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HomeMy WebLinkAbout25B - AGMT - LED STREET LIGHTSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 15, 2015 TITLE: AMEND AGREEMENT WITH CALIFORNIA PROFESSIONAL ENGINEERING TO INCREASE CONTINGENCY FOR LED STREETLIGHT IMPROVEMENTS PROJECT 15 -6002 (STRAT�GI PL OS. 6, 113, 1C, 1G) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 16' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Amend the agreement with California Professional Engineering to increase the contingency for construction of the LED Streetlight Improvements by $30,000, which increases the total contingency amount to $50,000 and the total agreement amount to $528,020. DISCUSSION On May 19, 2015, a contract was awarded to California Professional Engineering in the amount of $498,020 to rewire the remaining high - voltage circuits and install Light- emitting Diode (LED) post top lamps on streetlights located in the North Park District (Exhibit 1). Construction projects are generally assigned a 10 percent contingency. However, at the time of award, the agreement contained only a 4 percent contingency of $20,000, due to funding availability in the streetlight maintenance budget. Even for a relatively small project, the underground nature of this type of work sometimes warrants up to a 20 percent contingency. The initial contingency budget for this project has already been expended. During construction, one of the streetlight circuits was discovered to be separately connected. To provide a complete metered and controlled streetlight system, the circuits had to be interconnected and powered by the same power source. Also, new conduit, wiring, and a streetlight were needed within the project area for the Roost Development. It was determined to be more cost - efficient to complete this as part of the LED Streetlight Improvements project than by a separate contract. The Roost Development paid for their share of the work and the construction was completed under the California Professional Engineering agreement. Recent theft of wire from an adjacent circuit has damaged improvements that were already completed. This damage must be repaired and the wiring replaced to restore the power in those circuits. Also, additional locations have been identified in the North Park District where underground circuits are separately connected. Therefore, staff recommends amending the 2513-1 Increase Contingency for LED Streetlight Improvements September 15, 2015 Page 2 agreement with California Professional Engineering to increase the contingency by 6 percent ($30,000), for a total construction contingency of 10 percent (Exhibit 2). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy B (equitably maintain existing streets and associated assets in a state of good repair so they are clean, safe and aesthetically pleasing for all users), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard), and Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans. FISCAL IMPACT Staff is recommending a contingency increase of $30,000 for the California Professional Engineering contract. Funds are budgeted and available for expenditure in Fiscal Year 2015/16 Streetlight Maintenance account (No. 01117630 - 66220) for Project 15 -6002. Executive Director Public Works Agency FM /EW G /KW APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency, Exhibit 1: Request for Council Action dated May 19, 2015 2: Proposed Amended Agreement 3: Cost Analysis 25B -2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MAY 19, 2016 TITLE: AGREEMENT WITH CALIFORNIA PROFESSIONAL ENGINEERING FOR LED STREETLIGHT IMPROVEMENTS {STRATEGIC PLAN NO. 6, 1C) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLYt APPROVED El As Recommended ❑ As Amended Q Ordinance on 1" Reading © Ordinance on 2d Reading ® Implementing Resolution Set Public Hearing For„,_, CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an agreement with California Professional Engineering, Inc., expiring on June 30, 2016, to rewire existing high - voltage streetlights and install LED post top fixtures in an amount not to exceed $498,020, subject to nonsubstantive changes approved by the City Manager and City Attorney. The recommended action will allow the City to continue and complete the work awarded in 2014 to California Professional Engineering, Inc., (CPE) for rewiring the last remaining high- voltage streetlight circuit in the City located in the North Park and North Residential circuits. The rewiring will modernize the system and upgrade the streetlights to energy efficient light- emitting diode (LED) lamps in existing historic streetlight posts. On June 17, 2014, the City Council awarded this same contract to California Professional Engineering, Inc„ the lowest bidder, in the amount of $512,450 (Exhibit 1). The City Council also approved two other related actions. One was an agreement to purchase streetlight lamps from Powerlux in the amount of $78,506, and the other was an agreement with Southern California Edison (SCE) for financing of up to $202,349 toward project construction (Exhibit 2). All three agreements were intended to run concurrently and be completed by March 31, 2015. This streetlight improvement project has two distinct phases. In the first phase, SCE is required to approve project plans after they are designed by CPE, and they must also energize the cabinets following installation of the new service points. The second phase is the actual rewiring of the circuits and installation of the streetlight lamps. Because SCE approvals took nearly 9 months, the contractor could only complete the service cabinet installations. SCE has since energized the cabinets, however, the contract expired before CPE could perform the re- wiring and streetlight lamp installation. EXHIBIT 1. 25B -3 Agreement with California Professional Engineering for LED Streetlight Improvements May 19, 2015 Page 2 Moving ahead with the second phase of project at this time is critical. The only remaining manufacturer of the incandescent lamps used in these historic streetlights has stopped production and there are already a few burnt -out lamps in the area. The City no longer has inventory in stock and there are no replacement lamps available anywhere. Adding to this problem is the very nature of high - voltage systems of this age. Installed in the early 1920s, these circuits are obsolete, making frequent lamp burn -outs a common occurrence. The high - voltage system is also susceptible to surges which could burn out all lights in a circuit. If such a surge were to occur, without replacement lamps, the City would be unable to restore streetlight service to the entire area. The contractor had already completed the first phase of the project and began conduit installation when the original contract expired. Proceeding with a new contract will allow for the immediate resumption of this project, ensuring continuous nighttime streetlights in this area of the City. Staff recommends awarding a replacement agreement to CPE in the amount of $478,020 for the balance of the work, with an expiration date of June 30, 2016, sufficient to guarantee completion of the project and allow for a maintenance and warranty period before contract termination. (See Exhibit 3.) Modernizing high - voltage circuits is complex and costly. Funding for the entire project is the same as originally approved by City Council. Preliminary SCE funding approval includes $183,919 in On -Bill Financing (OBF) and $18,430 in energy efficiency cash incentives; $408,607 is budgeted in the City's General Fund Street Lighting account, for an estimated total project cost of $610,956 (see Exhibit 4). The total project value delivered to date is $112,396. Using energy - efficient LED streetlights as planned will reduce the City's estimated annual energy consumption by over 67,000 kWh. At the end of the OBF payback period, this project is estimated to reduce General Fund energy costs by approximately $10,590 annually, STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard). ENVIRONMENTAL IMPACT A Categorical Exemption (ER- 2014 -26) has been filed for this project 25B -4 Agreement with California Professional Engineering for LED Streetlight Improvements May 19, 2015 Page 3 FISCAL IMPACT As approved by Council action on June 17, 2014, loan proceeds received through the SCE On -Bill Financing Program will be deposited into the SCE Energy Efficient Street Lighting revenue account (16217002 - 67384) and appropriated into the SCE Energy Efficient Street Lighting expenditure account (16217630-62300). Loan repayments are available in Account 01117630 - 62000. Funds for the balance of the project are available in Account 01117630 -66220 ($408,607 Approved FY 13 -14). Executive Director Public Works Agency FM:KW APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency Exhibits: 1. Agreement with California Professional Engineering 06/17/14 2. RFCA Agreement with CPE /Powerlux/SCE 06/17/14 3. Agreement with California Professional Engineering 05/19/15 4. Cost /Funding Analysis 25B -5 r FIRST AMENDMENT TO AGREEMENT FOR PROVISION OF ELECTRICAL CONTRACTING SERVICES THIS FIRST AMENDMENT TO AGREEMENT , made and entered into this 16th day of September, 2015, by California Professional Engineering, Inc., a California corporation (hereinafter "Contractor "), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City"). RECITALS A. The Contractor and the City entered into Agreement A- 2015 -090 dated May 19, 2015 (hereinafter "said Agreement") by which Contractor provided Electrical Contracting Services. B. In accordance with the terms and conditions of said agreement the parties wish to amend Section 2 Compensation to include additional contingency funds. WHEREFORE, in consideration of the covenants contained in said Agreement, and subject to all the terms and conditions of said Agreement, except those amended in this First Amendment to Agreement, the parties agree as follows: 1. Section II.A. COMPENSATION, shall be deleted in its entirety and replaced with the following: a. "The City agrees to pay, and Contractor agrees to accept as total payment for its services $478,020. The City has allocated an additional $50,000 contingency amount, to be expended only at the written direction of the Executive Director of Public Works or his designee for additional services required due to unforeseen circumstances. The total sum to be expended under this Agreement shall not exceed $528,020 during the term of this Agreement. Except as hereinabove amended, all terms and conditions of said Agreement shall remain in full force and effect. Exhibit 2 25B -7 Page 1 of 2 r -oo IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: i Sando tat isant City Atto ey RECOMMENDED FOR APPROVAL: Fred Mousavipour Executive Director, Public Works Agency CITY OF SANTA ANA David Cavazos City Manager California Professional Engineering Van Nguyen President Tax ID# 95- 4837794 25B -9 Page 2 of 2 25B -10 Cost Analyses INCREASE CONTINGENCY FOR AGREEMENT WITH CALIFORNIA PROFESSIONAL ENGINEERING FOR LED STREETLIGHT IMPROVEMENTS Cost Analysis Approved 5/19/15 California Professional Engineeering Contract 5/19/15 $ 478,020 Contingency 5/19/15 $ 20,000 Total Project Cost $ 498,020 Cost Analysis RFCA 9/15/15 Total Contract Approved 5/19/15 $ 498,020 Increased Contingency FY 15 -16 $ 30,000 Total New Contract Amount $ 528,020 Exhibit 3 25B -11 25B -12