City Council
Report
City Council Meeting: September 30, 2025
Agenda Item: 4.D
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Award Bid SP2750 and Construction Contract to AC Pros, Inc. for the Santa Monica Department of Transportation HVAC Replacement Project.
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemptions pursuant to Sections 15301 (Existing Facilities) and 15302 (Replacement/Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines;
2. Award Bid #2750 to AC Pros, Inc. for the Santa Monica Department of Transportation HVAC Replacement Project for the Public Works Department;
3. Authorize the City Manager to negotiate and execute a contract with AC Pros, Inc. in an amount not to exceed $ 2,271,522 (including a 10% contingency) for a term of three years, with future year funding contingent on Council budget approval; and
4. Authorize the budget amendment as outlined in the Financial Impacts & Budget Actions section of the report (requires 5 votes).
Summary
The heating, ventilation, and air conditioning (HVAC) rooftop equipment serving the Santa Monica Department of Transportation (SMDOT) facilities has reached the end of its service life and requires full replacement to maintain a safe, comfortable, and energy-efficient working environment. The equipment, located at 1620 6th Street and serving the Maintenance, Administration, and Fuel and Wash buildings, is essential to supporting the operational needs of the SMDOT.
Staff recommends awarding a construction contract to AC Pros, Inc. in an amount not to exceed $2,271,522 (including a 10% contingency) for the removal and replacement of HVAC systems and associated infrastructure. The scope of work includes mechanical 2 of 6
and electrical system upgrades necessary to restore a fully functioning work environment across all affected facilities.
Discussion
The SMDOT campus at 1620 6th Street includes critical infrastructure that supports the City’s transportation operations. The existing HVAC systems in the Maintenance, Administration, and Fuel and Wash buildings have aged significantly, with many components exceeding their intended service life. This has resulted in diminished system performance, higher maintenance costs, and growing concerns related to reliability and energy efficiency.
In April 2022, a facility asset condition assessment and equipment inventory were conducted by JorgensenFM at the SMDOT Campus including the Administration, Maintenance, and Fuel and Wash buildings. As part of this review, the team evaluated a range of mechanical systems including packaged rooftop units, split systems, makeup air handling units, and exhaust fans. The assessment found:
• Heavy rusting on packaged and make-up air handling units • Corrosion on coils and fins of many split system units • General wear throughout HVAC components
• Aged exhaust fans, several of which exhibited excessive noise and vibration due to balancing issues
Numerous systems were noted to have reached or exceeded their useful life, with replacement recommended within two to three years from the date of the assessment.
The evaluation noted significant deterioration across key HVAC components. Proactive replacement is necessary to prevent unplanned system failures and maintain continuous operations.
The scope of work under the proposed contract includes the following major elements:
• Removal of Existing HVAC Equipment: Demolition and responsible disposal of aging rooftop units and associated systems
• Installation of New HVAC Systems: High-efficiency rooftop systems with updated piping and ductwork connections, as required
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• Replacement of Variable Air Volume (VAV) Boxes: New VAV boxes with reheat coils to improve zone control and climate consistency
• Restoration of Supporting Systems: Full restoration of plumbing, heating, ventilation, air conditioning, and electrical systems to operational condition Work will be scheduled to minimize disruption to City operations and will be completed in compliance with current safety, building, and environmental standards. The project is anticipated to take 180 days.
Benefits and Operational Impact
Replacing the HVAC systems will enhance energy efficiency, reduce maintenance costs, and improve air quality and indoor comfort for City staff. These upgrades would align the facilities with modern performance standards and support uninterrupted public service operations.
The project addresses critical facility needs identified in prior assessments and represents a timely investment in the City’s core infrastructure.
Vendor Selection
Bidder Recommendation
Best Bidder AC Pros, Inc
Evaluation Criteria The quality of the materials or services offered; the character, integrity, reputation, judgment, training, experience, and efficiency of the bidder; the ability, capacity, and skill of the bidder to perform the services; the capacity of the bidder to perform the contract within the time specified; the sufficiency of the bidder’s financial resources; and the reputation and experience of the bidder.
Municipal Code SMMC 2.24.180
Submittals Received
Olympos Construction, Inc. $ 2,052,000.00
AC Pros, Inc. $ 2,065,020.00
United Mechanical Contractors $ 2,173,000.00
ACCO Engineered Systems, Inc. $ 2,256,000.00
Estate Design and Construction Inc. $ 2,320,880.00
Simco Mechanical $ 2,480,900.00
Prime ENC, Inc. $ 2,636,000.00
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Ecogreenvision LLC $ 2,748,244.00
MEDG International Inc. $ 2,777,726.81
Waisman Construction Inc. $ 3,896,000.00
Best Bidder Justification
The City received ten bids in response to the solicitation for the SMDOT HVAC Replacement Project. Bids were evaluated based on a combination of price, experience, and technical competence, using a points-based scoring system. Although AC Pros, Inc. was the second-lowest bidder, they received the highest overall score when all evaluation criteria were considered.
Evaluators determined that AC Pros, Inc. offered the best value to the City based on their demonstrated experience with similar HVAC infrastructure projects, strong technical qualifications, and competitive pricing. Their proposal reflects a clear understanding of the project scope, and staff is confident in their ability to successfully complete the work on schedule and in accordance with City standards. As such, AC Pros, Inc. is recommended as the best bidder for this project.
Environmental Review
The contract for HVAC replacement is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1 – Existing Facilities) and Section 15302 (Class 2 – Replacement/Reconstruction) of the CEQA Guidelines.
Section 15301 exempts minor alterations to existing public or private structures, facilities, or mechanical equipment, provided the project involves negligible or no expansion of existing or former use. Section 15302 exempts the replacement or reconstruction of existing utility systems and facilities, where the new structure will be Bid Data
Date
Posted Posted On Advertise In(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
01/24/2025 City's Online
Bidding Site
Santa Monica Daily Press 104 04/22/2025
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located on the same site and will have substantially the same purpose and capacity as the structure replaced. The HVAC replacement project involves removing and replacing aging rooftop units and related mechanical systems, with no expansion of facility capacity or footprint, and is therefore exempt under both sections.
Additionally, none of the exceptions listed in Section 15300.2 of the CEQA Guidelines apply. The project site is not located in an environmentally sensitive area, will not result in a significant environmental impact, will not affect scenic resources, is not located on a hazardous waste site, and does not involve any historic resources. As such, the contract is exempt from CEQA pursuant to Section 15301 and Section 15302 of CEQA Guidelines.
Financial Impacts and Budget Actions
Staff seeks authority to appropriate $856,607 of Municipal Operator Service Improvement Program (MOSIP) funds and approve the use of this funding from the Big Blue Bus Fund to award a contract to AC Pros, Inc for the construction of the SMDOT HVAC Replacement Project.
FY 2025-26 CIP Budget Amendment
Additional Funds to be Appropriated
CIP Account # Amount
C6008690.689000 $856,607
Contract Request
FY 2025-26
Request Amount CIP Account # Total Contract Amount
$2,271,522 C6008690.689000 $2,271,522
Future year funding is contingent on Council budget approval. 6 of 6
Prepared By: Brian Ochoa, CIP Project Manager
Approved Forwarded to Council
Attachments:
A. Levine Act Disclosure Form 2025
B. Oaks_Initiative_Disclosure_Form