TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:May 19, 2026
SUBJECT: Second Amendment to Building Mechanical Systems Services Agreement
RECOMMENDATION:
1. Approve Second Amendment to General Services Agreement with Mesa Energy Systems, Inc., DBA Emcor Services Mesa Energy of Thousand Oaks, CA (Contract No. 13244-2023) in the amount of $150,000 for a revised not-to-exceed amount of $708,854.
2. Approve budget appropriation and authorize expenditure for FY 2026-27 in the amount of $75,000 from A/C #001-0000-311-1000 (General Fund – Fund Balance) as follows: $60,000 to A/C #001-3594-612-5621 (General Fund – Contracted Services – HVAC) and $15,000 to A/C #001-3592-631-5621 (General Fund – Contracted Services – HVAC).
3. Authorize expenditure in FY 2025-26 in the amount of $75,000 as follows:
$40,000 to A/C #001-3594-612-5621 (General Fund – Contracted Services – HVAC) and $35,000 to A/C #001-3592-612-5621 (General Fund – Contracted Services – HVAC).
4. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
$75,000 Increase to Adopted FY 2026-27 General Fund Budget. $75,000 increase to the Adopted FY 2026-27 General Fund Budget is requested for HVAC services and repairs at Hill Canyon Treatment Plant (HCTP) and Municipal Service Center (MSC) due to increased and unanticipated repairs from aging equipment.
Second Amendment to Building Mechanical Systems Services Agreement May 19, 2026
BACKGROUND:
The Finance Department’s Facilities Division manages multiple City-owned buildings at HCTP and MSC, which have complex mechanical systems to maintain the buildings’ indoor air quality. These systems require ongoing preventative maintenance and repairs as needed to keep the equipment operating properly and efficiently. The systems’ equipment principally includes building automation software systems (BAS), chillers, boilers, cooling towers, exhaust fans, pumps, fan coils, and split systems.
On April 26, 2023, City Council approved an agreement with Mesa Energy Systems, Inc. (Mesa) for Building Mechanical Systems Services at the MSC and HCTP for a not-to-exceed amount of $558,854, which included an extra services amount for unexpected repairs and replacement outside of routine maintenance.
The agreement was awarded following a formal Request for Proposals/ Qualifications (RFP/Q) process for Building Mecahnical Systems Services at various City facilities. Four proposals were received and evaluated by a staff committee consisting of representatives from the Public Works and Finance Departments based on qualifications, background, and client references. Vendors were subsequently invited for interviews. Based on Mesa’s experience with City facilties, demonstrated capabilities, and familiarity with the MSC and HCTP locations, City Councl approved the agreement for maintenace and repair services at those facilities. A First Amendment extending the agreement term through April 30, 2027, was executed on April 21, 2026.
DISCUSSION/ANALYSIS:
Building mechanical systems are essential and need to remain functioning at all times to ensure indoor air quality standards are met and the operations at City- owned facilities are maintained. HVAC maintenance and functionality is critical to avoid system failures at City facilities. Various pieces of mechanical equipment at HCTP are also critical to plant operations and must have proper mechanical ventilation and temperature control at all times. Since the award of the Agreement, and due to the aging equipment at both HCTP and MSC, the need to perform extra services has exceeded the anticipated estimate and the amount included in the original agreement for extra services has been exhausted.
This Amendment (Attachment #1) will allow Mesa to continue providing necessary extra services at the MSC and HCTP including repairs and unanticipated maintenance for existing equipment. Additional work is occasionally required that is reasonably encompassed by the Scope of Services but cannot be specifically identified until the work progresses. This Amendment will allow for this additional work to proceed without added disruption as may be agreed upon and made valid by Work Authorization issued by the City‘s Project Manager. The costs to maintain aged equipment have escalated as these assets approach the end of their design lifecycle.
Second Amendment to Building Mechanical Systems Services Agreement May 19, 2026
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act (Attachment #2). City Councilmembers who have received a campaign contribution of more than $500 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially- interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $500 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $500 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Joshua Koenig-Brown, Facilities Manager
Attachments:
Attachment #1 – Second Amendment to Contract No. 13244-2023 Attachment #2 – Levine Act Form
FIN:201-10\jkb\H:\COMMON\Council\2026\Facilities\051926 Mesa Energy Amend #2 Staff Report.docx