Julian Lee, Director of Public Works
Joseph Cisneros, Deputy Director of Public Works
Christopher Diaz, Superintendent of Public Works
APPROVAL OF A FIRST AMENDMENT TO EXTEND THE MAINTENANCE AGREEMENT WITH ACCO ENGINEERED SYSTEMS, INC. FOR HVAC MAINTENANCE AND REPAIR SERVICES AND INCREASE THE COMPENSATION FOR THE EXTENDED TERM; RATIFY THE EMERGENCY HVAC SERVICES AND FIND THAT EXTENSION OF THE AGREEMENT IS IN THE BEST INTEREST OF THE CITY
It is recommended that the City Council:
- Approve the First Amendment (Attachment 1) to the Maintenance Agreement with ACCO Engineered Systems, Inc. (Attachment 2), extending the term through June 30, 2027, incorporating the Fiscal Year (FY) 2026–27 rates, and increasing the agreement maximum by $209,715.94, from $150,000 to a cumulative amount not to exceed $359,715.94, including $58,647.94 for urgent HVAC services performed in July 2026 and $151,068.00 in contract authority for routine maintenance and future on-call repairs for the remainder of FY 2026–27; authorize the City Manager to execute the amendment, subject to approval as to form by the City Attorney;
- Ratify emergency HVAC services performed in July 2026 in an amount not to exceed $58,647.94; and
- Find that extension of the Agreement with ACCO Engineered Systems, Inc., for an additional year without competitive bidding is in the best interest of the City to ensure continued HVAC maintenance and repair services based on operational continuity and ACCO’s familiarity with the City’s Pelican control system.
The City contracts with ACCO Engineered Systems, Inc. (ACCO) for heating, ventilation, and air conditioning (HVAC) preventive maintenance, water-treatment support, diagnostics, repairs, and on-call services at City facilities. The original agreement covered Fiscal Year 2025–26, had a not-to-exceed amount of $150,000, through June 30, 2026. Staff recommends a one-year extension through June 30, 2027, incorporating ACCO’s updated rates and ratifying urgently required work performed in July 2026 after the original agreement end date as the City do not have an active agreement at this time. The proposed amendment would add $209,715.94 and establish a cumulative agreement maximum of $359,715.94. Before the extension ends, staff intends to conduct a competitive procurement for a new three-year HVAC maintenance and repair agreement.
On July 1, 2025, the City entered into a Maintenance Agreement with ACCO for HVAC maintenance and repair services pursuant to an informal cost comparison process based on contractor rates and ACCO’s specialized expertise with the City’s Pelican Wireless climate management system. The agreement established a $150,000 maximum for services through June 30, 2026. The planned annual program included monthly cooling-tower service, quarterly facility HVAC inspections, and an allowance for call-out work and repairs.
The original agreement expired on June 30, 2026, and the City does not currently have an active contract for ongoing HVAC maintenance and repair services. Because HVAC support is necessary to maintain safe and functional City facilities, ACCO continued responding to urgent service needs in July 2026 while staff prepared the proposed one-year extension.
ACCO provides HVAC maintenance, repair, retrofit, engineering, energy-management, and building-controls services. As the installer of the City’s Pelican climate-control system, ACCO is familiar with its configuration, connected HVAC equipment, and operating history. This specialized knowledge allows ACCO to efficiently diagnose issues, make compatible adjustments, and maintain continuity between system monitoring, maintenance, and repairs.
Following expiration of the agreement, multiple HVAC failures and operational issues arose at the War Memorial Building, Fire Department, City Hall, Police Station, and other City facilities. Staff directed ACCO to respond promptly to maintain cooling, protect equipment, and preserve the safe and continuous operation of essential public facilities. Urgent HVAC services performed in July 2026 totaled $58,647.94. The work addressed active cooling failures, leaks, control and mechanical-system issues, and related conditions at occupied City facilities. Delaying the work could have caused additional equipment damage, disruption of facility operations, and unsafe or unsuitable indoor conditions for employees and the public. Staff therefore recommends that the City Council ratify these services.
Staff recommends that the City Council find that the proposed one-year extension with ACCO to maintain continuity of essential HVAC services is in the best interest of the City and therefore is not subject to competitive bidding. In this case, ACCO is familiar with the City’s facilities, equipment, service history, and Pelican climate-control system, allowing the contractor to respond efficiently while minimizing service disruptions and transition costs. This extension is intended as an interim measure. Before the agreement expires on June 30, 2027, staff will issue a competitive Request for Proposals for HVAC maintenance and repair services for a new three-year agreement.
Fiscal Year 2026–27 Services and Rates
ACCO proposed updated rates for Fiscal Year 2026–27 (Attachment 3). Routine service costs increase from $35,604 to $36,672 annually. In addition to the $46,235 in urgent HVAC services performed in July 2026, staff recommends establishing $151,068 in additional contract authority for routine maintenance and future on-call repairs for the remainder of Fiscal Year 2026–27. This amount includes $36,672 for routine maintenance and a $114,396 allowance for future call-out work.
Amendment Amount
|
Component |
Provisional Amount |
|
July 2026 urgent HVAC services |
$58,647.94 |
|
Remaining FY 2026–27 routine and future call-out authority |
$151,068.00 |
|
Proposed increase |
$209,715.94 |
|
Original agreement maximum |
$150,000.00 |
|
Amended cumulative maximum |
$359,715.94 |
The amendment would increase the agreement by $209,715.94, consisting of $58,647.94 for urgent HVAC services performed in July 2026 and $151,068.00 in additional authority for routine maintenance and future on-call repairs for the remainder of FY 2026–27. The amendment would result in a cumulative agreement maximum of $359,715.94 through June 30, 2027.
Sufficient funding for these services has been identified in the Adopted FY 2026-27 Budget using GL account 105-6010-6601-8180 Facilities Maintenance and Improvement Fund, Contract Services.