TO: ADAM PIRRIE, CITY MANAGER
FROM: JEREMY SWAN, COMMUNITY SERVICES DIRECTOR
DATE: JUNE 9, 2026
Reviewed by:
City Manager: AP
SUBJECT:
Title
AUTHORIZATION TO ENTER INTO AN AGREEMENT WITH FIRST CLASS HEATING AND AIR CONDITIONING, INC. FOR EMERGENCY HEATING, VENTILATION, AND AIR CONDITIONING REPAIR SERVICES AT THE ALEXANDER HUGHES COMMUNITY CENTER (FUNDING SOURCE: GENERAL FUND)
Body
SUMMARY
On April 19, 2026, a planned electrical outage affected the electrical service at the Alexander Hughes Community Center. As a result, several heating, ventilation, and air conditioning (HVAC) units ceased working and smoke filled the building. Due to the potential for unknown damage and the need for immediate repair, City staff engaged First Class Heating and Air Conditioning, Inc. (First Class) for emergency repair services. First Class performed the work between April 19 and April 26, 2026.
In addition, on May 3, 2026, an unplanned electrical outage occurred that affected the electrical service at the Alexander Hughes Community Center. As a result, HVAC units ceased working again. City staff engaged First Class for emergency repair services. First Class performed the work between May 3 and May 9, 2026.
Staff recommends authorizing the City Manager to execute an agreement with First Class Heating and Air Conditioning, Inc. for the emergency repair work and authorizing an appropriation of funds from the unassigned General Fund balance to cover the repair costs.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Authorize the City Manager to execute an agreement with First Class Heating and Air Conditioning, Inc. in the amount of $128,967.96 for emergency HVAC repair services; and
B. Appropriate $128,967.96 from the unassigned General Fund balance to fully fund the agreement.
Body
ALTERNATIVE TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
• Request additional information from staff.
FINANCIAL REVIEW
The cost to perform the emergency HVAC repairs at the Alexander Hughes Community Center is $128,967.96. The City is seeking reimbursement through the Southern California Edison (SCE) claims process, as the emergencies resulted after planned and unplanned SCE outages. Staff recommends appropriating funds from the unassigned General Fund balance while the claim is being processed. Should the City receive reimbursement, the funds will be allocated back to the unassigned General Fund balance.
This agreement is a sole-source agreement due to the emergency nature of the repairs. The agreement does not require bidding and complies with all City purchasing guidelines. Contract documents are available for review in the City Clerk's office.
The staff cost to prepare this report and administer this contract is estimated at $1,372 and is included in the operating budget of the Community Services Department.
ANALYSIS
During a planned power outage at the Alexander Hughes Community Center on April 19, 2026, several HVAC systems experienced a power issue resulting in smoke entering the building. All HVAC systems were diagnosed and needed to be repaired to reopen the building. Additionally, on May 3, 2026, an unplanned power outage occurred that affected the Alexander Hughes Community Center and resulted in several HVAC systems experiencing issues. As a result, City staff contacted First Class Heating and Air Conditioning, Inc. to begin diagnosing and repairing the damaged HVAC equipment.
The City’s Purchasing, Bidding, and Contracting Policy states: “When the City Manager determines that it is in the best interest of the City to shorten the selection process in order to begin work immediately on the City’s project or retain a consultant who is already familiar with the City’s project, the City Manager has the authority to waive any step in the selection process.” In this case, the City Manager determined that emergency repairs were in the best interest of the City to expedite the reopening of the facility.
At the City Manager’s direction, staff solicited a sole-source quotation from First Class Heating and Air Conditioning, Inc. for the emergency diagnosis and repair. First Class is the current provider of ongoing HVAC preventative maintenance and repair services for all City buildings.
As standard practice, all purchases over $50,000 are brought before the City Council for review and approval. This report completes the approval process, allowing the City to render payment to the contractor for emergency repairs already completed.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Sustainable City Plan, Economic Sustainability Plan, General Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by:
Jeremy Swan
Community Services Director