MEETING DATE:
April 28, 2026
SUBJECT:
Title
RESOLUTION NO. 2026-9573 - AWARDING A CONTRACT TO TRANE U.S. INC. FOR HVAC EQUIPMENT PROCUREMENT FOR THE SHARED CORKY SMITH GYM AND BOYS & GIRLS CLUB HVAC SYSTEM AND APPROVING A FUND TRANSFER FROM THE CITY INFRASTRUCTURE REPLACEMENT/REHABILITATION FUND (604) TO THE FACILITIES REPLACEMENT/REHABILITATION FUND (603)
Body
Recommendation
Recommendation
ADOPT a resolution awarding a contract to Trane U.S. Inc., utilizing the OMNIA Partners Cooperative Contract No. 3341 (OMNIA Racine #3341), for the procurement of HVAC equipment for the Corky Smith Gym HVAC Upgrades Project, which serves both Corky Smith Gym and the Boys & Girls Club, in an amount not to exceed $1,275,000, and authorize the City Manager to negotiate, finalize, and execute the contract and any related documents.
APPROVE a transfer of up to $275,000 from the City Infrastructure Replacement/Rehabilitation Fund (604) to the Facilities Replacement/Rehabilitation Fund (603).
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Safe and Well-Maintained Public Facilities
Parks and Recreation Quality of Life
Good Governance
Executive Summary
Corky Smith Gym, located at 274 Pico Avenue, is a critical recreational facility that supports community programs, events, and daily public use. The central chiller plant/HVAC system associated with this site also provides heating and cooling to the adjacent Boys & Girls Club facility.
The existing shared HVAC system has reached the end of its service life and is experiencing declining performance, increased maintenance demands, and reduced reliability. Replacement of this system is necessary to maintain occupant comfort, improve energy efficiency, and support continued operation of both facilities.
Approval of this resolution will authorize the procurement of long-lead HVAC equipment for the project, securing critical components in advance of installation. This proactive approach will reduce project delays, mitigate cost escalation risks, and position the City to efficiently complete future construction phases while safeguarding essential City infrastructure serving multiple community facilities.
Discussion
Corky Smith Gym is a key City facility that supports recreational programming, community events, and daily public use. The central chiller plant/HVAC system serving this site also provides heating and cooling to the adjacent Boys & Girls Club facility. The existing system has reached the end of its service life and is experiencing reduced efficiency, reliability concerns, and increased maintenance demands. Failure of the system could result in service disruptions, reduced occupant comfort, and increased repair costs affecting both facilities.
The Public Works Department evaluated procurement options and determined that utilizing the OMNIA Partners Cooperative Purchasing Program provides the most efficient and cost-effective method for acquiring long-lead HVAC equipment. The cooperative contract for HVAC Products, Installation, Labor Based Solutions, and Related Products and Services (Contract No. 3341) was competitively solicited and awarded by Racine County, Wisconsin, with a term of September 1, 2022 through August 31, 2027. The contract includes cooperative purchasing provisions allowing use by participating public agencies.
In accordance with San Marcos Municipal Code Section 2.30.110 (Cooperative Purchasing, Piggyback Procurement), the City is authorized to utilize the results of this competitive solicitation in lieu of conducting its own separate solicitation.
In order to fund the project, staff is also proposing a transfer of funds from the City’s Infrastructure Replacement/Rehabilitation Fund (604) to the City’s Facilities Replacement/Rehabilitation Fund (603) in the amount of up to $275,000. The transfer will be from project savings for projects budgeted in fund 604 during Fiscal Year 2025-26 and will have no impact to projects budgeted in fund 604.
Staff recommends that the City Council approve the purchase of HVAC equipment from Trane U.S. Inc. in an amount not to exceed $1,275,000, approve the related fund transfer, and authorize the City Manager to execute all necessary agreements. This action will secure critical long-lead equipment, reduce cost escalation risk, and support timely completion of future project phases for the shared HVAC system serving Corky Smith Gym and the Boys & Girls Club.
Environmental Review
The proposed contracts do not have the potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment; they therefore do not constitute a “project” as defined by Public Resources Section 21065, and are exempt from CEQA or other environmental review pursuant to CEQA Guidelines section 15061(b)(3).
Fiscal Impact
Approval of the resolution would award a contract in an amount not to exceed $1,275,000 to Trane U.S., Inc. Approval of the resolution would also authorize a transfer of up to $275,000 in budget savings from the City’s Infrastructure Replacement/Rehabilitation Fund (Fund 604) to the City’s Facilities Replacement/Rehabilitation Fund (Fund 603). However, the action does not result in a change to the City’s overall FY 2025-26 contributions to the City Infrastructure Rehab and Replacement Funds (Funds 602-604). This contract does not commit the City to any future expenditures beyond this authorization.
Attachment(s)
Resolution
Prepared by: Chris Lorentzen, Senior Public Works Coordinator
Submitted by: Chris Lorentzen, Senior Public Works Coordinator
Reviewed by: Tim Selke, Director of Public Works
Approved by: Michelle Bender, City Manager