HomeMy WebLinkAbout05 - CC-7 - City Proj. 11-03 Energy Efficient Chille - 6/7/2011CITY COUNCIL AGENDA REPORT
MEETING DATE: JUNE 7, 2011 ITEM NUMBER:
SUBJECT: AMERICAN RECOVERY AND REINVESTMENT ACT — ENERGY EFFICIENT
CHILLER COMPRESSOR REPLACEMENT — CITY HALL & POLICE
FACILITY - CITY PROJECT - NO. 11-03
DATE: MAY 26, 2011
FROM: PUBLIC SERVICES DEPARTMENT/ENGINEERING DIVISION
PRESENTATION BY: PETER NAGHAVI, DIRECTOR, DEPARTMENT OF PUBLIC SERVICES
FOR FURTHER INFORMATION CONTACT: ERNESTO MUNOZ, CITY ENGINEER
AT (714) 754-5335
RECOMMENDATION:
Adopt plans, specifications, and working details for the American Recovery and Reinvestment
Act — Energy Efficient Chiller Compressor Replacement at City Hall and Police Facility, City
Project No. 11-03.
2. Award a construction contract to Liberty Climate Control, Inc., 2447 N. Chico Avenue, South EI
Monte, California 91733 in the amount of $545,600.00.
3. Authorize the Mayor and City Clerk to execute the Public Works Agreement for this project.
BACKGROUND:
The chiller compressors at City Hall and the Police Facility are currently exhibiting advanced
deterioration and wear. The design and age of these components result in the City utilizing very
high rates of energy to run the air conditioning systems in these two facilities. The replacement of
the chiller compressors was identified as an energy conservation opportunity in an energy audit
report prepared for the California Energy Commission. Replacing this equipment will yield
significant savings in energy costs due to the higher efficiency of the more technologically advanced
equipment.
In March of 2009, the Federal Government announced plans to invest $3.2 billion in energy
efficiency and conservation projects. The Energy Efficiency and Conservation Block Grant
(EECBG) program was funded by the American Recovery and Reinvestment Act. The grant
provides funding for projects that reduce total energy use and fossil fuel emissions, and improve
energy efficiency nationwide. Staff successfully applied and received funding from the American
Recovery and Reinvestment Act.
The City of Costa Mesa's grant allocation amounts to $1,123,500 for eligible energy-saving
projects. City staff has previously administered the replacement of the Corporation Yard and the
City Hall roofs with energy efficient "cool roofs" under this grant funding. In addition to these
projects, the City Council directed staff to include the replacement of the chiller compressors at the
City Hall and Police Facility for funding under this program.
ANALYSIS:
On April 25, 2011, the City Clerk received and opened one bid for this project. Liberty Climate
Control, Inc. was the apparent low bidder with a bid proposal of $545,600. The engineer's estimate
for this work was $500,000.00 (see Attachment 1).
Staff's review of the single bid finds that the bid amount exceeds the engineer's estimate by 9%.
This is likely due to the unique nature of the equipment to be furnished for this project. There are
very few contractors within this trade that hold the specialty certification required to install the
specified equipment or have the bonding capacity to bid on public works projects of this magnitude.
Since the competition from other bidders was limited with the current scope of work, it is anticipated
that re -advertising a revised project will not result in lower bids.
ALTERNATIVES CONSIDERED:
The alternative to this Council action would be to reject the bid. If the bid is rejected, the City would
need to readvertise or cancel the project. Staff believes that readvertising the project will not result in
lower bids. Furthermore, the deadline for the obligation of funds under this grant is July 13, 2011.
Re -advertising this project would result in the City missing this deadline and losing the grant funding.
Therefore, this alternative is not recommended.
FISCAL REVIEW:
Funding for this project in the amount of $578,000 is available from the EECBG program funds, which
provide for 100 percent reimbursement of the construction costs.
LEGAL REVIEW:
Liberty Climate Control, Inc. will furnish the necessary bonds and insurance prior to the
commencement of work, scheduled for August 2011, subject to approval by the City Attorney. After
the award and subsequent execution of the contract a Notice to Proceed will be issued.
CONCLUSION:
The City has received one bid for the American Recovery and Reinvestment Act, Energy Efficient
Chiller Compressor Replacement Project at City Hall and the Police Facility, City Project No. 11-03.
Staff has evaluated the bid in terms of contract compliance and grant guidelines and recommends that
the City Council adopt the plans, specifications, and working details for said project; award the contract
to the apparent low bidder Liberty Climate Control, Inc. in the amount of $545,600.00; and authorize the
Mayor and the City Clerk to execute the Public Works Agreement.
ERNESTO MUNOZ
City Engineer
LARRY HURST
Interim Finance Director
ATTACHMENT: "1" Bid Abstract
PETER NAGHAVI, DIRECTOR
Department of Public Services
E
DISTRIBUTION: Chief Executive Officer
Assistant Chief Executive Officer
City Attorney
City Clerk
Maintenance Services Manager
Staff
File
CITY OF COSTA MESA
DEPARTMENT OF PUBLIC SERVICES
AMERICAN RECOVERY AND REINVESTMENT ACT
ENERGY EFFICIENT CHILLER COMPRESSOR REPLACEMENT
AT CITY HALL AND POLICE FACILITY
CITY PROJECT NO. 11-03
SID OPENING RESULTS
April 25, 2011
Bidder
LIBERTY CLIMATE CONTROL, INC
City
SOUTH EL MONTE
A'T_ AM I
Total Bid
$545,600.00
Engineer's Estimate: $ 500,000.00