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HomeMy WebLinkAboutItem 08c - HVAC Automation Support Services STAFF REPORT PUBLIC WORKS SERVICES DEPARTMENT DATE: November 4, 2025 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Carlos Aguilar, General Services Superintendent SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH MESA ENERGY SYSTEMS, INC. DBA EMCOR SERVICES MESA ENERGY FOR THE SUPPLY OF TECHNOLOGY, PARTS, ONLINE COMMUNICATIONS, AND SUPPORT FOR THE CITY’S HVAC AUTOMATION MANAGEMENT SYSTEM, IN AN AMOUNT NOT TO EXCEED $55,000 CEQA: Exempt Recommendation: Approve SUMMARY The Public Works Services Department (“PWSD”) is responsible for the maintenance and repair of all City facilities, which includes the Heating, Ventilation, and Air Conditioning (“HVAC”) system. The HVAC system is controlled by a central computer system referred to as an automation management system. This system is required to regulate and control the HVAC units at each facility. All HVAC related projects, including replacement and repairs, require programming and integration support into the existing HVAC automation management system. Through Sourcewell, a national cooperative purchasing program, the City can streamline the procurement process for the supply of technology, parts, online communications, and support for the City’s HVAC automation management system, while receiving the best price possible. It is recommended that the City Council approve, authorize, and direct the City Manager to execute a Professional Services Agreement with Mesa Energy Systems, Inc. DBA Emcor Services Mesa Energy for the supply of technology, parts, online communications, and support for the City’s HVAC automation management system, in an amount not to exceed $55,000, with the option of three one-year extensions. It Award HVAC Automation Support Services PSA November 4, 2025 Page 2 of 4 is further recommended that the City Council delegate the authority to approve such future extensions under this agreement to the City Manager, without having to return to the City Council for subsequent approval, provided that any changes to the financial terms stay within standard inflationary limits. BACKGROUND The PWSD is responsible for the maintenance and repair of all City facilities, which includes the HVAC system. The HVAC units at the Police Station, Council Chambers, Library, and Fire Station 105, are controlled by a central computer system referred to as an automation management system. This system is required to regulate and control the temperatures at these sites. All HVAC related projects, including replacements and repairs, require programming and integration support into the existing HVAC automation management system. Mesa Energy Systems, Inc. DBA Emcor Services Mesa Energy (“Emcor”) has provided technology, parts, online communications, and support for the City’s automation management system for many years through annual Sole Source Purchase Orders. Due to the number of HVAC projects scheduled in the next few years, Emcor’s annual services will exceed $30,000, requiring City Council approval. DISCUSSION After exploring possible purchasing options, staff found that Sourcewell awarded a contract to Emcor for HVAC automation support services. Emcor’s technicians are trained to provide engineering, networking, programming, systems installation, commissioning, expansion, integration, and follow-up service for the City’s automation management system. This training is proprietary to technology utilized for the City’s HVAC system. Emcor can also access the City’s automation management system remotely to make repairs and adjustments, which greatly decreases downtime to critical HVAC units throughout City facilities. Without this ability, technicians would need to travel to City sites to assess and troubleshoot the HVAC system’s computer controls. Using Sourcewell, a national cooperative purchasing program, enables the City to streamline the procurement process and receive the best price possible. The California Government Code authorizes public agencies to participate in cooperative Award HVAC Automation Support Services PSA November 4, 2025 Page 3 of 4 purchasing agreements, such as those established by Sourcewell, while remaining within the City’s adopted rules and procedures for purchasing. Sourcewell awarded a contract to Emcor for HVAC automation support services. A copy of the agreement between Sourcewell and Emcor has been reviewed by the PWSD, and it has been determined to meet the City’s procurement requirements. As part of this professional services agreement, Emcor will provide remote access capabilities for the City’s HVAC automation management system to monitor alarms, check for upgrades, and make temperature adjustments. Emcor will also perform routine checks to identify any equipment that may be failing, handling repairs and adjustments on an as-needed basis across all City facilities. Emcor will also support HVAC automation management for several upcoming HVAC-related projects, including the Police Department Chiller 2 Replacement Project, Upper City Hall HVAC Split Systems Project, Fire Station 105 Cooling Tower Replacement Project, and the Library Cooling Tower Replacement Project. Considering the expected volume of service calls and the level of support required for these projects, the estimated cost of services provided by Emcor in Fiscal Year 2025-26 is not to exceed $55,000. ENVIRONMENTAL ANALYSIS This project is considered a Class 1 exemption as defined in Section 15301(a) “Existing Facilities” projects of the California Environmental Quality Act (“CEQA”), which exempts projects consisting of the minor alteration of existing public structures. FISCAL IMPACT Sufficient funds are available in the Fiscal Year 2025-26 Facility Maintenance Operating Budget to cover the anticipated HVAC service costs. RECOMMENDATION It is recommended the City Council determine that this project is exempt under the California Environmental Quality Act (“CEQA”); approve, authorize, and direct the City Manager to execute a Professional Services Agreement with Mesa Energy Systems, Inc. DBA Emcor Services Mesa Energy for the supply of technology, parts, online communications, and support for the City’s HVAC automation management system, in an amount not to exceed $55,000, with the option of three one-year extensions. It Award HVAC Automation Support Services PSA November 4, 2025 Page 4 of 4 is further recommended that the City Council delegate the authority to approve such future extensions under this agreement to the City Manager, without having to return to the City Council for subsequent approval, provided that any changes to the financial terms stay within standard inflationary limits. Attachments: Proposed Professional Services Agreement Sourcewell Contract 1 Updated Feb. 2020 CITY OF ARCADIA PROFESSIONAL SERVICES AGREEMENT REGARDING SUPPLY FOR TECHNOLOGY, PARTS, ONLINE COMMUNICATIONS, AND SUPPORT FOR THE CITY OF ARCADIA HVAC AUTOMATION MANAGEMENT SYSTEM This Agreement is made and entered into as of ____________________, 20____ by and between the City of Arcadia, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at 240 West Huntington Drive, Arcadia, California 91007 (“City”), and Mesa Energy System, Inc. DBA Emcor Services Mesa Energy, a California Corporation, with its principal place of business at 2 Cromwell, Irvine, CA 92618 (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. RECITALS A. City is a public agency of the State of California and is in need of professional services for the following project: Support for Technology, Parts, Online Communications, and Support for the City of Arcadia HVAC Automation Management system (hereinafter referred to as “the Project”). B. Consultant is duly licensed and has the necessary qualifications to provide such services. C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein. AGREEMENT NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.” 2. Compensation. a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B.” b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of FIFTY-FIVE THOUSAND DOLLARS AND NO CENTS ($55,000.00). This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall be made 2 Updated Feb. 2020 within 30 days of receipt of an invoice which includes a detailed description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis. 3. Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement. 4. Maintenance of Records. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City. 5. Term. The term of this Agreement shall be for one (1) year from the date of execution, unless earlier terminated as provided herein. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Project. Consultant shall perform its services in a prompt and timely manner within the term of this Agreement and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”). The Notice to Proceed shall set forth the date of commencement of work. 6. Delays in Performance. a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 3 Updated Feb. 2020 7. Compliance with Law. a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement. 8. Standard of Care Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. 9. Assignment and Subconsultant Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder. 10. Independent Contractor Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. 11. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. 4 Updated Feb. 2020 a. Commercial General Liability (i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following: (1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following: (1) Bodily Injury and Property Damage (2) Personal Injury/Advertising Injury (3) Premises/Operations Liability (4) Products/Completed Operations Liability Consultant shall procure and submit evidence of insurance for at least five (5) years from the time that all work under this Agreement is completed. (5) Aggregate Limits that Apply per Project (6) Explosion, Collapse and Underground (UCX) exclusion deleted (7) Contractual Liability with respect to this Agreement (8) Property Damage (9) Independent Consultants Coverage (iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement. (v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. Consultant may provide blanket endorsements to meet the Additional Insured requirement in this written contract. However, all subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. 5 Updated Feb. 2020 (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. b. Automobile Liability (i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto). (iii) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status. Consultant may provide blanket endorsements to meet the Additional Insured requirement in this written contract. However, all subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. c. Workers’ Compensation/Employer’s Liability (i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement. (ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section. 6 Updated Feb. 2020 d. Professional Liability (Errors and Omissions) At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. e. Minimum Policy Limits Required (i) The following insurance limits are required for the Agreement: Combined Single Limit Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 per occurrence for bodily injury and property damage Employer’s Liability $1,000,000 per occurrence Professional Liability $1,000,000 per claim and aggregate (errors and omissions) (ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. f. Evidence Required Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall 7 Updated Feb. 2020 be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. g. Policy Provisions Required (i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. Consultant may provide blanket endorsements to meet the Additional Insured requirement in this written contract. However, all subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification 8 Updated Feb. 2020 obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. h. Qualifying Insurers (i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: (1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. i. Additional Insurance Provisions (i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification. (ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. j. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. All subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. If requested by Consultant, City 9 Updated Feb. 2020 may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 12. Indemnification. a. To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers. b. To the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s obligations under the above indemnity shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, but shall not otherwise be reduced. If Consultant’s obligations to defend, indemnify, and/or hold harmless arise out of Consultant’s performance of “design professional services” (as that term is defined under Civil Code section 2782.8), then upon Consultant obtaining a final adjudication that liability under a claim is caused by the comparative active negligence or willful misconduct of the City, Consultant’s obligations shall be reduced in proportion to the established comparative liability of the City and shall not exceed the Consultant’s proportionate percentage of fault. 13. California Labor Code Requirements. a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor 10 Updated Feb. 2020 (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). b. If the services are being performed as part of an applicable “public works” or “maintenance” project and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor. 14. Verification of Employment Eligibility. By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub- subconsultants to comply with the same. 15. City Material Requirements. Consultant is hereby made aware of the City’s requirements regarding materials, as set forth in Quote# 23-37010, which are deemed to be a part of this Agreement. 16. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of Los Angeles, State of California. 11 Updated Feb. 2020 17 Termination or Abandonment a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work. b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant. 18 Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City. 19. Organization Consultant shall assign Albert Vidana as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City. 20. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above. 21. Notice Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to: 12 Updated Feb. 2020 CITY: City of Arcadia 240 West Huntington Drive Arcadia, CA 91066 Attn: Carlos Aguilar General Services Superintendent CONSULTANT: Mesa Energy Systems, Inc. DBA Emcor Services Mesa Energy 2 Cromwell Irvine, CA 92618 Attn: Albert Vidana Account Manager and shall be effective upon receipt thereof. 22. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant. 23. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. 24. Entire Agreement This Agreement, with its exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement. 25. Severability The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the provisions unenforceable, invalid or illegal. 26. Successors and Assigns This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each party to this Agreement. However, 13 Updated Feb. 2020 Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void. 27. Non-Waiver None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing. 28. Time of Essence Time is of the essence for each and every provision of this Agreement. 29. City’s Right to Employ Other Consultants City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects. 30. Prohibited Interests Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. [SIGNATURES ON FOLLOWING PAGE] 14 Updated Feb. 2020 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF ARCADIA AND MESA ENERGY SYSTEMS, INC. DBA EMCOR SERVICES MESA ENERGY IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF ARCADIA MESA ENERGY SYSTEMS, INC. DBA EMCOR SERVICES MESA ENERGY By: By: Dominic Lazzaretto City Manager Title: Printed Name: ATTEST: By: Title: By: City Clerk Printed Name: APPROVED AS TO FORM: CONCUR: By: ___________________________________ Michael J. Maurer Paul Cranmer City Attorney Public Works Services Director 15 Updated Feb. 2020 EXHIBIT “A” Scope of Services The Scope of Services for the supply of Technology, Parts, Online Communications, and Support for the City’s HVAC Automation Management System, shall include, but are not limited to the following: 1a. – List of Services Mesa Energy Systems will provide technical services under this Professional Services Agreement (PSA), supporting a variety of operational and strategic needs across the City of Arcadia. Services may be performed at multiple city facilities and may include, but are not limited to: Automation Services 1. System Analysis & Upgrade Pathway • Conduct a comprehensive evaluation of the existing Andover BAS infrastructure across city facilities. • Identify control inefficiencies, outdated hardware, and programming gaps that impact system performance and energy usage. • Assess mechanical systems in coordination with commissioning teams to ensure automation sequences align with operational goals. • Provide a multi-phase upgrade roadmap that outlines: o Replacement of legacy controllers and sensors with modern, network-ready devices. o Migration strategy from proprietary protocols to open BACnet/IP architecture. o Integration of energy dashboards, analytics, and fault detection tools. o Recommendations for future-proofing the system to support demand response, load shedding, and utility incentive programs. • Deliver actionable insights to help the city optimize energy spend, reduce operational costs, and improve system reliability. 2. BAS Programming & Optimization • Reprogram central plant and zone-level sequences to improve efficiency and reliability. • Implement control logic adjustments based on operational feedback and performance data. • Address programming deficiencies and ensure sequences reflect current mechanical configurations. 3. Graphics & Interface Enhancements • Redesign and upgrade BAS graphics for improved usability and visibility. • Integrate real-time trending, alarms, and navigation tools. • Develop custom graphics to reflect updated mechanical layouts or control 16 Updated Feb. 2020 strategies. 4. Controller Services • Replace failed or outdated Andover controllers. • Reprogram and integrate new controllers into the existing BAS network. • Validate controller functionality and communication. 5. Sensor Services • Replace malfunctioning or inaccurate sensors. • Calibrate and verify sensor data to ensure reliable BAS operation. 6. Network Assessment & Troubleshooting • Evaluate BAS network infrastructure to identify communication issues or bottlenecks. • Diagnose device dropouts, misconfigured IP settings, or outdated hardware. • Recommend improvements to enhance network reliability and scalability. 7. VFD Optimization & Installation • Assess existing VFDs for proper configuration and performance. • Install new VFDs to improve energy efficiency and equipment control. • Program and integrate VFDs into the BAS for full visibility and control. 8. Remote Support • Provide remote diagnostics and troubleshooting of BAS issues. • Perform software updates, programming adjustments, and graphics modifications off-site. • Coordinate with on-site personnel to resolve issues efficiently. 9. Training Services • Deliver on-site or remote training sessions for facility staff on BAS operation and maintenance. • Provide customized training materials tailored to the city’s Andover system. • Offer ongoing support to ensure staff are confident in managing the BAS. Applied/Chiller Services 1. Central Plant Optimization & System Analysis • Conduct a full evaluation of the existing chiller plant infrastructure and operating sequences. • Identify inefficiencies in load distribution, staging, and equipment performance. • Analyze energy consumption trends and recommend strategies to reduce peak demand and improve overall plant efficiency. • Develop a multi-phase optimization plan that may include: o Control sequence reprogramming. o Equipment retrofits (e.g., VSDs, Turbocor compressors). o Integration of energy dashboards and analytics tools. o Recommendations for utility incentive alignment and long-term energy savings. 2. Chiller Replacement & Equipment Retrofits 17 Updated Feb. 2020 • Replace aging or underperforming chillers with high-efficiency models tailored to site requirements. • Perform system retrofits including: o VSD installations. o Turbocor conversions. o Steam turbine upgrades. • Ensure seamless integration with existing BAS and mechanical systems. 3. Preventive Maintenance & Reliability Services • Provide customized preventive maintenance programs to extend equipment life and reduce downtime. • Perform routine inspections, performance testing, and system health checks. • Identify and resolve issues before they escalate into costly failures. 4. Non-Destructive Testing & Diagnostics • Utilize advanced testing methods to assess equipment condition: o Eddy current tube analysis. o Infrared scanning. o Refrigerant and spectrographic oil analysis. o Vibration and motor testing. • Deliver detailed reports with actionable recommendations. 5. Refrigerant Management & Conversion • Perform refrigerant analysis and leak detection. • Support refrigerant conversion projects to comply with environmental regulations and improve system performance. 6. Retubing & Component Replacement • Conduct retubing services for aging chillers to restore heat transfer efficiency. • Replace worn components to maintain optimal performance and reliability. 7. Emergency & On-Demand Services • Provide 24/7/365 emergency response and troubleshooting support. • Deploy technicians for urgent repairs, system recovery, and temporary cooling solutions. 8. Remote Monitoring & Support • Enable remote diagnostics and performance monitoring of chiller systems. • Provide off-site support for control adjustments, alarm resolution, and data analysis. 9. Training & Operational Support • Deliver on-site or virtual training for facilities staff on chiller operation, maintenance, and energy optimization. • Provide documentation and ongoing support to ensure confidence in system management. Testing, Adjusting & Balancing (TAB) Services 1. Air & Water Balancing • Perform comprehensive testing, adjusting, and balancing of HVAC air and hydronic systems. 18 Updated Feb. 2020 • Ensure proper airflow, pressure, and temperature distribution across all zones. • Verify system performance against design specifications and operational requirements. 2. Title 24 Mechanical Acceptance Testing • Conduct Title 24-required mechanical acceptance tests. • Provide complete documentation to support compliance with California Energy Code. • Coordinate with project teams to ensure timely certification and reporting. 3. Healthcare/Hospital Critical Room Certification • Certify critical spaces such as operating rooms, isolation rooms, and clean rooms. • Verify airflow direction, pressure relationships, and air change rates. • Recommend annual recertification to maintain compliance and patient safety. 4. Functional Performance Testing • Validate system operation under real-world conditions. • Confirm that HVAC systems respond correctly to control sequences and setpoints. • Identify and document any deficiencies or performance gaps. 5. System Surveys & Analysis • Conduct field surveys of existing HVAC systems. • Analyze system layout, performance, and control strategies. • Provide recommendations for optimization or corrective action. 6. Sound & Vibration Level Readings • Measure and document sound and vibration levels of HVAC equipment. • Identify sources of excessive noise or vibration and recommend mitigation strategies. 7. Duct Air Leakage Testing (DALT) • Perform duct leakage testing to verify system integrity. • Quantify leakage rates and ensure compliance with project specifications or code requirements. 8. Hood Certifications • Certify kitchen exhaust hoods and laboratory fume hoods. • Verify airflow capture and containment performance. • Provide documentation for health and safety compliance. 9. Building Envelope & Pressurization Testing • Conduct building envelope testing to assess air leakage and infiltration. • Perform stairwell pressurization and smoke control testing to verify life safety system performance. 10. Smoke/Fire Damper Inspections • Inspect and test smoke and fire dampers for proper operation. • Document findings and provide recommendations for repair or replacement. 11. Certifications & Affiliations • All TAB personnel are certified by the Testing, Adjusting & Balancing Bureau (TABB). • Field staff are signatory to the Sheet Metal Workers International Association, 19 Updated Feb. 2020 ensuring skilled and qualified labor. Boiler Services 1. Full Lifecycle Boiler Support • Provide expert service across all phases of the boiler equipment lifecycle: installation, maintenance, repair, and replacement. • Develop customized service programs tailored to each facility’s operational needs and boiler type. • Ensure optimal performance, safety, and compliance throughout the system’s life. 2. Preventive & Emergency Maintenance • Deliver scheduled preventive maintenance to reduce downtime and extend equipment life. • Provide 24/7/365 emergency response for urgent repairs and system recovery. • Support contract-based service plans for long-term reliability and cost control. 3. Boiler System Optimization • Perform combustion tuning and burner firing optimization using advanced computer-generated processes. • Ensure boiler emissions meet regulatory standards and systems operate at peak efficiency. • Identify opportunities to reduce operating costs and improve energy performance. 4. Equipment Services & Repairs • Service and maintain a wide range of boiler types: o Hot water boilers o Low- and high-pressure steam boilers o Process boilers • Repair and replace components including: o Gas and oil burners o Economizers o Pumps, deaerators, and feed tanks o Steam traps o Exhaust stacks and ducting 5. Controls & Integration • Perform controls retrofits and integrate boilers into Building Management Systems (BMS). • Calibrate instruments and sensors to ensure accurate system monitoring and control. • Support selective catalytic reduction systems for emissions control. 6. Compliance & Certification • Ensure compliance with AQMD and other local regulatory requirements. • Perform ASME code repairs and provide documentation as needed. • Support boiler safety inspections and certification processes. 7. Specialized Services 20 Updated Feb. 2020 • Provide rental boilers for temporary or emergency use. • Perform retubing and tubesheet replacements. • Deliver refractory and brick-laying services for boiler interiors. HVAC Unitary Services 1. Preventive & Predictive Maintenance • Perform scheduled maintenance in accordance with manufacturer recommendations, ASHRAE 180 guidelines, and industry best practices. • Use AI-powered diagnostics and predictive analytics to identify potential failures before they occur. • Reduce unoccupied run times and optimize part replacement schedules to minimize downtime and extend equipment life. 2. Thermal Imaging & Vibration Analysis • Conduct infrared thermal scans to detect overheating components and electrical faults. • Perform vibration testing to identify mechanical imbalances, bearing wear, and motor issues. • Use data to proactively address issues and prevent costly breakdowns. 3. Energy Optimization Services • Analyze HVAC system energy usage and identify opportunities to reduce consumption. • Ensure schedule and setpoint compliance, economizer operation, and energy benchmarking. • Help clients cut energy spend by up to 15% through targeted operational improvements. 4. Equipment Services • Service and maintain a wide range of HVAC equipment, including: o Rooftop units, split systems, heat pumps o Chillers, boilers, cooling towers o VAV boxes, exhaust fans, humidification systems o Computer room cooling, make-up air units, commercial refrigeration o VRF systems, geothermal systems, fan walls, ice machines • Support pneumatic and DDC controls from major manufacturers. 5. Documentation & Reporting • Use cloud-based tools like XOi Vision to visually document service activities. • Provide clients with real-time access to service reports, photos, and recommendations. 6. Safety & Compliance • Maintain rigorous safety standards through ongoing technician training and education. • Ensure compliance with local codes, environmental regulations, and equipment certifications. 21 Updated Feb. 2020 7. Emergency & On-Demand Services • Offer 24/7/365 emergency response for HVAC system failures. • Provide rapid diagnostics, temporary solutions, and full system recovery support. 22 Updated Feb. 2020 EXHIBIT “B” Schedule of Charges/Payments Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a detailed report that indicates the amount of budget spent on each task. Consultant will inform City regarding any out-of-scope work being performed by Consultant. This is a time- and-materials contract. Compensation shall be based on time and materials spent in accordance with the following tasks, not to exceed the total compensation listed below: The schedule of prices is attached as attachment “A” to this Exhibit “B”. Supply of Technology, Parts, Online Communications, and Support - $55,000.00 For the City’s HVAC Automation Management System Total Compensation Not to Exceed - $55,000.00 The total compensation shall not exceed the total listed without written authorization in accordance with Section 2 (b) of the agreement. 23 Updated Feb. 2020 Attachment “A” to Exhibit “B” Hourly Rates* Straight Time Pricing Overtime Pricing Automation Services Contract Customer $200/Hour $300/Hour Applied Services Non-Contract Customer $215/Hour $322.50/Hour Test and Balance Services Non-Contract Customer $230/Hour $285/Hour Boiler Services Non-Contract Customer $240/Hour $360/Hour Unitary Services Non-Contract Customer $200/Hour $300/Hour *Minimum 4 Hours with a $200 Truck and Fuel Charge 24 Updated Feb. 2020 EXHIBIT “C” Activity Schedule All work shall be completed in accordance with the following schedule: The term of this Agreement shall be for one (1) year from the date of execution. All tasks under Exhibit “A” shall be adhered to and executed accordingly.