City Council Agenda Report
Meeting Date: December 16, 2025
From: Daniel S. Wall, P.E., Director of Public Works-City Engineer Department: Public Works
Submitted by: Carlos Velazquez, Assistant Engineer
Subject
Contract with Western Allied Corporation for West Wing HVAC Replacement – Contract No. 20260102
Recommendation
A. Find that the proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because the project consists of a full replacement of the existing HVAC main unit on the West Wing of the City Hall Structure and involves negligible or no expansion of an existing use; B. Accept the bid proposal from Western Allied Corporation as the lowest responsive and responsible bidder, and reject all other bids;
C. Approve and authorize the City Administrator to execute a contract with Western Allied Corporation for West Wing HVAC Replacement, in substantially the same form as submitted, in an amount not-to-exceed $215,750; and
D. Authorize a contingency amount of ten percent (10%) or $21,575 in the event of an unexpected changed condition in the Project, and grant authority to the City Administrator to issue change orders for an amount up to the contingency amount, if necessary.
Background
The existing HVAC main unit serving the West Wing of City Hall was installed in the late 1990s and has not been replaced since. Over time, the system has experienced significant wear and deterioration, resulting in decreased performance and component failure. Currently, the unit operates with only one of its four compressors, which causes it to overheat and shut down frequently. The typical service life for a unit of this size is approximately 15 to 20 years; therefore, it has exceeded its expected lifespan and is due for replacement with a new main unit.
On August 27, 2025, the Public Works Department advertised the Notice Inviting Bids (NIB) for Contract No. 20260102 – West Wing HVAC Replacement in accordance with Vernon Municipal Code (VMC) Section 3.32.070(A) for competitive bidding. The NIB was posted on the City's PlanetBids website. The Department utilized the template Notice Inviting Bids, Bid form, Project Specifications, Instruction to Bidders, and Specifications and Contract forms approved by City Council. The bids for Contract No. 20260102 were received and opened on September 23, 2025.
The calculated results are as follows:
1. Western Allied Corporation $215,750.00
2. KMA HVAC & Construction Inc. $234,000.00
3. United Mechanical Contractors $239,000.00
4. AC Pros. Inc. $239,180.00
5. Trane US Inc $243,310.00
6. Pacific West Industries $245,500.00
7. Harbor Pointe $251,977.40
8. CE Mechanical Inc. $270,000.00
9. Southwest Mechanical Inc. $299,550.00
10. Simco Mechanical Inc. $326,500.00
11. Arctic Cooling Systems Disqualified
Public Works staff reviewed the bids and deemed that the bid received by Western Allied Corporation is the lowest responsive and responsible bid. Based on a thorough bid evaluation, and bid results, staff recommends award of the proposed Contract to Western Allied Corporation.
Council approval is required pursuant to VMC Section 3.32.030(A) as the contract exceeds $100,000.
The proposed contract has been reviewed and approved as to form by the City Attorney's Office.
Fiscal Impact
The fiscal impact is not-to-exceed $237,325, including a ten percent (10%) contingency if needed. Sufficient funds are available in the General Fund, Public Works Department, Facilities Maintenance, Capital Outlay Account No. 011-040-415-660000 for the current fiscal year.
Attachments
1. Contract with Western Allied Corporation