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HomeMy WebLinkAbout2008/09/23 Item 3 CITY COUNCIL AGENDA STATEMENT A (lIT OF -~ (HULA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: 9/23/08, Item ~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS A1'iD AWARDING THE CONTRACT FOR THE CIVIC CENTER LIBRARY CHILLER PLANT TURBOCOR RETROFIT PROJECT IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP NO. GG202B) TO EN/COR SERVICES, INC. / MESA ENERGY SYSTEM, INe. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE APPROPRLA.TION OF ANY SDG&E REBATE FUNDS fu'ID/OR {]]\l1JSED CONTING CIES IN THE CIVIC CENTER LIBRARY CHILLER PLA1'1T TURBO OR RETROFIT PROJECT (CIP NO. GG202B) TO CAPITAL IMPROVEl NT PROJECT NO. GG195 DffiECTOR OF ENGINEERING DffiECTOR OF CONSER V A TIOI ENVIRONMENT AL RESOURC~ ASSIST ANT CITY MANAGER S r 4/5T,HS VOTE: YES ~ NO U SUMMARY Since the summer of 2006, the chiller plant at the Civic Center Library has been experiencing equipment shutdowns and failures on a regular basis. The system was checked for all the normal problems that could be associated with the alarms and system shutdowns that were experienced. The Library's chiller plant was identified for an energy upgrade and retrofit as part of the City of Chula Vista's Phase I Loan agreement with SDG&E and the California Energy Commission (CEC). 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 retrofit of existing chiller plant that is enclosed entirely within the existing Civic Center Library rooftop and equipment room; therefore, pursuant to Section l5061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council adopt the resolutions. BOARDS/COMMISSION RECOMMENDATION Not applicable. 3-1 9/23/08, Iteml Page 2 of 3 DISCUSSION Since the summer of 2006, the chiller plant at the Civic Center Library has been experiencing equipment shutdowns and failures on a regular basis. The system was checked for all the normal problems that could be associated with the alarms and system shutdowns that were experienced. The Trane Service Company monitored and conducted several tests which indicate compressor unit "A" was not functioning properly and in need of repair. Major disruption to air conditioning services continue to occur daily. These compressors typically have a life expectancy of 20,000 - 25,000 hours with the Civic Center Library unit "A" having 21,856 hours and unit "B" having 32,767 hours without any major rebuilds or repairs. Air cooled chillers have a total life expectancy of around 15 to 20 years due to compressor failures and coil corrosion from our salt air environment. The combined unit was installed in the Spring of 1993 and has operated on demand during the past 15 years of service for the building. The Civic Center Library's chiller plant was identified for an energy upgrade and retrofit as part of the City of Chula Vista's Phase I Loan agreement with SDG&E and the CEC. Engineers involved with the partnership program and City staff researched all possible enhancements and cost saving methods to bring a retrofitted chiller up to our current energy saving guidelines and standards. On July 2, 2008, the Engineering Department prepared documents and advertised the Civic Center Library Chiller Replacement Project (CIF No. GG202B) through the formal bid process. On August 13,2008, the Director of Engineering received two (2) bids for the project as follows: CONTRACTOR BID AMOUNT I. EMCOR Services/Mesa Energy Systems- Lemon Grove, CA $270,511.00 2. Alpha Mechanical Services, Inc. - San Diego, CA 5308,980.00 The low bid submitted by EMCOR Services/Mesa Engineer Systems is above the Engineer's estimate of $226,000 by $44,511 or 19.70%. Staff has verified the references provided by the contractor and their work has been satisfactory. 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 upgrades, the City pursued and was awarded CEC 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 chiller for the Civic Center Library be replaced m combination with the control system to form a complete comprehensive energy package. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found that Councilman Castaneda has property holdings within 500 feet of the boundaries of the property which is the subject of this action. 3-2 9/23/08, Item~ Page 3 of 3 FISCAL IMPACT There was an estimated amount budgeted in GG202B for this project in the amount of :5226,000 to be fully paid through the CEC Energy Efficiency Loan which was approved by City Council on April 1,2008. Additional funds will be needed cover the required amount to complete the project. Staff is recommending utilizing existing CIP GG195 to augment the project and is consistent with the use of funds intended for minor capital improvements. These funds are used Citywide for unanticipated repairs and replacements such as broken windows, copper wire-theft, equipment failures, lighting replacement, etc. on all city-owned facilities. Should the unanticipated repairslreplacements exceed the available funds after completion of this project then it will require a Council appropriation from the General Fund. Staff anticipates the City will be eligible for a rebate from SDG&E estimated at :521,000 at the completion of the project. As such, staff recommends that Council authorize any SDG&E rebates and/or unused contingencies be appropriated back to GG 195 for unanticipated minor CIP repairs and replacements. A breakdown of project costs are as follows: FUNDS REQUIRED FOR PROJECT A. Contract Amount (EM COR Services / Mesa Energy Systems) I $270,511 B Contingencies (10% of contract amount) $27,051 TOTAL FUNDS REQUIRED FOR CONSTRUCTION I $297,562 FUNDS AVAILABLE FOR CONSTRUCTION A. Existing ClP, GG202 (CEC Energy Efficiency Loan Projects) $226,000 B Existina CIP, GG195 (C&R Minor Capitallmorovements) $71,562 TOTAL FUNDS A VA.lLABLE FOR CONSTRUCTION $297,562 The initial investment from the General Fund for this project will be reimbursed through the CEC loan program funded by the California Public Utilities Commission (CPUC) whereby anticipated annual energy savings will be first utilized to pay off the debt service for the loan and thereafter all future energy savings will be realized in the General fund. Upon completion of the project, the improvements will require only routine City maintenance. ATTACHMENTS 1. Contractor's Disclosure Statement Prepared by: Gordon Day, Sr. Building Project ii/anager, Engineering Department ivf:IGeneral ServiceslGS AdministrationlCouncil Agenda1GG202BIAI/J Civic Center Library GG202Brev.doc 3-3 An,'\CHMENT~" I CITY OF CHULA YISTA DISCLOSURE STATElVIENT Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by the Council, Planrling Connnission and all other omcial 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 fi.'laIlcial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. N",r-J <( , 2. If any person' idemiEied pursuant to (1) above is a corporation or partnership, list the names of all individuals with a S2000 investment in t.oe business (corporation/partnership) entity. NNJ ,( 3. If any person* identified pursuant to (1) above is a non-profit organization or trust, list the names of any person servi.ng as director of the non-profit organization or as trustee or beneficiary or trustor of -me trust. !'t,,",oJ f' 4. Please identify every person, including any agents, employees) consultants, or i.T1dependent contractors you have assigned to represent you before the City in this matter. Ida,,! ~ 5. Has any person' associated with this contract had any [mancial dealings with an official** of the City of Chula Vista as it relates to tPis 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. 14 M:\G~r.:;.J1 S<:rvic~~\Desigl1\GG202\GG2029\gg202B Civi~ Ccrller Library Chil~cr lVL Y.24.2900a COI1{r"~t.dcc 3-4 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~Yes _ lfyes, which Council memher? 7. Have you provided more than $340 (or an item of equivalent value) to an official** of Llje City of Chula Vista L'l the past twelve (12) months? (This includes heing a source of income, money to rehre a legal debt, gift, loan, etc.) Yes _ No ~ If Yes, which official** and what was the nature of item pro,ided? Date: ff/fj!og' Signa e of ontractor/_~licant /, {' hc..r/"" '5 lef,.., ~ Print br type name of Contractor/ Applicallt * 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 li,nited to: iVlayor, Council member, Planning Commissioner, Member of a board, commission, or committee 'of the City, employee, or staff memhers. 15 M:\G~neral Service.s\Design\GG202\GG2023\g:;202B Cil'ic C~nte. Ubr;u-y C:1i\ler lUL Y.24.2900'8 C~r1tnct.doc 3-5 RESOLUTION 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS ANTI AWARDING THE CONTRACT FOR THE CIVIC CENTER LIBRARY CHILLER PLANT TURBOCOR RETROFIT PROJECT IN THE CITY OF CHULA V[ST A, CALIFORNIA (erp NO. GG202B) TO EMCOR SER VICES, me. / MESA ENERGY SYSTEM, me. WHEREAS, since the summer of 2006, the chiller plant at the Civic Center Library has been experiencing equipment shutdowns and failures on a regular basis: and WHEREAS, the Civic Center Library's chiller plant was identified for an energy upgrade and retmflt as parr of the City ot'Chula Vista's Phase One Loan agreement with SDG&E and the CEC: and WHEREAS, on July 2,2008, staff prepared documents and adverrised the Civic Center Library Chiller Replacement Project (CIP No, GG202B) through the formal bid process; and WHEREAS, on August 13, 2008, the Director of Engineering received two (2) bids for the project: and WHEREAS, the low bid was submitted by EMCOR Services IndMesa Engineer System, Inc. and it is above the Engineer's estimate ofS226,000 by $44,511 or 19.70%; and WHEREAS, staff has verified the references provided by EMCOR Services [ndMesa Engineer System, Inc. and their work has been satist~lCtory, NOW, THEREFORE, BE [T RESOLVED by the City Council of the City ofChula Vista that it accepts bids and awards the contract for the Civic Center Library Chiller Plant Turbocor Retrofit Project in the City of Chula Vista, California (CIP No, GG202B) to EMCOR Services, Inc./fVlesa Ener'!v Svstems, Inc. Presented by Approved as to forn1 by Richard A. Hopkins Director of Engineering Barr Miesfeld Interim City Attorney ~ / ,/ ''-- - L-O-;;;ht; (f' "'/~ de L/~~c;".. 3-6 RESOLUT[ON NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE APPROPRIATION OF ANY SDG&E REBATE FUNDS AND/OR UNUSED CONTINGENCIES IN THE CIVIC CENTER LIBRA.RY CH[LLER PLANT TURBOCOR RETROFlT PROJECT (CIP NO. GG202B) TO CAPlTAL IMPROVEMENT PROJECT NO. GG[95 WHEREAS. in a separate action. the City Council accepted bids and awarded the contract lor the Civic Cellter Library Chi[ler Plant Turbocor Retrofit Project (CIP No. GG202B) to EMCOR Services, Inc.lMesa Energy System. Inc. (the "Project"); and WHEREAS, the Project will be funded through Capital Improvement Project No GG202B; and WHEREAS, there is S226,000 in CIP No GG202B; and WHEREAS. additional I'unds will be needed to complete the Project: and WHEREAS, Capital Improvement Project No. GG 195 funds are used for unanticipated repclirs and replacement of items such as broken windows, copper wire theft, equipment failures, and lighting replacement on all City-owned facilities; and WHEREAS, staff proposes using funds in CIP No. GGI95 to augment the funds in crr No. GG202B because the Project is consistent with the intended use of tile funds in CIP No. GG195; and WHEREAS. stalT anticipates that there will be a rebate from SDG&E of approximately 521,000 at the completion of the Project, as well as potential LlJ1used contingencies in the Project. NOW THEREFORE, BE IT RESOL VED by the City Council of the City of Chura Vista that it authorizes the appropriation of any SDG&E rebate funds and/or unused contingencies in the Civic Center Library Chiller Plant Turbocor Retrofit Project (CIP No. GG202B) to Capital Improvement Project No. GG [95. Presented by Approved as to l0t111 by Richard A. Hopkins Director of Engineering L /7 (~r =L \..-( /~'---'v_' ,/ v{~t;' L . Bali Miesfeld {/' ""- Interim City Attomey 3-7