drawing out the bid process will delay critical HVAC improvements. Delaying these improvements could negatively impact City-wide Wi-Fi capabilities and Emergency Dispatch Call Services. The existing HVAC equipment must be replaced to meet updated specifications and accommodate the City's expanding operational and technology needs. The proposed replacement units will provide the capacity and reliability necessary to support the City's growing IT infrastructure and ensure continued functionality of critical services.
2. In-house crews: In-house deployment is not recommended due to the specialized nature of the project, including computer -room HVAC equipment, associated ductwork and electrical modifications, fire alarm and fire suppression integration, controls programming, testing, commissioning, and temporary cooling requirements.
3 Fiscal Considerations
This project is being fully funded by the General Fund with CIP funds appropriated for Fiscal Years 2025/26 and 2026/27. Total guaranteed project expenditures under this fixed-price work order equal $902,594.38 with a contingency amount of $ 18,000 totaling $920,594.38. The project is funded through FY 2026 -27 adopted budget in the Capital Projects - General Fund; Public Works account stream FD310 | CC1120 | SC7320.
Project Account Element Cost (USD)
General Requirements $38,812.02
Thermal & Moisture Protection $3,993.65
Fire Suppression $695.01
Heating, Ventilating, And Air-Conditioning (HVAC) $815,886.65 Electrical $43,207.05
Contingency $18,000.00
Total Project Expenditure $920,594.38
Impact on the Community
The project will provide reliable temperature control for the Santa Maria PD IT room and help protect critical technology equipment supporting City operations and public safety.
Replacing the aging HVAC equipment with units specifically designed for computer a nd technology environments will improve airflow and cooling performance while providing capacity for future expansion. The project will also upgrade associated ductwork, electrical systems, fire protection integration, and building controls, improving the reliability and functionality of the existing PD IT room HVAC system.
ATTACHMENT(S)
A. Resolution
B. Agreement
C. EZIQC Contract No. CA-R7-GB-101723-NCM
D. Work Order No. 152502.00