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HomeMy WebLinkAboutItem ISEA( -ef,. AGENDA STAFF REPORT IFORN�P: DATE: April 24, 2017 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Steve Myrter P.E., Director of Public Works SUBJECT: NOTICE OF COMPLETION FOR THE 2014 ENERGY EFFICIENCY PROJECT SUMMARY OF REQUEST: That the City Council: 1. Adopt Resolution No. 6729 accepting the 2014 Energy Efficiency Project by Climatec Building Technologies Group in the amount of $955,018.62; and 2. Direct the City Clerk to file a "Notice of Completion" with the Orange County Clerk- Recorder within ten (10) days from the date of acceptance, and to release the retention of $46,975.37 35 days following the filing of the Notice of Completion. BACKGROUND AND ANALYSIS: On April 28, 2014, the City Council approved the execution and delivery of the 2014 Energy Efficiency Program (Project) and an Installation Agreement with Climatec Building Technologies Group for $1,551,333. The Project consisted of replacing Heating Ventilating Air Conditioning (HVAC) units, irrigation controls, lighting and purchasing the Edison owned citywide street lights to improve energy efficiency to city facilities. At the February 27, 2017 City Council meeting, the City Council directed the termination of the installation agreement with Climatec, declining purchase of the Edison owned street lights. By not purchasing the street lights, the City saved $596,314.38. The Project is now completed to the satisfaction of the Deputy Director of Public Works /City Engineer. Per the Installation Agreement, the City Council is required to formally accept the Project and file a Notice of Completion with the Orange County Clerk's Office. Agenda Item I ENVIRONMENTAL IMPACT: This Project has complied with the California Environmental Quality Act (CEQA) and was found to be categorically exempt under section 15301 class 1 subsection (c) of the CEQA Guidelines. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: At the April 28, 2014 City Council meeting, the City Council approved an Installation Agreement with Climatec for the 2014 Energy Efficiency Project (Project) in the amount of $1,551,333. At the February 27, 2017 City Council meeting, the City Council amended the Project to reflect a change order in declining purchase of the Edison owned street lights, a savings of $596,314.38, for a new total Project cost of $955,018.62. Below is a summary and breakdown of expenses for the Project: Description Amount Construction $1,551,333.00 Deductive Construction Change Orders - ($596,314.38) Total $955,018.62 The total cost paid to Climatec for the Project is $955,018.62. The Project is now complete and retention is owed to Climatec in the amount of $46,975.37. This $46,975.37 will not be a part of the amended Lease. This $46,975.37 retention payment will require a budget transfer of General Funds. The General Funds will come from two sources, the Debt Service payments for the Lease and Landscape Maintenance. The Lease was amended and realized a savings of $20,800 (001- 052 - 47888) in principal and $18,100 (001- 052 - 47999) from interest which brings a total of $38,900. Since part of the Project replaced irrigation controllers, the landscape maintenance account will be used in the amount of $8,075.37 (001- 049 - 44000) to cover the remaining shortfall. In addition, by paying the retention upfront and not through the Lease, it saves the City approximately $9,400 in interest over 11 years. Page 2 RECOMMENDATION: That the City Council: 1. Adopt Resolution No. 6729 accepting the 2014 Energy Efficiency Project by Climatec Building Technologies Group in the amount of $955,018.62; and 2. Direct the City Clerk to file a "Notice of Completion" with the Orange County Clerk- Recorder within ten (10) days from the date of acceptance, and to release the retention of $46,975.37 35 days following the filing of the Notice of Completion. SUBMITTED NOTED AND APPROVED: Director of Public Works Prepared by: Michael Ho, P.E., Dep. Dir. PW /City Engineer Attachments: A. Resolution No. 6729 B. Notice of Completion Page 3 "Attachment A" RESOLUTION NUMBER 6729 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL ACCEPTING COMPLETION OF THE 2014 ENERGY EFFICIENCY PROJECT AND DIRECTING THE FILING OF A NOTICE OF COMPLETION FOR THE PROJECT THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City accepts the completion of the 2014 Energy Efficiency Project (the "Project') by Climatec Building Technologies Group in the amount of $955,018.62 for the work performed. Section 2. The City Clerk is hereby directed to file a "Notice of Completion" for the Project with the Orange County Clerk- Recorder within ten (10) days of the date of this resolution, and to release the retention of $46,975.37 35 days following the filing of the Notice of Completion. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 24th day of April , 2017 by the following vote: AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: Sandra Massa - Lavitt, Mayor ATTEST: Robin L. Roberts, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Robin L. Roberts, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6729 on file in the office of the City Clerk, passed, approved, and adopted by the Seal Beach City Council at a regular meeting held on the 24th day of April 2017. Robin L. Roberts, City Clerk � 'We RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO CITY OF SEAL BEACH Attn: City Clerk 211 8th Street Seal Beach, CA 90740 Space of above this line for Recorder's use. "' No Recording Fee Pursuant to Government Code Section 6103, 27383 "" NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2. The full name of the owner is: City of Seal Beach. 3. The address of the owner is: 211 8th Street, Seal Beach, CA 90740. 4. The nature of the interest or estate of the owner is: In Fee. The City of Seal Beach. 5. A work of improvement on the property hereinafter is described as substantially completed on February 27, 2017. The work was the 2014 Energy Efficiency Project. 6. The name of the contractor(s), if any, for such improvement was: Climatec Building Technologies Group. The date of the Contract Award was April 28, 2014. 7. The property on which said work of improvement was completed in the City of Seal Beach, County of Orange, State of California, and is described as follows: City of Seal Beach. Date: Deputy Director of Public Works, City of Seal Beach Signature of owner or corporate officer of owner named in paragraph 2 or agent. VERIFICATION I, the undersigned, say: the Director of Public Works declarant of the foregoing notice of completion; have read said notice of completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty perjury the foregoing is true and correct. Executed on , 2017, at Seal Beach, California. (Date ig ature) Direc r of ub c Wdrahrty of Seal Beach