REPORT TO MAYOR AND COUNCIL
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1 AGENDA ITEM NO. 5.a REPORT TO MAYOR AND COUNCIL TO THE HONORABLE MAYOR AND COUNCIL: DATE: November 13, 2012 SUBJECT: APPROVE A FINAL CONTRACT CHANGE ORDER WITH CHEVRON ENERGY SOLUTIONS COMPANY IN THE AMOUNT OF $908,170 AND RELATED BUDGET TRANSFERS FOR VARIOUS ESCO PROJECTS; AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT (FUNDED BY BUILDING MAINTENANCE OPERATIONS FUNDS AND INSURANCE PROCEEDS) Report in Brief In 2011, the City contracted with Chevron Energy Solutions as an Energy Service Company (ESCO) to manage citywide energy efficiency projects. The Contract between the City and Chevron specifies that all Orders require City Council approval at a regularly scheduled hearing. Specifically, staff recommends approval of a change to the Citywide Energy Services Company Energy Efficiency contract to address building code and safety requirements at the Civic Center and Police Department including: 1) upgrade of the structural supports for the Heating, Ventilation, and Air ing (HVAC) systems at Civic Center ($153,913.07); 2) additional piping and electrical for energy efficient chiller at Civic Center to prevent vandalism ($25,065.93); 3) asbestos abatement and repair to the Human Resources building required to install approved HVAC upgrade ($42,565.93); 4) repair of existing equipment associated with the building management system at Concord Police Department ($211,125); 5) installation of fire and life safety system at Concord Police Department ($223,300); and 6) additional quantities for replacement of copper wire theft and electrical pull boxes in various parks ($252,300) and related budget transfers for Project No (Replacement of Electrical Pull Boxes at Several City Parks), Project No (Replacement of HVAC at Various City Buildings) and Project No (Police Department Building Management System); and authorize the City Manager to execute the Agreement. Background On January 25, 2011 the City Council approved the execution of a Contract with Chevron as an ESCO to implement several energy conservation measures, following a comprehensive citywide audit to assess feasible utility conservation projects. Chevron s Energy Audit identified six viable energy efficiency projects: Project No Energy Efficiency Lighting Improvements Project No Install Back-up Pump at Concord Community Park Project No Replacement of HVAC at Various City Buildings Project No Police Department Building Management System Project No Replacement Lighting at Various Locations Project No Solar at Concord Community Park
2 APPROVE AND RATIFY CONTRACT CHANGE ORDER WITH CHEVRON ENERGY SOLUTIONS FOR VARIOUS ESCO PROJECTS November 13, 2012 Page 2 On December 13, 2011, the City Council ratified and approved three change orders (Attachment 1) to address a number of scope revisions and unforeseen conditions for five of the six ESCO projects. Project No (Replacement of Electrical Pull Boxes at Several City Parks) was added to the Chevron contract to replace over 25,000 lineal feet of wire stolen from light standards with the associated electrical pull boxes damaged during the robberies. The project was added to the ESCO contract because Chevron s scope includes the replacement of lights within the City parks from high pressure sodium to induction light fixtures. Adding the installation of light pole replacements, signal boxes and copper wire to the Chevron contract was efficient based on the logistics involved in coordinating the electrical work for the lights with the base and pole installation. In April 2012, a fourth no-cost change order was negotiated with Chevron to substitute installation of fifteen induction streetlights on Enea Circle with an anycomm LED product to serve as a demonstration project for anycomm, a new Concord-based company located in that area. Discussion After working with Chevron to review current progress on each of the seven (7) ESCO projects, City staff has determined that a fifth contract change order is necessary to support three of the seven projects being implemented under the ESCO contract. This is the final change order staff anticipates with the ESCO project. Each of the three proposed contract changes is explained in detail below: Project No (Replacement of Electrical Pull Boxes and Wire at Several City Parks) Cost: $252,300 -The original Contract Order #3, approved by Council in December 2011 in the amount of $474,664, was to replace the stolen wire and associated pull boxes. The project cost was estimated based on quantities taken from police reports and a preliminary site review. The original project was to address copper wire thefts that occurred at the following six parks: Cambridge Park, Meadow Homes Park, Len Hester Park, Baldwin Park, Ellis Lake Park and Hillcrest Park. As plans were developed to submit for a Building Permit, the actual field conditions uncovered additional damaged conduits and outdated direct burial wire that required new conduits to be installed that was not part of the original scope of Contract change Order #3. Electrical fuses were added at each park light to comply with Uniform Building Code requirements based on difference in voltage. Additionally eight light pole bases at Baldwin Park were rusted and identified for replacement to assure public safety. Consequently, the additional costs to address these unforeseen conditions require Order No. 5 to fully construct the necessary improvements. Additionally, since Contract Order #3 additional wire thefts occurred at Ygnacio Valley Park and the Civic Center Parking lot, accessed from Willow Pass Road. Staff has directed Chevron to include the eleven pull boxes and the approximately 1100-feet of stolen wire at the Civic Center and the eight pull boxes and feet of conduit and wire at Ygnacio Valley Park as a contract change order. Chevron has prepared the electrical plans needed for a building permit to make this additional repair. The contractor has performed rough excavation and is constructing the new hardened pull boxes at the Civic Center. To date, wire has been replaced at Cambridge Park, Len Hester Park and Meadow Homes Park. Engineering staff and the City Attorney are working with the City s insurance carrier to seek insurance coverage for replacement of the stolen wire. Insurance proceeds both received and projected in the amount of $252,300 will be used to pay for this change order.
3 APPROVE AND RATIFY CONTRACT CHANGE ORDER WITH CHEVRON ENERGY SOLUTIONS FOR VARIOUS ESCO PROJECTS November 13, 2012 Page 3 Project No (Replacement of HVAC at Various City Buildings) Total Cost: $221,545 The original project scope of the Chevron contract included the replacement of thirty-two old Heating Ventilation and Air ing (HVAC) units at the Civic Center, Human Resources (HR), Library, Centre Concord, Corporation Yard and Mount Diablo Child Care buildings in order to reduce energy usage in these buildings. It also included replacement of the 25+ year old chiller system for the City Council Chambers which used the fountain/moat as a cooling tower. All of the HVAC units and the chiller system were at the end of their useful life and due for replacement. During the design and construction of this project three changes were identified that were not part of the original project scope. These three changes require a contract change order in the amount of $221,545, as described below. The first change to Project No involves additional electrical and structural repairs that were identified and completed during the asbestos abatement of the Human Resources building. Order No. 3 was approved in the amount of $100,992 was approved by the City Council in December 2011to abate asbestos found in the ceiling and walls and to repair the facility. After the wall structures were exposed, additional life safety upgrades were identified as necessary to meet Building Code requirements. These changes were outside the original scope of work and will cost an additional $42,566. The second change to Project No is to relocate the high efficiency air-cooled chiller that was proposed to be located near the existing emergency generator to the roof of Wing C at the Civic Center. With vandalism and copper theft on the rise, staff changed the location of this unit from the ground to the roof to reduce the potential for vandalism. This relocation resulted in the need for additional piping and electrical wiring costs. Additionally, an asbestos pipe was abated in the basement of Wing C, which was tied into the original fountaincooled chiller. These changes were outside the original scope of work and will cost an additional $25,066. The third contract change to Project No involves major structural upgrades at the Civic Center for Wings C and D to support the new roof-mounted HVAC units. In order to obtain building permits for the installation of the new units, structural calculations were required in order to demonstrate that the proposed HVAC units could be supported by the existing structure. After review, the structural engineer determined that neither the existing units that were being replaced, nor the proposed energy efficient HVAC units could be properly supported without structural upgrades to the roof. for the structural fifty-two structural steel posts and associated beams, roof repairs and additional duct revisions around the structural improvements. $153,913 The combined cost of these three changes to Project No is $221,545. Project No (Police Department Building Management System) Total Cost: $434,325 There are two main changes being presented to Council for approval for this project, each is described below: Building Maintenance System Repair/Replacement. The original scope in the Chevron contract for this project included replacement of the Building Management System (BMS), which was over fifteen years old. This system was difficult to operate and to obtain the replacement parts necessary to achieve energy efficiencies. An updated BMS was proposed for this critical facility, which operates twenty-four hours a day/seven days a week, in order to achieve energy savings. At the outset of the project, it was assumed that the mechanical equipment in the Police Station was in good condition; however, this building was never fully commissioned or air-balanced after original construction
4 APPROVE AND RATIFY CONTRACT CHANGE ORDER WITH CHEVRON ENERGY SOLUTIONS FOR VARIOUS ESCO PROJECTS November 13, 2012 Page 4 was completed. Typically a BMS is tied to all of the vents, controls, mechanical devices and the fire alarm system in order to provide efficiencies in operations when rooms are unoccupied. During the site investigation to develop plans for the BMS, a large number of inoperable devices were identified that needed repairs and/or replacement in order to resolve temperature and zone control issues within the Police Station building. Consequently, a contract change order in the amount of $211,125 is proposed to resolve these maintenance items and provide a building that can be fully commissioned. Public Works Facilities staff reviewed the proposed corrections and supports the proposal. Fire and Life Safety Improvements. During the initial stages of this project staff identified deficiencies in the fire and life safety devices within the Police building that would prevent the building from achieving a proper air-balance and consequently prevent the building from maintaining a comfortable work environment for the staff. To address the deficient fire and life safety equipment, staff engaged a fire protection consultant. The purpose of the consultant was to provide an unbiased, independent evaluation of the building and recommendations based on the existing conditions and current code requirements. Due to the age of the devices, the recommendation was made to update the fire protection system rather than attempt to repair the existing devices. A specification was developed and then bid to fire protection contractors through Chevron. The proposed change order in the amount of $221,940 will replace the aging fire alarm system and smoke dampers in the building to complement the HVAC system and the BMS. These upgrades will provide safety and energy efficiencies for the Police Department building. Additionally, there is a direct benefit to the City in having Chevron involved in all aspects of the Police Department building improvements and repairs (energy efficiency upgrades, HVAC repairs and fire alarm replacement) because staff will have one point of contact for maintenance follow-up and accountability. Fiscal Impact The combined cost of these two contract changes to Project No is $434,325. As described in Resolution No (Attachment 2) and to fully fund Chevron Contract Order No. 5 in the amount of $908,170, staff recommends the following funds to be used from the following sources: $39,602 in Redevelopment Bond Proceeds remains from a previous Police Facilities Project, which can only be spent on improvements at the Police Station. These funds are included in the Recognized Obligation Payment Schedule I (ROPS I), which has been approved by the Oversight Board for the Successor Agency of the former Redevelopment Agency of the City of Concord and the State Department of Finance. Staff recommends that $39,602 be allocated to Project No $39,426 from California Solar Initiative Rebates from PG&E. Staff recommends that these funds be allocated to Project No $211,230 in one-time PG&E Rebates for energy efficient equipment from the various ESCO projects is anticipated will be received by the City in the next six months. To be conservative, these future rebate funds were not projected into the original project budgets. Staff recommends that the upcoming equipment rebates of $211,230 be allocated to Project No
5 APPROVE AND RATIFY CONTRACT CHANGE ORDER WITH CHEVRON ENERGY SOLUTIONS FOR VARIOUS ESCO PROJECTS November 13, 2012 Page 5 $252,300 in Insurance Proceeds from ten claims for Copper Wire Theft. Staff recommends that these funds be allocated to Project No Public Contact $370,000 is available in Building Replacement funds from Fiscal Year operations. $300,000 was set aside for use on the Police Department HVAC maintenance repairs in Project No An additional $70,000 in Facilities Maintenance operational savings is available. Staff recommends that of these funds $359,685 be allocated to Project No for the Police Department building improvements and $10,315 be allocated to Project No The Public Hearing Notice and City Council Agenda were posted in accordance with legal requirements. Recommendation for Action Staff recommends that approval of a change to the Citywide Energy Services Company Energy Efficiency contract to address building code and safety requirements at the Civic Center and Police Department including: 1) upgrade of the structural supports for the Heating, Ventilation, and Air ing (HVAC) systems at Civic Center ($153,913.07); 2) additional piping and electrical for energy efficient chiller at Civic Center to prevent vandalism ($25,065.93); 3) asbestos abatement and repair to the Human Resources building required to install approved HVAC upgrade ($42,565.93); 4) repair of existing equipment associated with the building management system at Concord Police Department ($211,125); 5) installation of fire and life safety system at Concord Police Department($223,300); and 6) additional quantities for replacement of copper wire theft and electrical pull boxes in various parks($252,300); and related budget transfers for Project No (Replacement of Electrical Pull Boxes at Several City Parks), Project No (Replacement of HVAC at Various City Buildings) and Project No (Police Department Building Management System); and authorize the City Manager to execute the Agreement. Prepared by: Danea Gemmell, PE City Engineer danea.gemmell@ci.concord.ca.us Valerie J. Barone Interim City Manager valerie.barone@ci.concord.ca.us Attachment 1 Order Summary Attachment 2 Resolution No Reviewed by: Victoria Walker Director of Comm. & Econ. Develop. victoria.walker@ci.concord.ca.us
6 New Scope New Scope Revise Design Revise Design Revise Design Revise Design BUDGET ANALYSIS ESCO CHANGE ORDER SUMMARY Original Chevron Contract Contract Order #1 2.2% Project No. 2198: Replacement of the Computer Server Room s heating, ventilating, and air conditioning (HVAC) system at the Police Department. Contract Order #2 0.4% Project No. 2199: Add exterior lighting upgrades around the Civic Center complex for security 1.8% Project No. 2148: Add extra piping; Upsize motors and corresponding variable frequency drive to handle increase pool water turnover rate 0.8% Project No. 2141: Replace seven poles and wiring at Ygnacio Valley Park due to deterioration 0.7% Project No. 2197: Add two new split system air conditioning in smaller conference rooms and additional zone controls 1.0% Project No. 2198: Add duct sensors; Replace inoperable variable speed drives for three air handling units to work with VAV boxes Attachment 1 $9,852,781 $219,099 $37,128 $172,950 $74,055 $68,600 $95,646 New Scope Subtotal Contract Order #3 1.0% Project No. 2197: Asbestos Abatement and Repair in Human Resource building $448,379 $100, % Project No. 2178: Replace copper wire and install vandal $474,664 resistant Christy Boxes Subtotal $575,656 Contract Order #4 0.0% Project No. 2141: Swap out Induction Streetlights for Anycomm Pilot $0 LED lights (No Cost ) Contract Order #5 1.6% Project No. 2197: Upgrade of the structural supports for the HVAC at Civic Center 0.3% Project No. 2197: Additional piping/electrical for energy efficient chiller at Civic Center to prevent vandalism 0.4% Project No. 2197: Asbestos abatement and repair to Human Resource building required to install approved HVAC upgrade 2.1% Project No. 2198: Repair of existing equipment associated with Building Management System at Concord Police Department 2.3% Project No. 2198: Fire and Life Safety Improvements at Concord Police Department $153,913 $25,066 $42,566 $211,125 $223,200 New Scope 2.6% Project No. 2178: Adjust quantities for copper wire theft and allocate $252,300 Insurance Proceeds Subtotal $908, % TOTAL $12,004,085 Order percentages are calculated based on Original Contract Amount: $9,852,781
7 ATTACHMENT BEFORE THE CITY COUNCIL OF THE CITY OF CONCORD COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA A Resolution Approving Budget Transfers Totaling $908,170 and Allocating the Funds for Various ESCO Projects Resolution No / WHEREAS, the City of Concord has contracted with Chevron Energy Solutions as an Energy Service Company (ESCO) to manage citywide energy efficiency projects; and WHEREAS, the Contract between the City of Concord and Chevron Energy Solutions specifies that all Orders require City Council approval at a regularly scheduled hearing; and WHEREAS, City staff and Chevron Energy Solutions have determined that a fifth contract change order in the amount of $908,170 is necessary to facilitate implementation of Project No (Replacement of Electrical Pull Boxes and Wire at Several City Parks), Project No (Replacement of HVAC at Various City Buildings) and Project No (Police Department Building Management System), under the ESCO contract; and WHEREAS, in order to fully fund Chevron Contract Order No. 5, staff recommends the following budget transfers totaling $908,170 be used from the following sources and be allocated to the following projects: $39,602 in Redevelopment Bond Proceeds remains from a previous Police Facilities Project, which can only be spent on improvements at the Police Station. These funds are included in the Recognized Obligation Payment Schedule (ROPS) and must be spent prior to January 1, Staff recommends that $39,602 be allocated to Project No $39,426 in FY California Solar Initiative Rebates from PG&E. These rebates will continue for five years. Staff recommends that these funds be allocated to Project No $211,230 in one-time PG&E Rebates for energy efficient equipment from the various ESCO projects are anticipated to be received by the City in the next six months. To be conservative, these future rebate funds were not projected into the project budgets. Staff recommends that the upcoming equipment rebates of $211,230 be allocated to Project No $252,300 in Insurance Proceeds from ten claims for Copper Wire Theft. Staff recommends that these funds be allocated to Project No $370,000 is available in Building Replacement funds from Fiscal Year operations. $300,000 was set aside for use on the Police Department HVAC maintenance repairs in Project No An additional $70,000 in Facilities Maintenance operational savings is also available for use. Staff recommends that of these funds, $359,685 be allocated to Res. No
8 Project No for the Police Department building improvements and $10,315 be allocated to Project No NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES RESOLVE AS FOLLOWS: Section 1. Allocate $39,602 in Redevelopment Bond Proceeds to Project No (Police Department Building Management System). Section 2. Allocate $211,230 in anticipated PG&E Rebates from various ESCO projects to Project No (Replacement of HVAC at Various City Buildings). Section 3. Allocate $39,426 in anticipated PG&E Solar Initiative Rebates projects to Project No (Police Department Building Management System). Section 4. Allocate $252,300 in Insurance Proceeds from ten claims for Copper Wire Theft to Project No (Replacement of Electrical Pull Boxes and Wire at Several City Parks). Section 5. Allocate $300,000 in Building Replacement funds to Project No (Police Department Building Management System). Section 6. Allocate $59,685 in Facilities Maintenance Operations funds to Project No (Police Department Building Management System). Section 7. Allocate $10,315 in Facilities Maintenance Operations funds to Project No (Replacement of HVAC at Various City Buildings). Section 8. This Resolution shall become effective immediately upon its passage and adoption. Res. No
9 PASSED AND ADOPTED by the City Council of the City of Concord on October 23, 2012, by the following vote: AYES: Councilmembers - NOES: Councilmembers - ABSTAIN: Councilmembers - ABSENT: Councilmembers - I HEREBY CERTIFY that the foregoing Resolution No was duly and regularly adopted at a regular joint meeting of the City Council of the City of Concord on November 13, APPROVED AS TO FORM: Mark Coon City Attorney Mary Rae Lehman, CMC City Clerk Res. No
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