HomeMy WebLinkAboutStaff Report 09/19/2011 3.E AI'U A .i.tem4V #3.E
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DATE: September 19, 2011
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Larry Zimmer, Public Works Capital Improvements Division Manage
SUBJECT: Resolution Accepting.. Completion of the Construction Contract for the Energy
Efficiency and Conservation Block Grant HVAC Retrofit Project
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution accepting the completion
of the construction contract for the 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.
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
pp y approved Strategy on Apri121, 2010, resulting �6, 2009, and roved this Strate and its submittal to the DOE on No vember the DOE
ultimately a roved the' Strat ing in the obligation of remaining
EECBG funds to the City.
A consultant and staffiprepared the bid documents for the selected HVAC units at City Hall, 22
Bassett, Transit Center, Cavanagh Center, Fire Station Headquarters and the Police Department,
and on October 10, 2010, the City advertised the project for bid. Bids were opened on
November 17, 2010, and on December 20, 2010, the City Council awarded the construction
Agenda Agenda Rev iew:
City Attorney Finance Director City Manager
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contract to R.J. Mechanical (Contractor). The approved bid was $200,330.24, which was
$115,954 lower than the engineer's estimate. On January 24, 2011, . Council approved the
allocation of the remaining funds to the LED Streetlight Retrofit Project.
DISCUSSION
The Contractor has satisfactorily completed the construction contract for $210,709.15, including
four change orders totaling $10,378.91 that are described in the resolution.
Staff recommends accepting completion of the construction contract, since the Contractor has
fulfilled all contract requirements. Approval of this resolution will facilitate release of retention.
Per contract requirements, retention will be released within sixty days after Council acceptance
of this project
FINANCIAL IMPACTS
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The EECBG award of $514,500 has been allocated to the following activities: 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; implementation of the LED Streetlight
Retrofit Project; and project management time associated with oversight of the aforementioned
measures.
The authorized project budget for the HVAC Retrofit Project is $264,025, and is, funded entirely
by the EECBG grant. Total project costs for the HVAC Retrofit project are $243.355, which is
$20,670 less than budget. 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. The table below provides a budget status for the
EECBG project, and includes the, project budget for the HVAC Retrofit Project.
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NAT AIEKOBG',4„, ,. .,
Appro *ed Remaining
EECBGApprovv ed Activities Allocation , ,Spent to \ Contract,
Energy Efficiency Consultant' $ 54 040 $ 45,596 $ 8,444
Project Management $' 29,000 $ 25,564 $ 3,436
Countywide Retrofit /Renewables Program $ 51,450 $ 47,662 $ 3,789
HVAC Replacement Project $ 264,025 $ 243,355 $ 20,670
LED Streetlight Replacement $ 115,985 $ - $ 115,985
TOTAI, $ 514,500 $ 362,177 $ 152,324
ma Q �
HVACRetrofitProject ° '
RJ Mechanical $- 200,330
• Contingency $ 30,050
Inspection $ 6
Construction Management.,(12 %) $ 27,646
TOTAL '$ 264;026
ATTACHMENTS
1. Resolution Accepting Completion of the Construction Contract
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ATTACHMENT 1
. . _. HE CONSTRUCTION CONTRACT
RESOLUTION ACCEPTING COMPLETION l OF T
FOR THE ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT HVAC
RETROFIT PROJECT NO. G22604010
WHEREAS, the City has been allocated $514,500 of Energy Efficiency and
Conservation Block. Grant (EECBG) funding from the Department of Energy (DOE); and
WHEREAS, to optimize use of EECBG grant funds, staff worked with an energy
efficiency consultant to prepare the required Energy Efficiency and Conservation Strategy that
compares the energy efficiency of various types of improvements, their cost to install, and
savings in energy costs; and
WHEREAS, subsequent to City Council approval of the recommended energy
conservation measures on November 16, 2009, by Resolution 2009 -187 N.C.S, the Strategy,
including the Countywide Retrofit /Renewables Program and replacement of selected HVAC
units, was submitted to the DOE and subsequently approved; and
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 Energy Efficiency and Conservation Block Grant HVAC Retrofit
Project ( "Project "), and
WHEREAS, bids for the Project were opened on November 17, 2010, in accordance
with California Public Contract Code Section 4104.5 and other applicable law; and
WHEREAS, the apparent low bid for the Project was the bid of R.J. Mechanical in the
amount of $200,330.24; and
WHEREAS, by Resolution No. 2010 -223, adopted on December 20, 2010, the City
Council of the City of Petaluma found the bid of $200,330.24 for the Project to be the lowest
responsive bid and awarded the Project to R.J. Mechanical in the amount of $200,330.24,
conditioned on. R.J. Mechanical timely executing the Project contract and submitting all required
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documents, and authorized and directed the City Manager to sign the Project contract on behalf
of the City, upon such timely submission, and to execute on behalf of the City any change orders
and other amendments to the Project contract that are necessary to effectively complete the
project and /or to realize the Project and /or cost benefits for the City; and
WHEREAS, because the low bid for the project was lower than expected, the City was
approved by the Department, of Energy to allocate the remaining federally authorized grant funds
of $115,954 to an LED Streetlight Retrofit Project; and
WHEREAS, the following contract change orders (CCO) affecting the Project amount
have been approved:
Change
Order No. !Description Amount
#1 !Cavanagh Center — replace duct work for Furnace 1 $1,380.00
ac work $2,070.00
#2 ... Cavana h_Center — replace duct for Furnace 2 __ - - - -.
#3 1Police Department, 22 Bassett, City Hall, Fire Station 1 — $5,619.95
'remove portion of visual screen, move thermostat, new
1.
isolators and thermostat covers for all units
#4 Cavanagh Center and Fire Station 1 — adjust labor costs for $1,308.96
'CO1 & 2, install sensors
'Total of all change orders $10,378.91'
;and
WHEREAS, the final contract amount, as amended, including all change orders, is
$210,709.15; and
WHEREAS, City staff have inspected the Project and determined that it has been
completed in .accordance with the contract requirements subject to 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 by the City Council of the City of Petaluma
as follows:
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1. The contract entitled Energy Efficiency and Conservation Block Grant HVAC
Retrofit Project No. 622604010, with the final contract amount of $210,709.15, is
accepted as complete, subject to the Contractor's continuing warranty, and other
obligations pursuant to the contract.
2. The City Clerk/Recording, Secretary 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.
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