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Home My WebLink About08/03/1993, C-17 - LIGHTING RENOVATION PROJECT, VARIOUS CITY FACILITIES, SPECIFICATION NUMBER 93-23 MEETING DATE: ��► ��II�IIIIIpq�Ill city of San LUIS OBISpo August 3 1993 j COUNCIL AGENDA REPORT ITEM NUMBER: A_17 FROM: Mike McCluskey, Public Works Directo Prepared by: Bridget O. Fraser, Engineering Assistant SUBJECT: Lighting Renovation Project, Various City Facilities, Specification Number 93-23 CAO RECOMMENDATION: By motion, Approve the Plans and Specifications for "Lighting Renovation Project, Various City Facilities, Specification No. 93- 23" (Bid A) and the Invitation to Bid for "Materials Solicitation for Lighting Renovation Project, 93-23" (Bid B) ; authorize soliciting of bids and authorize the CAO to award contracts) to the lowest responsible bidder(s) , if bids fall below the Engineer's Estimate. DISCUSSION: This project is one of the last remaining comprehensive projects for energy cost savings based on current available technology. It represents a continuation of City efforts to provide safe energy-efficient buildings. The project includes replacing existing lamps and older inefficient, and in some cases, toxic ballasts with T8 lamps and electronic ballasts. The result will be improved lighting and energy savings. This project integrates with the lighting maintenance program that is already in place, which specifies that equipment shall be cleaned and replaced on a regular basis. to reduce energy consumption. Project life is 15 years, with regularly scheduled lamp replacement every 5 years. Two Bid packages have been prepared for this project. Bid package "A" solicits bids from Contractors for providing all labor and materials and provides an alternate bid for providing labor and materials with the exception of the lamps and ballasts. These would be procured by the City via Bid Package "B" or through the State Buy List. Bid Package "B" solicits bids for the lamps and ballasts directly from suppliers. Three possible contract combinations exist, depending on the outcome of the bids: 1. City awards contract to a contractor to supply labor and all materials for the project. 2. City awards contract to a contractor for the alternate bid (labor and materials except lamps and ballasts) , and City furnishes lamps and ballasts by purchasing through the State Buy List. 3. City awards contract to a contractor for the alternate bid and awards contract to a supplier for lamps and ballasts. ,i�i�►nii►�►IIIIIiIIi� 9I��11 city of San L.is OBISp0 COUNCIL AGENDA REPORT Specification No. 93-23 Meeting of August 3, 1993 Page Two. FISCAL IMPACTS: j The 93-95 Financial Plan (E-9, E-101 E-11 and E-22) designates $60, 000 for this project, with $21, 000 to be funded by donations and the balance of $39,000 to come from the Capital Outlay Fund. The Draft Capital Improvement Plan (page 119) provides a detailed explanation of recommended funding sources. The $21, 000 donation was to come from reimbursements through a PSP contract with PG&E. If the PSP contract with PG&E fell through, the City could still take a one-time PG&E rebate, at that time, estimated to be $12, 000 with the remainder of the project costs coming from the Capital Outlay fund. Staff was unsuccessful in obtaining the PSP contract with PG&E. In lieu of this funding opportunity, the City will take advantage of the PG&E rebate now estimated to be $15, 000. The Engineer's Estimate is $60, 000 including contingencies. The budgeted amount was $60, 000. As it is prudent to allow for unforeseen developments during construction, .staff recommends 10% of the budget be set aside for contingencies. Total estimated project costs are as follows: Engineer's Estimate: $54,000 10% Contingencies: 6, 000 Total Project Cost: $60, 000 Available funding sources are as follows: Donations (PG&E Rebate) : $15, 000 General Fund: 39 , 000 Total Available Funds: $54 , 000 As shown above, additional funding of $6, 000 is required for this project. Staff recommends $6, 000 be appropriated from the General Fund , Unappropriated Fund Balance to this project and if not used, in total or in part, be returned to that fund. This alternative funding was envisioned in the draft CIP(Page 119) . i Based on the Estimated costs of $60, 000, an estimated annual energy savings of $5, 108, reduced maintenance costs of $5, 000 and a one-time PG&E rebate of $15, 000, the return on investment is 31.59%, with a simple payback of 3 .92 years. Savings over the 15-year project life are estimated to be more than $70, 000. This includes energy savings and maintenance costs (refer to Attachment A) . ALTERNATIVES; The alternative is to do nothing and lose the opportunity for investment . of City funds that will provide long-term benefits and cost savings of more than $70,000 over the life of the project. c-� -a j�� city Of San . is OBispo ONNERN WA COUNCIL AGENDA REPORT Specification No. 93-23 Meeting of August 3 , 1993 Page Three. I Another alternative the council could consider would be to receive bids and award only that portion of the project that can be covered in the current project budget ($54 , 000) . This would still result in significant savings to the city and would be better than no project at all. g;dp\sM*pA9323adv Attachment A: Lighting Project Financial Analysis i 'i I I I I i I. I i I I i I C-1 -3 ATTACHMENT "A" IGHTING PROJECT FINANCIAL ANALYSIS 06-08-93 Project ID : CIP Project Name = Lighting Scenario : BASE CASE Payback Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 .92 years ( 4 years 0 months Internal Rate of Return ( IRR ) . . . . . . . . . . . . . . . . . 31 .59 percent Net Present Value ( NPV ) @ 10 .50% Discount Rate . . . . . . . . . . . . . . . . . . . . . . . $29224 . Cost of Conserved Energy ( CCE ) @ 10 .50% Discount Rate . . . . . . . . . . . . . . . . . . . . . . . $0 .03 per kwh of Electricity LIGHTING PROJECT CASH FLOW 06-08-93 Project ID : CIP Project Name : Lighting Scenario : BASE CASE Year 1 Year 2 Year 3 Year 4 START-UP 1993 1994 1995 1996 INVESTMENT OUTLAYS Materials & Labor 45000 ENERGY USE ( ENERGY UNITS ) kwh-Electricity -60000 -60000 -6000 -60000 ENERGY USE ( DOLLARS ) Electricity -5108 -5112 -5116 -5120 ELECTRIC DEMAND CHARGES GENERAL SERVICE -1263 -1::14 -i366 -1421 OTHER COSTS ( BENEFITS ) MAINTENANCE -5000 -5010 -5020 -50J0 INCOME BEFORE TAXES 11371 11436 11502 1157 INCOME TAXES ( 0% ) 0 0 0 0 INCOME AFTER TAXES 11371 11436 11502 11571 CASH FLOW BEFORE TAXES 0 -33629 11436 11502 11571 CASH FLOW AFTER TAXES 0 -33629 11436 11502 11571 CUMULATIVE CASH FLOW AFTER TAXES 0 -33629 -22193 -10691 880 C-I�5 ' IGHTING PROJECT CASH FLOW 06-08-93 Project ID : CIP Project Name : Lighting Scenario : BASE CASE Year 5 Year 6 Year 7 .'ear S Year 9 1997 1998 i-)99 2000 2001 INVESTMENT OUTLAYS Materials & Labor ENERGY USE ( ENERGY UNITS ) kwh-Electricity -60000 -60000 -60000 -60000 -60000 ENERGY USE ( DOLLARS ) Electricity -5124 -5128 -5133 -5137 -5142 ELECTRIC DEMAND CHARGES GENERAL SERVICE -1478 -1537 -1598 -1662 -1729 OTHER COSTS ( BENEFITS ) MAINTENANCE -5040 -5050 -5060 -5070 -5081 JCOME BEFORE TAXES 11642 11715 11792 11870 11952 _NCOME TAXES ( 0% ) 0 0 0 0 0 INCOME AFTER TAXES 11642 11715 11792 11870 11952 CASH FLOW BEFORE TAXES 11642 1.1715 11792 11870 11952 CASH FLOW AFTER TAXES 11642 11715 11792 11870 11952 CUMULATIVE CASH FLOW AFTER TAXES 12522 24238 36029 47899 :,9051 LIGHTING PROJECT CASH FLOW 06-08-93 Project ID : CIP Project Name : Lighting Scenario BASE CASE Year 10 2002 INVESTMENT OUTLAYS Materials & Labor ENERGY USE ( ENERGY UNITS ) kwh-Electricity -60000 ENERGY USE ( DOLLARS ) Electricity -5148 ELECTRIC DEMAND CHARGES GENERAL SERVICE -1798 OTHER COSTS ( BENEFITS ) MAINTENANCE -5091 PNCOME BEFORE TAXES 12036 INCOME TAXES ( 0% ) 0 INCOME AFTER TAXES 12036 CASH FLOW BEFORE TAXES 12036 CASH FLOW AFTER TAXES 12036 CUMULATIVE CASH FLOW AFTER TAXES 71888 MEETING AGENDA DATE _ # C July 21, 1993 MEMORANDUM TO: Council Colleagues FROM: Council Members Bill Roalman and Dave Romero Council Liaison Subcommittee to the ` Airport Area Annexation SUBJECT: COUNCIL LIAISON REPORT: AIRPORT AREA ANNEXATION DISCUSSIONS Background On June 9, 1993, the City Council agreed to enter into discussions with property owners in the airport area in order to develop a specific program for annexation and incremental development of that area. On July 6th, the City Council formally appointed its Subcommittee to the Airport Area Annexation discussions. Other members of the City team include the City Attorney, the Assistant City Administrative Officer, the Public Works Director, and the advance planning manager. In addition, to ensure adequate internal communication and planning, meetings are being held between negotiation sessions to include the City Administrative Officer, Community Development Director, Utilities Director, and Finance Director. The Council Subcommittee feels that it is also very important that the full City Council be kept abreast of our discussions as they proceed, and therefore, status reports shall be placed on the regular City Council agenda on an approximate monthly basis. This is the first such status report. Status The first meeting with representatives of the airport area property owners was held on Monday, July 19th. The primary purpose of the meeting was for the various participants to get acquainted and to develop a schedule and process for the discussions. With regard to the schedule, it was agreed that sessions will be held every other Monday from 10:00 - 12:00 noon. The goal will be to have a draft agreement prepared sometime during the month of October. Overall, the first meeting was positive and congenial. The next meeting will be held on August 2nd. Key items to be discussed include options relative to the form of an eventual agreement; property owners perspective on appropriate timing and phasing; City involvement in the County's specific planning process; public education/information; and examples of complex annexations in other cities. The Council Subcommittee will be available to answer questions and provide further status information during the Council Liaison section of the August 3rd City Council meeting. KH:ss g:airport.anx