MEETING DATE:
June 23, 2026
SUBJECT:
Title
RESOLUTION NO. 2026-9622 - AWARDING A CONTRACT FOR SAFETY CENTER HVAC REPLACEMENT TO JACKSON & BLANC
Body
Recommendation
Recommendation
ADOPT a resolution awarding a contract for Safety Center HVAC replacement at 187 Santar Dr (Safety Center) and delegating authority to the City Manager to negotiate, finalize, and execute the contract and related change orders as needed with Jackson & Blanc.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Good Governance
Relevant Department Goal
Not Applicable
Executive Summary
The City of San Marcos owns and operates the building located at 187 Santar Place, known as the Safety Center. The Center is used by the Fire Department for training purposes, and most of the building is also leased by the San Diego County Sheriff Department, San Diego County Regional Gang Task Force, and Palomar College. The Safety Center building is part of the City’s revenue-generating Enterprise Real Estate Portfolio, which contributes non-tax revenue towards the City’s General Fund. As part of upkeep and maintenance duties associated with being a commercial real estate operator, a replacement of one of the HVAC unit past its useful life is required in line with the lease terms as an owner maintenance obligation. The budget for the work has been included in the requested FY 2025-26 Adopted Annual Operations & Capital Improvement Program Budget. The project will ensure compliance with lease terms as a landlord, maintain marketability of the spaces, and also result in long-term cost savings as current repairs result in significant costs to the City.
On behalf of the City, the City’s real property management consultant initiated a request for proposal (RFP) for the HVAC replacement on April 17, 2026, which resulted in two (2) bids.
Staff reviewed the proposals and seek City Council approval to award the contract to Jackson & Blanc for an HVAC replacement at the Safety Center (187 Santar Place), and to authorize the City Manager to negotiate, finalize, and execute contract documents.
Discussion
The City operates a real estate portfolio as part of the fulfillment of Section 203 of the San Marcos Charter, which emphasizes enterprise activities designed to produce non-tax revenue sources. The City leases out portions of the Safety Center building (187 Santar Place) to the County for operation of the North County Gang Task Force, the County of San Diego sheriff’s office for the operation of the San Marcos substation, and Palomar College relating to the Fire Training Academy. The proceeds from the leases contribute revenue towards the City’s General Fund each year. As a commercial real estate operator, the City is required to maintain equipment shared by all tenants of the buildings for safety, reliability, and legal purposes.
A request for proposal (RFP) an HVAC unit replacement at the Safety Center was issued on April 17, 2026 to replace a failing unit past its useful life. The unit is faulty and often results in costly repairs and equipment outages. The request for proposal was advertised by IDS Real Estate, as the City’s real property management consultant, on behalf of the City. Subsequently, two (2) bids were received. Of the two bids, Jackson & Blanc was deemed to be a qualified firm for the work and within the budget allocated for the project.
The proposal outlined the work needed, and the replacement of the failing unit will fulfill requirements of the City as the landlord to maintain facilities that are safe, well-maintained, and in good working order. The work will also result in a unit that is more energy efficient, resulting in savings for the City’s share of the space as well as savings for the City’s tenants. The tenant share of the costs are also recoverable via amortized Common Area Maintenance (CAM) charges, per the lease terms with tenants.
Appropriation has been requested in the FY 2025-26 Operations and Capital Improvement Program budget. The requested budget is sufficient to cover the proposed contract with Jackson & Blanc, as well potential change orders, additional support work, labor compliance, and other project-related items. Staff reviewed the proposal for the project and seeks City Council approval to award the HVAC replacement contract to Jackson & Blanc in the amount of $755,136 for replacement of an HVAC unit at the Safety Center, and to authorize the City Manager to negotiate, finalize, and execute an agreement and related change orders as needed with Jackson & Blanc.
Environmental Review
Not applicable.
Fiscal Impact
The funding for the contract is requested in the Fiscal Year 2025-26 Adopted Annual Operations & Capital Improvement Program Budget as building improvement costs in the Real Property Management Fund (605). The contract award does not result in a change to the overall Real Property Management Fund Budget.
Attachment(s)
Resolution
Prepared by: Janet Brotherton, Budget and Analysis Manager
Submitted by: Janet Brotherton, Budget and Analysis Manager
Reviewed by: Donna Apar, Finance Director
Approved by: Michelle Bender, City Manager