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Home My WebLink About2008/07/22 Item 4 CITY COUNCIL AGENDA STATEMENT ~\~ CITY OF ~ (HULA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: SUMMARY 7/22/08, Item~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS At'ill AWARDING A CONTRACT FOR THE INST ALLA TION OF THE LOMA VERDE POOL SOLAR PANEL SYSTEM TO AQUATIC RESOURCES INC. IN THE A.MOUNT OF :579,500 At,,]) AUTHORIZING STAFF TO PURCR<\SE SOLAR PAt""ELS AND RELATED E MENT FROM AQUATIC RESOURCES INC. FOR $34,049 DIRECTOROFENGINEERWG DIRECTOR OF RECREATION ~ DIRECTOR OF CONSE V ATI9N IRONMENT AL SERVICES ~"' CITY MANAGER ~ J ASSISTANT CITY TANAGER ~f 4/5THS VOTE: YES 0 NO ~ ,I The pool solar panel arrays at the Lorna Verde Recreation Center have exceeded their useful life and are in need of replacement. This resolution will award installation of the pool solar hot water system to Aquatic Resources, Inc. and authorize staff to purchase related panels and equipment. Funds for this project are available in Capital Improvement Project GG202 and eligible for reimbursement from the California Energy Commission (CEC) Loan Program. ENVIRONMENTAL 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 adopt the resolution. . 4-1 7/22/08, Item !. Page 2 of 4 DISCUSSION The Lorna Verde solar panel array went into service on October 20,1980. The first panels were replaced in March 1995, since then staff has been replacing from 2 to 3 panels every couple of years as they have become inoperative. A solar panel array assessment was completed in 2007, the results were that 4 panels were worn beyond use and/or repair and were completely removed. Eleven panels are at the end of their useful life and 50% of the panels are showing signs of deterioration and corrosion, with their flow-balancing valves frozen and inoperable. Typically the life of these systems is approximately 20 years before replacement is warranted. Because of good water chemistry management and a good maintenance program the life of this system was extended about 6 years before the wear and age started to reduce the systems efficiency to the point necessitating replacement of the entire system. An earlier energy project at Lorna Verde, which provided for the heater replacement was previously approved by Council on June 17, 2008. This was part of a comprehensive energy project which includes the heater, solar arrays and pool. cover. StatY is recommending the replacement of the pool solar arrays at Lorna Verde. Bid documents were prepared for installation only. There were provisions in the specifications that provided instructions that the City would provide the solar panels. Bid Process Bid documents soliciting bids for the installation of the Lorna Verde Pool Solar panel system were prepared and advertised by staff. The Director of Engineering received one formal bid for , the "Lorna Verde Pool Solar Panel Replacement, 1420 Lorna Lane, in the City of Chula Vista, California (CIP No. GG202C)" project on May 15, 2008. Aquatic Resources Inc. of San Diego, California submitted a bid of $79,500. The formal bid process authorizes the City to award a contract to a responsible bidder even if only one bid is received. All stipulations within the bid package submitted by Aquatic Resources Inc. conform to the City's requirements. Thus, Aquatic Resources Inc. of San Diego was declared responsive and cleared to perform the necessary work. Aquatic Resources Inc.'s license number is 882232 and is clear and current. Wage Statement The source of funding for this project is the CEC loan. Contractors bidding this project are required to pay prevailing wages to persons employed by them for the work under this project. Disadvantaged businesses were encouraged to bid through the sending of the Notice to Contractors to various trade publications. Disclosure Statement Attachment 1 is a copy of the Contractor's Disclosure Statement. Purchase of Equioment Based on staff s experience with previous repairs to the solar panel system, it was determined to utilize the informal bid process for the purchase of the replacement panels. This procurement method ensures better control over the selection of the cost and type of solar panel to be installed. Utilizing the City's Purchasing Guidelines for equipment purchases between $10,000 4-2 7/22/08, ItemL Page 3 of 4 and $100,000 three informal quotations are required whereby staff obtained four quotes from various companies. They are as follows: VENDOR SOLAR PANEL A1VIOUNT Aquatic Resources Inc. - San Diego, CA $34,049.00 Radford Industries, Inc. - Santa Maria, CA $46,899.22 illvli\ Solar - Altamonte Springs, FL $51,350.00 SunEarth, Inc. - Fontana, CA $84,530.00 Staff is recommending authorization to purchase the solar panels and related equipment from the lowest quote provided by Aquatic Resources, Inc. for $34,049. This is the same contractor selected under the formal bid process to complete the installation at Lorna Verde. Summary This capital improvement project is part of a City\vide effort to promote renewable energy at municipal sites and lower citywide greenhouse gas or "carbon" emissions. The SDG&E partnership program has provided financial support for evaluation, identification and coordination of various facility energy retrofit projects. These capital project costs are approved and eligible for the CEC Loan Program approved by Council in April 2008. The CEC loans are designed to provide local agencies with capita!" funding to install renewable energy systems and are repaid through the resulting energy savings. Once the loan debt is repaid, the City would capture the net savings on its annual energy costs. The projected anIlllal project energy savings is $10, 606. , J This project is also eligible for a SDG&E energy rebate in the amount of $8,848 and a recycling recovery cost of$IO,OOO reducing the overall cost of the project. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet ofthe boundaries of the property, which is the subject 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 paid through the CEC Energy Efficiency Loan - Phase I (GG202) capital improvement project (CIF) which was approved by City Council on April 1, 2008. The expenses for "Lorna Verde Pool Solar Panel Replacement, 1420 Lorna Lane, in the City of Chula Vista, California (CIF No. GG202C)" project is as follows: 4-3 i 7/22/08, Item I! Page 4 of 4 FUNDS REQUIRED FOR PROJECT A. Contract Amount $ 79,500 B. Equipment Purchase: Solar Panels 34,049 C. Contingencies (10% of contact amount) 7,950 Subtotal (not including rebate and recovery cost) 121,499 D. Less SDG&E Rebate (8,848) E. Less Recycling Recovery Cost (10,000) PROJECT TOTAL $102,651 I FUNDS A V AILABLE FOR PROJECT A. Existing CIF, GG202 $102,651 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $102,651 Upon completion of this project, the improvements will require only routine City maintenance services as directed by the Department of Public Works. The CIP's expenditures are reimbursed through the CEC loan program, which uses the project's resulting energy savings estimated at $10,607 annually to repay the loan debt resulting in a simple payback period of 9 years. The City is also eligible for an energy efficiency rebate incentive 01'$ 8,848 from SDG&E and a recycling recovery cost of$10,000. , , In addition, as mentioned above, staff costs for the work involved with "Loma Verde Pool Solar Panel Replacement, 1420 Loma Lane, in the City of Chula Vista, California (CII' No. GG202C)" project is eligible for reimbursement from the SDG&E Partnership Program. ATTACHMENTS 1 - Aquatic Resources Inc.'s Disclosure Statement 2 - Quote for new solar panels Prepared by: Gordon Day, Building Project !v[anager, Engineering Department ,,[:IGeneral ServiceslGS AdministrationlCol,"cil AgendaIGG202C\GG202C Solar Panel Replace A[ 13 FlNAL2.doc 4-4 ATTA.cHMENT I City of Chula Vista Disclosure Statement Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by the Council, Planning CorrurJssion and all other official bodies of the City, a statement of disclosure of certain o\\lnership or financial interests, paym.ents, or campaign contributions for a City of Chula Vista election must be filed. Tne 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., Dv"ner, applicant, contractor, subcontractor, material supplier. K/ If rJ{. , 2. If any person' identified pursuant to (1) above is a corporation or partnership, list the names of all individuals with a $2000 investment in the business (carporationlpa.~ership) entity. 11/(1 f/ d:- 3. If any person* identified pursuant to (1) 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. ./ NDtllf; d Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in L.'Us matter. Ndf:,/i , .. Has any person* associated with this contract had any financial dealings with an official** o:Uhe Cil'j ofChula Vista as it relates to Lois contract withb the past 12 months? Yes_ No V No r--e lfYes, briefly describe the nature of the financial interest the official" may have in this contract. 15 C:\Documents and Settings\GordonD\Desktop\LOma Verde\gg202c Solar Panel Replacement.doc 4-5 6. Have you made a contribution of more than $25l}within the past tweive (12) months to a current member of the Chula Vista City Council? No ~Yes _ If yes, which Council member? 7. Have you provided more fhan $340 (or an item of equivalent value) to an official" of fhe City ofChula Vista in the past twelve (12) monfhs? (ThiVncludes being a source of income, money to retire a legal debt, gift, loan, etc.) Yes _ No ~ liYes, which official** and what was fhe namre of item provided? Date: )-(<;-07 ;iJ~, Signature of Contractor/A. licant 1:41<,.1- J::16zUL,.f'7C- PD.,>! or type name of Contractor/Applicant ., * Person is defined as: any individual, firm, co-partnership, joint venture, association, soci.al club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipaiity, district, or ot.~er political subdivision, -or any other group or combination acting as a unit. ** Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, ivlember of a board, commission, or committee of the City, employee, or staff members. 16 C\Documcnts and Settings\GordonD\Desktop\LOma Verde\gg202c Solar Panel Replacement-doc 4-6 z, .AT! ACHMENT AQUATIC RESOURCES INC. 9074 Hatcher Ln_ San Diego, Ca 92126 (858) 610-4673 Fax 271-1265 Lic # 882232 Quotation ~-~-..--_.._--- .. . -----._--. 1'_ DATE._ ' . QUOTE# ~ 7/312008 -r--- 237 _._--~._--_.__. 1'- ----.----..---. CUSTOMER I I L....___.. Ui I Cirt Of Chula Vista Purchasing Oi". 276 Fourth Ave. MS-106 C;1ufa Vista, Ca 91910 Attn. Gorden r-.-----oESCRIPTJON.------- ~ ~:~VlDE 79 4-FT'-SY 8FT -S:Lf'H PAN~~LS TO REP:::~~NG I SY A TEM. . -ciTyn'l'- RP-.TE.----. AMOUNT ! _on 'r-' .-- --- --.-.--'! 79 I 400.00 31.600.00"; , SHIPPING INCLUDED 0.00 Expea 3-4 weeks far delivery once order has been placed. 0.00 31,600.00 ! _::'~~.O~ ! : SubiotaJ -~~;' . _._ _ 34.049.00.1 !_-- 4-7 RESOLUTION 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND A WARDING A CONTRl-\CT FOR THE INSTALLATION OF THE LOwL<-I. VERDE POOL SOLAR PA1'\[EL SYSTEM TO AQUATIC RESOURCES INC. IN THE A1VfOUNT OF $79,500 ANTI AUTHORIZING STAFF TO PURCHASE SOLAR PA..!"\fELS AND RELATED EQUIPMENT FROM AQUATIC RESOURCES INC. FOR $34,049 WHEREAS, the Loma Verde Pool solar panel array went into service on October 20, 1980; and WHEREAS, the tlrst panels were replaced in March 1995, and since then staff has been replacing from two to three panels every couple of years as they have become inoperative; and WHEREAS, a solar panel array assessment was completed in 2007 and the results were that four panels were worn beyond use and/or repair and were completely removed, eleven panels are at the end of their usetullife, and 50% of the panels are showing signs of deterioration and corrosion, with their flow-balancing valves frozen and inoperable; and WHEREAS, staff is recommending the replacement of the pool solar arrays at Loma . , Verde; and ' WHEREAS, staff obtained four quotes for the purchase of the replacement panels and related equipment, utilizing the City's the informal bid process; and WHEREAS, the lowest quote was provided by Aquatic Resources Inc. for $34,049; and WHEREAS, bid documents soliciting bids for the installation of the Lorna Verde Pool so lar panel system were prepared and advertised by staff; and WHEREAS, on May 15,2008, the Director of Engineering received one formal bid from Aquatic Resources Inc. in the amount of $79,500; and WHEREAS, all stipulations within the bid package submitted by Aquatic Resources Inc. conform to the City's requirements; and WHEREAS, staff recommends accepting bids and awarding the contract for installation of the Loma Verde Pool solar panel system to Aquatics Resources, Inc. in the amount of $79,500 and authorizing staff to purchase solar panels and related equipment from Aquatic Resources, Inc. for $34,049. 4-8 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Chula Vista tbat it accepts bids and awards the contract for tbe installation of the Lorna Verde Pool solar panel system to Aquatic Resources Inc. in the amount of $79,500 and authorizes staff to purchase solar panels and related equipment from Aquatic Resources Inc. for $34,049. Presented by Approved as to form by R. A. Hopkins Director of Engineering ~~~ tL Bart Miesfeld Interim City Attorney / ~-zs t-~ tI 4-9