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HomeMy WebLinkAboutStaff Report 3.D 8/4/2014DATE: August 4, 2014 TO: Honorable Mayor and Members of the City Council through City Manager n' C Director, Public Works &Utilities FROM: Dan St. 410� Larry Zimmer, IE. — Capital Improvements Division Manager SUBJECT: Resolution Accepting Completion of the Swim Center Energy Efficiency and Renewable Energy Project and Modify CIP Budget RECOMMENDATION It is recommended that the City Council adopt the attached resolution accepting completion of the construction contract for the Swim Center Energy Efficiency and Renewable Energy Project and modify the CIP budget. BACKGROUND The Swim Center and Energy Efficiency and Renewable Energy Project consists of the mechanical improvements to the Swim Center plus lighting retrofits at various locations throughout the City. The Swim Center project included the replacement of the swimming pool filters, heaters and pumps. The project also included the construction of a shade trellis and solar hot water heating system. The lighting retrofits were completed as a separate project in December 2012 and are not related to this recommended construction contract acceptance. This work continues the City's efforts to retrofit equipment to reduce energy use, costs, and greenhouse gas emissions. Bids were opened on January 24, 2013, and on February 4, 2013, the City Council approved the project budget and awarded the construction contract to Tricon Aquatics in the amount of $479,369.00. Construction was successfully completed on April 9, 2014. The Community Facilities Impact Fee Fund provided interim financing for the project and will be reimbursed in full by Pacific Gas and Electric's (PG&E) On -Bill Financing Loan (OBF) Program once the project is accepted and final documents are completed. The proposed action meets Council Goal: "Plan for and implement priority capital projects as funding permits". Agenda Review: City Attornev Finance Director City Manager_ DISCUSSION The final construction contract cost is $502,023.28 including change orders totaling $22,654.28 which is 4.7% of the base bid. The approved project budget established a change order contingency of $31,000 for unforeseen conditions. Change orders included: trellis deck material, lead paint abatement, removal and replacement of the entry doors to place filters, training pool auto -fill and bypass, extra flange connection, pump technician assistance, gas line connection, and a unistrut cage to support pipes. The Swim Center facility was originally constructed in 1965 and many elements of the mechanical room had not been updated since then. During construction, issues arose that needed immediate attention for successful completion of the project including the replacement of the gas regulator, corroded electrical wires and breakers, chemical probes and chlorinator for the small pool, as well as hiring a diver to plug main drain lines. Additionally, the County of Sonoma Environmental Health Department required bringing the facility to current health code which added project expenditures for replacing main drain covers, water line tiles, and patching and cleaning plaster. Construction of the shade trellis and solar system began in March of 2013 and was completed prior to the 2013 swim season. The filtration equipment and pumps did not arrive in time for a successful installation prior to the 2013 swim season so staff placed this project on hold until the swim season finished. Work resumed in October 2013 and was completed prior to the 2014 swim season. The East Washington Place developer, Regency Centers, replaced the old, defunct solar hot water heating system as a condition of development. Staff incorporated Regency's solar hot water design into the City's Swim Center Energy Efficiency project to allow for seamless installation by the City's contractor. The City has received payment from Regency to cover the installation of the solar system including the supporting trellis and related inspection and project management costs. Regency paid the City's consultant directly for the design for the solar portion of the project. The project was permitted and inspected by the City's Building Division and the County of Sonoma Environmental Health Services Division and has received its final approval for use. There are no disputed claims and the project was completed without any significant incidents. FINANCIAL IMPACTS PG&E has committed $594,244 fiom the On -Bill Financing Program (OBF) for the Swim Center improvements and the lighting retrofits. The payment received from Regency is $87,626.86. The total available funding is $681,870.86. However, the unforeseen facility replacements and the staff time associated with these activities increased the project to $16,409.04 over the total available funding as summarized in the table below: Project Funding Sources PG&E OBF Loan 2013-2014 CIP Project 87,627 1 Budget Expenditures Lighting Retrofit 0 53,366 Design 25,000 25,000 Construction Contract 479,369 502,023 Contingency 31,000 0 Construction Mgmt. & 15,000 83,625 Inspection CIP Overhead/Salaries 39,000 34,266 CIP BUDGET 589,369 698,280 TOTAL Project Funding Sources PG&E OBF Loan 594,244 Regency Payment 87,627 1 CIP Budget Adjustment (based on this action) 16,409 Total Funding Available 698,280 The Finance Department has indicated that the additional funds to augment the CIP budget will come from the unexpended budget for the FYI General Fund budget. The PG&E OBF loan funds will be received at project completion and acceptance in order to pay back the interfund loan with interest. The PG&E loan debt will be paid back using energy savings resulting from the project. The City expects 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 will be used to pay off the improvements over approximately the next ten (10) years. ATTACHMENTS 1. Resolution 443 Attachment 1 RESOLUTION ACCEPTING COMPLETION OF THE CONSTRUCTION CONTRACT FOR THE SWIM CENTER ENERGY EFFICIENCY AND RENEWABLE ENERGY PROJECT PROJECT NO. C14501001 WHEREAS, in accordance with Section 68 of Article X of the City of Petaluma Charter, Section 20162 of the California Public Contract Code and other applicable law, the City of Petaluma solicited bids for the Petaluma Swim Center Energy Efficiency and Renewable Energy Project ("Project'); and WHEREAS, bids for the Project were opened on January 24, 2013, in accordance with California Public Contract Code Section 4104.5 and other applicable law; and WHEREAS, the apparent low bid for the Project was Tricon Aquatics in the amount of $479,369.00; and WHEREAS, by Resolution No. 2013-013, adopted on February 4, 2013, the City Council found the bid of $479,369.00 for the Project to be the lowest responsive bid, and awarded the Project to Tricon Aquatics; and WHEREAS, the following contract change orders (CCO) affecting the Project amount have been approved; and Chance Order Number Descriotion Amount CCO#1 Expanded metal for shade structure $ 2,976.24 CCO #2 Lead paint abatement prior to demolition $ 8,013.20 CCO #3 Remove and replace double doors to install filter $ 1,715.00 CCO #4 Auto -fill mechanism and bypass pipe for training pool $ 1,658.00 CCO #5 Extra flange connection S 1,812.00 CCO #6 Pump Technician $ 406.00 CCO #7 Pit slab and waterproofing removed from contract ($4,500.00) CCO #8 Install gas new line $ 997.00 CCO #9 Heater flue through roof $ 576.84 CCO #10 Final Closeout Resolution of All Disputed Issues (including but not limited to) pipe support with unistrut cage $ 9,000.00 Total change orders: $22,654.28 4 WHEREAS, the final contract amount, as amended, including all change orders, is $502,023.28; and WHEREAS, the estimated total cost of the Project is $698,279.80, is $16,409.04 over the available funding; and WHEREAS, the City is responsible for initial cost of implementation of efficiency measures until funds from PG&E Loan are received; and WHEREAS, the General Fund has unexpended funds from Fiscal Year 2013-2014 to pay the cost overage; and WHEREAS, PG&E has entered into agreement for City use of the On -Bill Financing Loan Program and will fully fund eligible project costs upon successful project completion, to be paid back monthly within City -related utility billing; and WHEREAS, City staff, including Building Division inspectors, have inspected the Project and determined that it has been completed in accordance with the contract requirements, subject to completion of the punch list work, and the Contractor's continuing warranty and other obligations pursuant to the contract; and WHEREAS, based on the foregoing, staff recommends acceptance of the Project on behalf of the City. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City hereby: 1. The contract entitled Petaluma Swim Center Energy Efficiency and Renewable Energy Project, Project No. 014501001, with the final contract amount of $502,023.28, is accepted as complete, subject to the Contractor completing the punch list work prior to the release of the retention, and the Contractor's continuing warranty and other obligations pursuant to the contract. 2. The City Cleric is hereby authorized and directed to file a Notice of Completion concerning the Project with the Sonoma County Clerk's Office within ten (10) days of the date of this Resolution. 3. Staff are hereby authorized and directed to release all undisputed retention not subject to pending change orders within sixty (60) days of the date of this Resolution and in accordance with the terms of the Project contract, California Public Contract Code Section 7107 and applicable law. 4. Authorizes $16,409.04 from the General Fund undesignated fund balance 1100.14700.