HomeMy WebLinkAbout2/18/2015 - STAFF REPORTS - 2.P. {OF P ALM sp9
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Cq4 FOR CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 18, 2015
SUBJECT: APPROVAL OF A BUDGET RESOLUTION IN THE AMOUNT OF
$162,936 AND APPROVAL OF CHANGE ORDER NO. 8 IN THE
AMOUNT OF $775,271 WITH OPTERRA ENERGY SYSTEMS FOR THE
CITYWIDE ENERGY PROJECT
FROM: David H. Ready, City Manager
BY: Special Projects Coordinator
SUMMARY
The proposed action requests City Council approval of Change Order No. 8 in the
amount of $775,271 with Opterra Energy Systems to upgrade and/or replace older
mechanical electrical equipment at the Airport and other municipal buildings. The
additional work is warranted and is beyond the original scope of the project.
RECOMMENDATION:
1. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL
YEAR 2014-15 TO UPGRADE AND/OR REPLACE OLDER MECHANICAL
ELECTRICAL EQUIPMENT AT VARIOUS MUNICIPAL FACILITIES AS PART OF
THE CITYWIDE ENERGY PROJECT."
2. Approve Change Order No. 8 in the amount of $775,271 with Opterra Energy
Services, Inc., to upgrade and/or replace older mechanical electrical equipment at
the Airport and other Municipal Facilities and extend the contract thru July 31, 2015.
3. Authorize the City Manager to execute all necessary documents to implement the
Change Order.
STAFF ANALYSIS:
Opterra Energy Services, Inc (formerly Chevron Energy Systems) was hired by the City
to rebuild its aging cogeneration infrastructure as well as implement a City wide energy
conservation effort thru infrastructure improvements at City Facilities. On several
ITEM NO.- a`
City Council Staff Report
February 18, 2015 Page 2
Opterra Change Order No. 8
occasions staff has brought forward change orders to the Opterra contract to implement
further improvements to aging infrastructure as well as to implement efficiencies in our
systems and maintenance efforts. As staff has toured the facilities that are tied to the
Municipal Cogeneration plant with Opterra, additional maintenance, safety and
efficiency improvements have been identified for both the Airport Terminal building as
well as other Civic Center structures. This report will detail the specific concerns
discovered and recommended solutions to alleviate the issues.
AIRPORT:
1. Connectivity to City Hall: Recently the City Council approved a Change Order with
Opterra to install new fiber optic cables in existing conduits between the various
buildings at the Civic Center. The work has begun and during that effort it was
determined that better connectivity between the Airport and City Hall was desirable,
thus a direct run between the two structures rather than routing thru the Police
Department, is proposed at $11,537.
2. Bono Terminal Boiler: In 1998, the expansion of the airport through construction of
the new Bono Concourse Terminal required installation of its own heating and
cooling system, as the Municipal Co-Gen facility did not have the appropriate
capacity to serve the additional building square footage represented by the new
terminal. At that time, however, a new boiler for the Bono Concourse Terminal was
omitted during construction as a cost saving measure. As a result, during winter
months there is insufficient heating of the Bono Concourse Terminal, and over the
last year a temporary boiler has been rented to provide sufficient heating. However,
after completion of improvements to the Municipal Co-Gen facility, there still remains
a need to provide a permanent heating source for the Bono Concourse Terminal,
and staff recommends that a new boiler be installed, as originally envisioned during
construction, taking the price advantage of Opterra's current contract working on
various systems at the Airport. The cost for furnishing and installing a new boiler is
$34,861.
3. Airport Terminal Control Valve Replacement: Independent of any work that Opterra
was carrying out, the Airport commissioned an evaluation of its overall mechanical
systems that determined many of the mechanical control valves in the heating and
air condition system (there are over 100) were not functioning, were broken and
need replacement. Recently the City Council approved a Change Order with
Opterra to install a totally new control system for the mechanical equipment
throughout the Airport Terminal to remotely open and close the control valves in the
existing heating and air conditioning system. However, the new control system
being installed is ineffective given the non-functioning control valves it will be
monitoring, as a result the overall system will not reach the maximum energy
efficiency anticipated. The cost to remove and replace all of the mechanical valves
through the Airport terminal is $398,000.
02
City Council Staff Report
February 18, 2015 Page 3
Opterra Change Order No. 8
OTHER CITY FACILITIES:
1. Makeup Water Valves: Each of the buildings connected to the Municipal Co-Gen
facility has a water makeup line that allows water into the system. Currently, when
the Municipal Co-Gen facility is not operating, each municipal building operates
independently for heating and cooling, and if the makeup water valve is not manually
closed, water feeds back into the Municipal Co-Gen system causing the chilled
water storage tank to overflow and heat up, wasting water and creating water
treatment issues in the Co-Gen systems. This operational issue was unknown to
staff or Opterra during development of the Citywide Energy Project, and represents
a challenge to ensure the maximum overall energy efficiency of it. Therefore, staff
recommends that the project include installation of automatic shut off valves for the
water makeup lines that connect to each municipal facility, at a cost of$25,576.
2. Co-Gen Standby Generator Yard: The Municipal Co-Gen facility previously had an
old standby generator that provided sufficient power for interior lighting and
computers systems during those times when the Co-Gen facility was not operating
or when the SCE utility grid is down (which happens frequently). Although
replacement of the standby generator was not included in Opterra's original scope of
work, Opterra has voluntarily purchased a new standby generator for the Municipal
Co-Gen facility. However, the standby generator requires a new exterior fenced
yard and pad located on the east side of the building. Opterra has proposed to
construct the new exterior yard, pad, and masonry block walls to match the existing
exterior walls of the Municipal Co-Gen facility at a cost of$10,717.
3. Demuth Park Pressure Reducing Valves: Demuth Park's reclaimed water irrigation
system is driven by very large pumps from the wastewater treatment plant. When
those pumps switch on, quite often the pressure surge causes the irrigation lines to
break in the park. The irrigation system is quite old, and the frequent rupture of
irrigation lines requires constant attention by Parks Maintenance staff, and results in
loss of significant volumes of reclaimed water in the park. Staff recommends that
new pressure regulating valves be installed to eliminate the pressure surges that are
caused by the pumping of reclaimed water into the irrigation system, which will
ensure the water saving measures implemented at Demuth Park are realized, at a
cost of$14,638.
4. City Hall Main Electrical Switch Board: As Opterra has initiated work to connect new
electrical systems for the energy management system through the City Hall building,
Opterra identified electrical problems with the main electrical panel. With age, the
use of substitute parts over time, and the fact that electrical codes have significantly
changed over the decades since the existing main electrical panel was installed, the
panel is no longer code compliant and has certain safety issues with connecting an
entirely new electrical energy management system. Staff recommends that the main
electric panel be replaced at a cost of $94,976.
03
City Council Staff Report
February 18, 2015 Page 4
Opterra Change Order No. 8
5, Airport Fire Station #2 Electrical Switch Board: As Opterra has initiated work to
connect new electrical systems for the energy management system at Airport Fire
Station #2, Opterra identified electrical problems with the main electrical panel. With
age, the use of substitute parts over time, and the fact that electrical codes have
significantly changed over the decades since the existing main electrical panel was
installed, the panel is no longer code compliant and has certain safety issues with
connecting an entirely new electrical energy management system. Staff
recommends that the main electric panel be replaced at a cost of$67,960.
6. City Yard A/C Controls: The City Yard building does not currently have a
computerized control system to regulate its heating and cooling systems. It is
important to note that the City Yard does not receive its heating and cooling from the
Municipal Co-Gen facility, and has its own boilers and chillers for heating and
cooling; however, the City Yard does receive its electrical power from the Municipal
Co-Gen facility. The lack of an energy management system to control the
independent heating and cooling systems at the City Yard is an inefficient way of
operating the facility, and staff recommends that the City take advantage of
Opterra's work in installing similar systems at the other facilities that receive heating
and cooling direction from the Municipal Co-Gen facility. Otherwise, after
implementation of this project, all municipal buildings with the exception of the City
Yard, will have modernized energy management systems. The cost of a new energy
management control system at the City Yard is $107,516. Although this cost was
not anticipated, it is significantly less than the cost that would be incurred to obtain a
mechanical and electrical consultant to develop the independent system, and the
subsequent bidding and installation of the system through a typical "design-bid-build"
approach. Opterra will be developing and installing the energy management control
system for the City Yard on a design-build approach, using the same technologies
deployed through the Civic Center facilities, allowing the Facilities Director to control
all facilities allowing for the maximum energy efficiencies available.
7. City Hall Rooftop Package A/C Unit Controls: The original wing of City Hall
comprised of the City Council Chamber and Administration Wing has independent
air conditioning units on the roof that provide supplemental cooling to those areas.
The original scope of the project did not include connecting the control system to
these independent roof-mounted units, and staff recommends that the new energy
management control system being implemented at City Hall extend and connect to
these units to ensure that they operate in concert with the rest of the energy
management system at a cost of $9,490.
None of the above items are part of the original Opterra (Chevron) scope of work.
These items are deferred mechanical and facility maintenance items that have not been
programmed due to reduced or frozen facility maintenance budgets over the last several
years. However, there are significant cost efficiencies in pursuing replacement of these
mechanical systems given the work currently underway by Opterra, given their special
expertise to install all of the above work at the same time they are in the buildings
04
City Council Staff Report
February 18, 2015 Page 5
Opterra Change Order No. 8
during their contract work. Staff has carried out its due diligence on proposed pricing by
checking actual part prices, comparing previous pricing for control work on other
buildings as well price checking with local contractors. To bid this work separately
would require development of actual designs, preparation of bid documents and the bid
process, all of which would add cost and run the timeline out on the completion of the
work.
Contract time would be extended from May 31, 2015, through July 31, 2015, with
approval of this change order. The extra time is required to install all the Airport
improvements.
FISCAL IMPACT:
The total cost of the additional work included in Change Order No. 8 is $775,271 which
can be funded by the Airport fund and the existing budget for the project, with the
exception of replacement of the existing electrical main panels at the City Hall and Fire
Station #2, which requires the City Council's adoption of a Budget Resolution
appropriating $162,936 from the General Fund. A summary of the proposed changes
and funding sources are as follows:
Project Cost Funding Source
Airport Connectivity/City Hall $ 11,537 416-6501-56144
Bono Terminal Boiler $ 34,861 416-6501-56158
Terminal Control Valves $398,000 416-6501-56173
Sub Total $444,398
Makeup Water Valves $ 25,576 550-5812-54073
Co-Gen Standby Generator $ 10,717 550-5812-54073
Demuth Valves 14,638 550-5812-54073
Sub Total $ 50,931
City Hall Electrical Gear $ 94,976 001-1100-52500
Fire Station 2 Electrical Gear 67,960 001-1100-52500
Sub Total $162,936
City Yard A/C Controls $107,516 520-5641-43240/48700
City Hall Roof Units Controls 9,490 520-5641-48700
Subtotal $117,006
Grand Total Change Order#8 $775,271
05
City Council Staff Report
February 18, 2015 Page 6
Opterra Change Order No. 8
With the City Council's adoption of the proposed Budget Resolution, sufficient funding is
available in the following accounts:
416-6501-56144; $11,534
416-6501-56158; $34,861
416-6501-56173; $398,000
550-5812-54073; $50,931
520-5641-43240; $50,000
520-5641-48700; $67,006
001-1100-52500; $162,936
SUBMITTED:
Allen F. Smoot, Marcus L. Fuller, MPA, P.E., P.L.S.
Special Projects Coordinator Assistant City Manager/City Engineer
Approved by:
David H. Ready, Esq
City Manager
Attachments:
1. Change Order
06
CHANGE ORDER NO. 8
PROJECT TITLE: City Wide Energy Conservation Measures Project
CONTRACT: Energy Services Contract ICU 1361)
CONTRACT NO.: A6375
CONTRACT DATE: July 29, 2013
CONTRACTOR: Opterra Energy Services
The following changes are hereby made to the Contract:
# Item Cost (Credit)
1. PCO#12: Bono Concourse boiler installation. $ 34,861
2. PCO#33R: Airport chilled and hot water control valve. $398,000
3. PCO#34: DDC controls add at City Yard building. $107,516
4. PCO#35: Makeup water DDC valves add. $ 25,576
5. PCO#36: 12 strand fiber optics rung, City Hall to Airport $ 11,537
6. PCO#37A: Relocate standby generator. $ 10,717
7. PCO#38: Add pressure reducing valves to Demuth irrigation. $ 14.638
8. PCO#39: Upgrade City Hall electrical panel. $ 67,960
9. PCO#40: Fire Station #2 electrical panel upgrade. $ 94,976
10.PCO#41: DDC controls to City Hall Rooftop units. 9,490
$775,271
Justification:
Item#1: Add boiler to provide emergency backup heat for the Bono Concourse.
Item #2: Replace hot and cold water control valves as per independent study conducted for the
airport.
Item#3: Add controls to the City Yard buildings so all Civic Center buildings are on same control
system.
Item#4: Add make up control valves at remote cogen buildings to reduce overfilling of cold
water storage tank.
Item#5: A fiber optics run to increase connectivity between City Hall and Airport.
Item#6: Relocate standby generator to allow for more adequate maintenance work area around
the generator.
Item #7: Add pressure reducing valves on irrigation at Demuth to reduce line breakage from
water hammer effect.
Item #8: Upgrade original old electrical panel at City Hall to improve safety.
Item#9: Upgrade original old electrical panel at Fire Station #2.
Item#10: Add controls to rooftop package a/c units so all equipment is under similar controls.
1 07
CHANGE TO CONTRACT AMOUNT
Original Contract Amount: $17,507,842
Current Contract Amount, as adjusted by previous Change Orders: $18,260.280
The Contract Amount due to this Change Order will be changed by: $ 775,271 add
Contract Amount due to this Change Order will be: $19.035.551
CHANGE TO CONTRACT TIME
The Contract Time is hereby extended until July 31, 2015.
Approvals Required:
To be effective, this Change Order must be approved by both Opterra ES and City, unless
otherwise permitted under the terms of the Contract.
Recommended by date
City's Representative
Ordered by date
City Manager
ATTEST: date
City Clerk
Accepted by date
Opterra Energy Services
Opterra ES acknowledges and agrees, on behalf of Opterra ES, all subcontractors and all
suppliers, that, except as provided above, the stipulated compensation provided for in this
Change Order includes payment for all work contained in this Change Order, plus all payments
for interruption of schedules, incremental extended overhead costs, acceleration costs, delay and
all impact, ripple effect or cumulative impact on all other work arising out of, or related to, the
work that is the subject of this Change Order. In addition, Opterra ES agrees that this Change
Order comprises the total compensation due Opterra ES, and all subcontractors and all suppliers,
for the work or change defined in this Change Order, including all impacts arising out of or related
to this Change Order, including all impacts arising out of or related to this Change Order, except
for the additional time-related issues noted above, if required.
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CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 18, 2015 CONSENT AGENDA
SUBJECT: SUPPLIMENTAL REPORT ITEM 2P
FROM: David H. Ready, City Manager
BY: Special Projects Coordinator
Mathematical errors were discovered in the "Current Contract Amount..." and "Contract
Amount due to this Change Order" lines on the second page of the change order. The
correct amounts are:
"Current Contract Amount, as adjusted by Previous Change Orders: $18,381,942
Contract Amount due to this Change Order: $19,157,213
The actual dollar amount of this change order, $775,271, does not change.
06iD��
Allen F. Smoot, pecial Projects Coordinator
Attachment: Revised Change Order
CHANGE ORDER NO. 8
PROJECT TITLE: City Wide Energy Conservation Measures Project
CONTRACT: Energy Services Contract(CU 1361)
CONTRACT NO.: A6375
CONTRACT DATE: July 29, 2013
CONTRACTOR: OpTerra Energy Services, Inc.
The following changes are hereby made to the Contract:
# Item Cost (Credit)
1. PCO#12: Bono Concourse boiler installation. $ 34,861
2. PCO#33R: Airport chilled and hot water control valve. $398,000
3. PCO#34: DDC controls add at City Yard building. $107,516
4. PCO#35: Makeup water DDC valves add. $ 25,576
5. PCO#36: 12 strand fiber optics rung, City Hall to Airport $ 11,537
6. PCO#37A: Relocate standby generator. $ 10,717
7. PCO#38: Add pressure reducing valves to Demuth irrigation. $ 14,638
8. PCO#39: Upgrade City Hall electrical panel. $ 67,960
9. PCO#40: Fire Station #2 electrical panel upgrade. $ 94,976
10.PCO#41: DDC controls to City Hall Rooftop units. $ 9,490
$775,271
Justification:
Item#1: Add boiler to provide emergency backup heat for the Bono Concourse.
Item #2: Replace hot and cold water control valves as per independent study conducted for the
airport.
Item #3: Add controls to the City Yard buildings so all Civic Center buildings are on same control
system.
Item#4: Add make up control valves at remote cogen buildings to reduce overfilling of cold
water storage tank.
Item#5: A fiber optics run to increase connectivity between City Hall and Airport.
Item #6: Relocate standby generator to allow for more adequate maintenance work area around
the generator.
Item #7: Add pressure reducing valves on irrigation at Demuth to reduce line breakage from
water hammer effect.
Item#8: Upgrade original old electrical panel at City Hall to improve safety.
Item#9: Upgrade original old electrical panel at Fire Station #2.
Item#10: Add controls to rooftop package a/c units so all equipment is under similar controls.
t
CHANGE TO CONTRACT AMOUNT
Original Contract Amount: $17,507.842
Current Contract Amount, as adjusted by previous Change Orders: $ 18,381,942
The Contract Amount due to this Change Order will be changed by: $ 775,271 add
Contract Amount due to this Change Order will be: $ 19,157,213
CHANGE TO CONTRACT TIME
The Contract Time is hereby extended until July 31, 2015.
Approvals Required:
To be effective, this Change Order must be approved by both OpTerra ES and City, unless
otherwise permitted under the terms of the Contract.
Recommended by date
City's Representative
Ordered by date
City Manager
ATTEST: date
City Clerk
Accepted by date
OpTerra Energy Services, Inc.
OpTerra ES acknowledges and agrees, on behalf of OpTerra ES, all subcontractors and all
suppliers, that, except as provided above, the stipulated compensation provided for in this
Change Order includes payment for all work contained in this Change Order, plus all payments
for interruption of schedules, incremental extended overhead costs, acceleration costs, delay and
all impact, ripple effect or cumulative impact on all other work arising out of, or related to, the
work that is the subject of this Change Order. In addition, OpTerra ES agrees that this Change
Order comprises the total compensation due OpTerra ES, and all subcontractors and all
suppliers, for the work or change defined in this Change Order, including all impacts arising out of
or related to this Change Order, including all impacts arising out of or related to this Change
Order, except for the additional time-related issues noted above, if required.
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