City Council Staff Report Page 1 of 3 June 23, 2026
Staff Report
Agenda Item No. 4.12
DATE: June 23, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: 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 $140,878, for the Mark Green Sports Center AHU Replacement, City Project No. 26-20
EXECUTIVE SUMMARY
Staff recommends that the City Council 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 $140,878, for the Mark Green Sports Center AHU Replacement, City Project No. 26-20.
STRATEGIC PLAN ALIGNMENT
This agenda item is aligned with the following City Council priority:
Goal D: Environmental Sustainability and Infrastructure Strategy 2: Implement the City’s capital improvement plan.
BACKGROUND
In June 2025, two air handler units (also known as air conditioning units) at the Mark Green Sports Center failed nearly simultaneously. Public Works Facilities Division staff responded and engaged a contractor whose assessment confirmed that the two units are beyond repair and in need of replacement.
The existing units were installed in 2005 and have already exceeded their expected 15- 20-year useful life. Unfortunately, it is not possible to perform a like-for-like replacement due to advances in technology in the nearly twenty-one years since these units were installed. The situation is further complicated by significant environmental regulatory changes in the State of California regarding the types of refrigerants allowed -- all of which required a complete redesign of the entire air handler system for the Mark Green Sports Center.
Agenda Item No. 4.12
City Council Staff Report Page 2 of 3 June 23, 2026
On July 8, 2025, the City Council adopted Resolution No. 2025-090, amending the FiveYear 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.
In January 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 and ultimately awarded the contract to EDesignC Incorporated of San Francisco, CA, on February 23, 2026.
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.
DISCUSSION
The Building Department approved the project’s design. 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. Five bids were received and were publicly opened on June 16, 2026, at 2:00 p.m. in City Hall (see Exhibit A).
Galaxy Services dba Galaxy Heating & Air Conditioning, of Pleasant Hill, California, submitted the lowest responsible bid of $138,800. The bid is approximately 32% below the Engineer’s Estimate of $203,000. The five bids received demonstrate a competitive bidding process, with the two lowest bids differing by only 5%.
The recommended project budget for construction is as follows:
Construction Contract Amount (including Alternative Bids) $138,800 Contingency (~15% of Construction Contract) $2,078
Total Estimated Construction Cost $140,878
Construction of this project is anticipated to begin on August 10, 2026, and to be completed by September 14, 2026.
FISCAL IMPACT
The Mark Green Sports Center AHU Replacement, City Project No. 26-20, in the amount of $140,878, will be funded with $130,069 in CDBG-Fund monies (Account Number 231- 92620-57125) and $10,809 in General Fund monies (Account 110-92620-54125).
Agenda Item No. 4.12
City Council Staff Report Page 3 of 3 June 23, 2026
RECOMMENDATION
Staff recommends that the City Council adopt a Resolution:
1. Approving the award of a construction contract to the low bidder, Galaxy Services dba Galaxy Heating & Air Conditioning, in the amount of $138,800, for the installation of the Mark Green Sports Center AHU Replacement, City Project No. 26-20; and
2. Approving a total construction budget, including contingency, in the amount of $140,878.
Prepared by: Jose Gutierrez, Supervising Construction Inspector Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Attachment 1 – Notice of Bid
2. Draft Resolution
3. Exhibit A – Bid Summary