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Home My WebLink AboutE-12 Staff Report - North Recreation Hub HVACCONSENT ITEM E-12 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: ROBERT DELGADILLO, P.E., DIRECTOR OF PUBLIC WORK/CITY ENGINEER DATE: AUGUST 21, 2023 SUBJECT: AUTHORIZE PURCHASE AND INSTALLATION OF NORTHSIDE RECREATION HUB HVAC SYSTEM BACKGROUND: On June 20, 2022 the City Council adopted the Fiscal Year 22/23 budget which authorized $750,000 for the modernization of the Northside Recreation Hub (formerly referred to as the Scout House) utilizing General Fund Excess Reserves. Following Public Works’ staff assessment, it is recommended that the existing HVAC system be replaced. Shortly after the assessment was complete, the existing HVAC system experienced a power surge that caused irreparable damage. Currently the Northside Recreation Hub does not have any cooling capabilities. RECOMMENDATIONS: Staff recommends that the City Council take the following actions: 1)Waive purchasing procedures as authorized under Azusa Municipal Code Section 2.539 and approve the purchase and installation of the proposed HVAC equipment in the amount not to exceed $144,454.72; and 2)Authorize the City Manager to execute a construction agreement with Mesa Energy Systems, Inc. dba EMCOR Services for the purchase and installation of the proposed Carrier HVAC system. Approved City Council August 21, 2023 Northside Recreation Hub HVAC August 21, 2023 Page 2 ANALYSIS: On June 20, 2022 the City Council adopted the Fiscal Year 22/23 budget which authorized $750,000 for the modernization of the Northside Recreation Hub (formerly referred to as the Scout House) utilizing General Fund Excess Reserves. Following Public Works’ staff assessment, it is recommended that the existing HVAC system be replaced. Shortly after the assessment was complete, the existing HVAC system experienced a power surge that caused irreparable damage. Currently the Northside Recreation Hub does not have any cooling capabilities. The City’s purchasing procedures allow for the acquisition of equivalent equipment through a process of competitive bidding by using other municipalities or through joint powers programs. In this case, Mesa Energy Systems, Inc. dba EMCRO Services was able to provide the City with a Sourcewell Contract (#CA-R7-HVAC02-123021-ES). The City can achieve the benefits of a competitive bid without the additional costs and delays associated with the standard procurement process. FISCAL IMPACT: Funding for the purchase and installation of the Northside Recreation Hub HVAC system was approved in the FY 22-23 Capital Improvement Program Budget through the use of the City’s General Fund Excess Reserves. $144,454.72 will be utilized from Account # 1080000666- 7125/66623A-7125 Prepared by: Fiscal Review by: Robert Delgadillo, P.E. Talika M. Johnson Director of Public Works/City Engineer Director of Administrative Services Review and Approved by: Sergio Gonzalez City Manager Attachments: 1) Mesa Energy Systems, Inc. dba EMCOR Services Sourcewell Agreement 2) Construction Agreement Rev. 4/2021 Sourcewell IFB #CA-123021 Indefinite Delivery-Indefinite Quantity Construction Contracts in the State of California Page 1 Indefinite Delivery-Indefinite Quantity Construction Contract Contract Number: CA-R7-HVAC02-123021-ES This Indefinite Delivery-Indefinite Quantity Construction Contract (Contract) is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 and Mesa Energy Systems, Inc. dba EMCOR Services, 2 Cromwell, Irvine, CA 92618 (Contractor). Sourcewell is a State of Minnesota local government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to federal, state and municipal governmental entities, K-12 and higher education entities, nonprofit entities, tribal governments, and other public entities located within the United States. The Contractor desires to contract with Sourcewell to provide construction services to entities that access Sourcewell’s indefinite delivery-indefinite quantity (IDIQ) construction contracts within the Region. I.TERM OF CONTRACT A.EFFECTIVE DATE. This Contract, including the General Terms and Conditions incorporated by reference, is effective upon the later of February 1, 2022 or the date of the final signature below. B.EXPIRATION DATE AND EXTENSION. This Contract expires January 31, 2023, unless it is terminated sooner pursuant to Article XX of the General Terms and Conditions, which are incorporated into this Contract by reference. This Contract may be extended up to three additional one-year periods upon request of Sourcewell and with written agreement by the Contractor, not to exceed a total of four years. II.REGION The Contractor’s Region is as follows: Region 7. III.ADJUSTMENT FACTORS The Contractor will perform any or all Tasks in the Construction Task Catalog for the Unit Price appearing therein multiplied by the following Adjustment Factors. See the General Terms and Conditions for additional information. A.Normal Working Hours - Prevailing Wage Rate Projects: Work performed from 7:00 a.m. until 4:00 p.m. Monday to Friday, except Holidays. The Contractor will perform Tasks during Normal Working Hours for the Unit Price set forth in the CTC multiplied by the Adjustment Factor of: 1.4005. B.Other Than Normal Working Hours - Prevailing Wage Rate Projects: Work performed from 4:00 p.m. to 7:00 a.m. Monday to Friday, and any time Saturday, Sunday and Holidays. The Contractor will Attachment 1 Rev. 4/2021 Sourcewell IFB #CA-123021 Indefinite Delivery-Indefinite Quantity Construction Contracts in the State of California Page 2 perform Tasks during Other Than Normal Working Hours for the Unit Price set forth in the CTC multiplied by the Adjustment Factor of: 1.8209. C. Secured/Medical Facilities - Prevailing Wage Rate Projects: Work performed from 7:00 a.m. until 4:00 p.m. Monday to Friday, except Holidays. The Contractor will perform Tasks during Normal Working Hours for the Unit Price set forth in the CTC multiplied by the Adjustment Factor of: 1.5420. D. All-Union Wage Projects: Work performed from 7:00 a.m. until 4:00 p.m. Monday to Friday, except Holidays. The Contractor will perform Tasks during Normal Working Hours for the Unit Price set forth in the CTC multiplied by the Adjustment Factor of: 1.4005. E. Non pre-priced Adjustment Factor: To be applied to Work determined not to be included in the CTC but within the general scope of the work: 1.1970. VI. AUTHORIZED REPRESENTATIVE A. Sourcewell's Authorized Representative is its Chief Procurement Officer. B. The Contractor’s Authorized Representative is Harry Archung. If the Contractor’s Authorized Representative changes at any time during this Contract, Contractor must promptly notify Sourcewell in writing. Sourcewell Mesa Energy Systems, Inc. dba EMCOR Services By: __________________________ By: __________________________ Jeremy Schwartz, CSSBB, CPPO Harry Archung Title: Chief Procurement Officer Title: Senior Vice President Date: Date: AGREEMENT TO MODIFY AND EXTEND SOURCEWELL CONTRACT #CA-R7-HVAC02-123021-ES THIS AGREEMENT TO MODIFY AND EXTEND, Sourcewell Contract #CA-R7-HVAC02-123021-ES, is effective upon the date of the last signature below. Sourcewell and Mesa Energy Systems, Inc. dba EMCOR Services (“Contractor”) have entered into an Indefinite Quantity Construction Contract, Contract Number CA-R7-HVAC02-123021-ES, with an initial term ending January 31, 2023, and three bilateral options to extend for an additional one-year term (“Contract”). The parties agree that the Contractor’s Adjustment Factors will be modified, and that Sourcewell’s offer of a one-year extension term will be accepted by Contractor. MODIFICATION: OPTION PERIOD Pursuant to the Contract, the following are the Adjustment Factors for the term ending January 31, 2024: Base Year Index First Year Index Date Index Date Index 1 December 2020 11625.95 1 December 2021 12481.82 2 January 2021 11627.94 2 January 2022 12555.55 3 February 2021 11698.79 3 February 2022 12683.97 4 March 2021 11749.75 4 March 2022 12791.43 5 April 2021 11849.32 5 April 2022 12898.96 6 May 2021 11989.91 6 May 2022 13004.47 7 June 2021 12112.05 7 June 2022 13110.50 8 July 2021 12237.69 8 July 2022 13167.84 9 August 2021 12463.13 9 August 2022 13171.07 10 September 2021 12464.55 10 September 2022 13173.43 11 October 2021 12464.94 11 October 2022 13174.92 12 November 2021 12467.32 12 November 2022 13174.98 Base Year Average 12062.6116 First Year Average 12830.9416 Adjustment: First Year Index Average = 12949.0783 = 1.0735 Base Year Index Average 12062.6116 CA-R7-HVAC02-123021-ES Original Adjustment Factor x Adjustment = Adjustment Factor 02/01/23 through 01/31/24 Normal Working Hours – Prevailing Wage 1.4005 1.0735 1.5034 Other Than Normal Working Hours – Prevailing Wage 1.8209 1.0735 1.9547 Secured/Medical Facilities – Prevailing Wage Rate 1.5420 1.0735 1.6553 All-Union Wage 1.4005 1.0735 1.5034 Non Pre-Priced 1.1970 1.0000 1.1970 EXERCISE OF OPTION: EXTENSION Contractor and Sourcewell hereby desire and agree to extend the Contract, with the above modification, for the period February 1, 2023 through January 31, 2024. Sourcewell Mesa Energy Systems, Inc. dba EMCOR Services By: __________________________ By: __________________________ Jeremy Schwartz Harry Archung Title: Chief Procurement Officer Title: Senior Vice President Date: Date: CONTRACT - 1 - CITY OF AZUSA STANDARD CONTRACT NORTHSIDE RECREATION HUB HVAC UPGRADE PROJECT NO. 66623A-7125 THIS CONTRACT is made this 21st day of August, 2023, in the County of Los Angeles, State of California, by and between the City of Azusa, hereinafter called City, and Mesa Energy Systems, Inc. dba EMCOR Services Mesa Energy, hereinafter called Contractor. The City and the Contractor for the considerations stated herein agree as follows: ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5 below for the following Project: NORTHSIDE RECREATION HUB HVAC UPGRADE PROJECT NO. 66623A-7125 The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. ARTICLE 2. TIME FOR COMPLETION. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 30 working days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. ARTICLE 3. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of One Hundred Forty Five Thousand Six Hundred Seventy Seven Dollars and Forty Cents ($145,677.40). Payment shall be made as set forth in the General Conditions. ARTICLE 4. LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $500 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents. ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Attachment 2 CONTRACT - 2 - Contractor’s Certificate Regarding Workers’ Compensation Designation of Subcontractors Contract Performance Bond Payment Bond General Conditions Special Conditions Technical Specifications Plans and Drawings Approved and fully executed change orders Any other documents contained in or incorporated into the Contract The Contactor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties. ARTICLE 6. PROVISIONS REQUIRED BY LAW. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of the California Labor Code applicable to this Project. ARTICLE 7. INDEMNIFICATION. Contractor shall provide indemnification as set forth in the General Conditions. ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at Azusa City Hall or may be obtained online at http//www.dir.ca.gov/dlsr and which must be posted at the job site. ARTICLE 9. DECLARATION OF POLITICAL CONTRIBUTIONS. Consultant shall, throughout the term of this Agreement, submit to City an annual statement in writing declaring any political contributions of money, in-kind services, or loan made to any member of the city council within the previous twelve-month period by the Consultant and all of Consultant's employees, including any employee(s) that Consultant intends to assign to perform the Services described in this Agreement. ARTICLE 10. CONFLICT OF INTEREST. In the procurement of supplies, equipment, construction, and services by sub-recipients, the conflict of interest provisions in (State LCA – 24 CFR 85.36 and Non-Profit Organizations – 24 CFR 84.4), OMB Circular A-110, and 24 CFR 570.611, respectively, shall apply. No employee, officer or agent of the sub-recipient shall participate in selection, or in the award or administration of a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. CONTRACT - 3 - IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. Mesa Energy, Inc. dba EMCOR Services Mesa Energy ________________________________ Name and Title ________________________________ Signature of Contractor License No. ______________________ CITY OF AZUSA ________________________________ Robert Gonzales Mayor ________________________________ Sergio Gonzalez City Manager ________________________________ Jeffrey Lawrence Cornejo Jr. City Clerk Approved as to Form: ______________________________ Best Best & Krieger LLP City Attorney BONDS - 4 - PERFORMANCE BOND FOR NORTHSIDE RECREATION HUB HVAC UPGRADE PROJECT NO. 6623A-7125 KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, City of Azusa (hereinafter referred to as “City”) has awarded to Mesa Energy Systems, Inc. dba EMCOR Services Mesa Energy, (hereinafter referred to as the “Contractor”) an agreement for Project No. 6623A-7125, Northside Recreation Hub HVAC Upgrade Project (hereinafter referred to as the “Project”). WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents. NOW, THEREFORE, we, Mesa Energy Systems, Inc. dba EMCOR Services Mesa Energy, the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum One Hundred Forty Five Thousand Six Hundred Seventy Seven Dollars and Fort y Cents ($145,677.40) said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officers and agents, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney’s fees, incurred by City in enforcing such obligation. As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the BONDS - 5 - City from loss or damage resulting from or caused by defective materials or faulty workmanship. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure section 337.15. Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option: (1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or (2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. (3) Permit the City to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor. Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the CITY, when declaring the Contractor in default, notifies Surety of the City’s objection to Contractor’s further participation in the completion of the Project. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project. BONDS - 6 - IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________________, 2023. _________________________________________ CONTRACTOR/PRINCIPAL _________________________________________ Name By_______________________________________ SURETY: By: ______________________________________ Attorney-In-Fact The rate of premium on this bond is ____________ per thousand. The total amount of premium charges, $_______________________________. (The above must be filled in by corporate attorney.) THIS IS A REQUIRED FORM Any claims under this bond may be addressed to: (Name and Address of Surety) ___________________________________________ ___________________________________________ ___________________________________________ (Name and Address of Agent or ___________________________________________ Representative for service of process in California, if different ___________________________________________ from above) ___________________________________________ (Telephone number of Surety and ___________________________________________ Agent or Representative for service of process in California BONDS - 7 - STATE OF CALIFORNIA COUNTY OF On before me, (here insert name and title of the officer), personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature __________________________________ (Seal) NOTE: A copy of the Power-of-Attorney to local representatives of the bonding company must be attached hereto. BONDS - 8 - PAYMENT BOND FOR NORTHSIDE RECREATION HUB HVAC UPGRADE PROJECT NO. 6623A-7125 KNOW ALL MEN BY THESE PRESENTS That WHEREAS, the City of Azusa (hereinafter designated as the “City”) has awarded to Mesa Energy Systems, Inc. dba EMCOR Services Mesa Energy, hereinafter designated as the “Principal,” a contract for the work described as follows: Project No. 6623A-7125, Northside Recreation Hub HVAC Upgrade Project (the “Project”); and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth. NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of One Hundred Forty Five Thousand Six Hundred Seventy Seven Dollars and Forty Cents ($145,677.40) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Section 3181 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by the City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses. This bond shall inure to the benefit of any of the persons named in Section 3181 of the Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon this bond. It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, BONDS - 9 - specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 3110 or 3112 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned. IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed unoriginal thereof, have been duly executed by the Principal and Surety above named, on the _____ day of ______________________ 2023 the name and corporate seal of each corporate party being hereto affixed and these presents duly signed by its undersigned representative pursuant to authority of its governing body. (Corporate Seal of Principal, if corporation) Principal (Property Name of Contractor) By (Signature of Contractor) (Seal of Surety) Surety By Attorney in Fact (Attached Attorney-In-Fact Certificate and Required Acknowledgements) *Note: Appropriate Notarial Acknowledgments of Execution by Contractor and +surety and a power of Attorney MUST BE ATTACHED. Confidentiality notice: This document and any attachments thereto, regardless of form or medium, may contain legally privileged and/or confidential, copyrighted, trademarked, patented or otherwise restricted information viewable by the intended recipient only. Mesa Energy Systems, Inc. dba EMCOR Services Mesa Energy North Recreation Hub HVAC Upgrade Proposal Presented to: Shan Thompson Facilities Supervisor 1329 N San Gabriel Ave Azusa, California 91702 Prepared by: Patrick O'Keefe Phone: 949-230-0197 E-mail: pokeefe@emcor.net 8/11/2023 Proposal # 23-33046 CA license #: 611215 Due to uncertainty related to the pricing of steel, commodities, and foreign tariffs, the price quoted herein can only be held for fifteen days from the date of this proposal. Confidentiality notice: This document and any attachments thereto, regardless of form or medium, may contain legally privileged and/or confidential, copyrighted, trademarked, patented or otherwise restricted information viewable by the intended recipient only. North Recreation Hub Project Proposal #: 23-33046 8/11/2023 Page 2 of 9 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 Introduction We at Mesa Energy Systems, Inc. (an EMCOR Group company) would like to thank you for the opportunity to submit this proposal to upgrade the HVAC equipment for the Scout house building. We believe that our proposed package would meet or exceed your maintenance, reliability, and energy savings goals. For over 30-years, Mesa Energy Systems has provided its clients with high quality mechanical, commercial HVAC, building automation consulting and services, and energy solutions that address today's mo st compelling energy related issues. Headquartered in Irvine, California, we have 10 statewide offices to better serve the greater Los Angeles, San Diego, San Francisco, Sacramento, Bakersfield, San Jose, Pleasanton, and Fresno market areas. In addition, we’ve expanded outside California and now have offices in Reno, Las Vegas, and Phoenix. Our customer’s increasingly complex needs have transformed Mesa Energy Systems from a traditional commercial HVAC service and retrofit company into a full -service Energy Solutions Company. Our goal is to help you achieve optimal building energy performance, utilizing improved building and mechanical maintenance, ongoing retro-commissioning, and favorable ROI energy retrofits. Today, thanks to our customer partnerships and our commitment to our core values (Sense of urgency, Win-Win, Accountability, Passion, and Love), Mesa Energy Systems Inc. is Southern California’s leading HVAC service and retrofit contractor. We are extremely confident that we will deliver on every aspect detailed in the proposal. Again, thank you for giving Mesa Energy Systems the opportunity to be of service. We look forward to the prospect of working with you and assisting you with your facilities’ HVAC maintenance and upgrade needs. Feel free to reach out to us should you want to discuss anything further. Sincerely, Mesa Energy Systems, Inc. dba EMCOR Services Mesa Energy Patrick O'Keefe Account Manager North Recreation Hub Project Proposal #: 23-33046 8/11/2023 Page 3 of 9 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 Scope of Work Engineering: 1. Complete Mechanical, Structural, and Electrical Engineering to generate engineered drawings. Project Management: 1. On Site Coordination meetings to review schedule and set timeline. 2. Procurement of required equipment and materials. 3. Project to meet CA Code requirements and regulations. 4. Safety meeting to ensure compliance with customer’s on-site requirements. Mechanical: 1. De-energize and lock-out/tag-out existing 3-ton unit. 2. Recover refrigerant per EPA guidelines and remove from site. 3. Disconnect and demo existing power, controls, ducting and drain. 4. Rig off old equipment. 5. Frame out area on the roof for new equipment. 6. Provide and install two new heat pump package units. • (1) Carrier 5-ton • (1) Carrier 3.5 Ton 7. Anchor and secure new units to curb. 8. Provide and install new plenum and air distribution for both the 5-ton and 3-ton units. 9. Provide and install new smoke detector for the 5-ton unit. 10. Provide and install new economizer. 11. Provide and install new stand-alone thermostat for each unit. 12. Provide and Install condensate drainpipe for both units. 13. Start-up test units for proper operation. 14. Provide comfort air balance. 15. Provide operation manuals to the City of Azusa. 16. Start-up new units and check for proper operation. Electrical: 1. Install two breakers to feed two new heat pump units. 2. Reuse existing line side conduit from panel to stub location. 3. Provide and install (2) 3R disconnects. 4. Provide conduit from junction box in T-bar to stub location for second heat pump unit to be added. 5. Pull new feeders through conduit from panel to each new unit disconnect and terminate. 6. Provide conduit and feeders from disconnect to new unit at POC and terminate. 7. Provide all line voltage sealtite connections and terminations. North Recreation Hub Project Proposal #: 23-33046 8/11/2023 Page 4 of 9 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 Exclusions and Clarifications: 1. Pricing excludes roofing, repairs and patches. 2. Pricing includes Payment & Performance Bonds. 3. Plan check and permit fees are excluded. 4. Integration into the FLS system is excluded. 5. IT upgrades, including but not limited to routers, cabling, repeaters, and IP addresses, to support the Pelican control system are excluded. 6. Engineering costs are based on Mechanical, Electrical and Structural as builds being available. 7. Structural / Seismic upgrades are excluded. 8. Painting is excluded. 9. Any repairs, scope of work or equipment not listed in the proposal are specifically excluded. 10. Duct leakage testing is excluded. 11. Demand response is excluded since the thermostats will be stand alone. 12. Pricing is based on full access to the space (Monday through Friday) for the duration of the project. North Recreation Hub Project Proposal #: 23-33046 8/11/2023 Page 5 of 9 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 Inclusions and Exclusions Checked items below are included in this proposal; non-checked items are excluded. Engineering, Permits & Bonds Mechanical Engineering X Structural Engineering X Electrical Engineering X Plan Check Fees Mechanical Permits Electrical Permits Structural Permits Street Closure Permits Payment & Performance Bond X Architectural Drawings Rigging and Specialty Rentals Rigging X Scissor Lift as Required Helicopter Other: Crane X Additional Services Comfort Air Balance X Certified Air Balance Water Balance Certified Water Balance Recover Refrigerant Per EPA Guideline X Dispose of old Equipment X Project to be Performed at the Below Listed Times Normal Business Hours (M-F 7 am to 5 pm) X Overtime (non-Normal Business Hours) Normal Hours and Overtime Other: Specialty Trades Electrical X Abatement Framing of Curbs & Openings X Duct Cleaning Re-roofing Seismic Upgrades Insulation of New Ducting (As Required) X Insulation of New Piping (As Required) Coring X-Ray Prior to Coring Project Completion Start Up X Factory Start Up Operation & Maintenance Manuals in electronic format X As Built Drawings in electronic format Additional Components New Programmable Digital Thermostat X EMCOR Retains All Salvage Rights X Smoke Detectors in Supply Duct X Smoke Detectors Return Ducts Warranties 90-Day Labor and Materials from Date of Beneficial Use One (1) year Labor and Materials from Date of Beneficial Use X North Recreation Hub Project Proposal #: 23-33046 8/11/2023 Page 6 of 9 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 General Project Clarifications Concealed Conditions If concealed or unknown conditions of an unusual nature which affect the performance of the work are encountered below the roof line or above the ceiling or in an existing part of the building other than the work, which conditions are not ordinaril y found to exist or which differ materially from those generally recognized as inherent in work of t he character provided for in this Agreement, notice by the observing party shall be given promptly to the other party, if possible before conditions are distur bed and in no event later than fourteen days after first observance of the conditions. The Contract Sum shall be equitably adjusted for such concealed or unknown conditions by Change Order upon claim made within fourteen days after claimant becomes aware of the conditions. Regulatory Changes Mesa Energy Systems Inc. shall be compensated for changes in the Work necessitated by the enactment or revision of codes, laws or regulations subsequent to the execution of this Agreement. Hazardous Materials COMPANY hereby agrees to indemnify, defend and hold harmless Mesa Energy Systems, Inc. and its agents, employees, consultants and subcontractors from and against any claim, damage, allegation, suit, cause of action, cost, loss, expense or injury in connection with Hazardous Materials not introduced to the Project by the Indemnified Parties, including, without limitation, all costs of remediation, experts, consultants or other costs in connection with Hazardous Materials associated w ith the Project. Unforeseen Conditions COMPANY understands and agrees that Mesa Energy Systems, Inc. shall not be liable for added costs or time delays caused by unforeseen conditions at the Project, including, without limitation, unanticipated rerouting of existing piping, fire sprinkl ers or gas piping. In the event that the fire sprinklers, water, electrical conduit or gas piping are required to be relocated, Mesa shall not be responsible for such work. Mesa Energy Systems, Inc. or a subcontractor under the control and supervision of COMPANY shall perform such work. NFPA 70E Mesa technicians are trained to understand the specific hazards associated with electrical energy according to NFPA 70E, Standard for Electrical Safety in the Workplace. They are trained in safety-related work practices and procedural requirements as necessary to provide protection from the electrical hazards associated with their respective job or task assignments. Documented safe work practices include lockout/tagout and energy isolation. Category 2 personal protective equipment is issued for electrical hazards while working on voltages between 50 and 480 volts. Mesa's policy is to remove the energized electrical hazard by working on de-energized circuits and by using the written lockout/tagout policies and procedures when feasible. COVID-19 This proposal, including but not limited to pricing and schedule, is made contingent upon the work addressed herein not being adversely affected, either directly or indirectly, by the COVID-19 pandemic and/or the Corona virus. This proposal is further conditioned upon the parties agreeing, prior to beginning of any work and in writing as part of any contract/subcontract, that any (i) schedule issues (including, but not limited to, delay, acceleration, compression, interference, hindrance), (ii) over time hours or added resources to perform work, (iii) shortages (whether as to labor, subcontracted services, materials, or supplies), (iv) change orders, extra work, or extra costs, or (v) inefficiency and impacts relating to the foregoing, that arise as a re sult of the COVID-19 pandemic or Corona virus will entitle contractor to a change order equitably addressing impacts to its time for performance and costs. North Recreation Hub Project Proposal #: 23-33046 8/11/2023 Page 7 of 9 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 Supply Chain The parties understand and agree that (i) there are current issues with the manufacture and supply of various materials and equipment (all, collectively, “Goods”), which issues generally are referred to as “supply chain disruption” (“Disruption”), (ii) the Disruption arises from a variety of global, national, and local factors, all of which are beyond the control of Mesa Energy Systems, and (iii) the Disruption has impacted suppliers’ ability to provide Goods by dates certain, in the quantities ordered, and/or for the specified price. This proposal is conditioned on Mesa Energy Systems, Inc. confirming the price, delivery time, and availability of goods with Mesa Energy System’s subcontractors, vendors, and/or suppliers at the time when Mesa Energy Systems, Inc. and City of Azusa are ready to enter a final contract for the proposed work. Mesa Energy Systems, Inc. reserves the right to (i) adjust the proposal price and schedule in the final contract if needed due to such confirmation, and (ii) condition the final contract on, and in clude in it, any reservations and/or limitations that Mesa Energy Systems Inc. must accept from its subcontractors, vendors, and/or suppliers to obtain any goods. Any contract concerning this proposal shall include the following: The parties understand and agree that (i) there are current issues with the manufacture and supply of various materials and equipment (all, collectively, “Goods”), which issues generally are referred to as “supply chain disruption” (“Disruption”), (ii) the Disruption arises from a variety of global, national, and local factors, all of which are beyond the control of Mesa Energy Systems, and (iii) the Disruption has impacted supplier’s ability to provide Goods by dates certain, in the quantities ordered, and/or for the specified price. Mesa Energy Systems therefore cannot guaranty the timely or complete performance of work that is dependent on the supply of the following specific Goods for this project: To remove and replace of one existing package unit. Also to provide one new 5- ton package unit. And, to the extent Mesa Energy Systems’ supplier(s) are unable to meet their obligations to Mesa Energy Systems solely due to the Disruption, Mesa Energy Systems (i) shall not be deemed in breach of contract or otherwise assessed costs or dam ages arising from the Disruption and (ii) shall be entitled to (a) an equitable extension of time and (b) an increase in the contr act price for Goods, but only if the price increases 1% above the price Mesa Energy Systems had secured from its supplier at t he time of order. Credit Card Payment A credit card surcharge of 3.00% will be charged at checkout automatically for all payments initiated via www.PayEMCOR.com. You may avoid this fee and pay via check or ACH instead. To make a payment by credit card, please go to www.payemcor.com. Enter the following 3-digit code: 778 into the “ID code” field, and Mesa Energy Systems will appear on the right -hand side of the screen. Enter your credit card and payment details as directed on the screen to complete the payment. North Recreation Hub Project Proposal #: 23-33046 8/11/2023 Page 8 of 9 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 Terms and Conditions 1. Contractor will perform the services (“Services”) set forth in the attached proposal (“Proposal”). 2. Contractor will perform the Services during normal working hours, Monday through Friday, from 8 AM to 5PM, unless specified o therwise in writing by Contractor. If City of Azusa requests that Contractor provide Services on an expedited basis and/or outside normal working hours, City of Azusa shall pay all additional charges for freight, labor, or materials according to Contractor’s established rates and fees. 3. If Contractor determines that other work beyond the Services is required, such work shall not constitute a part of the Services, and Contractor will provide City of Azusa with a quotation for such work. 4. City of Azusa agrees to (i) provide safe and reasonable access, and any other assistance as is reasonably necessary, so that Contractor can perform the Services and (ii) remove and replace/refinish any part of the work site that must be disturbed so Contractor can perform the Services. 5. Contractor shall not perform any service that concerns hazardous materials, and shall have no responsibility for remediation, accumulation, storage, transportation, or disposal of any hazardous materials generated by City of Azusa or present at the work site. 6. Contractor shall not be required to perform any Services where hazardous materials are present or where Contractor suspects the presence of hazardous materials, and Contractor immediately may stop providing Services in either instance and notify City of Azusa of the circumstance giving rise to the stoppage. 7. City of Azusa agrees to pay Contractor the lump sum or time and materials rates set forth in the Proposal, and all excise, sales, use, occupation or other similar taxes connected with Contractor’s performance of the Services. 8. City of Azusa’s payment is due net 30 days from date of invoice, and late payment to Contractor shall be subject to interest at the rate o f one and one-half percent (1½ %) per month, not to exceed the maximum amount allowed by applicable law . Contractor may cease providing Services, including warranty services, if City of Azusa fails to make any payment that is due and owing. 9. Materials provided will be free from defects for one (1) year from the date of the Services or to the extent of the manufacturer’s warranty, whichever the lesser. Workmanship provided will be good and of a workman-like standard for sixty (60) days from the date of the Services. During the applicable warranty period, Contractor promptly shall repair or replace, at its sole option and at its own expense, any defective materials or workmanship during normal working hours (for defective materials, Contractor only will provide (i) warranty cove rage to the extent that Contractor is able to enforce liability against the manufacturer and (ii) necessary labor at its own expense for sixty (60) days from the date of the Service and during normal working hours). City of Azusa’s sole and exclusive warranty is the repair or replacement set forth herein. If City of Azusa requests that Contractor provide warranty services on an expedited basis and/or outside normal working hours, City of Azusa shall pay all additional charges for freight, labor, or materials according to Contractor’s established rates and fees. 10. Contractor’s warranty applies only to materials and workmanship furnished by Contractor. Contractor’s warranty shall be null and void if (i) City of Azusa fails properly to operate and maintain equipment and/or the system for which Services were provided, (ii) acts of vandalism or other alterations or modifications occur that affect the equipment and/or the system for which Services were provided, or (ii ) City of Azusa subsequently has another contractor provide goods or services that affect to the Services. 11. Contractor shall not be liable for any delay, or loss or damage arising therefrom, and shall be entitled to additional time f or the Services, if the delay is caused by an occurrence beyond the reasonable control of Contractor. 12. Contractor is not responsible for equipment and/or system design deficiencies, obsolete equipment or systems, equipment or systems beyond serviceable life, or electrical failures, and City of Azusa shall remain obligated to pay for Services if the Proposal properly was performed but the Services do not remedy the condition giving rise to the Proposal because of the foregoing. 13. Contractor shall not be liable for operation of any equipment or system, nor for injury to person or damage to property, except to the extent such injury or damage is caused by the negligent acts or omissions of Contractor, and only to the proportionate extent of Contractor’s negligence. 14. Under no circumstances, whether arising out of contract, tort (including negligence), strict liability, warranty or otherwis e, shall either party be liable to the other for special, indirect, incidental, consequential, exemplary or punitive damages of any nature. 15. In no event shall Contractor’s aggregate liability to City of Azusa exceed an amount that is the lesser of (i) the amount of the Proposal or (ii) the cost to Contractor to repair or replace the item giving rise to the claim. 16. This Proposal shall be governed by the laws of the State where the Services are performed, without giving effect to its confl ict of laws provisions. Any action concerning the subject matter of this Proposal shall be commenced in the State court of such State, which shall ha ve exclusive jurisdiction over such action. Any such action shall be submitted TO THE COURT ONLY for resolution, WITHOUT TRIAL TO A JURY. THE PARTIES HEREBY WAIVE ANY RIGHT TO A JURY TRIAL REGARDING ANY SUCH ACTION. 17. Contractor shall be entitled to all fees and costs, including reasonable attorney’s fees, incurred by it in any action to col lect amounts due to it from City of Azusa. 18. By signing the Proposal, City of Azusa authorizes Contractor to perform the Services and agrees to these Terms And Conditions and those set forth in the Proposal. City of Azusa further agrees that the Proposal and these Terms And Conditions constitute the parties’ entire agreement, and any other documents generated or provided by City of Azusa are intended only to create payment authority for City of Azusa’s internal purposes. No such City of Azusa documents shall form a part of this agreement, or constitute a counteroffer, amendment, modification, or revision, and hereby are rejected by Contractor. North Recreation Hub Project Proposal #: 23-33046 8/11/2023 Page 9 of 9 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 Project Cost Labor …………………………………………………………… $ 46,000.00 Material ………………………………………………………. $ 77,390.00 Tax ………………………………………………………………. $ 7,932.48 Payment & Performance Bonds ………………….. $ 1,111.52 The total cost including applicable taxes is…… $ 132,434.00 Payment Terms 30% Mobilization due net 30-days Remaining balance paid via progress billings due net 30-days Payments received via credit card will be charged a 3.00% surcharge. Clarifications Engineering, Permits and Plan Check Fees: Note: The above pricing includes a $9,000 allowance for Mechanical, Electrical and Structural Engineering. If Engineering costs are less, then the difference will be refunded. If costs exceed the provisional amount, then a change order will be required. Title 24 Acceptance Testing: Price includes Title-24 Acceptance testing by EMCOR personnel. These tests have been mandated by the California Energy Code and generally include three phases: documentation inspection, construction inspection, and functional testing. The acceptance test is intended to document that the installed system is operational and in compliance with the Energy Code when the test was performed. Agreement Execution This agreement defines the understanding of services between Mesa Energy Systems Inc. and CITY OF AZUSA. This agreement shall begin on City of Azusa’s Acceptance Date, or upon receipt of a Letter of Intent. City of Azusa Acceptance: Mesa Energy Systems Inc: Signature Signature Printed Name Printed Name Title Date Title Date