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CC - Approval of an Agreement with Setpoint Systems Corporation to Replace City Hall’s Lighting Control System as Part of the City Facilities Energy Efficiency Project, PF-004.
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Meeting Date: 09/12/2016
Contact Person/Dept: Joe Susca, Public Works - Administration
Phone Number: 310-253-5636
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (09/07/2016); Setpoint Systems (08/23/2016); The Energy Coalition (08/23/2016)
Department Approval: Charles D. Herbertson (08/26/16)
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RECOMMENDATION
Staff recommends the City Council approve an agreement with Setpoint Systems Corporation to replace City Hall’s lighting control system in the amount of $51,544 ($46,858 base cost with a 10% contingency of $4,686) as part of the City Facilities Energy Efficiency Project, CIP PF-004.
BACKGROUND
Over the past few years, the City has been working with The Energy Network (TEN) to implement turn-key energy efficient projects citywide. TEN, administered by the County of Los Angeles, was created by the California Public Utilities Commission to help public agencies implement projects that save energy and reduce operating costs.
In 2014, TEN conducted a thorough energy audit at the City’s highest energy using facilities. The audit focused on the lighting and mechanical components and after reviewing the audit, staff recommended (and the City Council approved) implementation of a bundled turn-key project at City Hall, Police Station, Transportation, Senior Center and Veterans Memorial Complex that retrofits their lighting and heating, ventilation and air conditioning mechanical components along with implementation of a new Energy Management System (EMS) to control these components to optimize their efficiency (the “Project”).
The recommended contractors that completed the Project were pre-approved and selected through the National Joint Powers Alliance; which is a public and transparent bidding process to create a pool of qualified contractors for such projects. In addition to Setpoint Systems Corporation (Setpoint), two other vendors (Honeywell and Ameresco) submitted proposals for the EMS portion of Project. The independent analysis and review of these proposals by TEN provided information for the City to determine that Setpoint’s proposal to be the most complete and responsive and it provided the quickest financial payback period. On January 26, 2015, the City Council approved agreements with various contractors (including Setpoint to implement the new EMS) and the entire Project was completed in August 2016.
DISCUSSION
City Hall’s Staefa brand lighting control system was originally installed when the building was constructed 20 years ago. While installing City Hall’s EMS, Setpoint and staff confirmed that the existing lighting control system had become unreliable due to its age and Staefa no longer provides parts to repair it. Setpoint’s proposal includes removal of 10 existing Staefa controllers and replacing them with Delta brand controllers that will improve system reliability, enhance energy efficiency, and will be fully integrated into the new EMS system. Setpoint’s proposal includes staff training on the new system and a one-year parts and labor warranty.
TRC Solutions Company, a TEN engineering firm, evaluated Setpoint’s proposal and determined it to be technically appropriate and found that Setpoint’s cost is comparable to their competitors.
Pursuant to Sections 3.07.045.B and 3.07.085.A of the Culver City Municipal Code, the Setpoint agreement is not subject to formal bidding procedures as it is for the purchase and installation of replacement equipment that is a component of a system previously acquired (the new EMS) by the City and is necessary to maintain and improve the City’s utilization of such equipment. Further, as an agreement for professional services it may be awarded without complying with the formal bidding process, provided competitive quotations are obtained, when practical, as determined by the City Manager. In this instance, the City Manager determined competitive quotations were not practical as the City has had prior experience with Setpoint for the purchase and installation of the new EMS system. Staff has reported that Setpoint provided both superior customer service and reliable, state-of-the-art EMS equipment and software programming making them uniquely qualified to complete the lighting control system replacement. In addition, having the City’s EMS installation firm (Setpoint) also program the replacement lighting control system to integrate with the new EMS is both cost-effective and convenient, in terms of potential warranty and maintenance issues in the future.
FISCAL ANALYSIS
Sufficient funds exist in CIP PF-004 -- City Facilities Energy Efficiency Project to cover Setpoint’s $46,858 base cost to replace City Hall’s lighting control system. If needed, the additional 10% contingency amount of $4,686 will be funded by CIP PZ-132 Building Repairs.
MOTION
That the City Council:
1. Approve an agreement with Setpoint Systems Corporation to replace City Hall’s lighting control system in an amount up to $51,544; and
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.