Fountain Hills council approves short-term amendment to HVAC cooperative purchasing agreement

Fountain Hills Town Council on Oct. 7 approved an amendment to a cooperative purchasing agreement that allows staff to continue HVAC maintenance work under an existing state purchasing contract while the town evaluates alternatives.

The amendment covers remaining funds in the current year and the next few months and does not request additional budget authority, staff said. Council members debated whether to direct staff to prepare a separate town-level request for proposals (RFP) in spring before ultimately approving a single amendment to keep services running.

Town Director Justin said, “We are simply just asking that this contract be amended to allow us to spend some of that money to continue to do maintenance.” He told the council the town is using a state cooperative purchasing agreement to “take advantage of the fact that the state... did the solicitation, the bidding, the negotiating” and that staff is contacting other vendors listed on the state agreement to seek more favorable rates.

Councilmember Watts questioned how unique the town’s chiller systems are and whether Mesa’s pricing is in line with local options. He said he wanted an RFP “and open it up to alternate providers” eventually to compare rates and capabilities. Justin replied the state agreement exists now and that the town could issue its own solicitation in the spring, if council so directed.

Council debate produced two formal motions. An initial motion to approve the amendment while expressly directing staff to issue a town RFP and solicit alternate contractors failed (recorded tally: 1 yes, 6 no). Council then approved a revised motion to adopt Amendment No. 1 to the cooperative purchasing agreement with Mesa Energy Systems to allow the town to continue maintenance under the state contract while staff completes its review. The second vote passed 6–1. The roll call on the successful motion recorded ayes from Councilmembers Calabianakis, Larrabee, Earl, McMahon and Watts and Mayor Jerry Bridal; Vice Mayor Skilcorne voted no.

Staff said the amendment will let Mesa continue honoring its current fee schedule while staff reaches out to other vendors already on the state contract. Justin said one listed vendor had returned lower rates for equivalent services, and if a different vendor is selected under the same state agreement, staff will return to council with the proposed contract and a comparison. The council discussed an amount mentioned during the debate of roughly $100,000 to cover the near-term amendment and operations, which staff said is drawn from already-approved budgeted funds.

The council’s action preserves continuous maintenance for the town’s HVAC systems while directing staff to continue procurement review. If staff identifies a new vendor or a new town-level solicitation is later authorized, the council will review any resulting contract changes before implementation.