ADMINISTRATIVE REPORT
MEETING DATE: May 27, 2026 AGENDA CATEGORY: Consent - Resolutions TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: May 15, 2026
SUBJECT: Dispense with bidding for HVAC maintenance and upgrade services for Wastewater Treatment Plant III
1. Resolution determining that HVAC maintenance and upgrade services can most efficiently be procured through cooperative procurement bidding procedures from Mesa Energy Systems Inc., dba EMCOR Services Mesa Energy and authorizing the Finance Director to dispense with bidding therefore, not to exceed $175,385.
2. Approve contract to Mesa Energy Systems Inc., dba EMCOR Services Mesa Energy for HVAC maintenance and upgrade services at Wastewater Treatment Plant III in the amount of $175,385. (Ward 7)
RECOMMENDATION:
Staff recommend approval of resolution and contract.
BACKGROUND:
The proposed project involves the installation of one new bard unit and five new rooftop air conditioning units at Wastewater Treatment Plant III, distributed across five different buildings throughout the facility.
The existing units, which are approximately 5 to 10 years old, have reached the end of their useful service life due to ongoing exposure to hydrogen sulfide (H₂S) gas commonly present in the wastewater treatment environment. The H₂S emissions have caused accelerated corrosion of copper component s within the units, resulting in frequent refrigerant leaks and increasing maintenance and repair costs. Replacement of the deteriorated equipment will improve system reliability, operational efficiency, and overall performance while reducing ongoing repair needs.
The City municipal code section 3.20.060(D)(6) allows the City to dispense with bidding when it is determined that work, supplies, equipment or materials is not available from local vendors and that it is in the best interests of the City, and to the City’s economic advantage that such work, supplies, equipment or materials be obtained at the lowest possible cost by entering into a cooperative procurement contract that was competitively bid within the last thirty-six months or is one that is still active and valid.
Mesa Energy Systems Inc., dba EMCOR Services Mesa Energy has entered into a competitive procurement contract with Equalis Group to offer discount pricing for their work. Staff recommend adoption of the Resolution to dispense with bidding to procure HVAC maintenance and upgrade services and approval of the agreement for the Wastewater Treatment Plant III division within the Water Department.
FISCAL IMPACT:
The Department has allocated sufficient Capital Outlay Funds in the Current year and next year’s budget to compete the services for this project.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
1. Resolution
2. Signed Agreement
3. Cooperative Quote/Proposal