Gilbert council awards $144K HVAC design contract for Old City Hall restaurant

In the heart of Gilroy, the City Council convened on March 17, 2025, to address pressing infrastructure needs, particularly focusing on the aging HVAC system at the historic Old City Hall restaurant. Built in 1905 and a cherished part of the community since its addition to the historic registry in 1975, the building has housed various dining establishments, with the current tenant operating since 2012.

Leanne McPhillips, the Administrative Services Director, presented a proposal to award a contract to Advanced Design Consultants for HVAC and mechanical design services, amounting to $144,774. The existing HVAC system, over 35 years old, has been plagued by frequent breakdowns, costing the city over $40,000 in repairs in just the past two and a half years. With summer heat approaching, the urgency to replace the system has become critical to avoid losing the restaurant tenant, which could significantly impact the city’s revenue.

The council reviewed six proposals, ultimately selecting Advanced Design Consultants based on their experience and methodology. The design phase is expected to take about six months, leading to construction bids that could total around $800,000. This figure raised concerns among council members about the overall financial implications, especially since the current budget for the project is only $360,700.

Discussions among council members revealed a mix of support and skepticism regarding the necessity of hiring a consultant for the design phase. Some members questioned whether the city could bypass this step and directly engage HVAC companies for a more straightforward solution. However, city officials emphasized the importance of adhering to public works bidding processes to ensure compliance and transparency.

As the meeting progressed, the council acknowledged the need for a reliable HVAC system to maintain the restaurant's operations and preserve the historic building's integrity. The decision to move forward with the design contract will be a pivotal step in ensuring the Old City Hall continues to serve the community, but it also highlights the ongoing challenges of managing aging infrastructure within budget constraints. The council is set to revisit the construction costs once the design phase is complete, leaving residents and stakeholders eager to see how this project unfolds.