City Council Agenda Report
Meeting Date: October 20, 2026
From: Daniel S. Wall, P.E., Director of Public Works-City Engineer Department: Public Works
Submitted by: Rosemary Lozada, Management Analyst
Subject
Services Agreement with Western Allied Corporation for On-Call Heating, Ventilation, and Air Conditioning (HVAC) Services
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 on-call repairs of the existing HVAC units at various City of Vernon locations and involves negligible or no expansion of an existing use; and B. Approve and authorize the City Administrator to execute a Professional Services Agreement with Western Allied Corporation, in substantially the same form as submitted, for on-call HVAC services for a total amount not-to-exceed $250,000, for a three-year term.
Background
The City of Vernon (City) is responsible for maintaining a wide range of facilities, including residential and municipal buildings that rely heavily on properly functioning HVAC systems.
These systems are essential for maintaining safe, habitable, and operational environments for the public, residents, and staff. These services will protect City assets, ensure continuity of operations, and maintain safe environments. The work is typically time-sensitive and a contractor with a history of successfully and efficiently performing HVAC services on an as-needed basis is necessary.
On July 28, 2026, the Public Works Department advertised the Request for Proposals (RFP) for On-Call HVAC services in accordance with Vernon Municipal Code (VMC) Section 3.32.080 for competitive selection. The RFP was posted on the City's PlanetBids website and two proposals were received. The evaluation panel reviewed and rated the proposals and recommends award of the proposed contract to Western Allied Corporation (Western Allied). As required by the VMC Section noted above, proposals were rated on weighted selection factors including demonstrated competence and qualifications, costs and fees, responsiveness to the RFP and provided references. Although Western Allied’s hourly rates are higher, the proposal from Western Allied consistently rated higher than the second proposal received. Western Allied possesses the necessary qualifications and is capable of performing the on-call HVAC services desired.
Western Allied has extensive experience providing services for commercial HVAC systems while also possessing the ability and staffing to service residential HVAC systems. In addition, Western Allied previously completed the replacement of the City’s 50-ton HVAC unit, providing the City with direct experience evaluating the workmanship and service capabilities.
City 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.
Strategic Plan Goals
Goal 4: Enhance Community Infrastructure and Facilities Fiscal Impact
The fiscal impact is estimated at $250,000. Sufficient funds are available in the General Fund, Public Works Department, Facilities Maintenance, Repairs and Maintenance Account No. 011- 040-415-529000 and the General Fund, Public Works Department, City Housing, Repairs & Maintenance Account No. 011-040-410-529000 for the current fiscal year.
Attachments
1. Services Agreement with Western Allied