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HomeMy WebLinkAbout07 - Streetlight LED Retrofit NOCCITY OF O� B NEWPORT a.. °LIF R City Council Staff Report March 28, 2017 Agenda Item No. 7 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Peter Tauscher, Senior Civil Engineer ptauscher@newportbeachca.gov PHONE: 949-644-3316 TITLE: Streetlight LED Retrofit — Notice of Completion of Contract No. 6427 (Project No. 16V11) ABSTRACT: On May 10, 2016, City Council awarded Contract No. 6427 for the Streetlight LED Retrofit project to Express Energy Services, Inc. (Express Energy). The total contract award was $1,061,780.00 plus $106,219.00 allowance for contingencies. The required work is complete and staff requests City Council acceptance and close out of the contract. RECOMMENDATION: a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. On May 10, 2016, City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to Class 2 Section 15302(c) (Reconstruction of existing facility involving negligible or no expansion of capacity) because it has no potential to have a significant effect on the environment; b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) Release Faithful Performance Bond one (1) year after acceptance by the City Council. FUNDING REQUIREMENTS: Funds for the construction contract were expensed from the following account: Account Description Account Number Amount General Fund 01201928-980000-16V11 $ 1,067,765.82 Total: $ 1,067,765.82 7-1 Streetlight LED Retrofit — Notice of Completion of Contract No. 6427 (Project No. 16V11) March 28, 2017 Page 2 DISCUSSION: The City owns and maintains over 6,000 streetlights and intersection lights. To date, after a series of multi-year projects including this project, the city has now converted a total of 3,587 streetlights to LED fixtures. This latest conversion project, which converted 3,061 light fixtures to LED, has the potential to save the City over $100,000.00 annually in energy costs. Additionally, the City will realize reduced maintenance costs over the next 15 -year lifespan of these LED fixtures, which is estimated at $55,000.00 per year. The estimated payback period is less than four years. Through the efforts of the Public Works and Municipal Operations staff, the City secured grants and financing for this project. With the completion of this project, Southern California Edison (SCE) will provide energy efficiency incentives as reimbursement back to the City's general fund through the Energy Leader Partnership Program. The incentive amount will offset approximately 50 percent of the total project cost. The remaining project costs will be refunded to the City through Southern California Edison's On -Bill Financing (OBF) program. This program allows public agencies to finance qualifying energy-efficient projects with zero interest and loan repayment as part of their utility bills. Overall Contract Cost/Time Summary Awarded Final Cost at Contingency Actual %Due to % Due to Contract Completion Allowance Contract Directed Unforeseen Amount Change Change Change $1,061,780.32 $1,067,765.82 10% or less +0.56% -3.5% +4.0% Allowed Contract Time + Approved 75 Actual Time -2 Extensions days) = Under (-) or Over (+) Contract No. 6427, Streetlight LED Retrofit project has now been completed to the satisfaction of the Public Works Department. A summary of this contract's construction cost is as follows: Original bid amount: $1,061,780.32 Actual Cost of Bid Items Constructed: $1,025,075.82 Total Change Orders: $ 42,690.00 Final contract cost: $1,067,765.82 The actual cost of bid items constructed was $1,025,075.82, which was less than the original bid amount primarily due to decreasing the quantity of LED luminaires needed to complete the project. There was one change order totaling $42,690.00, which amounted to four percent of the original contract amount and within the contingency allowance. That change order included providing 43 additional new LED luminaries which will be stored in the City's 7-2 Streetlight LED Retrofit — Notice of Completion of Contract No. 6427 (Project No. 16V11) March 28, 2017 Page 3 Utilities Yard; replacing 25 fuses; providing 300 photocells and installing numerous house side shields per the direction of staff. A summary of the project schedule is as follows: Estimated Completion Date per Baseline Schedule December 30, 2016 Project Awarded for Construction May 10, 2016 Contract Completion Date with Approved Extensions December 8, 2016 Actual Substantial Construction Completion Date December 6, 2016 The project was substantially complete as of December 6, 2016. With this closeout of the construction contract, staff will now finalize repayment from the Southern California (SCE) energy efficiency incentives including funding grants and the on -bill financing program. ENVIRONMENTAL REVIEW: On May 10, 2016, City Council found this action exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c) (Replacing or reconstructing of existing utility system and/or facility involving negligible or no expansion of capacity). NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: None 7-3