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CC - (1) Acceptance of Work Performed by ACCO Engineered Systems in the Amount of $169,281.11; (2) Authorization to File a Notice of Completion; and (3) Authorization to Release the Retention Payment after Expiration of the 35-Day Lien Period for the City Facilities Energy Efficiency Project, PF-004.
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Contact Person/Dept: Joe Susca / Public Works
Phone Number: (310) 253-5636
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [] No []
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (09/23/15)
Department Approval: Charles D. Herbertson, Public Works Director/City Engineer (09/21/15)
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RECOMMENDATION
Staff recommends the City Council (1) accept work performed by ACCO Engineered Systems in the amount of $169,281.11; (2) authorize filing a Notice of Completion; and (3) authorize the release of the 5% retention payment after expiration of the 35-day lien period for the City Facilities Energy Efficiency Project, CIP PF-004.
BACKGROUND
Over the past couple of years, the City has been working with The Energy Network (TEN) to implement turn-key energy efficient projects citywide. TEN, administered by Los Angeles County, was created by the California Public Utilities Commission to help public agencies in Southern California 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 and TEN agreed to implement a bundled turn-key project that retrofits lighting and Heating, Ventilation and Air Conditioning (HVAC) mechanical components along with implementation of a new Energy Management System (EMS) to control these components to optimize their energy use (Project). The Project provides the greatest benefit to the City in terms of energy savings, operating cost reductions, and incentives received from utility companies. The Project also advances the City’s position as a community leader in environmental sustainability.
On January 26, 2015, the City Council approved agreements to complete the Project with ACCO Engineered Solutions (ACCO, $183,643.79), Express Energy Systems, Inc. (Express, $404,095.55) and Setpoint Systems Corporation (Setpoint, $575,603.00).
DISCUSSION
ACCO (HVAC) and Express (lighting) have completed their portions of the Project, and Setpoint (EMS) has completed the Senior Center and Veterans Memorial Complex thus far and will conclude their work at City Hall, the Police Department, and the Transportation Facilities by the end of this year. On August 10, 2015, the City Council completed the project close-out for Express. Once Setpoint has completed its work, staff will present the appropriate project closure staff report to the City Council for consideration.
FISCAL ANALYSIS
ACCO completed their work at $14,362.89 less cost than anticipated due to credits received from anticipated work that wasn’t necessary in addition to the waiver of City permit fees. Sufficient funds are available in the City Council Adopted Budget for Fiscal Year 2015/2016 in CIP PF-004 -- City Facilities Energy Efficiency Project to cover ACCO’s $169,281.11 cost to complete the HVAC portion of the Project.
The City’s cost to complete the Project is partially offset by Southern California Edison (SCE) and Southern California Gas (SCG) incentives and rebates amounting to $141,013 once the Project is completed. The City’s total capital contribution to complete the Project is approximately $1,049,829.34 ($1,190,842.34 - $141,013 in incentives/rebates). However, as explained below, $766,269 of the City’s capital costs will be financed through zero interest loans from SCE and SCG through future energy savings once the entire Project is completed. The City will save approximately $1,769,480 from reduced energy use for a net savings of $719,650.66 over the Project’s 12-year life.
Once the Project is completed at the end of this year, SCG/SCE will remit checks to the City in the amount of $907,282.41 ($766,269.41 in loans and $141,013 in incentives/rebates). The zero percent loans from SCE/SCG will be paid back through the energy savings the Project achieves through their On-Bill Financing Program with an average loan payback of 8.4 years.
ATTACHMENTS
None
RECOMMENDED MOTIONS
That the City Council:
1. Accept the work performed by ACCO Engineered Systems in the amount of $169,281.11; and,
2. Authorize filing a Notice of Completion; and,
3. Authorize the release of the 5% retention payment in the amount of $8,464.06 upon expiration of the 35-day lien period.