HomeMy WebLinkAboutStaff Report 3.F 10/06/2014(i)
DATE: October 6, 2014
TO: Honorable Mayor and Members 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 Accepting Completion of the Petaluma Swhn Center Energy
Efficiency and Renewable Energy Project and Authorizing a First Quarter Budget
Adjustment of $16,409.04 from the General Fund Designated Reserve for
Encumbrances to the CIP Project Budget
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Accepting Completion of
the Construction Contract for the Petaluma Swim Center Energy Efficiency and Renewable
Energy Project and Authorizing a First Quarter Budget Adjustment of $16,409.04 from the
General Fund Designated Reserve for Encumbrances to the CIP budget.
BACKGROUND
The Swim Center Energy Efficiency and Renewable Energy Project consists of the mechanical
improvements to the Swim Center plus lighting retrofits at various locations throughout the City,
and was completed by multiple construction contracts. The Swim Center project mechanical
elements included the replacement of the swimming pool filters, heaters and pumps, and are the
subject of this proposed action. The project also included the construction of a shade trellis and
solar hot water heating system funded by Regency Centers as a condition included among the
Regency Shopping Center conditions of approval. The lighting retrofits were completed as a
separate project in December 2012 and are not related to this recommended construction project
acceptance. This work continues the City's efforts to retrofit equipment to reduce energy use,
costs, and greenhouse gas emissions.
Bids for the pool mechanical work 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. Substantial completion of construction was successfully
completed on April 9, 2014, well in time for the 2014 swim season; however, resolution of start-
up issues delayed final completion of the pool project until now. 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.
Agenda Review:
City Attorney Finance Director City Manager
The proposed action meets Council Goal: "Plan for and implement priority capital projects as
funding permits".
The final construction contract cost for the pool mechanical elements 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 mechanical
room entry doors, training pool auto -fill and bypass, an extra flange connection, pump technician
assistance, a gas line connection, and a unistrut cage to support pipes.
Most of the mechanical equipment to operate the pool had not been replaced since the Swim
Center facility was originally constructed in 1965. During construction, issues arose including
the need to replace 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 to facilitate
construction. Additionally, the County of Sonoma Environmental Health Department required
the facility to be upgraded to meet current health codes which added project expenditures for
replacing main drain covers, water line tiles, and patching and cleaning pool plaster.
Construction of the shade trellis and solar system began in March of 2013 and was completed
prior to the 2013 swim season. Because filtration equipment and pumps did not arrive in time for
the 2013 swim season, the project was put 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, funded the replacement of the old, non-
operable 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 of 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 from the OBF for the Swim Center improvements and the
lighting retrofits. Regency Centers paid the City $87,626.86. The total available funding is
$681,870.86. However, change orders for unforeseen facility replacements, and the staff time
associated with these activities increased the project total cost to $698,280.00, which is
$16,409.04 over the total available funding as summarized in the table below:
Project Funding Sources_
2013-2014 CIP
_
594,244
Project
87,627
Budget
16,409
Expenditures
698,280
Lighting Retrofit
53,366
(previous project)
Legal
2,000
Design
25,000
Design Consultant
25,000
Salaries/Benefits
30,000
Design Phase
37,224
Staff Costs
Construction Contract
479,000
Construction
502,023
Contract
Contingency
31,000
Contingency
0
Construction Management
15,000
Construction
59,350
Management and
Inspection
CIP Overhead
7,000
CIP Overhead
21,317
589,000
CIP BUDGET
698,280
TOTAL
Project Funding Sources_
PG&E OBF Loan
_
594,244
Regency Payment
87,627
CIP Budget Adjustment
(proposed)
16,409
Total Funding Available
698,280
The Finance Department has verified that the additional funds to augment the CIP budget can
come from unexpended funds related to the FYI General Fund budget. These funds have been
designated as reserves for encumbrances as of June 30, 2014. The fund transfer to the CIP
project will be included in the First Quarter Budget Adjustments Council item scheduled to be
presented to the City council on November 3, 2014.
The PG&E OBF loan funds will be received at project completion and acceptance and will be
used 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 a $30,142 annually for the lighting retrofits for a total
annual savings of $56,416. These savings will be used to pay off the improvements in just over
ten years.
ATTACHMENTS
Resolution
Attachment 1
RESOLUTION ACCEPTING COMPLETION OF THE
PETALUMA SWIM CENTER ENERGY EFFICIENCY AND RENEWABLE ENERGY
PROJECT AND AUTHORIZING A FIRST QUARTER BUDGET ADJUSTMENT OF
$16,409.04 FROM THE GENERAL FUND DESIGNATED RESERVE FOR
ENCUMBRANCES TO THE CH' PROJECT BUDGET
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, 3013, 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. 3013-013, 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
Change Order
Number
CCO#1
CCO #2
CCO #3
CCO #4
CCO #5
CCO #6
CCO #7
CCO #8
CCO #9
CCO #10
Description
Expanded metal for shade structure
Lead paint abatement prior to demolition
Remove and replace double doors to install filter
Auto -fill mechanism and bypass pipe for training pool
Extra flange connection
Pump Technician
Pit slab and waterproofing removed from contract
Install gas new line
Heater flue through roof
Amount
$ 2,976.24
$ 8,013.20
$ 1,715.00
$ 1,658.00
$ 1,812.00
$ 406.00
($4,500.00)
$ 997.00
$ 576.84
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
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 On -Bill Financing Loan Program are received; and
WHEREAS, the General Fund has reserved 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 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 Clerk 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 Designated fund balance to be transferred
in to the CIP project in conjunction with the First Quarter Budget Adjustments Council
Agenda item