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Gilroy council approves $70,000 to replace two failed HVAC units at Old City Hall; warns of possible additional repairs

6438945 · October 21, 2025
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Summary

The Gilroy City Council voted unanimously to appropriate $70,000 to replace two failed upstairs HVAC units at Old City Hall restaurant, while staff warned the city may return for more funding to repair failing cast-iron sewer pipes and related building infrastructure.

The Gilroy City Council on Oct. 20 unanimously approved a budget amendment to appropriate $70,000 to replace two failed upstairs heating, ventilation and air‑conditioning units at the Old City Hall restaurant and to cover associated installation costs.

The city’s facilities manager told council the building’s HVAC system is more than 35 years old and two of the three upstairs units recently failed, leaving a single unit unable to adequately cool the upstairs meeting spaces. Lianne McPhillips, interim facilities manager, told the council the $70,000 estimate covers replacement of the two units plus electrical, drywall, permitting and a contingency if engineering services are required.

McPhillips said the city could pay under the city administrator’s authority but brought the item for council direction because the building is a visible downtown asset and the tenant has been a long‑standing business. “The HVAC system is over 35…

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