TO: LINDA REICH, CITY MANAGER
FROM: SILVIA AVALOS, DIRECTOR OF COMMUNITY SERVICES, PARKS & RECREATION
SUBJECT
title
Award of Contract - Citywide HVAC Preventative Maintenance and Repairs.
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RECOMMENDATION
recommendation
1) Award a contract with C.E. Mechanical Inc., Chino, CA for Citywide Heating Ventilation Air Conditioning (HVAC) Preventative Maintenance and Repairs in the amount of $476,000 for preventative maintenance and $900,000 for repairs for a total not-to-exceed contract amount of $1,376,000 for two and one-half years through June 30, 2028, and two additional one-year options to renew; 2) appropriate $75,000 to the Building Management Fund; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
Requires an additional appropriation of $75,000 from the available Building Management Fund Balance 650. Funding for subsequent years will be requested as part of the annual budget process.
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Initial Six Months Funding Summary for Preventative Maintenance |
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Building Management Fund 650 |
$50,000 |
|
Additional Appropriation from the Building Mgmt. Fund 650 |
$75,000 |
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Total Contract Funding Summary for Initial Six Months |
$125,000 |
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Total Contract Summary |
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Preventative Maintenance Initial Six Months (through FY 2026) |
$125,000 |
|
Preventative Maintenance Year 2 (FY 2026-27) |
$172,000 |
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Preventative Maintenance Year 3 (FY 2027-28) |
$179,000 |
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Repairs (January 2026-June 2028) |
$900,000 |
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Total Two and One-Half Year Contract |
$1,376,000 |
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
• Responsible Long-Range Planning
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Revenue: |
Expenditure: 6508310-43580 and 6508310-43585 |
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Transfer In: |
Transfer Out: |
BACKGROUND
The City of Chino has an HVAC inventory of approximately 130 pieces of equipment to service its facilities. With the exception of the Police facility, no documents have been found regarding a previous HVAC preventive maintenance contract for all other facilities. It is important to have scheduled preventative maintenance on HVAC equipment to properly clean, maintain, and monitor all systems per industry standards. Having a HVAC preventative maintenance contract will benefit the City in several ways, including extending the lifespan of HVAC equipment and better proactive preparation when repairs and replacements are required. It is particularly important now, given that staff is in the preliminary design phase to replace the entire HVAC system at City Hall.
The Fiscal Year 2025-26 Adopted Budget includes funding for Citywide HVAC repair and replacement services only. Although the Community Services, Parks & Recreation Department, Parks and Facilities team is addressing the aging HVAC infrastructure annually, most of the equipment has outlived its lifespan and require reoccurring repairs to keep functioning. Industry standards state the average lifespan of commercial used HVAC equipment is 15-25 years. Staff has identified that 84% of Chino’s HVAC equipment is older than 15 years and 19% is older than 25 years.
ISSUES/ANALYSIS
On July 10, 2025, the City released a Request for Proposals (RFP No. 2025-0015A) for "Citywide HVAC Preventative Maintenance and Repairs" via PlanetBids in accordance with City procurement policies. The City received six proposals by the closing date of August 7, 2025. A review committee, consisting of City staff, evaluated proposals separately to maintain confidentiality and fairness. Staff then scored these proposals using the following weighted criteria:
• Experience/Qualifications: 30%
• Past Performance/References: 20%
• Plan Methodology/Project Approach: 20%
• Quality and Responsiveness of Proposal: 15%
• Cost Evaluation: 15%
Following evaluation, C.E. Mechanical, Inc. received the highest average score and is recommended for contract award. For the past two years, the City has maintained a contract with C.E. Mechanical, Inc. for citywide HVAC repairs only. Throughout their tenure with the City, C.E. Mechanical, Inc. has consistently provided a reliable and satisfactory level of repair service.
On July 10, 2025, the City released a Request for Proposals (RFP No. 2025-0015A) for "Citywide HVAC Preventative Maintenance and Repairs" via PlanetBids in accordance with City procurement policies. The City received six proposals by the closing date of August 7, 2025. A review committee, consisting of City staff, evaluated proposals separately to maintain confidentiality and fairness. Staff then scored these proposals using the following weighted criteria:
• Experience/Qualifications: 30%
• Past Performance/References: 20%
• Plan Methodology/Project Approach: 20%
• Quality and Responsiveness of Proposal: 15%
• Cost Evaluation: 15%
Following evaluation, C.E. Mechanical, Inc. received the highest average score and is recommended for contract award. For the past two years, the City has maintained a contract with C.E. Mechanical, Inc. for citywide HVAC repairs only. Throughout their tenure with the City, C.E. Mechanical, Inc. has consistently provided a reliable and satisfactory level of repair service.
Evaluation Results:
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RANKING |
CONTRACTOR |
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1 |
C.E. Mechanical, Inc. |
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2 |
EMCOR Services Mesa Energy Systems |
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3 |
ACCO Engineered Systems, Inc. |
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4 |
Artic Cooling Systems |
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5 |
Diversified Thermal Services, Inc. |
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6 |
Johnson Controls, Inc. |
Staff requests City Council approval to award a contract to C.E. Mechanical, Inc. for Citywide HVAC Preventative Maintenance and Repairs, in the amount not-to-exceed of $1,376,000 for two and one-half years through June 30, 2028, with two additional one-year options to renew.
Attachment: C.E. Mechanical, Inc. Agreement