HomeMy WebLinkAbout2008/06/17 Item 6
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CITY COUNCIL
AGENDA STATEMENT
~I!f:. ClIT OF
. ~-:: (HULA VISTA
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
I
6/17/08, Item r",
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ACCEPTING BIDS At"ID AWARDING A CONTRACT FOR
THE PURCHASE AND REPLACEMENT OF THE POOL HEATER
AT THE LOMA VERDE RECREATION CENTER TO HORIZON
MECHANICAL IN THE AMOUNT OF $77,145 WHICH WILL BE
FUNDED THROUGH CAPITAL IMPROVEMENT PROJECT
GG202 At"ID REIMBURSED THROUGH THE CALIFORNIA
ENERGY COMMISSION LOAN PROGRAM
DIRECTOR OF ENGINEERING ~
DIRECTOR OF RECREA TION ~
CITY MANAGER
..--
ASSISTANT CIT MANAGER S /
4/STHS VOTE: YES D NO ~
SUMMARY
The situation and working condition of the pool heaters at Loma Verde were brought to the
attention of Engineering and General Services in January of 2008. After extensive discussions
with the stakeholders of both Recreation and Public Works depaliments, it was detelmined that a
simple replacement of the main boiler would not be a long term solution to the failure. Staff
obtained information from private consultants concerning a reconfiguration utilizing two boilers
and contacted SDG&E concerning any rebates that would apply to the new installation. Bids
were received on May 15,2008.
ENVIRONMENT AL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance with
the California Environmental Quality Act (CEQA) and has determined that there is no possibility
that the activity may have a significant effect on the environment because it involves only
replacement of a heater that is enclosed entirely within the existing pool equipment room;
therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not
subject to CEQA. Thus, no environmental review is necessary.
RECOMMENDATION
Council approve the resolution.
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6/17/08, Item ~
Page 2 of 3
BOARDS/COMMISSION RECOMMENDA nON
Not applicable.
DISCUSSION
In October of 2007 at the Lorna Verde Recreation Center, pool heater #1 was permanently
removed from service due to a massive boiler brickwork collapse inside of the burner box.
Repairs were made to the backup heater #2, which brought it into service by replacing some of
the controls and fire brick removed from heater # 1. Heater #2 is not large enough to maintain
good temperatures on cold days and doesn't have the appropriate controls to operate efficiently.
Heater #2 was originally installed in 1970, is about 18 years past its expected life and is
deteriorating rapidly. Because of age and the increase in pool capacity added with the last pool
remodel at Lorna Verde, additional demand was placed on both heaters without accounting for
the originally designed heating potential. This additional load placed on the heaters caused an
accelerated deterioration process and the final failure.
Pool heaters have a normal life expectancy of 20 years. Heater #1 was 24 years old. Heater # 2
is 38 years old. These heaters operate continuously; starting and stopping as the temperature
demands dictate, causing metal fatigues from the constant heating and cooling. Metal surfaces
corrode from condensation and boiler soot creates an acidic atmosphere that damages all surfaces
from the boiler framework to the stacks.
Staff researched the cost of the two boilers and the heat exchangers necessary to meet the grant
criteria. While conducting this research, Mr. David Beckman, a pool equipment manufacturer,
stepped forward and offered to provide the boilers, heat exchangers and the appurtenant
hardware at his cost. This philanthropic gesture represents an approximate 50% savings over the
retail cost for the same equipment. Two additional bids were received as a comparison on the
heater specified to verify the savings. Mr. Beckman is not connected to, nor does he have any
business interests with low bidder Horizon Mechanical concerning the equipment installation.
On May ] 5, 2008 two formal bids were received for the equipment installation only of the
above-mentioned project. Horizon Mechanical of Arcadia, CA was the low biddder and
submitted a bid of $77,145. All the document requirements have been met by Horizon
Mechanical. Thus, Horizon Mechanical was declared responsive and clear to perform the
necessary work.
This facilities improvement project is part of the City's broader efforts to promote renewable energy
at municipal sites and to lower citywide greenhouse gas or "carbon" emissions. The Chula
Vista/SDG&E Partnership Program has provided financial support for City staff to evaluate,
identify and coordinate the installation of these energy retrofit projects. Because Partnership
funds are not able to be used for capital costs associated with renewable energy llpgrades, the
City pursued and was awarded California Energy Commission loans designed to provide local
agencies with capital funding to install renewable energy systems and is re-paid through the
resulting energy savings. Once the loan debt is re-paid, the City would capture the net savings
on its annual energy costs. SDG&E has recommended that the heaters be replaced along with
the solar and pool cover elements at Loma Verde to complete a comprehensive energy package.
This will be accomplished by creating two separate projects, the first being the new heater
component, the second will be the solar panel array and pool cover replacement.
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6/17/08, Item 0
Page 3 of 3
The natural gas savings from the two projects are estimated to be 35,137 therms a year. Based
on the average gas cost of $0.956/therm, the first year natural gas cost savings are estimated to
be about $33,695 annually. The City can apply for a SDG&E Standard Performance Contract
rebate for these two projects. The rebate offered by SDG&E is$0.80/therm saved. The
estimated rebate for these two projects is about $28,109. The simple payback for these two
projects is around 5.8 years after SDG&E rebate.
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings
within 500 feet of the boundaries of the property which is the subj ect of this action.
FISCAL IMPACT
There is no impact to the General Fund. The contract amount and costs for implementing the
renewable energy improvement project will be fully paid through the CEC Energy Efficiency
Loan - Phase I (GG202) Capital Improvement Project (CIP) which was approved by City
Council on April 1,2008. The CIP's expenditures are reimbursed through the California Energy
Commission loan program which uses the project's resulting energy savings (approximately
$10,607 annually) to repay the loan debt resulting in a simple payback period of nine years. The
City will also take advantage of an energy efficiency incentive of $8,848 from SDG&E and the
California Public Utilities Commission. City staff costs associated with implementing the
projects will be funded by the current SDG&E Partnership Program.
FUNDS REQUIRED FOR PROJECT
A. Contract Amount (Horizon Mechanical) $77,\45.00
B. Purchase new heaters 66,421.00
C Contingencies (10% of contact amount) 7,715.00
TOTAL FUNDS REQUIRED FOR CONSTRUCTION $\5\,281.00
FUNDS AVAILABLE FOR PROJECT
A. Existing CIP, GG202 $\5\,281.00
TOT AL FUNDS AVAILABLE FOR CONSTRUCTION $\51,281.00
ATT ACHMENTS
\. Contractor's Disclosure Statement
Prepared by: Cordon Day. Sr. Building Project Supervisor, Engineering Dept.
M: IGeneral ServiceslGS AdministrationlConncil AgendalGG202A IPool HeaterA f f 3REV.doc
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ATTACHMENT_
I
City of Chula Vista Disclosure Statement
Pursuant to Council Policy 101-0 I, prior to any action upon matters that will require discretionary action
by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of
certain ownership or financial interests, payments, or campaign contributions for a City of Chula Vista
election must be filed. The following information must be disclosed:
1. List the names of all persons having a financial interest in the property that is the subject of the
application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier.
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2. If any person- identified pursuant to (I) above is a corporation or partnership, list the names of all
individuals with a $2000 investment in the business ( corporation/partnership) entity.
,.-, I".. 13""" cf6/z {?ON ;:rZC/r/:l/JJ.C~
,::,O/-Ya/ (0 c9 f2v'c;?pu ,.. / ,
RCJi3-z:-/2:7 JC ''"77/7/?LL
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f1i:':J/2.i co~./ /?'? pC-h" tJ,-v, C04-"-
3. If any person- identified pursuant to (I) above is a non-profit organization or trust, list the names
of any person serving as director of the non-profit organization or as trustee or beneficiary or
trustor of the trust.
N/^-
,
4. Please identifY every person, including any agents, employees, consultants, or independent
contractors you have assigned to represent you before the City in this matter.
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720102/2:(" IC.!mJJmL
5. Has any person- associated with this contract had any financial dealings with an official-- of the
City of Chula Vista as it relates to this contract within the past 12 months? Yes_ NOk-
If Yes, briefly describe the nature of the financial interest the official-- may have in this contract.
16
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Heater.doc
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6_ Have you made a contribution of more than $250 within the past twelve (12) months to a current
member of the Chula Vista City Council? No i. Yes _ If yes, which Council member?
7_ Have you provided more than $340 (or an item ofequivaIent value) to an official** of the City
ofChula Vista in the past twelve (12) months? (This includes being a source of income, money to
retire a legal debt, gift, loan, etc.) Yes _ No ~
If Yes, which official** and what was the nature of item provided?
Date: 5//Z./0:!?
, /
*
~ature of Contractor! APe.licant
,"CJ/7'J'lJ /31 6ni2/Y'J/L-l
Print or type name of Contractor! Applicant
CEO 1,v;Zi 2c:)rJ Hcc/7i3rz/ ,cf4
Person is defined as: any individual, firm, co.partnership, joint venture, association, social club,
fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city,
municipality, district, or other political subdivision, -or any other group or combination acting as
a unit.
**
Official includes, but is not limited to: Mayor, Council member, Planning Commissioner,
Member of a board, commission, or committee of the City, employee, or staff members.
17
C:\Documcnts and Seltings\Administrator\Local Seuings\Ternpornry internet Files\OLKC4\gg-202a Lorna Verde Pool
Healer.doc
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RESOLUTION 2008-
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA ACCEPTING BIDS AND
A WARDING A CONTRACT FOR THE PURCHASE
AND REPLACEMENT OF THE POOL HEATER AT
THE LOMA VERDE RECREATION CENTER TO
HORIZON MECHANICAL IN THE AMOUNT OF
$77,145 WHICH WILL BE FUNDED THROUGH
CAPITAL IMPROVEMENT PROJECT GG202 AND
REIMBURSED THROUGH THE CALIFORNIA
ENERGY COMMISSION LOAN PROGRAM
WHEREAS, the situation and working condition of the pool heaters at Lorna
Verde were brought to the attention of Engineering and General Services in January
2008; and
WHEREAS, after extensive discussions with the stakeholders of both Recreation
and Public Works departments, it was determined that a simple replacement of the main
boiler would not be a long ternl solution to the failure; and
WHEREAS, staff obtained information from private consultants concerning a
reconfiguration utilizing two boilers and contacted SDG&E concerning any rebates that
would apply to the new installation; and
WHEREAS, on May 15,2008, two formal bids were received for the equipment
installation only of the heaters at Lorna Verde; and
WHEREAS, Horizon Mechanical of Arcadia, CA, was the low bidder and
submitted a bid in the amount of $77,145; and
WHEREAS, all the document requirements have been met by Horizon
Mechanical and the contractor is declared responsive and clear to perform the necessary
work; and
WHEREAS, SDG&E has recommended that the heaters be replaced along with
the solar and pool cover elements' at Lorna Verde to complete a comprehensive energy
package; and
WHEREAS, this will be accomplished by creating two separate projects, the first
one being the new heater component, and the second project will be the solar panel array
and pool cover replacement; and
WHEREAS, the first year natural gas cost savings are estimated to be about
$33,695 annually; and
6-6
Resolution No. 2008-
Page 2
WHEREAS, if the City applies for an SDG&E Standard Performance Contract
rebate for these two projects, the estimated rebate for the projects is approximately
$28,109.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of
Chula Vista accept bids and award a contract for the purchase and replacement of the
pool heater at the Lorna Verde Recreation Center to Horizon Mechanical in the amount of
$77,145, which will be funded through Capital Improvement Project GG202 and
reimbursed through the California Energy Commission Loan Program.
Presented by:
Approved as to form by:
Richard A. Hopkins
Director of Engineering
~~~~
Bart C. Miesfeld .
Interim City Attorney
H:\E,'\IGI NEER\RESQS\Rc,os20081.0(,-17.08\Po01 heater r~so_doc
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