HomeMy WebLinkAbout14 AWARD CONTRACT FOR COLUMBUS TUSTIN GYMNASIUM SOLAR• A ends Item 14 ~~ ~ AGENDA REPORT Reviewed: City Manager Finance Director MEETING DATE: SEPTEMBER 7, 2010 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: AWARD OF CONTRACT FOR THE COLUMBUS TUSTIN GYMNASIUM PHOTOVOLTLAIC (SOLAR) IMPROVEMENT, CIP No. 10065 /FEDERAL SUMMARY Staff is requesting that the City Council award the construction contract for the Columbus Tustin Gymnasium Photovoltaic (Solar) Improvement, CIP No. 10065/federal, to the lowest responsive/responsible bidder. RECOMMENDATION It is recommended that the City Council award the construction contract for the Columbus Tustin Gymnasium Photovoltaic (Solar), CIP No. 10065/federal, to the lowest responsive/responsible bidder Stellar Solar and authorize the Mayor and City Clerk to execute the contract documents on behalf of the City. FISCAL IMPACT Sufficient funds have been budgeted and appropriated for this project in this Fiscal Year 2010- 2011 Capital Improvement Program. The project is funded in total from the American Recovery and Reinvestment Act (ARRA) of 2009 Energy Efficiency and Conservation Block Grant (EECBG) administered by the Department of Energy (DOE). Additional savings are expected from the following: ~ Estimated California Solar Initiative Incentive .............................$ 161,000 r Projected Annual Energy Savings ................................................ $ 23,000 y 10 year Operation & Maintenance (included w/bid package) ........ $ 20,000 BACKGROUND The American Recovery and Reinvestment Act (ARRA) of 2009, appropriated $2.7 billion in funding for the Department of Energy (DOE) to issue/award formula-based grants to states, U.S. territories, units of local government, and Indian tribes under the Energy Efficiency and Conservation Block Grant (EECBG) Program. The purpose of the EECBG Program is to assist eligible entities in creating and implementing strategies to reduce fossil fuel emissions, reduce total energy use and improve energy efficiency. As a stipulation of grant funding eligibility, each entity is required to develop an Energy Efficiency and Conservation Strategy (EEGs). CT Gym Photovoltaic, CIP No. 10065/federal September 7, 2010 Page 2 The development of the EECS was completed and adopted by Council via Resolution No. 10-14 on January 19, 2010. Resolution No. 10-14 identifies the following projects: 1. Photovoltaic Installation at Columbus Tustin Gymnasium 2. Tustin Energy Efficiency Building Permit Fee Rebate Program In addition to the grant funding received by the DOE, the City has applied for a solar rebate through the California Solar Initiative (CSI). The CSI is overseen by the California Public Utilities Commission (CPUC) and provides incentives for solar system installations to customers of the state's three investor-owned utilities (IOUs): Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE) and San Diego Gas and Electric (SDG&E). The CSI Program provides upfront incentives for solar systems installed on existing residential homes, as well as existing and new commercial, industrial, government, non-profit, and agricultural properties within the service territories of the IOUs. The City's potential incentive through CSI is estimated at $161,000. Pursuant to federal funding requirements, the Department of Energy (DOE) conducted an on-site monitoring visit on July 27, 2010. A final copy of the DOE monitoring report is attached for reference. Essentially, the DOE reviewed bid documents to ensure grant compliance and final site feasibility inspection for installation. No corrective actions were identified. The DOE was extremely pleased with the City's overall efforts and enthusiasm to utilize ARRA funding. Nonetheless, to remain in compliance with grant requirements, the majority of the funds for this project must be obligated by September 30, 2010. DISCUSSION Proposals were received on August 11, 2010 and reviewed by Public Works for qualifications applicable to the trade, most economic return and lowest cost. A total of five bids were received and are summarized below by order of least dollar amount and maximum projected savings per kilo-watt hour (kwh): Company Bid Amount Projected Savings • Stellar Solar ................................. ........ $264,441.00 $253 • Dahl, Taylor & Associates ........... ........ $274,230.00 $239 • Solar Electrical Systems .............. ........ $572,800.00 $242 • AAA Solar Electric ....................... ........ $663,264.81 $244 • American Electric Company ........ ........ $692,700.00 $228 Stellar Solar has provided solar services to a number of public agency's as well as private industry and residential consumers. Staff has reviewed the references and the State Contractor's License for Stellar Solar and has determined that they are appropriate for the subject project. It is estimated the City will save $23,000 annually in electrical cost with this improvement. Do to the nature of the grant funding provided by the ARRA, staff will continue to work closely with the DOE to ensure full compliance with program requirements and general administration of the grant. Prior to the installation of the Photovoltaic system, a new roof will be installed and include a 30- year manufacturer's warranty. S:\City Council Items\2010 Council ItemsWward of Contract CT PV (3)_dss.docx CT Gym Photovoltaic, CIP No. 10065/federal September 7, 2010 Page 3 It is recommended that the City Council award the construction contract for the Columbus Tustin Gymnasium Photovoltaic (Solar) CIP No. 10065 to the lowest responsive/responsible bidder, Stellar Solar and authorize the Mayor and City Clerk to execute the contract documents on behalf of the City. Attachment: DOE EECBG On-Site Monitoring Report, dated 8!10/2010 Dog s S. Stack, P.E. ~. urchill Dir o f Public Works/City Engineer Fi' d Service Manager S:\City Council Items\2010 Council Items\Award of Contract CT PV (3)_dss.docx Department of Energy Oak Ridge Office P.O. Box 2001 Oak Ridge, Tennessee 37831 August 70, 2010 SENT VIA E11~IAIL: ichurGhillr,'~tustinca.orQ Mr, Jason Churchill Field Services Manab r City of Tustin 30Q Centennial Way Tustin, California 92780 Dear Mr. Churchill: EECBG GRANT NO. DE-SC0042328, CITY O)F TUSTIN, CALII'ORNL4 The Energy Efficiency and Conservation Biock Grant (EECBG) On-Site Monitoring Report for the visit to your site on July 27, 2020 is enclosed. If corrective actions are required, please ensure responses are submitted to your Grant Specialist within the specified timeframe. Thank you for hosting our visit. If you have any questions, please feel free to contact ~-our Grant Specialist or Technical Monitor. Sincerely, ~ . Tudith S. Wilson Contracting Officer Enclosure cc: Douglas Stack, cl~tack r.;tustinca.or~ N. Kong, EE-2K P. Carpenter, SC-l1 B. Robinson. AD-4? S. Zaleski, 6E-?K J. Hughes, EE-2K T. Allen, EM ORO T. Rose, rosc~r:n,warro-inc.com UNITED STATES DEPARTMENT OF ENERGY __ __ Energy Efficiency and Conservation Bloch Grant 4n-Site 1Vtonitoring Report City of Tustin, California Grant DE-SCOU02328 Prepared by the Monitoring Team: Bryce Robinson Tom Rose Terry Allen Sarah Zaleski Joseph Hughes August 10, 2010 U.S. Department of Energy (D4E) Energy Efficiency snd Conservation Block Grant (EECBG) Qn-Site 11~ianitoring Report For the City of Tustin, California Grant DE-500002328 Y. SUMMARY Ln order to complete an Energy Efficiency and Conservation Strategy (EECS), the City of Tustin.x••as awarded $30,000 on September 21, 2009. On April 16, 2010 the Ciry of Tustin was awarded the remaining of their EECBG allocation in the amount of $647,300, for a total allocation of 5677,300. The Ciry of Tustin has expended $30,000 of this allocation towards the completion of their 1~ECS activity, The grantee is currently in compliance regarding required reporting. The monitoring team did not identify any findings that require corrective action. A. Purpose of Review The purpose of this review was to conduct an On-Site Monitoring Visit in accordance with the Office of Energy );fficiency and Renewable Energy Weatherization and Intergovernmental Program Monitoring Plan and Monitoring Reference Nfanual for ~eatherization Assistance Program, State Energy Program, and Energy Efficiency and Conservation Slock Grants. B. Process The On-Site Monitoring Visit 'vas conducted on July 27, 2414, by the following DOE representatives: • Bryce Robinson, Contract Specialist, Oak Ridge Office Tam Rose, Technical Support, Navarro Lnc. • Terry Allen, NEPA Compliance Officer, Oak Ridge Office • Sarah Zaleski, Technical Monitor, DOE Headquarters • Joseph Hughes, Technica] Monitor, DOE Headquarters Grantee representatives in attendance: • 3ason Churchill, Field Sen7ces vlanager, City of Tustin • Y. Henry Huang, Building Official, City of Tustin • Sean Tran, Sr. Financial Analyst, City of Tustin • John Sappington, VP of Sales; Garland 1/nergy Systems, Inc. The monitoring team discussed the purpose of the visit and the on-site monitoring process. The grantee provided a description and status of its current approved activities. The following subject areas ~~rere discussed and reviewed to ensure that all checklist questions were appropriately addressed Financial Systems and Monitoring, Procurement, Personnel, Best Practices, Reporting, Records, Job Creation and Success Stories. C. Financial Review The team discussed the financial operations of the grantee. The city provided a URL addressing aspects such as segregation of duties, standards and~practice~, payment procedures, approval authority, and record keeping: http:/~librar>>_rrtunicode.com~'index.aspx?clientld=11307G1':state_1.~i_-5&stateNamc= California The monitoring team addressed the tracking, monitoring, and reporting of funds and expenses through their system. No issues were identified in the Single Audit for Fiscal Year ending June 3(}. 2009. There were no material weaknesses in internal control over the major programs of the city; therefore, they were a~nsidered to be low risk. We discussed the f~ month obligation deadline and the 36 rnonlh expenditure deadline with the grantee. The city informed the monitoring team that they expect to have the majority of their funding obligated by Se.ptemher 20101. D. Administrative Review The City of Tustin has procurement and purchasing procedures that meet Federal guidelines. The city was reminded that American Recovery ~ Reinvestment Act (ARRA} flaw--down provisions, including Davis Bacon and Buy American need to be included in subcontracts. The request for proposal (RFP) for the City's Photo Voltaic project was revie«~ed and was l.'ound to meet the. guidelines of the EECBG program as well as l0 CFR 600, Subpart C. The city will use EPA Portfolio Manager to collect, verify, and report performance data, as appropriate, during and after program completion. There were no National Environmental Policy Aci (NEPA) or Nationai Historic Preservation Act (NNPA) concerns associated with the grantee's approved activities. The city was inforrrted of the Programmatic Agreement between the California State Historic Preservation Office and the Department of Energy. 2 Personnel associated with grant administration appear to be knowledgeable and experienced. The city lags not experienced any major personnel changes associated with grant administration- E. Programmatic Review The grantee will use a portion of the ;rant to create a Perrxait Fee Rebate Pro~am that will encourage awareness regarding energy efficiency throughout the city. The program. will be developed in cooperation with the Community Development Department Building Division to help offset plan check fees and permit fees related to preselected enemy efficient reside~atial upgrades such as solar panels and tankless water heaters. The grantee provided public outreach material as well as a rebate application for DOE retJiew. The city will be teaming with Loaves and Home Depot in order to increase awareness for this program. Furthermore, the city will hold public. information workshops which will concentrate on Hof AC, solar and lighting technologies~'best prac#iees. An RFP has already lieen issued for the Columbus Tustin Solar Photovoltaic Installation activity, with bids due in nnid-August 2410. The orientation of the Columbus Tustin gymnasium's roof will allow up to lOb k~` of fixed solar arrays to be installed. The monitoring team was escorted to the roof of the Columbus Tustin g}xnnasium and observed the location where the arrays will be located. The grantee has completed their EECS Development activity. This report provides a system level survey of the city's buildings, structures, processes, and equipment, and indentifies areas for energy savings. A copy of this report. was provided for DQE review during the on-site visit. II. PROMISING PRACTICES The City of Tustin has several promising practices and is an excellent example of the intended effects of ARR.4 funding. The city plaxrs to team with L.owes and Home Depot to promote their Permit Fee Rebate Program and host public information workshops on the applicability of these rebates in the community. The city has exhibited enthusiasm toward the receipt of ARRA funds. III. CORRECTIVE ACTIONS I~7o corrective actions were identified. N. TECHNICAL ASSISTANCE The grantee was advised of the availability of tecluaical assistance resources. The Permit Fee Rebate Program will be referred to the technical assistance team. for help fo determine ho~v to gather metrics in support of rene~~able energy market development. V. IN CLOSING The grantee is making progress toward completion of theiz pzojects. The City of Tustin and its staff show great promise moving foztivard. DOE appreciates the covperataon of the City of Tustin in performing the review. ~'I. C"ERTIFICATION tie have conducted this monitoring visit in accordance with DOE standard procedures using the appropriate monitoring checklists for the purpose of forming an opinion on the general administration of the rani. This was not an audit; therefore, all areas reviewed were only examined for purposes of obtaining an assessment of compliance with program requirements. 4