1 DATE: June 23, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Thai Nam Pham, City Clerk
RE: City Council Agenda Item 4.12 - Mark Green Sports Center AHU Replacement, City Project No. 26-20 Attached is an updated Draft Resolution for consideration by the City Council for Agenda Item 4.12. After the agenda packet was published, staff identified a mathematical error in the Staff Report. The contingency amount was incorrectly listed as $2,078. The correct contingency amount is $20,820.
The table in the Discussion section for the recommended project budget for construction should read as follows:
Construction Contract Amount (including Alternative Bids): $138,800 Contingency (~15% of Construction Contract): $20,820
Total Estimated Construction Cost: $159,620
As a result, all references to the total construction budget should be updated from $140,878 to $159,620.
The agenda item title should read:
Adopt a Resolution Approving the Award of a Construction Contract to Galaxy Services dba Galaxy Heating & Air Conditioning, in the Amount of $138,800, and Approving a Total Construction Budget in the Amount of $159,620, for the Mark Green Sports Center AHU Replacement, City Project No. 26-20.
Additionally, the Fiscal Impact section should be corrected to state that the Mark Green Sports Center AHU Replacement, City Project No. 26-20, in the amount of $159,620, will be funded with $130,069 in CDBG-Fund monies (Account Number 231-92620- 57125) and $29,551 in General Fund monies (Account 110-92620-54125).
Any City Council motion should reference the updated resolution and the corrected total construction budget amount of $159,620.
RESOLUTION NO. 2026-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY
APPROVING THE AWARD OF A CONSTRUCTION CONTRACT TO
GALAXY SERVICES DBA GALAXY HEATING & AIR CONDITIONING, IN THE AMOUNT OF $138,800, AND APPROVING A TOTAL
CONSTRUCTION BUDGET IN THE AMOUNT OF $159,620, FOR THE
MARK GREEN SPORTS CENTER AHU REPLACEMENT, CITY
PROJECT NO. 26-20
WHEREAS, in June 2025, two air handler units (also referred to as air conditioning units) at the Mark Green Sports Center unexpectedly failed nearly simultaneously; Public Works Facilities Division staff engaged a contractor whose assessment confirmed that the two units are beyond repair and in need of replacement; and WHEREAS, the existing units were originally installed in 2005, have already exceeded their expected useful life of 15-20 years, and, unfortunately, it is not possible to perform a like-for-like replacement due to advances in technology in the nearly twentyone years since these units were installed; additionally, the situation is made further complex by significant environmental regulatory changes in the State of California regarding the type of refrigerant allowed -- all of which required a complete redesign of the entire air handler system for the Mark Green Sports Center; and WHEREAS, on July 8, 2025, the City Council adopted Resolution No. 2025-090, amending the Five-Year Capital Improvement Plan for Fiscal Year 2025-2026 through Fiscal Year 2029-2030 to add City Project No. 26-20, Mark Green Sports Center Air Conditioning Units Replacement Project and amending the General Fund budget by appropriating $175,000 to the project; and
WHEREAS, on January 28, 2026, the City released a Request for Proposals for Mechanical Engineering Design Services under a Professional Services Agreement for Mark Green Sports Center AHU Replacement Project, City Project No. 26-20; on January 26, 2026, the City received five proposals, ultimately awarding the contract to EDesignC Incorporated, of San Francisco, CA, on February 23, 2026; and WHEREAS, on May 26, 2026, the City Council adopted Resolution No. 2026-071, approving the Fiscal Year 2026-2027 Community Development Block Grant (CDBG) Annual Action Plan, which includes the Mark Green Sports Center HVAC as one of the AP-35 Projects, with a funding request of $130,069; and WHEREAS, the project’s design was approved by the Building Department and on May 26, 2026, the project was advertised for bid on the City’s website and with the active builder exchanges listed in the California Uniform Construction Cost Accounting Commission’s Cost Accounting Policies and Procedures Manual 2019 Edition; and WHEREAS, five bids were received and were publicly opened on June 16, 2026, at 2:00 p.m. in City Hall (see Exhibit A); and
Resolution No. 2026-XXX
Award Construction Contract for the Mark Green Sports Center AHU Replacement
WHEREAS, the apparent low bid of $138,800 was submitted by Galaxy Services dba Galaxy Heating & Air Conditioning of Pleasant Hill, California, approximately 32% below the Engineer’s Estimate of $203,000. The five bids received demonstrate a competitive bidding process, with the two lowest bids falling to within 5% of each other; and
WHEREAS, the recommended project budget for construction is as follows:
Construction Contract Amount (including Alternative Bids) $138,800 Contingency (~15% of Construction Contract) $20,820
Total Estimated Construction Cost $159,620
WHEREAS, construction of this project is anticipated to begin on August 10, 2026, and to be completed by September 14, 2026; and
WHEREAS, the Mark Green Sports Center AHU Replacement, City Project No. 26-20, in the amount of $159,620, will be funded with $130,069 in CDBG-Fund monies (Account Number 231-92620-57125) and $29,551 in General Fund monies (Account 110- 92620-54125); and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby awards the construction contract for the Mark Green Sports Center AHU Replacement, City Project No. 26-20, to Galaxy Services dba Galaxy Heating & Air Conditioning, in the amount of $138,800; and
BE IT FURTHER RESOLVED that the City Council of the City of Union City hereby approves a Total Construction Budget, with contingency, in the amount of $159,620, for the Mark Green Sports Center AHU Replacement, City Project No. 26-20.
Resolution No. 2026-XXX
Award Construction Contract for the Mark Green Sports Center AHU Replacement
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on June 23, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:
THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
Attachments:
1. Exhibit A – Bid Summary