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HomeMy WebLinkAbout2007-06-19; City Council; 19036; HVAC Safety Center Contract Bids rejectionCITY OF CARLSBAD - AGENDA BILL AB# 19,036 MTG. 6/1<?/07 DEPT. PW/GS REJECTION OF BIDS AND AUTHORIZATION TO ADVERTISE FOR BIDS TO UPGRADE THE HVAC CONTROLS AT THE SAFETY CENTER CONTRACT FAC 07-01 R DEPT. HEAD^J' /^^ CITY ATTY. rf^ CITY MGRr~^^> RECOMMENDED ACTION: Adopt Resolution No. 2007-140 rejecting the bids and approving revised contract documents, special provisions and specifications, and authorizing the City Clerk to advertise for bids to perform the Safety Center HVAC Controls Upgrade, Contract FAC 07-01 R. ITEM EXPLANATION: On January 9, 2007, Council adopted Resolution 2007-005 adopting plans and specifications and authorized the City Clerk to advertise for bids. On February 12, 2007 two bids were received, opened and recorded. The result of the two bids received follow: Seaside Heating and Air: $243,000 Alpha Mechanical: $277,500 The two bids received were substantially higher than the engineers estimate for the work. Staff subsequently reviewed the plans and specifications and met with the designer to discuss the possible explanation for the cost of the bids received. Staff reviewed the engineers estimate and found a mathematical error totaling approximately $18,000 dollars for programming, balancing and commissioning of the equipment. Staff has also determined that nomenclature in the plans and specifications may have indicated City requirements for certain proprietary equipment and software. Staff believes that this issue led to higher than expected costs and limited the amount of bidders who could bid on the agreement. Staff met with the designer and modified the plans and specifications to clearly indicate that proprietary equipment and software were not required or desired. Staff believes that the revised plans and specifications should result in a more competitive bid process and should result in a construction cost that is acceptable. Staff recommends that Council reject the bids and approve the revised plans and specifications and authorize the City Clerk to advertise for bids. A description of the project is included below. In 2003, the General Services Division of Public Works began a program to review the overall energy consumption of the major facilities owned and operated by the City of Carlsbad. A strategy was formulated to make changes to various systems that utilize energy. A program was formulated and various projects were recommended to upgrade and modernize the lighting systems and Heating, Ventilation and Air Conditioning (HVAC) systems to maximize energy efficiency and lower operating costs. At the time many of our facilities were constructed, the original lighting and HVAC equipment was far less energy efficient and substantially less economical to operate than newer technologically advanced modern equipment. Much of the existing equipment had also reached the end of, and in many cases, exceeded the industry standard life expectancy for commercial lighting systems and HVAC equipment. An integral part of this program was a partnership between the General Services Division and the San Diego Regional Energy Office (SDREO). FOR CITY CLERKS USE ONLY. COUNCIL ACTION:APPROVED DENIED D CONTINUED D WITHDRAWN D AMENDED D CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D OTHER - SEE MINUTES D Page 2 SDREO offered a number of valuable services to the City. SDREO performed energy audits of our facilities, made recommendations for upgrades, provided energy cost savings projections and offered various financial incentives to the City including funding future projects and providing rebates at the completion of projects that were currently in the design phase if the City would incorporate various recommendations to them. Staff instructed our Engineers to make changes to planned projects in order to maximize energy savings and to insure that the maximum financial incentives were realized by the City. Energy projects that have been completed as of December 2006 include installing energy efficient lighting and replacing the HVAC equipment at the Calavera and Stagecoach Community Centers, replacing HVAC equipment at the City Council Chambers, replacing HVAC equipment at the Georgina Cole Library, and replacing the centrifugal chiller at the Safety Center. The Safety Center is a 53,000 square foot building completed in 1986 that serves as the administrative headquarters for Police and Fire services in the City of Carlsbad. The HVAC system is a pneumatically controlled valve operated system that regulates heating and cooling through the use of heated and chilled water in various zones throughout the building. The current HVAC system operates purely on a temperature range basis and has no provisions for adjusting which portions of the building are heated and cooled. This control system requires that the entire 53,000 square feet be heated and cooled without regard to the actual need to condition the individual zones. Although the Safety Center operates on a 24 hour per day basis, many portions of the building that are occupied during normal business hours are unoccupied during weekends, holidays, and at night. The current system does not allow central control and adjustment of heating and cooling to individual portions of the building. This results in inefficient use of energy and unnecessary costs to condition unoccupied space. The proposed project makes numerous changes to the current HVAC control system. The pneumatically controlled valve system and air compressor are removed. New electrically operated, computer controlled valves will be installed on each heat exchanger. Package HVAC units that operate the Conference Center and Dispatch will be integrated into the new control system. These upgrades will allow automated and computerized control of the HVAC system from the central computer terminal located in the Facilities Maintenance office and by laptop computer at the Safety Center. Individual zones can be programmed to operate during periods the space is occupied and can be shut down when the space is not occupied. In order to allow flexibility, individual zones can be activated for a pre-programmed period of time at the local thermostat to insure that the system will operate in these zones to meet immediate operational needs. The Engineer's estimate for construction and contingency is $218,000. Project design and construction inspection costs are estimated at $35,000. The City has received a financial incentive of $49,093 from SDREO leaving a final estimated net cost to the City of $203,907. The annual energy cost savings is estimated at $54,300. The estimated payback for the project is 3.75 years. Sufficient funds are available in the General Fund, Facilities Department Capital Outlay account to complete the project. Plans and specifications are on file at the office of the General Services division. ENVIRONMENTAL IMPACT: This project has been determined to be exempt from environmental review per CEQA (14 Cal Code Reg §15301) - minor alteration of an existing facility. PageS FISCAL IMPACT: SAFETY CENTER HVAC CONTROLS UPGRADE PROJECT SUMMARY Construction Contract Design and Inspection Contingency SDREO Construction TOTAL ESTIMATED Incentive PROJECT COST $198,000 $35,000 $20,000 ($49,093) $203,907 The total project cost is estimated at $203,907, which includes $55,000 of contract costs for design, inspection, a hazardous materials survey, and contingency funds. Sufficient funds have been appropriated in the City's General Fund, Facilities Department Capital Outlay budget to complete the project. The City has received a credit from SDREO totaling $49,093. This credit is reflected in the total project costs. EXHIBITS: 1. Resolution No. 2007-140 rejecting the bids and approving revised contract documents, special provisions and specifications, and authorizing the City Clerk to advertise for bids to perform the Safety Center HVAC Controls Upgrade, Contract FAC 07-01R. DEPARTMENT CONTACT: Dale A. Schuck, (760) 802-5788, dschu@ci.carlsbad.ca.us or Thomas Moore, (760) 434-2939, Tmoor@ci.carlsbad.ca.us 1 RESOLUTION NO. 2007-140 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 3 CARLSBAD, CALIFORNIA, REJECTING ALL BIDS FOR THE UPGRADE OF THE HVAC CONTROLS AT THE SAFETY CENTER 4 AND APPROVING REVISED CONTRACT DOCUMENTS, SPECIAL PROVISIONS AND SPECIFICATIONS, AND AUTHORIZING THE 5 CITY CLERK TO ADVERTISE FOR BIDS TO UPGRADE THE HVAC CONTROLS AT THE SAFETY CENTER, CONTRACT NUMBER FAC 6 07-01R. 7 WHEREAS, the City Council adopted Resolution No. 2007-005 approving contract 8 documents, special provisions and specifications, and authorized the City Clerk to advertise for g bids to Upgrade the HVAC Controls at the Safety Center, hereinafter referred to as the "Project;" 10 and 11 WHEREAS, said bids were received, opened, witnessed and recorded on February 12, 12 2007; and 13 WHEREAS, in accordance with Section 22038 of the Public Contract Code, the City has 14 the authority to reject all and any bids without cause; and 15 WHEREAS, the City Council hereby finds it necessary, desirable, and in the public 16 interest to reject all bids received by the City on February 12, 2007 for said Project; and 17 WHEREAS, the revised contract documents, special provisions and specifications for 18 the furnishing of all labor, material and equipment necessary to Upgrade the HVAC Control 19 Controls at the Safety Center, Contract No. FAC 07-01 R, have been prepared and are on file in 20 the Public Works/General Services office and are incorporated by reference herein; and 21 WHEREAS, sufficient funds are available for this project in the General Fund Facilities 22 Department Capital Outlay budget. 23 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, 24 California, as follows: 25 1. That the above recitations are true and correct. 26 2. That the City Council does hereby reject all bids received by the City on February 27 12, 2007 for the Project. 28 1 3. That the revised contract documents, special provisions, and specifications on file in 2 the Public Works/General Services office are hereby approved. 3 4. That the City Clerk is authorized to advertise for bids to Upgrade the HVAC Controls 4 at the Safety Center, Contract No. FAC 07-01R. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 /// 19 /// 20 /// 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 19th day of June, 2007, by the following vote to wit: AYES: Council Members Lewis, Hall and Packard NOES: None ABSENT: Council Members Kulchin and Nygaard ATTEST: /ORRAINS M. WO( /(SEAL) ', City C