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Council approves $5.14 million performance contract with Johnson Controls after warranty clarifications
Summary
Council approved a performance contract with Johnson Controls to replace the Justice Center chiller and install aeration blowers at the water reclamation facility for up to $5,142,896, with explicit contract revisions to pin warranty start to equipment startup and updated contract language.
City Council voted to approve a performance contract with Johnson Controls for two infrastructure projects — replacing the Municipal Court/Justice Center chiller and installing new aeration blowers at the wastewater (water reclamation) facility — for an amount not to exceed $5,142,896.
Alameda, a Johnson Controls representative who presented the plan, said the total includes prior amendments and expedited equipment costs: "those amounts are not an addition to, they're actually part of the number that you see here today," referencing roughly $336,000 in earlier contract changes. Alameda described the work as a turnkey performance contract that combines design and installation under a guaranteed maximum price and emphasized energy-efficiency and risk transfer to the contractor.
Councilors pressed for warranty and contract clarity. One councilor asked when warranties would begin if equipment is ordered now but installed next year; Alameda said blower warranty would be 30 months from startup and that the company purchased a three-year extension to effectively provide five years from startup. Council directed that contract language be revised so warranty commencement is tied to city startup rather than ship date.
The motion to approve the contract (with updated warranty and contract wording) was made by a council member, seconded, and passed on a voice vote, recorded as 4–1 in favor. Staff and Johnson Controls said installation at the Justice Center is expected to begin around September and to take roughly 2–3 months; the water reclamation facility install is projected to start in April/May with a 4–5 month install window.
Why it matters: The combined performance contract compresses procurement and design timelines and creates a single point of responsibility for two different project types, trading a bundled approach for schedule and coordination benefits. Council required specific contract edits to protect the city's warranty start date and maintenance obligations.
