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Agenda No. 10.

CITY COUNCIL MEMORANDUM

City Council Meeting:

April 7, 2026

Department:

Facility & Fleet

Subject:

Resolution 26-R-037 - Authorizing the purchase and installation of twenty-six (26) HVAC systems from Way Mechanical (B.James/D.Hardin/C.Lonsberry)

BACKGROUND

The City needs to replace twenty-six (26) pieces of HVAC equipment that are failing or nearing the end of life expectancy. There will be eleven (11) systems replaced at the Recreation Center (YMCA), nine (9) systems replaced at the Schertz Public Library, one (1) system replaced at the Schertz City Council Building, and five (5) systems replaced at the Schertz City Hall. City Hall will also need some extra work performed, which will bring the area the units sit to the current HVAC codes, Electrical codes, Plumbing codes, building safety codes by installing a safety railing and a roof screen.

Staff was initially planning to procure these services using a request for bids, but after reviewing purchasing cooperatives, it was discovered that one had many of the major companies likely to bid on the project. Purchases under the cooperative programs meet the requirements under the Texas Local Government Purchasing Code. The decision was made to get quotes for the work from those vendors through the purchasing cooperatives with the belief this would ensure a number of firms bid on the work and the City received the best pricing. The decision was made to get pricing for the entirety of the work to achieve economies of scale. Way Mechanical, a TIPS purchasing cooperative vendor was selected as their price was more than $150,000 less than the next lowest priced vendor.

GOAL

To obtain authorization to approve an agreement with Way Mechanical to purchase and install twenty-six (26) HVAC systems and to make changes to City Hall to bring them up to current codes.

COMMUNITY BENEFIT

To improve HVAC efficiency across four (4) buildings – City Hall, Council Chambers, Library, and YMCA to lower electrical consumption, replace aging HVAC equipment before the equipment fails and bring our buildings up to current building and trade codes and city ordinances.

SUMMARY OF RECOMMENDED ACTION

Authorize approval of an agreement to purchase twenty-six (26) HVAC systems and installation with Way Mechanical.

FISCAL IMPACT

The quote is $829,472.26 for the purchase and installation of the equipment, plus a 10% contingency for any unknowns, totaling $912,000. These funds were previously approved FY2021-22 through CO22 bond, Energy Efficiency Project.

RECOMMENDATION

Recommendation of approval for Resolution 26-R-037.

Attachments

Resolution 26-R-037 w attachment