HomeMy WebLinkAboutAgenda Bill 3.G 12/20/2010DATE
December 20, 2010
A gevidal ItP,wv # 3.G
TO: Honorable Mayor and Members of the City t /4 ncil through City Manager
FROM: Vincent Marengo, Director of Public Work
SUBJECT: Resolution Approving the Project Budget and Authorizing the Award of Contract
for the Department of Energy's Energy Efficiency and Conservation Block Grant
HVAC Retrofit Project
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution approving the project
budget and authorizing the award of contract for the.Department of Energy's Energy Efficiency
and Conservation Block Grant HVAC Retrofit Project.
BACKGROUND
The American Recovery and Reinvestment Act of 2009 (ARRA) provided funding to the
Department of Energy (DOE) for resource efficiency and conservation projects in the Energy
Efficiency and Conservation Block Grant Program (EECBG). The City of Petaluma is entitled,
by formula, to $514,500 of EECBG funds.
ill
Following the Department of Energy's program guidelines, staff initially requested a portion of
the funds to develop an Energy Efficiency and Conservation Strategy (Strategy), with the
assistance of an energy efficiency consultant. The consultant performed an audit of the
electricity and natural .gas powered equipment at all City -owned facilities, creating a .
comprehensive list of all energy conservation measures. It was noted by the consultant that 90%
of the heating /ventilation/air conditioning (HVAC) equipment is beyond its useful service life,
and a Strategy was recommended to focus the EECBG funds on an HVAC replacement project.
The list was prioritized by building maintenance staff, based on their knowledge of operational
problems, and the units selected were taken by priority to meet the available funds. City Council
approved this Strategy and its submittal to the DOE on November 16, 2009, and the DOE
ultimately approved the Strategy on April 21, 2010, resulting in the obligation of remaining
EECBG funds to the City. 'The. approved Strategy creates significant energy and greenhouse gas
(GHG) emission reductions, which is the intended use of the stimulus funds.
The provisions of the American Recovery and Reinvestment Act do not allow any expenditure of
stimulus funds on casinos, aquariums, golf courses, zoos and swimming pools.
Agenda Review:
City Attome Of Fin
inance Director City Manage
EECBG funds received must be obligated by City Council to a specific project or program
within 18 months of the DOE award date to the City, which is February 4, 2011. All EECBG
funds must be spent within 36 months of that award date (August 3, 2012).
DISCUSSION
In April, the City of Petaluma was approved to utilize $417,175 of the Energy Efficiency and
Conservation Block Grant (EECBG) funding for the HVAC Retrofit Project. The energy
efficiency consultant prepared the performance specifications, and on October 21, 2010, the City
advertised the project forbids. The engineer's estimate for construction was $374,010.00. Six
bids were received on November 17, 2010, as follows:
Name of Bidder
Business Location
Total Bid
RJ Mechanical
Cotati, CA
$200,330.24
N.V. Heathorn Co.
San Leandro, CA
$208,914.00
Hometown Construction
Rio Linda, CA
$251,401.00
GECO, Inc.
Novato, CA
$277,225.00
R -E Corporation
Santa Rosa, CA
$284,550.00
Trahan Mechanical
San Rafael, CA
$299,080.00
RJ Mechanical is the apparent lowest responsible bidder, with a total bid of $200,330.24. Staff
verified that RJ Mechanical possesses a valid Class C -20 contractor's license No. 856063, which
qualifies them to perform the work.
Staff recommends City Council authorize the City Manager to enter into contract with the low
bidder, RJ Mechanical, to provide the Energy Efficiency and Conservation Block Grant HVAC
Retrofit Project. Construction is tentatively scheduled to begin in spring 2011, at the following
five locations, and is expected to last one week at each facility, weather permitting.
1. City Hall (buildings on English & Bassett Streets)
2. Cavanaugh Center
3. Fire Station l (Headquarters)
4. Police Department
Transit Center
FINANCIAL IMPACTS
The EECBG award of $514,500 has been allocated to the following activities: the development
of an Energy.Efficiency and Conservation Strategy by the energy efficiency consultant; the
Countywide Retrofit/Renewables Program administered by the Regional Climate Protection
Agency; implementation of the HVAC Retrofit Project; and project management time associated
with oversight of the aforementioned measures.
4
R
—n ��
x EECBG A , ro�.ed Act�vjt►es , > ... ..
' u se. - «t
n
A1locations,k,
� ,... ld _ t b
5 -g
a 'x df
Spentto Date
C E7Y e g. fi k x .':
: ematnng��
a :_. Contract :;
Energy Efficienc Consultant
$, 54,040
$ 42,647
$ 11,394
Project Management
$, 35,000
$ 25,564
$ 9
Countywide Retrofit/Renewables Program
$ 51,450
$ 15,007
$ 36,444
1-IVAC Retrofit Pro
$ 374,04'0
$. -
$ 374,010
TOTAL
$ 514,500
$ 83,217
$ 431,283
RJ Mechanical '
$ 200,330
Contingency (15 %)
$ 30,050
Inspection
$ 6,000
Construction Management (12 %) .
$ 27,646
TOTAL
$ 264,025
Remaining Grant Funds
$ 1`09,985
All costs will be initially paid by the CIP Fund and will be reimbursed by the grant. Monthly
reimbursement requests are allowed by the Department of Energy, subsequent to payment made
to the contractor. Staff will recommend reallocating the remaining grant funds to another project
in January 2011.
ATTACHMENTS
1. Resolution Approving Project Budget
2. Resolution Approving the Energy Efficiency Block Grant. Strategy
ATTACHMENT 1
RESOLUTION APPROVING THE PROJECT BUDGET AND
AUTHORIZING THE AWARD OF CONTRACT FOR THE
DEPARTMENT OF ENERGY'S ENERGY EFFICIENCY AND
CONSERVATION BLOCK GRANT HVAC RETROFIT PROJECT
WHEREAS, the City has been allocated $514,500 of Energy Efficiency and
Conservation Block Grant (EECBG) funding; and
WHEREAS, to optimize use of EECBG grant funds, staff worked with an energy
efficiency consultant to prepare a selection of Energy Conservation Measures as a result the
HVAC Retrofit Activity was recommended for implementation; and-
WHEREAS, in order to utilize the EECBG funds, an Energy Efficiency and
Conservation Strategy (Strategy), which provides specific Energy Efficiency Measures that will
be implemented within the grant funds, was submitted to and approved by the Department of
Energy; and
WHEREAS, City staff -has prepared construction bid documents and advertised for
construction of 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 October 21, 2010, and six (6) bids were received and
opened in accordance with applicable law; and
WHEREAS, the lowest responsible bidder for the Project was from RJ Mechanical for
$200330.24; and
M
WHEREAS, staff has determined that RJ Mechanical's bid satisfies the bidding
.requirements for the project; and
WHEREAS, staff has verified that RJ Mechanical possesses a valid California
Contractor's License, Class C -20, number 856063 that qualifies RJ Mechanical to perform the
Project; and
WHEREAS, the project is categorically exempt from the California Environmental
Quality Act ( "CEQA "), pursuant to Title 14 California Code of Regulations, section 15301, as
the minor modification of existing facilities with negligible or no expansion of use.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby:
Approves the Project Budget in the amount of $264,025.
2. 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 the bid of RJ Mechanical for the HVAC Retrofit Project and finds RJ
Mechanical the lowest responsible bidder of $200,330.24.
3. Awards the contract for the HVAC Retrofit Project to RJ Mechanical, in the amount of
$200,330.24, the amount of the lowest responsive bid, conditioned on RJ Mechanical's
timely executing 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.
4. Directs staff to issue a notice of award to RJ Mechanical.
Authorizes and directs the City Manager to execute the project contract on behalf of the
City of Petaluma upon timely submission by RJ Mechanical of the signed project contract
and all other required documents, including but not limited to, executed bonds,
certificates of insurance, and endorsements, in accordance with the project bid
documents.
5
ATTACHMENT 2
Resolution No. 2009 -187 N.C.S.
of the City of Petaluma, California
APPROVING THE ENERGY EFFICIENCY BLOCK GRANT STRATEGY
FOR SUBMITTAL TO THE- U.S. DEPARTMENT OF ENERGY,
AND AUTHORIZING CITY MANAGER TO EXECUTE ALL RELATED DOCUMENTS
WHEREAS, the City has been allocated $514,500 of Energy Efficiency and
Conservation Block Grant (EECBG) funding; and,
WHEREAS, in order to .qualify for EECBG funds, an Energy Efficiency and
Conservation Strategy (Strategy) must be submitted, which provides specific energy efficiency
measures which can be implemented within the grant funds; and,
WHEREAS, staff submitted the required application to the Department of Energy
(D.O.E.) requesting approval of up to $120,000 of EECBG funds to prepare the Strategy; and,
WHEREAS, to optimize use of EECBG grant funds, staff worked with a consultant to
prepare the Strategy that compares the energy efficiency of various types of improvements, their
cost to install, and savings in energy costs; and,
WHEREAS, a selection of Energy Conservation Measures has been recommended for
implementation; and,
WHEREAS, ten - percent of the EECBG funds will be distributed to Sonoma County
Transportation:Authority for use in the Countywide Retrofit/Renewables Program; and,
WHEREAS, a notice to proceed will not be issued on any Energy Conservation Measure
until the City signs the Assistance Agreement with the Department of Energy obligating the use
of the EECBG funds.
Resolution No. 2009 -187 N.C.S. Page 1
r,
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma:
1. Approves the Energy Efficiency Block Grant Strategy for submittal to the U.S.
Department of°Energy, including the following proposed project costs:
The transfer of '$51,450 to the Sonoma County Transit Authority for the
countywide Building Retrofit Program; a budget of $374;010 for energy
conservation measures; an amount not to exceed $54,040 for a professional
services agreement with Cogent Energy; and up to $35,000 for staff to manage the
Measures over the life of the grant, for the total sum of $514;500.
2. Authorizes the City. Manager to execute all related documents.
Under the power -and authority conferred upon this Council by the: Charter of said City
REFERENCE:
Thereby certify the foregoing Resolution was introduced and adopted by the
A rov d as to
Councilofthe City of Petaluma aoa Regular meeting on the 16t day of November,
fo
2009,.by.thefollowing vote:
C' Attorney
AYES:
Vice Mayor - Barrett, Harris, Healy, Rabbit, Renee, Mayor Torlia
NOES:
None
ABSENT:
Glass
ABSTAIN:
None
ATTEST:
City Clerk M yor
Resolution No. 2009 -187 N.C.S. PaQe 2
7