City Council Staff Report Page 1 of 2 July 14, 2026
Staff Report
Agenda Item No. 5.4
DATE: July 14, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Approving the Award of a Contract to American Mechanical, Inc., in the Amount of $493,230, and Approving a Total Installation Budget in the Amount of $517,892, for the City Hall – Data Center Battery Back Up & AC Repairs, City Project No. 23-16
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution approving the award of a contract to American Mechanical, Inc., in the amount of $493,230, and approving a total installation budget in the amount of $517,892, for the City Hall – Data Center Battery Back Up & AC Repairs, City Project No. 23-16.
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
The Uninterruptible Power Supply (UPS) system and air conditioning (AC) units for the City Hall & Police Department Data Center have reached the end of life. The City has experienced multiple hardware failures with the AC units and the UPS generator for the last three years. The equipment used at City Hall went out of commercial support in 2022, and product support will end in 2025. It has become increasingly more difficult to find parts for the current hardware. If the AC units fail, the data center reaches temperatures exceeding 110 degrees Fahrenheit within hours, causing equipment to shut down automatically to prevent failure.
DISCUSSION
On April 13, 2026, the project was formally bid in compliance with the Public Contract Code. Four bids were received and were publicly opened on June 30, 2026, at 2:00 p.m. in City Hall (see Exhibit A).
Agenda Item No. 5.4
City Council Staff Report Page 2 of 2 July 14, 2026
American Mechanical, Inc., of Walnut Creek, California, submitted the lowest responsible bid of $493,230. The bid is approximately 20% above the Engineer’s Estimate of $410,000. The four bids received demonstrate a competitive bidding process, with the three lowest bids differing by approximately 6%.
The recommended installation budget is as follows:
Contract Amount $493,230
Contingency (~5% of Contract) $24,662
Total Estimated Cost $517,892
The project includes replacing the existing server room battery backup, UPS, and air conditioning system for the data center housing the infrastructure servers, network equipment, and data storage units.
Work for this project is anticipated to begin in Winter 2026/2027 due to long lead times on equipment and will be completed by Spring 2027.
FISCAL IMPACT
The City Hall – Data Center Battery Back Up & AC Repairs, City Project No. 23-16, in the amount of $517,892, will be funded with General Fund monies (Account Number 110- 92316-57125). This project is budgeted in the Five-Year Capital Improvement Plan, Fiscal Years 2025-2026 to 2029-2030.
RECOMMENDATION
Staff recommends that the City Council adopt a Resolution:
1. Approving the award of a contract to the low bidder, American Mechanical, Inc., in the amount of $493,230, for the installation of the City Hall – Data Center Battery Back Up & AC Repairs, City Project No. 23-16; and
2. Approving a total installation budget, including contingency, in the amount of $517,892.
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