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APPROVE MOTION TO AUTHORIZE CONTRACT CHANGE ORDER NO. 3 FOR ON-CALL HEATING, VENTILATION, AND AIR CONDITIONING EQUIPMENT REPAIR AND MAINTENANCE SERVICES (CITY OWNED FACILITIES)
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to authorize Contract Change Order No. 3, in the amount of $225,000, 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.
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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 provides for on-call responses to repairs and maintenance of approximately 500 HVAC units throughout City-owned facilities.
On March 26, 2025, Public Works executed Contract Change Order (CCO) No.1, in the amount of $190,000, with American Chiller Service, Inc., to provide maintenance and repair services to the boiler and the cooling tower at City Hall.
On June 24, 2025, by Motion No. 2025-06-24-1214, Council approved CCO No. 2, in the amount of $561,230, to provide additional work on the cooling tower at the Police Department Operations (PD Ops) building, and 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.
CCO No. 3 will provide additional repair and replacement work at the Municipal Utilities Department (MUD) Regional Wastewater Control Facility (RWCF) and MUD’s Delta Water Treatment Plant (DWTP).
It is recommended that Council approve a motion to authorize CCO No. 3, in the amount of $225,000, with American Chiller Service, Inc. for the On-Call HVAC Equipment Repair and Maintenance Services, Project No. OM-24-012 (Attachment A). The revised contract amount will be $1,876,230.
DISCUSSION
Background
Public Works is responsible for the maintenance of approximately 500 HVAC units throughout City-owned facilities. 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 provide routine maintenance, troubleshooting, 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 the On-Call HVAC Equipment Repair and Maintenance Services, Project No. OM-24-012. The Service Contract provides for on-call responses to repairs and maintenance of approximately 500 HVAC units throughout City-owned facilities.
On March 26, 2025, Public Works executed CCO No. 1, in the amount of $190,000, with American Chiller Service, Inc., to provide maintenance and repair services to the boiler and the cooling tower at City Hall.
On June 24, 2025, by Motion No. 2025-06-24-1214, Council approved CCO No. 2, in the amount of $561,230, to provide additional work on the cooling tower at the PD Ops building, 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. CCO No. 2 also increased the annual contract amount to provide additional maintenance and repair services to maintain the functional operation of individual systems at City-owned facilities.
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
Due to the corrosive conditions at MUD’s RWCF and the aging infrastructure at MUD’s DWTP, the demand for HVAC maintenance services has exceeded the current contract capacity.
HVAC systems at the RWCF operate in a highly corrosive environment due to the presence of airborne chemicals and gases associated with wastewater treatment processes. These conditions accelerate the deterioration of mechanical and electrical components. As a result, HVAC systems at the RWCF require more frequent inspections, ongoing maintenance, and timely repairs to remain operational.
In addition, the HVAC systems at the DWTP are aging and require increased maintenance support to ensure continued reliability. As equipment reaches the end of its useful life, the frequency of service calls, repairs, and parts replacement has increased. Proactive maintenance is necessary to sustain system performance and avoid unplanned failures.
CCO No. 3 will provide additional repair and replacement work at the MUD’s RWCF and MUD’s DWTP.
It is recommended that Council approve a motion to authorize CCO No. 3, in the amount of $225,000, with American Chiller Service, Inc. for the On-Call HVAC Equipment Repair and Maintenance Services, Project No. OM-24-012 (Attachment A). The revised contract amount will be $1,876,230.
FINANCIAL SUMMARY
The increase in the Service Contract will be divided amongst the remaining fiscal years of the contract with American Chiller Service, Inc. in the following amounts:
Fiscal Year 2025-26 $ 25,000
Fiscal Year 2026-27 $100,000
Fiscal Year 2027-28 $100,000
Sufficient funding for the annual increases is available in the RWCF Modify Project - PDB, Project No. UW16022.
Attachment A - CCO No. 3 with American Chiller Service, Inc.