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HomeMy WebLinkAboutE.13 - Staff Report - Police Department Boiler ReplacementCONSENT ITEM E-13 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: ROBERT DELGADILLO, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER DATE: AUGUST 18, 2025 SUBJECT: AWARD A CONTRACT FOR THE INSTALLATION OF A REPLACEMENT BOILER FOR THE AZUSA POLICE STATION LOCATED AT 725 NORTH ALAMEDA AVENUE BACKGROUND: The boiler that is located in the basement of the Police Station was installed in 2008 and requires constant maintenance, especially during the colder months when the demand for heating increases. This boiler is specifically utilized for heating on the south side of the building which include the gun range, jails, locker rooms, offices, and the watch commander’s office. Mesa Energy Systems, Inc. dba EMCOR Services Mesa Energy (EMCOR) currently provides ongoing maintenance of the City’s HVAC systems. The City entered into a Maintenance Agreement with EMCOR in November 2023 and has utilized them to replace several systems around the City since 2022. RECOMMENDATIONS: Staff recommends that the City Council take the following actions: 1)In accordance with Azusa Municipal Code Sec. 2-521. – Cooperative, piggyback and multiple awarded bid purchasing with other agencies, approve an Agreement with EMCOR for the installation of a new boiler for the Police Station for a not-to-exceed total of $296,930 plus a 10% contingency of $29,693, totally $326,623; and 2)Authorize the City Manager to execute the Agreement, in a form acceptable to the City Attorney, on behalf of the City; and 3)Authorize Staff to use up to $320,123 of the General Fund Capital & Infrastructure Replacement Reserve to fund this unanticipated boiler replacement. APPROVED CITY COUNCIL 8/18/2025 Award a Contract for the Installation of a Boiler for the Police Station Located at 725 North Alameda Avenue August 18, 2025 Page 2 ANALYSIS: The City of Azusa has been utilizing the services of EMCOR for ongoing maintenance of City HVAC systems over the past year. EMCOR has provided responsive service with high quality workmanship that has led to a reduced number of service requests. EMCOR has also replaced several systems throughout the City that has created a more comfortable and energy-efficient environment. This action approves a construction agreement with EMCOR in an amount of $296,930 for the replacement of the Police Station boiler and all associated work described in the attached proposal (Option 1 of Attachment 2). EMCOR has provided the City with a Sourcewell Contract (#CA-R8-HVAC-101723-MSA) which allows the City to achieve the benefits of a competitive bid without the additional costs and delays associated with the standard procurement process. ENVIRONMENTAL CLEARANCE: This action is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to section 15301 Class 1 (d) Restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet. Staff has filed a Notice of Exemption with the Los Angeles County Clerk’s Office. FISCAL IMPACT: The recommended actions award a contract to EMCOR in the amount of $296,930 for the total base proposal, and further authorizes staff to increase the contract by $29,693 for potential change orders for a total not-to-exceed contract amount of $326,623. The project will be funded with $6,500 from Public Benefit Fund 24 (24-40-739-082-6625/MMUNIB-6625) and the remainder of up to $320,123 is requested from the General Fund’s Capital and Infrastructure Replacement Reserve Fund (Account #46-20-310- 000-7140). Prepared by: Reviewed and Approved by: Robert Delgadillo, P.E. Sergio Gonzalez Director of Public Works City Manager Attachments: 1) Standard Agreement 2) EMCOR Proposal CONTRACT - 1 - CITY OF AZUSA STANDARD CONTRACT AZUSA POLICE STATION BOILER REPLACEMENT THIS CONTRACT is made this day of August, 2025, 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 Messa 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: AZUSA POLICE STATION BOILER REPLACEMENT 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 20 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 Two Hundred Ninety Six Thousand Nine Hundred Thirty dollars ($296,930). 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 $200 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: Contractor’s Certificate Regarding Workers’ Compensation Bid Bond Designation of Subcontractors Information Required of Bidders CONTRACT - 2 - Non-Collusion Affidavit form Contract Performance Bond Payment Bond 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. IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. CONTRACT - 3 - MESA ENERGY SYSTEMS, 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: ______________________________ City Attorney BONDS - 4 - PERFORMANCE BOND FOR AZUSA POLICE STATION BOILER REPLACEMENT 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 Azusa Police Station Boiler Replacement 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 of Two Hundred Ninety Six Thousand Nine Hundred Thirty Dollars ($296,930) 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 BONDS - 5 - shall fail to make full, complete, and satisfactory repair and replacements and totally protect the 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 ______________________, 2024. _________________________________________ 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 AZUSA POLICE STATION BOILER REPLACEMENT 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: Azusa Police Station Boiler Replacement Project - Phase I (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 Two Hundred Ninety Six Thousand Nine Hundred Thirty Dollars ($296,930) 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, 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 BONDS - 9 - 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 ______________________ 2024 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 privileg ed and/or confidential, copyrighted, trademarked, patented or otherwise restricted information viewable by the intended recipient only. Presented to: Robert Delgadillo, P.E. Director of Public Works/City Engineer City of Azusa 213 E Foothill Boulevard Azusa, CA 91702 Phone: 626-812-5248 Email: Robert.Delgadillo@AzusaCA.gov Prepared by: Patrick O’Keefe Account Manager Mesa Energy Systems, Inc. 2 Cromwell Irvine, CA 92618 Phone: 949-230-0197 E-mail: pokeefe@emcor.net August 11, 2025 Proposal #25-022366 Azusa PD - HVAC System Upgrade Azusa PD – HVAC Upgrade Budgetary Proposal #: 25-022366 8/11/2025 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 P a g e | 2 Introduction We at Mesa Energy Systems, Inc. (an EMCOR Group company) would like to thank you for the opportunity to submit this high-level proposal to upgrade the mechanical system at the Azusa Police dept. We believe that our proposed package will meet or exceed your maintenance, reliability, and energy savings goals. For over 40-years, Mesa Energy Systems has provided its clients with high quality mechanical, commercial HVAC, building automation services, and energy solutions that address today's most compelling energy related issues. Headquartered in Irvine, California, we have twelve offices across four states to better serve the greater Los Angeles, San Diego, San Francisco, Sacramento, Bakersfield, Fresno, Reno, Las Vegas, Phoenix, and Seattle areas. Our customers’ 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 i mproved 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 the West Coast’s leading HVAC service and retrofit contractor. We are extremely confident that we will deliver on every aspect detailed in th is 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. Patrick O’Keefe Account Manager Azusa PD – HVAC Upgrade Budgetary Proposal #: 25-022366 8/11/2025 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 P a g e | 3 Option 1 - Scope of Work 1. This work is to be completed during normal business hours. 2. Check in with the customer and gain access to the roof. 3. Lockout/Tag out power to the boilers and pumps as required. 4. Isolate and drain the system as needed. Should the existing valves not hold, a separate quote will be provided to repair those valves. 5. Disconnect and remove existing boiler in basement. 6. Disconnect and remove existing heating hot water (HHW) piping, pipe insulation and supports. Existing piping inside the inaccessible ceiling space will be abandoned in place. 7. Disconnect and remove the existing tertiary pumps and associate pump trims. 8. Disconnect and remove the existing control valves. 9. Provide and install (1) new indoor vertical Lochinvar boiler, 500,000 BTUH input capacity with associated primary boiler pump. 10. Provide and install new boiler flue connection to the existing flue pipe. 11. Provide and install (2) new base-mounted Bell & Gossett pumps (as secondary/distribution pumps), 80 GPM @30ft head, 1.5 HP motors. The new pumps will be installed on new concrete housekeeping pad inside the boiler room. 12. Provide and install new heating hot water (HHW) piping and supports from the new boiler and pumps to serve the existing (3) multi-zone air handling units. 13. Provide and install piping insulation, all exterior piping insulation will be provided with metal jacketing. 14. Provide and install new 3-way control valves and actuators to serve the existing (3) multi-zone air handling units. 15. Provide and install pumps and control valves’ trims as required. 16. Provide and install controls for the new HHW system. 17. Reconnect electrical power supply to the new boiler, 120V/1Ph. 18. Provide new power supply to the new (2) secondary/distribution pumps inside boiler room, 208- 230V/3Ph. 19. Provide mechanical and structural engineering design service for the city of Azusa Building Department plan check and permit processing. Permit fee allowance of $3,000.00 is included on this proposal. 20. Water balancing and commissioning. 21. Startup system and check for proper operation. 22. Clean up work area and check out with customer. 23. Procure city final inspections. 24. Provide closeout documentation and operation and maintenance manuals. Azusa PD – HVAC Upgrade Budgetary Proposal #: 25-022366 8/11/2025 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 P a g e | 4 Option 2 - Scope of Work 1. This work is to be completed during normal business hours. 2. Check in with the customer and gain access to the roof. 3. Lockout/Tag out power to the three (3) existing air handling units and (1) evaporative condenser as required. 4. Disconnect and remove the existing (1) air handling unit in basement, (2) rooftop air handling units and (1) evaporative condenser. 5. Temporarily disconnect existing controllers and damper actuators at the existing air handling units. 6. Crane and rig the existing (2) air handling units & (1) evaporative condenser on roof and (1) air handling in basement. 7. Provide and install new (2) replacement air handling units on roof and (1) air handling unit in basement. 8. Provide and install (1) condensing unit on roof. Extend new refrigeration piping with insulation from the new condensing unit on roof to the basement air handling unit. Provide refrigeration piping filter dryer, solenoid valve, sight glass, TXV’s as required. 9. Extend the existing roof curb for the new condensing unit as required. 10. Provide and install new supply air, return air and outside air ductwork on the new air handling units to the existing ductwork. 11. Provide and install (3) duct smoke detectors on the supply duct of the new air handling units. 12. Anchor and secure all new air handling units to the existing roof curbs and concrete pad. 13. Install existing damper actuators on the new air handling units and connect the new units to the existing controllers. 14. Reconnect electrical power supply to the new air handling units and condensing unit. 15. Provide mechanical and structural engineering design service for the city of Azusa Building Department plan check and permit processing for air handling units and condensing unit replacement. Permit fee allowance of $3,000.00 is included on this proposal. 16. Air handling unit balancing and commissioning. 17. Startup system and check for proper operation. 18. Clean up work area and check out with customer. 19. Procure city final inspections. 20. Provide closeout documentation and operation and maintenance manuals. Azusa PD – HVAC Upgrade Budgetary Proposal #: 25-022366 8/11/2025 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 P a g e | 5 Exclusions: 1. Controls scope excludes any additional points, programming, graphic updates, etc. 2. Air balancing outside the replacement three air handling units. 3. Air handling unit connection to fire and life safety system. 4. Structural upgrade or modifications if required per structural engineering. 5. Asbestos testing and removal, if asbestos exists in the building, piping, ducting and insulation materials. 6. Roofing/Epoxy. 7. Chemical Water Treatment. 8. Pump base and vibration isolators. 9. Any temporary cooling and heating equipment. Azusa PD – HVAC Upgrade Budgetary Proposal #: 25-022366 8/11/2025 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 P a g e | 6 Inclusions, Exclusions & Project Clarifications Checked items below are included in this proposal; non-checked items are excluded. Engineering, Permits & Bonds Mechanical Engineering X Structural Review X Electrical Engineering Plan Check Fees X Mechanical Permits X Electrical Permits Structural Permits Street Closure Permits Performance Bond Architectural Drawings Rigging and Specialty Rentals Rigging X Scissor Lift as Required Helicopter Other: Additional Services Comfort Air Balance Certified Air Balance Water Balance Certified Water Balance Recover Refrigerant Per EPA Guideline Dispose of old Equipment 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 Duct Cleaning Re-roofing Seismic Upgrades Insulation of New Ducting (As Required) Insulation of New Piping (As Required) X Coring X-Ray Prior to Coring Project Completion Start Up and Commissioning X Factory Start Up Operation & Maintenance Manuals in electronic format X As Built Drawings in electronic format Additional Components New Programmable Digital Thermostat 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 Azusa PD – HVAC Upgrade Budgetary Proposal #: 25-022366 8/11/2025 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 P a g e | 7 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 ordinarily found to exist or which differ materially from those generally recognized as inherent in work of the character provided for in this Agreement, notice by the observing party shall be given promptly to the other party, if possible before conditions are disturbed 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 Customer 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 with the Project. Unforeseen Conditions Customer 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 sprinklers 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 Customer 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. Azusa PD – HVAC Upgrade Budgetary Proposal #: 25-022366 8/11/2025 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 P a g e | 8 Licenses Mesa Energy Systems, Inc. holds the following licenses: 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 customer 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 include 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. To the extent this quotation/proposal includes materials, products, and/or equipment that are manufactured, produced, assembled in, or otherwise originate from, a country other than the United States, the price set forth herein for such items is guaranteed for a period of 30 days from the date of this quotation/proposal. After such time, Mesa Energy Systems, Inc. reserves the right to increase the price set forth herein for such items when the parties enter a contract for the work or when Mesa Energy Syste ms, Inc. actually orders such items, whichever the later, to reflect the then -current price of such items, as such STATE LICENSE NUMBER CLASSIFICATIONS Arizona ROC 350025 C-4 Arizona ROC 322130 C-77 Arizona ROC 244611 C-39 Arizona ROC 292050 CR-16 Arizona ROC 279512 C-77 Arizona ROC 294369 KB-1 California 611215 B, C-4, C-7, C10, C20, C36, C38, C46 Nevada 0079466 B-2 Nevada 0073520 C-21 Nevada 0083284 C-2A, C-2D Nevada 0085759 C-1 Washington MESAEES777CH HVAC/RFRG, MAINTENANCE Washington MESAEES770QF GENERAL Azusa PD – HVAC Upgrade Budgetary Proposal #: 25-022366 8/11/2025 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 P a g e | 9 pricing may be affected by market conditions including, but not limited to, tariffs, quotas, and/or duties. The parties agree that the pricing for such items in this quotation/proposal is guaranteed only for such time, and Customer assumes the risk of any such price increases for such items after such time. If Customer fails to sign this quotation/proposal within 30 days from the date of this quotation/proposal, this quotation/proposal shall be deemed void, withdrawn, and canceled. 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: ___________________[ADD KEY ITEMS THAT ARE KNOWN TO BE AT RISK]. 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 damages arising from the Disruption and (ii) shall be entitled to (a) an equitable extension of time and (b) an increase in the contract price for Goods, but only if the price increases 3% above the price Mesa Energy Systems had secured from its supplier at the time of ord er. 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. Azusa PD – HVAC Upgrade Budgetary Proposal #: 25-022366 8/11/2025 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 P a g e | 10 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, unless specified otherwise in writing by Contractor. If Customer requests that Contractor provide Services on an expedited basis and/or outside normal working hours, Customer 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 Customer with a quotation for such work. 4. Customer 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 Customer 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 Customer of the circumstance giving rise to the stoppage. 7. Customer 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. Customer’s payment is due net 30 days from date of invoice, and late payment to Contractor shall be subject to interest at the rate of 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 Customer 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 coverage 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). Customer’s sole and exclusive warranty is the repair or replacement set forth herein. If Customer requests that Contractor provide warranty services on an expedited basis and/or outside normal working hours, Customer 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) Customer 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 (iii) Customer 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 for 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 Customer 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 otherwise, 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 Customer exceed an amount that is the lesser of (i) the amount of the P roposal 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 conflict of laws provisions. Any action concerning the subject matter of this Proposal shall be commenced in the State court of such State, which shall have exclusive jurisdiction over such action. Any such action shall be submitted TO THE COURT ONLY for resolution, WITHOUT TRIAL TO A JURY. THE PARTIES HERE BY 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 collect amounts due to it from Customer. 18. By signing the Proposal, Customer authorizes Contractor to perform the Services and agrees to these Terms and Conditions and those set forth in the Proposal. Customer further agrees that the Proposal and these Terms and Conditions constitute the parties’ entire agreement, and any other documents generated or provided by Customer are intended only to create payment authority for Customer’s internal purposes. No such Customer documents shall form a part of this agreement, or constitute a counteroffer, amendment, modification, or revision, and hereby are rejected by Contractor. 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) overtime 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 result 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. Azusa PD – HVAC Upgrade Budgetary Proposal #: 25-022366 8/11/2025 Mesa Energy Systems, Inc. 2 Cromwell, Irvine, CA 92618 | Phone: 949.460.0460 | Fax: 949.460.8812 P a g e | 11 Budgetary Project Cost The total cost including applicable taxes for Option 1 is: $296,930.00 Circulating pumps Qty:2 ……………………………………………………….. $ 6,500.00 The total cost including applicable taxes for Option 1 and 2 is: $992,755.00 This scope of work and pricing is valid for 30-days from the date of this proposal. 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. Agreement Execution This agreement defines the understanding of services between Mesa Energy Systems, Inc. an d City of Azusa. This agreement shall begin on Customer’s Acceptance Date, or upon receipt of a Letter of Intent. Wet signature or time-stamped, verifiable digital signature constitutes acceptance of this proposal. Customer Acceptance: Mesa Energy Systems, Inc: Signature Signature Printed Name Printed Name Title Date Title Date