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VICTOR VALLEY WASTEWATER RECLAMATION AUTHORITY Board Of Commissioners Staff Report |
| TO: | VVWRA Board of Commissioners |
| FROM: | Darron Poulsen, General Manager |
| SUBMITTED BY: | Ray Lopez, Maintenance Supervisor |
| DATE: | 06/18/2026 |
| SUBJECT: | Recommendation to the Board of Commissioners to authorize the General Manager to approve a 1-year extension to the current HVAC maintenance agreement with FHA Services Inc. The Regional Plant is $116,004 and each Subregional is $12,096 for an amount not to exceed $140,196 for the next fiscal year upon final legal review and approval of the contract.
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| Fiscal Impact | Yes |
| Account Code: | 01-02-535-6060-9999; 01-54-535-6060-9999; 01-55-535-6060-9999 |
| Funds Budgeted/ Approved: | Yes |
STAFF RECOMMENDATION
Staff recommends that the Board of Commissioners authorize the General Manager to approve a one-year extension of the existing HVAC maintenance services agreement with FHA Services Inc., in an amount not to exceed $140,196 for the next fiscal year, subject to final legal review and approval of the contract.
PREVIOUS ACTION(S)
On September 28, 2023, the VVWRA Board of Commissioners awarded a three-year HVAC maintenance services contract to FHA Services Inc. following a competitive Request for Proposals process. VVWRA is now approaching the end of the initial three-year contract term.
BACKGROUND INFORMATION
VVWRA’s Regional Plant contains more than 50 HVAC units, and each of the two subregional facilities contains an additional nine units. These systems require monthly and quarterly preventive maintenance to ensure reliable operation. HVAC equipment is essential for maintaining appropriate temperatures for critical electrical motor control equipment, SCADA systems, the laboratory, and administrative areas. Failures can damage critical assets, resulting in repair or replacement costs in the tens of thousands of dollars. In more severe cases, an HVAC failure could create operational issues that may affect VVWRA’s ability to comply with its operating permits.
VVWRA requires a highly qualified HVAC service provider that understands the critical nature of these systems and the operational challenges of a wastewater treatment environment. The Authority’s HVAC units do not operate under typical office or warehouse conditions. They must perform reliably in environments with elevated moisture levels and airborne particulates that can interfere with normal operation. Materials generated by VVWRA’s treatment processes, combined with dust associated with American Organics’ green waste operations, create conditions that require frequent and thorough preventive maintenance.
On September 28, 2023, the VVWRA Board of Commissioners awarded FHA Services Inc. a three-year HVAC maintenance services contract following a competitive Request for Proposals process. The original contract included two optional one-year extensions, provided that the level of service remained satisfactory and any increase in service costs did not exceed the applicable Consumer Price Index adjustment. Staff is recommending that VVWRA exercise the first optional one-year extension under the terms previously approved by the Board.
During the current three-year contract term, VVWRA has not experienced the significant HVAC failures that occurred in prior years. When issues arise, FHA Services identifies and addresses them promptly before they develop into equipment failures or more costly repairs. Based on the contractor’s performance and the continued need for reliable HVAC maintenance, staff recommends that the Board of Commissioners authorize the General Manager to approve a one-year extension of the existing HVAC maintenance services agreement with FHA Services Inc., subject to final legal review and approval of the contract.
The proposed one-year extension includes $116,004 for the Regional Plant and $12,096 for each of the two subregional facilities, for a total amount not to exceed $140,196 for the next fiscal year.
VVWRA requires a highly qualified HVAC service provider that understands the critical nature of these systems and the operational challenges of a wastewater treatment environment. The Authority’s HVAC units do not operate under typical office or warehouse conditions. They must perform reliably in environments with elevated moisture levels and airborne particulates that can interfere with normal operation. Materials generated by VVWRA’s treatment processes, combined with dust associated with American Organics’ green waste operations, create conditions that require frequent and thorough preventive maintenance.
On September 28, 2023, the VVWRA Board of Commissioners awarded FHA Services Inc. a three-year HVAC maintenance services contract following a competitive Request for Proposals process. The original contract included two optional one-year extensions, provided that the level of service remained satisfactory and any increase in service costs did not exceed the applicable Consumer Price Index adjustment. Staff is recommending that VVWRA exercise the first optional one-year extension under the terms previously approved by the Board.
During the current three-year contract term, VVWRA has not experienced the significant HVAC failures that occurred in prior years. When issues arise, FHA Services identifies and addresses them promptly before they develop into equipment failures or more costly repairs. Based on the contractor’s performance and the continued need for reliable HVAC maintenance, staff recommends that the Board of Commissioners authorize the General Manager to approve a one-year extension of the existing HVAC maintenance services agreement with FHA Services Inc., subject to final legal review and approval of the contract.
The proposed one-year extension includes $116,004 for the Regional Plant and $12,096 for each of the two subregional facilities, for a total amount not to exceed $140,196 for the next fiscal year.
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