title
APPROVE MOTION TO AUTHORIZE CONTRACT CHANGE ORDER NO. 2 FOR ON-CALL HEATING, VENTILATION, AND AIR CONDITIONING EQUIPMENT REPAIR AND MAINTENANCE SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to authorize Contract Change Order No. 2, in the amount of $561,230, with American Chiller Service, Inc. of Modesto, CA, for the On-Call Heating, Ventilation, and Air Conditioning Equipment Repair and Maintenance Services, Project No. OM-24-012.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
body
Summary
On January 9, 2024, by Motion No. 2024-01-09-1210, Council awarded a Service Contract, in the amount of $900,000 to American Chiller Service, Inc. of Modesto, CA, for the On-Call Heating, Ventilation, and Air Conditioning (HVAC) Equipment Repair and Maintenance Services, Project No. OM-24-012. The Service Contract included on-call responses to repairs of approximately 500 HVAC units throughout City-owned facilities.
On March 26, 2025, Public Works executed Contract Change Order (CCO) No.1 with American Chiller Service, Inc. of Modesto, CA, to provide maintenance and repair services to the boiler feed tank at City Hall.
CCO No. 2 will provide additional work on the cooling tower at the Police Department Operations (PD Ops) Building, the replacement of the boiler feed tank at City Hall and address additional maintenance and repair services to maintain the functional operation of individual systems at City-owned facilities.
It is recommended that Council approve CCO No. 2 in the amount of $561,230 with American Chiller Service, Inc. for the On-Call HVAC Equipment Repair and Maintenance Services project (Attachment A). The revised contract amount will be $1,651,230.
DISCUSSION
Background
Public Works is responsible for maintenance of approximately 500 HVAC units throughout City-owned facilities. As needed, HVAC maintenance and repair services are required to maintain the functional operation of individual systems at each location. Public Works does not have sufficient staffing to support routine maintenance, planned repairs, and emergency repairs at all City facilities.
On January 9, 2024, by Motion No. 2024-01-09-1210, Council awarded a Service Contract in the amount of $900,000 to American Chiller Service, Inc. of Modesto, CA, for as needed HVAC maintenance and repair services.
On March 26, 2025, Public Works executed CCO No. 1, in the amount of $190,000, with American Chiller Services, Inc. to provide maintenance and repair services to the boiler feed tank at City Hall.
In recent years, Public Works has seen an unprecedented number of HVAC units fail completely, requiring emergency repair and equipment acquisition at increased costs. Many of the HVAC units throughout City-owned facilities are at or beyond their life expectancy and now require significant repairs or upgrades beyond standard preventative maintenance. City staffing limitations and increasing material costs have elevated the need for expanded on-call support.
Present Situation
CCO No. 2 provides for replacement of the cooling tower at the PD Ops Building to maintain the cooling system of one-third of the building in the summer. The Historic City Hall building requires replacement of the boiler feed tank, and additional funds are required to accommodate ongoing repair and replacement needs due to increasing service demand and material costs.
Council approval is required for CCO No. 2, in the amount of $561,230, as the cumulative amount exceeds the administrative change order authority allowed under the existing contract.
It is recommended that Council approve CCO No. 2 in the amount of $561,230 with American Chiller Service, Inc. for the On-Call HVAC Equipment Repair and Maintenance Services project (Attachment A). The revised contract amount will be $1,651,230.
FINANCIAL SUMMARY
The Service Contract with American Chiller Service, Inc. for On-Call HVAC Equipment Repair and Maintenance Services, Project No. OM-24-012, is funded from various City department operating accounts and encumbered on a fiscal year basis. Funding for these services will be allocated in the various operating budgets for Fiscal Years 2025-26, 2026-27, and 2027-28.
Attachment A - CCO No. 2 with American Chiller Service, Inc.