Agenda Item Wording:
title
Award annual contract for HVAC maintenance and on-call repair services at Visalia Water Reclamation Facility - Authorize the City Manager to award a one-year contract, with four annual renewal options, to New England Sheet Metal and Mechanical Co., with an annual not-to-exceed amount of $27,000 and a total contract limit of $135,000 over the five-year term.
body
Agenda Date: 11/02/2026
Prepared by:
Rehana Lustyan, Senior Project Manager, Rehana.Lustyan@visalia.gov - 559-713‑4176
Ben Litwack, Public Works Manager, Ben.Litwack@visalia.gov - 559-713-4671
Department Recommendation:
Staff recommends that the City Council authorize the City Manager to award a one-year contract, with four annual renewal options, to New England Sheet Metal and Mechanical Co. of Fresno, CA for HVAC maintenance and on-call repair services at the Visalia WRF. The recommended contract will have an annual not-to-exceed amount of $27,000, with a total contract limit of $135,000 over the five-year term.
Summary:
The City issued Request for Bids (RFB) 25-26-01 to establish a new annual contract for HVAC preventative maintenance and on-call repair services at the Visalia WRF. The facility contains fifty-five (55) units spread across a variety of buildings that directly support treatment plant functions.
Bids were due on September 24, 2026, and New England Sheet Metal and Mechanical Co. submitted the lowest responsive and responsible bid of $22,155 (per year). Staff verified all mandatory licensing, California Department of Industrial Relations (DIR) registration, and bid completeness.
To structure this competitive solicitation, the bid sheet explicitly required vendors to submit fixed pricing across three core categories: Item 1 for standard quarterly scheduled preventative maintenance, Item 2 for regular on-call repair service labor hourly rates, and Item 3 for a flat emergency call-out fee covering mobilization and the first hour of emergency response. This bidding framework was specifically developed based on the facility's historical maintenance and repair patterns, where up until now, the Plant relied on issuing short-term emergency Purchase Orders for individual HVAC equipment breakdowns on a reactive basis.
Setting the contract not to exceed amount of $27,000 (annually) is aligned with historical expenditures. While recent practice has resulted in primarily reactive repairs totaling $32,268.81 in 2024, $14,664.00 in 2025, and $31,386.00 in 2026 thus far, formalizing a preventative maintenance program should result in more proactive and timely repairs, minimizing emergency call-outs and more extensive repairs. The contract will also allow for a more streamlined approach to procuring repair work in a timely fashion, and in accordance with the City’s Purchasing Policy.
Background Discussion:
The Visalia WRF features a diverse and critical inventory of fifty-five (55) HVAC systems located across a wide variety of buildings throughout the facility. These units include specialized Mitsubishi VRF networks, water-cooled chillers, glycol chillers, rooftop package units, mini-splits, exhaust fans, and refrigerated dryers. This contract and preventative maintenance schedule are critical to ensuring that the buildings facilitating wastewater treatment operations remain at the proper temperatures. Effective temperature regulation allows wastewater treatment processes to function successfully and keeps accompanying machinery in controlled environments that maximize performance and extend operational shelf life.
Historically, the facility has not had a structured, long-term HVAC maintenance agreement in place. Visalia WRF operations have only been able to handle equipment upkeep through reactive, short-term emergency contracts to service equipment when failures occur. Operating strictly under emergency call-outs is inherently expensive and unpredictable.
Review of historical City expenditures highlights the costly nature of this reactive approach. Moving forward under this proactive and comprehensive contract structure, the City will be able to reduce and minimize emergency issues. These HVAC units exist in a highly corrosive environment from wastewater gases generated at the WRF, and are subject to the extreme summer heat typical of the climate in Visalia. This aggressive combination accelerates wear and tear, significantly shortening equipment life and driving up repair costs.
Therefore, implementing an ongoing preventative maintenance program alongside on-call and emergency services will greatly reduce the overall lifecycle expenses of these HVAC systems. Because these specialized systems function as an interconnected grid across the facility, the City cannot efficiently bid individual systems or buildings separately. Instead, staff bundled these units into a single package to maximize purchasing leverage and secure uniform service standards across all WRF units.
The City advertised RFB 25-26-01 on August 6 and August 11, 2026. The contract provides for an initial twelve-month term with the City's option to renew for four additional one-year periods. Renewals are subject to annual price adjustments tied to the Consumer Price Index (CPI-U U.S. City Average, All Items), capped at a maximum of 5% per year.
Bids were closed on September 24, 2026, with the following totals:
|
Bidder |
Location |
Total Bid |
|
New England Sheet Metal & Mechanical Co. |
Fresno, CA |
$22,155 |
|
ACCO Engineered Systems |
Fresno, CA |
$39,850 |
|
BMI Mechanical |
Tulare, CA |
$44,237.50 |
|
Emcor Services |
Fresno, CA |
$56,490 |
|
Arctic Sparks Controls |
Fowler, CA |
$54,284.40 |
|
Johnson Controls |
Fresno, CA |
$81,540 |
Note: The base bid total is an evaluation calculation multiplying fixed unit pricing against estimated operational quantities (55 units across 4 annual cycles, 40 on-call hours, and 5 emergency call-outs) used to normalize the competitive bid structures across all vendors.
New England Sheet Metal & Mechanical Co. is the lowest responsive, responsible bidder. The firm holds a valid C-20 classification license, is actively registered with the DIR, and cleared all public references.
Fiscal impact including annual maintenance and operating costs:
The contractor's bid amount of $22,155 included both fixed and potentially variable costs. To provide an operational buffer for any variable material costs, unexpected component failures, compounding inflation, and potential ongoing CPI increases, Staff is requesting an annual not-to-exceed (NTE) limit of $27,000, and $135,000 over the total potential five-year contract. This will help cover any more frequent consumable item replacements, such as high-wear filters and drive belts, which are inspected during scheduled maintenance but billed separately from the fixed quarterly maintenance activity.
Adequate funding is available in the Wastewater Operations Division 4332-55100 to support this annual contract.
Prior Council Action:
None
Alternatives:
1. Reject all bids and re-advertise.
Not recommended; competitive bids were received, and award is needed for operational reliability.
2. Delay award.
Not recommended; lack of a current HVAC maintenance contractor affects critical infrastructure performance, including laboratory operations and process equipment cooling.
Recommended Motion (and alternative motions if expected):
recommendation
I move to authorize the City Manager to award a one-year contract, with four annual renewal options, to New England Sheet Metal and Mechanical Company for HVAC maintenance and on-call repair services at the Visalia WRF with an annual not-to-exceed amount of $27,000 and a total contract limit of $135,000 over the five-year term.
Environmental Assessment Status:
N/A
California Environmental Quality Act (CEQA) Review:
This action does not constitute a project under CEQA pursuant to PRC §21065 and CEQA Guidelines §15378.
HVAC maintenance services are categorically exempt under CEQA Guidelines §15301 (operation and maintenance of existing facilities).
No further environmental review is required.
Deadline for Action: 11/02/2026
Attachments:
1. RFB 25‑26‑01 with all Exhibits and Addenda Nos. 1-2 and their exhibits
2. Bid Tabulation Summary for RFB 25‑26‑01
3. New England Sheet Metal & Mechanical Co. Bid Packet
4. Project Agreement
5. Consultant Disclosure Form
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Select all that apply.
|
□  Economic Vitality |
■  Organizational Excellence |
■  Fiscal Strength |
■  Infrastructure & Growth |
□  Quality of Life |