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Home My WebLink AboutC23290C Rescind & Re-Advertise the North Carport Photovoltaic SystemINTEROFFICE MEMORANDUM Community Services Division City of Palm Desert REQUEST: Request to Rescind Contract with Revco Solar Engineering for the North Carport Photovoltaic System, Authorization to Readvertise and Call for Bids for the Subject Project, Authorize Staff to Submit Application(s) for Incentive Programs, and Approve Request for Time Extension. SUBMITTED BY: Frankie Riddle, Senior Management Analyst DATE: September 8, 2005 CONTENTS: 1. Staff Report I. RECOMMENDATION: By Minute Motion: (1) Rescind Revco Solar Engineering Contract (No. C-23290C); (2) authorize staff to readvertise and call for bids for the subject project; (3) authorize staff to submit application(s) for incentive programs; and (4) authorize staff to request a six month time extension from the California Energy Commission. II. DISCUSSION: At its meeting of June 23, 2005, the City Council awarded Contract No. C-23290C to Revco Solar Engineering Company in the amount of $334,545. Subsequent to this award, several issues developed which were significant enough that staff delayed execution of the contract until clarification and/or resolution was reached. GenSelf, the second lowest bidder, filed a protest claiming that the City's specifications contained a "fatal engineering flaw". This required a response from the City's contract engineer, Doby Engineering Company, in which they addressed GenSelf's protest point by point and reaffirmed the accuracy of their design specifications and plan. 2. The representative from Revco Solar Engineering Company left its employ without informing his employer of the bid and contract award. The owner of Revco contacted the City with a desire to work with the City in the implementation of this contract. However, Revco failed to meet a final deadline established by the City Attorney by which negotiated contract documents were to be submitted. City Council Staff Report Contract No. C23290C September 8, 2005 3. Staff has been made aware of the potential for rebate incentives for this project and is actively pursuing application for these monies. The new bidding process will allow time for completion of this activity. In reviewing all of these issues with the City Attorney, he is recommending that we rescind the contract and, in essence, start over. Staff anticipates that the new bids will come in at a higher level due to the cost increase and availability of the products. The City Council will remember that a loan from the California Energy Commission was approved in the amount of $197,135. This loan will expire on December 31, 2005. However, staff has already spoken with a representative of the Commission who has responded that the City can receive a six-month extension of the loan. Staff is also processing this paperwork and seeks City Council approval of this extension. Staff requests that the City Council approve above recommendation as stated. Submitted B Approval: p Fran ' iddRb Carl s L. Ortega Senior Management Analyst CityMpnager Paul S. Gibson Director of Finance Director of Community Services MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 23, 2005 D. REQUEST FOR APPROVAL OF AGREEMENTS WITH THE COUNTY OF RIVERSIDE, RIVERSIDE COUNTY LIBRARY SYSTEM/LSSI, FOR LIBRARY SERVICES THROUGH JUNE 30, 2007. Councilman Spiegel stated it was his understanding that College of the Desert would be providing additional hours for its side of the Library. Ms. Klassen responded that the College side of the Library would be open during the summer from 8 a.m. to 6 p.m., Monday through Thursday, although it was not able to provide this service during the summer in years past. Councilman Spiegel moved to, by Minute Motion: 1) Approve Contract No. C14167 - Additional Staff for the Event and Volunteer Coordinator positions and a part-time Computer Instructor/Lab Technician; 2) approve Contract No. C18024 - Additional Hours/Bookmobile for the there additional hours of operation of the Palm Desert Wing of the Multi -Agency Library each Thursday and operation of Bookmobile Service for Palm Desert; 3) authorize the Mayor to execute said contracts; 4) authorize issuance of a City Purchase Order, favoring Library Systems & Services, Inc. (LSSI), Germantown, Maryland, in the amount of $55,000 for materials in FY 2005/06 — all funding for the above has been set aside in the FY 2005/06 Budget in Account No. 452-4662-454-4001; services in FY 2006/07 will be considered through the established process and subject to approval at the appropriate time. Motion was seconded by Benson and carried by a 5-0 vote. E. REQUEST FOR AWARD OF CONTRACT FOR THE NORTH CARPORT PHOTOVOLTAIC SYSTEM (CONTRACT NO. C23290C). Councilman Spiegel asked how much money had been saved by having the existing photovoltaic cells over the main parking structure. Mr. Kohn responded that the City had saved approximately $7,000. He said the existing system was very small (4.6 kW), and the proposed north carport system was considerably larger (56kW),which should save approximately $20,000 per year. He added that the City had a loan from the California Energy Commission for $197,000, and approximately half of that money would come back to the City through incentives from the Solar Incentive Program. Upon question by Mayor Pro Tern Ferguson, Mr. Kohn responded that this program was approved by the California Energy Commission. The program has to amortize itself within a ten-year period; because the solar panels will last for approximately 25 years, he said the City would be on the plus side for approximately 15 years. 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 23, 2005 Councilman Kelly asked if staff could do a chart of the power bills for the City Hall complex over the past ten years. Mr. Kohn responded that the City subscribed to the "Bill Manager" system, and he was able to go back three years and print a history report that shows electric usage in 15-minute increments. He added that this would be done on a regular basis to monitor the lighting retrofit that had just been done. Councilman Spiegel moved to, by Minute Motion: 1) Award the subject contract to REVCO Solar Engineering, Palm Desert, California, in the amount of $334,545, authorize a 10% contingency in the amount of $3,344.54, and appropriate funds from Fund 400 for this purpose; 2) authorize the Mayor to execute said contract documents. Motion was seconded by Kelly and carried by a 5-0 vote. F. REQUEST FOR AWARD OF CONTRACT FOR THE 2005 CITYWIDE RESURFACING PROGRAM (CONTRACT NO. C23820, PROJECT NO. 752-05). Mayor Pro Tern Ferguson moved to, by Minute Motion, award the subject contract to Yeager Skanska„ Inc., Riverside, California, in the amount of $942,615, authorize the Mayor to execute same, and authorize a 10% contingency for the project — funds are available in Account No. 110-4311-433-3320. Motion was seconded by Spiegel and carried by a 5-0 vote. G. REQUEST FOR APPROVAL OF ESTIMATES AND AWARD OF BID TO RENOVATE THE KITCHEN AT PALM DESERT FIRE STATION NO. 33 (CONTRACT NO. C23860A-C). Mr. Ortega reviewed the staff report and recommendations. Councilman Spiegel moved to, by Minute Motion: 1) Approve award of bid to Pacific Sales, Rancho Mirage, California, in the amount of $14,755.29 for new kitchen appliances for Fire Station No. 33; 2) approve award of bid to Mastercraft Kitchens, Palm Springs, California, in the amount of $25,976 for new kitchen cabinetry for Fire Station No. 33; 3) approve award of bid to Gurzi Construction, La Quinta/Palm Desert, California, in the amount of $17,251 for general construction services for Fire Station No. 33; 4) appropriate $57,982.29 from Account No. 231-4220-422-4001 for this project. Motion was seconded by Ferguson and carried by a 5-0 vote. 14