Gilroy awards $620,009 HVAC maintenance contract to Honeywell for city facilities

The Gilroy City Council on April 21 approved a three-year contract with Honeywell International Inc. for citywide HVAC maintenance services, with an option to extend the agreement for up to two additional years based on service and responsiveness.

Staff told the council the city’s facilities include more than 60 individual HVAC units across aging buildings, and that limited in‑house staffing and specialized training needs prompted the contract. The work covers routine preventive maintenance, diagnostics, repairs, parts and on-call emergency response. Staff said Honeywell’s rates were set through the statewide General Services Administration competitive procurement and remain locked through June 2030 under that pricing schedule.

The staff presentation included a three-year cost breakdown and a contingency for replacement parts and unplanned repairs. “The total cost over the 3 years is $620,008.78,” staff said. Funding for the contract is available in the city’s facilities fund and will be incorporated into the fiscal-year 2026 budget now under development.

Council questions and follow-up: Council members asked whether the agreement had been competitively bid and how response time would be handled for local calls. Staff said the city used the statewide GSA process so local governments can “piggyback” on the procurement; staff noted Honeywell maintains service personnel in the region and that the individual who serves the city typically lives nearby. Walter Dunkel, facilities and fleet superintendent, attended the meeting and was available for technical questions. Councilmember Klein asked for a report next year on vendor responsiveness and service performance, and staff agreed to provide such a report.

The council approved the award 4–0. Staff will finalize and execute contract documents, direct Honeywell to begin services under the contract and monitor performance for potential extension.