HomeMy WebLinkAboutStaff Report 4.B 02/04/2013 i
A da °Iteww#tkB
W
Pr
e
285e,
DATE: February 4,2013`
TO Honorable Mayor and Member"s of the City`Council.through City Manager
FROM Dan St. John,.F.ASCE—Director, Public Works &,Utilities .
Larry Zimmer,.P.:E. Capital Improvements Division Manager
SUBJECT: Resolution Authorizing Award of Contract;=Increase of Budget, and Transfer of
Funds for Swim Center Energy.Efficiency and:Renewable Energy.Project.
RECOMMENDATION
It:is:recommended that:the City Council approve the.resolutionAuthorizing Award of Contract
to Tricon Aquatics for the Swim Center Energy EfftciencyandRenewable Energy Project,
Increasing the Project Budget iand Approving the Transfer,of Funds.
BACKGROUND
The.City Council approved resolution 2011-170 authorizing the City Manager to execute the
loan documents with Pacific Gas'.and Electric"(PG&E)`for:the.On-Bill Financing Loan Program
for municipalities to-implement energy'efficiency a ten year or less pay back. As
well, Council authorized resolution 2013-003 approving the`Swim Center Energy Efficiency
Project Budget and the transfer of funds;from the Community Facilities Impact Fee Fund. At
anuary 7, 2013 meeting; Council authorized:an increase in the project budget and
their J�
inter;fund loan from $325,000 to $450,000 to cover costs nottoriginally anticipated.
Under the terms of the PG&E General On-Bill Financing Loan,,the°City will pay the contractor
and once the project:is;fully operational and inspected by.PG&E, they will transfer loan funds to
the City. PG&E will be,paid back based on energy savings generated by the project over the
term of the loan.
The East Washington Place developer, Regency Centers, is required to replace the defunct solar
hot water heating,system that supplemented pool heat approximately fifteen years'ago: These
improvements were,made.a part of Regency's development,conditions. Staff coordinated with
Regency to;;"include'their solar;hot water design'into the City's Swim'.Center Energy Efficiency
project,to allow forra;single.project bid. The work required by Regency is contained on a
,separate,bid item and will bepaid for by Regency:
This work continues,the-City's efforts to retrofit equipment to reduce energy use, costs, and
greenhouse gas emission.
Agenda Review.
I
City Attorney ow Finance Director City Manager . �¢��
•
The proposed action meets Council Goal: "Plan for and implement priority capital projects as
funding permits".
DISCUSSION
•
The Notice.Inviting Bids was issued for the subject projection January 10, 2013.. On January 24,
2013, 4 (four)bids were received as follows:
Name of Bidder Bid Total,
Tricon Aquatics $:479,369 Lowest Responsible Bidder
Waterworks:Industries $ 497,000
Western Waterworks $:521,000
California,Commercial Pools $ 687,000
Engineer's Estimate $435,354
The lowest responsible bidder, Tricon Aquatics, has performed similar projects. Staff verified
that Tricon Aquatics possesses a valid Class C'53 California Contractor's License, license
number 754506, which expires;on'9-30-2014, qualifying Tricon Aquatics to perform the work.
Combining.of Regency's conditioned solar array with the City's pool improvement project will
reduce potential conflict during construction and assisuwith obtaining City building and County
Department Health Services pool permits: Regency paid the consultant directly for the design
for the solar portion of the,project and .will:reimburse the City for-all project costs, including
contractof inspections; project management and any contract change orders related to the
construction of the solar array.
Construction is scheduled to begin_in'March of 2013 and to be completed in May prior to the
2013 swim season. It is anticipated-that construction management and inspection will be
conducted by staff with coordination'With the Sonoma County.Public Health Department and
City Building Division.
Staff recommends award of the construction contract and increase of the budget. Doing so will
most likelyresultin completiontof the swim center improvements prior to the opening of the
2013 swim season, and will result in.energy savings this year However, Council may choose'to
reject all bids and direct staff to modify the plans to reduce costs and rebid in summer for a fall
construction. If the bi ds are rejected, Regency is willing to,pay the City in-lieu of the
construction, or Regency would be required to construct the solar array as part of their current
development work to meet their conditions.
FINANCIAL IMPACTS
The Swim Center and Energy Efficiency and Renewable Energy Project consists of the
improvements to the Swim Center plus-lighting retrofits ate various locations throughout the City.
The total project budget, as approved byprior resolutidn, for the Swim Center Energy Efficiency
•
•
•
and Renewable Energy Project4C1450i00,1):is $450,00.0. The lighting retrofits are complete
and not related to this recommended contract award:
Council had previously approved a,temporary loan from'the Community Facilities Impact Fee
Fund for upfront costs not to.exceed $450,000. Due to the:higlier thananticipated bids for the
City'funded swim center portion of the project, the:prior approved budget of$450,000 is not
adequate.to complete the;project as bid. The attached resolution Will increase the loan amount for
up-front costs to an amount not to-exceed $544,000 . Staff will work with,the;contractor to value
engineer the.project and reduce the;current bidiamount, thougtrcost savings are not anticipated to
be enough to stay within thepreviously approved budget. To get the bid award within the
approved budget requires adjustments,totaling approximately$55,000,.not including
contingency,: Staff estimates titat.value..engineering carrrestilt in estimated savings ranging from
$10,000.to'$40,000.
PG&E funds will be received'at projectcompletion and acceptance, thus the interfund loan is
short term, will,not"have ancimpact on intended usesof the fund and will be paid back with
interest. The PG&E loan debt,is paid,back using energy savings resulting from the project. The
City exp°ects to save$26,272 annually on its gas and electric bill for the swim center and an
additional $30,142 for the lighting retrofits. These savings rWill be used to pay off the
improvements over approximately 9 (nine) years.
The attachedtesolutionawards:bid, increases the total project budget to $544,000 and allows the
transfer of funds.
PG&iE:On-Bill
SwinrCenter Improvements
Financing -a...a.:,.
Energy g Solar.Hot Water $Ss immrngaPool, Ltghting :, � *Welt
Array Modification°s'g g iets 0 rofi 1 _
Efficiency Loan ;S s Be
Swim.Center 11c',
t . tir u, � Total r,,,,, "4".; ,TOTAE,E07A:W
Bid Amount $ 67,3.75:00 ':$4 411,994:00 $ 479,369.00 $ -87.225.00 $:499,219:00
Design* $ $; 25,000.00 $ 25;00000 $ - 5 25,000:00
Project
Management
$ 10;000:00. $ 20,000.00 $ 30;000:00 $ 5,000.00 :5 25,000700
Inspection $ 5;000:00 $ 10,000.00 $ 15;000100 $ - $' 10;000:00
Contingency $ - +5' 40,000.00 $ 40,000:00 $ - $ 40,000:00
Incentives. $ (20,954:00) $(34,291.00) S155,245.00)
TOTAL $ 82,375.00 5: 486,040.00 $ 389,369:00 $ 57;934.00' $.543,974.00
*'Regeiiey Centers contracted and,paid design,consultantcosts separately
ATTACHMENTS
1. Resolution
2. Location Map
3. Resolution 2011-170
4. Resolution 2013-004
3
'i
Attachment 1
RESOLUTION AUTHORIZING AWARDQF'CONTRACT, INCREASE OF BUDGET;,
ANDTTRANSFER OF FUNDSEOR.SWIM`CENTER ENERGY EFFICIENCY AND
RENEWABLE ENERGY PROJECT
WHEREAS„city staff has prepared construction bid docunientsand advertised for construction
for this project; and
WHEREAS, in accordance with the City of Petaluma Charter.and Municipal Code, California
Public 'Contract Code Section 20162.and 'other applicable law; City staff solicited bids for the
Project;and
WHEREAS, the project-was bid on:January l'0, 2013, and four bids were received:and opened
on January 24, 2013.'hi accordancerwith applicable law; and
WHEREAS, the lowest responsible bid for the Project was submitted by Tricon Aquatics from
Rancho Cordova, CA for $479;169.00; and
WHEREAS, staff has determined that.the Contractor"s.bid satisfies the.bidding requirements for
the.Project; and
WHEREAS, staff has verified that Tricon,Aquatics possesses s-a valid 'California Contractor's
License, Class C-53, number 754506 that_qualifies Triton Aquatics to perform the_Project, and
WHEREAS, the Project is:categorically exempt'pursuant to California Environmental Quality
Act ("CEQA") and Title 14, the California Code,:of Regulations ("CEQA.Guidelines"), Section
15302, because the project;consists of,replacement and reconstruction of existing utility systems
and/or facilities involving:negligible or no expansion of capacity; and
WHEREAS, the City is responsible for initial cost of implementation of efficiency measures
until funds from PG&E Loan arerreceived ':'and
WHEREAS, the 'CIP Fund does not have °current', resources available to finance the site
improvements; and'
WHEREAS, the Community Facilities Impact Fee Fund'has.an adequate balance to lend this
project up to $544;000.00; and,
WHEREAS, the CIP fund will have the ability to repay a loan of up to $544,000 from the
Community Facilities Impact Fee Fund when the PG&E Loan.reimburses the CIP fund for the
cost of work completed to:install the energy efficiency improvements; and
WHEREAS, the energy efficiency improvements;to .be-funded by the interfund loan are within
the purposes for which the Community Facilities Impact Fees were adopted because the
improvements will improve the functioning and services provided at the Swim Center andat'the
community facilities,served.bythe.lighting retrofits; and
• 4
•
WHEREAS,, PG&E -has agreed to enter into agreement for Eity use of the On=Bill Financing,
Loan Program and will tally fund eligible project.:costs upon successful,completion to be paid.
back monthly withinEity related utility billing:
NOW THEREFORE, BE IT RESOLVED that the City Council Of the City of Petaluma
hereby:
1,
In accordance with the 'City of Petaluma Charter and,Municipal Code, California Public
(Contract Code Section 20162 and' other applicable law, waives any and all non-
'conformance in:theabid ofiby Tricon Aquatics for•the>Swim Center Energy Efficiency and
Renewable Energy Project, Project No 014501001, finds,the bid of $479,369:00 to be
the lowest, 'responsive; bid rand further Ends that by Tricon ,Aquatics is the lowest
responsiblebidder.
2. Awards the contract for the Swim Center Energy Efficiency and Renewable Energy
Project, Project No C14501001 to Tricorn Aquatics in the amount of$479;369:00, the
amount of the lowest-responsive bid, conditioned_on Tricon Aquatics''timelyexecuting
the project contract and submitting all required documents, including but-not limited to,
executed bonds, certificates of insurance, and endorsements, in accordance with the
project bid documents.
3. Directs staff to issue a.noticerof award to Tricon Aquatics.
4. Authorizes and directs the'City Manager to execute:the project contract on behalf of the
City of Petaluma upon timely. submission by Tricon Aquatics of the signed project
contract and all other required document, including'but not limited to, executed bonds,
certificates of insurance, and endorsements, in accordance with the project bid
documents.
NOW,'THEREFORE; BE IT FURTHER RESOLVED that the City Council of the City of
Petaluma hereby:
5. Modifies the FY 2012-2013 Community_Facilities Impact Fee Budget',to include the
allocation.of an•amountnot-to-ekeeed;$544,000 for die energy efficiency improvements
anaugh,Center, Airport, Senior Center, Corporation Yard and
at the Swim Center; Cav -_- _
Fire;Stations 1, 2 and,3.
6. Authorizes the City Manager to;signthe Promissory'Note;for the Interfund Loan attached
"hereto:as Exhibit A.
•
5
•
•
Attachment 2
Swim Center Energy'Efficiency and Renewable Energy
' PROJECT NUMBER C14501001
LOCATION MAP
N e>, it . /. / - cry rcw N/■i \---\
\ O �I,��
.�/ .. n,cmrn. `/v
_/ / II _`' \ i %ql Mao 0 _. .
_,, -
c O: .,,,,, „,
/ 4 ` ` s: O '°, ;'_ Swim Yr./N.etter /A
� I/. � \"49.\46.7"(1 Uv q
' ., k Cd; Q,5>. 4Ir \ i4(::: UOI/
Iii
i ~, \:,,, (O� VC
i;100_ , ontsk • ..\ , iig
00000a �r0 '<,,, ,..
11:' .-911\kill 1 1 44Vew
'c ' . 1w ------ i , 411■444$
o�oo AM r _ f
-
0 o�o 000 � --1D000 ■
<P>, ,>< u
li F.
S
01/07/201'3
b
Attachment 3
Resolution No. 20,11 -170 N:C:S.
of the City of Petaluma, California
AUTHORIZING THE"CITY MANAGER IOiiEXECUTETLOAN.DOCUMENTS WITH
PACIFIC GAS & ELECTRIC FOR THE ON-BILL FINANCING LOAN.AGREEMENT
PROGRAM FOR ENERGY EFFICIENCY IMPROVEMENTS AT TIIESWIM
CENTER, CAVANAGH CENTER,AIRPORT, SENIOR CENTER, ANIMAL SHELTER,
CORPORATION'YARD, AND FIRE.STATIONS 1,2, AND3'
•
WHEREAS, Citystaffhas workeddiligentlywith PG&E:Energy, Solutions Division,
'PCJ&E Energy ) to prepare analysis of energy usage.at the;Swim:Centersrto'identify•areas of
increasedenergy efficiency; and.
WHEREAS, potential energy savings and costs for.theLPool'Pump Project and.the;Pool
Boiler,Project areas reflected;in;the report of PG&E Energy to the City dated November'14,
201.1;.and,
WHEREAS,City staff has diligently with The Energy All ance,Association,
(1 EAA)to develop a•lighting:retrofit project to realize,energyefficiencics and utility,bill
savings;
?and,
'WHEREAS,'the anticipated costs'-arid energy efficiency savings for the Petaluma
Airport, Animal Shelter; Cavana gh Recreation Center; Corporation Yard, Senior Center and Fire
Stations #1, i 2:and #3.facilities are as stated:in the chart,presented°in.the.staffreport
accompanying this;resolution,as E>,hibit A and dated"Dedemberu9, 201:1 Yanii,
WHEREA$0City is responsible for initial cost ohimplementation of efficiency measures
until funds,from PG&Eaoanhis received„and.
WHEREAS, the Community FacilitiesIinpact Fee,:Fundhasad`equate balance'to loan
this project"up to $325,000 o0;,and,
WHEREAS, City Staff and PG&Ejhave selected,energy efficiency measures,to improve
City-owned facilities-wherein the ciiitibinatibif ohthe=staff andhdesign costs and the'cost of the
'measuressoverall hasa less°thanften;.(-1(?)year paybackrperiodi.
NOW,THEREFORE',;BE IT RESOLVED';thacthe City''Council of the City hereby:
•Authorizesghe City Manager to-.execute,a"loan agreement with:PG&E for the
General,,On Bill Financing Loan Agreement ("Agreement"), a copy of which is
attached to thisresoliition:
Authorizes loan-for the actual cost,of implementation of the stated energy
efficiency measures from the Community Facilities Impact Fee Fund, to be paid
back`in;full with_tt:hersameinterest that would”have been earned if held by the
City,"immediately upon receiving the'PG&E:loan.
Resolutio"n;No. 2011 1;70.N'.C:s:
1.
3. The:amouni,ofthe•PG&E ioan,and repaymenttto.be covered by the Agreement
shall beset pursuantito.provisions in the:attached',Agreement, but shall not exceed
$325,000, unless'adjusted by PG&E and the;City pursuant to the Agreement. In
no event shall the loan amount exceed $325,000'(three hundred twenty-five
thousand dollars).and the maximum term of the PG&E-loan of 10 years
?(ten
years).
Under the power;and'authority conferred upon this Council by the Charter of said City:
_UI I by the fol loin f Resolution introduced and adopted by the App i to
RF,FERENG @: 1 herb ccriif� the foregoing
Council of the City ohPetaluma at Regular meeting on the 19th day of Dccombcr. for
g e:
City.Attorney
AYES: Albertson, Barrett.Mayor Glass.Vice Mayor.Mealy„Kearuet,;Renee
NOES: None
ABSENT: Harr is
ABSTAIN: None
A �-(
11 EST: Q,LQU `i`✓ III f/ •
City Clerk ayor -'
Resolution No. 2011'-170 N.0 S:
1
f
EXHIBIT A TO RESOLUTION 2011-170 N.C.S.
Estimated Estimated
AnnuafBill Simple Annual Annual
Retrofit Measures Measure PGA E; Payback kWh Therm
Cost Incentive'($) SaVings($) (years) Savings Savings
Swim Center $34,150 $15,563 $22,251 0.8 157,324 0
Pump VFD'
Swim Censer $102400 $5,391 $1,617 60 0 5,391
Boiler`
Airport Lighting $36,503 $14;968 $18,243 0.8 99,792 0
Animal,Sheller -
Lighting $3,267 $490 $888 2.7 5,965 0
Cavanagh .
Recreation $7,190 $1,078 $1,459 4.1 .7,982 0
Center Lighting
Corporation Yard
Lighting
$9,330 $.1;399 $1,872 4.0 12,572 0
Senior Center
Lighting $9,185 $1(377 $2,615 3:5 14,309 0
Are Station#1 $6,418 $3,544 $3;795 0.8' 23,628 0
Lighting
Fire Station #2
$4,613 $1,093 $1,333 2:6 7,292 0
Lighting
Are Station #3 $4,.105 $677 $825 4.2 4;517 0
Lighting
Measures Total $217,361 $45,580 $54;898 2.8yr 333,381 5,391
1 Average
Project $35;000 $0 $0 n/a' 0 0
Management
Design!Engineer $15,000 $0 $0 n7a 0 0
I TOTAL LOAN $267;361 $45,580 $54;898. 4 92Y,ears 333;381 5,391
Resolution`No 2011-170 N.C.S.. ■
I
• Resolertion No. 2013' O'04;NC.S. Attachment 4
of the City of Petaluma, California.
AUTHORIZING•AN INCREASE IN THE SWIM CENTER ENERGY
EFFICIENCY PROJECT BUDGET AND''TRANSFER OF FUNDS
WHEREAS, Citystaff has;worked diligentlywith PG&E Energy Solutions Division
'("PG&E Energy")to prepare analysis of energy usage at the Swim Centers to identify areas of
increased energy efficiency;`and,
WHEREAS, potential,energy savings and;costs for the Pool Pump Pioject and the Pool
Boiler Project are as reflected'in the report``of PG&E Energy to'the City-dated November 14, .
2011; and,
WHEREAS, City staff h'as worked diligently with The,Energy,Alliance Association
(TEAA) to,develop and implement a lighting retrofit project,to realize energy efficiencies,and
utility+:bill savings;and,
WHEREAS, City Staff and PG&_Ehave selecte&energy'efficiency measures.to improve
City-owned facilities°wherein thercombination of the staff and design costs_and the cost of the
measures overall has a less than ten(10)':year payback'penod,;thus qualifying'the;energy
efficiency measures for funding with a PG&E General Orr Bill Financing Loan ("PG&E Loan"),
and.
WHEREAS; City is responsible for initial.costof implementation'of efficiency measures
until funds from PG&E'Loan are received; and
WHEREAS, the CIP Fund does:not have current.resourcesavailable to finance the site
improvements;and,
WHEREAS,the Community Facilities Impact Fee Fund.has;an adequate balance to lend
this-project;up to $450;000:00; and,
WHEREAS,the CIP fund will havethe ability to repay a'loan of up-to $450,000 from
the'CormnunityFacilities Impact Fee Fund when the PG&E Loan reimburses the CIP fund for
the cost of work completed to install the energy efficiency improvements; and
WHEREAS, theienergyeffgiency improvements to be funded by the interfund loan are
within the purposes$for which the`Community Facilities Impact Fees were adopted because the
improvements will improve the functionmg^and services provided at the Swim Center and at the
community facilities served by the'lighting retrofits; and,
WHEREAS,'the+_City of Petaluma adoptedthe AY 2012-2013 Parks and.Recreation
Budget which included funding;for a variety of projects and programs to address.the needs.of a
wide spectrum of recreationneeds; and,
Resolution No.2013-001 N.C.S.
ro �
•
WHEREAS, following;the:.adoption.ofthat budget, a site improvement opportunity was
presented to the City which,would produce energy savings.
NOW,THEREFORE,BE IT RESOLVED thatthe City Council of the City hereby:
1. Modifiesthe FY 2012-2013 Community Facilities Impact_Fee.Budget to include the
allocation of an.amount'not-to-exceed"$450,000 for the,energy"efficiency
improvements at the Swim Center,Cavanaugh Center, Airport, Senior Center,
Corporation Yard and.Fire;Stations 1,2 and 3.
2. Authorizes the City Manager to:sig n the Promissory'Note for Interfitnd Loan attached
hereto as Exhibit A.
Under the power,add authority conferred upon this:Council by the Charter of said City.
REFERENCE: I hereby certity,the foregoing Resolution was introduced and adopted:by the Approved as to
Council of the.City of Petaluma u a Regular meeting on the 7" day.of Januan; or :
2013,.bythe following;vote:
C!Vt rney
AYES: Vide Mayor Albertson,lBd}nett,MayorGlass.Hams, Healy,Kearney,Miller
NOES: None
ABSENT: None
ABSTAIN: None i 'S
ATTEST: l �;" , 4e a- � II f tC
City Clerk i Nom'o
Resolution No.2013-004 N.C.S.
Exhibit A to Resolution
CITY'OF FETALUMA, CA
PROMISSORY'NOTE FOR INTERFUND LOAN
This Promissory Note r(Note) for an Interfund.Loan is entered into as of...
2013(date), by and between the'City Treasurer of the:Cityof Petaluma, acting as custodian of.
the funds of the Cityof Petaluma, and the City Manager of the City; dating for the City Council
in implementation of the directives and authority of Resolutions Number 2011-170 N.C.S,
adopted December 19; 2011 and 2013 XXX'N.C.S, adopted January,i, 2013.
1. The Treasurer shall'transfer to the OP Project Fund§1 450 1 001, from the Community
Facilities Impact.Fee Fund, such amounts as the City Manager shall direct from time to
time,not 16 exceed the total sum of Four Fifty,Thousand::Dollars ($450;000).
2. The Treasurer, as custodian.of the funds, agrees to'promptly repay:any sums advanced
hereunder, plus simple interest per anrium(at the rate edual to the;'City;s investment
earnings; as determined in the first quarter of 2013, uponrreceiptof the)PG&E General
On-Bill;Financing Loan described in:Resolutions No 2011-170 N.CS: and 2013-XXX N.C.S.
All funds payable pursuant"tto this,Note shall be repaid as;,funds become available.
3. This Note is subject to the"terms of City of:Petaluma Resolutions:Number:2011-170 and
2013- N.C:S., which`areincorpbrated herein and-Made apart of by reference.
Executed%as of the date'firsi above written.
CITY OFT ETALUMA, CA
By
City Treasurer
By
City Manager
Approved as to form this day:of 2013
City Attorney
Resolution No.2013-004 N.C:S.,
I 1
I