HomeMy WebLinkAboutSR - HA25090 - Palm Village Apts. CarportsContract No. HA25090
PALM DESERT HOUSING AUTHORITY
STAFF REPORT
REQUEST: AUTHORIZE STAFF TO NEGOTIATE WITH TOP -RANKED CONTRACTOR
(SUNWIZE TECHNOLOGIES, INC./GENSELF) FOR THE DESIGN AND
CONSTRUCTION OF CARPORTS WITH PHOTOVOLTAIC SOLAR
ARRAYS LOCATED AT THE HOUSING AUTHORITY PROPERTY KNOWN
AS PALM VILLAGE APARTMENTS
SUBMITTED BY: MISSY WIGHTMAN, PROJECT COORDINATOR
CONTRACTOR: SUNWIZE TECHNOLOGIES, INC.
1155 FLATBUSH RD.
KINGSTON, NY 12401-7011
GENSELF
78-015 WILDCAT DR., STE. 101
PALM DESERT, CA 92211
DATE: JULY 13, 2006
CONTENTS: SUNWIZE TECHNOLOGIES PROPOSAL AND TECHNICAL ANALYSIS
Recommendation:
By Minute Motion, that the Palm Desert Housing Authority:
1) Authorize staff to negotiate an agreement in an amount not -to -exceed
$623,572 with the top -ranked contractor (SunWize Technologies,
Inc./Genself) to secure design and construction requirements;
2) Authorize the Finance Director to set aside the amount of $62,357.20 as10%
contingency (use of contingency requires additional action); and
3) Authorize Chairman to execute all necessary documents to facilitate the
negotiated contract.
Committed funds are available in the 2006-2007 Capital Budget Account No. 870-4349-433-4001.
Executive Summary:
Approval of this request will allow staff to negotiate with the top -ranked design/build contractor
(SunWize Technologies, Inc./Genself) for design and construction of carports with photovoltaic solar
arrays at the Palm Village Apartments. These carports will provide shade to fifty-six spaces for
residents' vehicles, and will offset the electric needs for nine housing units and the common areas
located in three separate buildings within the site with the use of photovoltaic solar arrays. The
simple payback period for these photovoltaic panels is 16 years, based on current electricity rates.
STAFF REPORT
Authorize Negotiations with Top Ranked Contractor
Page 2 Of 3
July 13, 2006
Discussion:
In April 2006, staff received authorization from the Housing Authority to solicit design/build proposals
for the Palm Village Apartments Carports with Photovoltaic Solar Arrays project. Staff conducted a
public bidding period from May 2 through May 24, 2006. The Notice Inviting Proposals was
published in the local newspaper and distributed to contractor plan rooms. Fifteen companies
specializing in solar panel systems and/or carports were given written notification of the design/build
solicitation. Many of the contractors informed staff that they planned to bid this project, but no bids
were actually submitted on the day of bid opening.
In follow up inquiries to the potential bidders, it became apparent that the market is saturated with
work, and potential bidders did not want to devote the time necessary to prepare a design/build
proposal.
After the bid date had passed, staff asked interested contractors to submit any designs that they had
worked on and had not been able to complete. Proposals were received from two firms, and
evaluations were based on design and bid price. Staff would like authorization to negotiate with the
top -ranked contractor (SunWize Technologies, Inc./Genself), whose proposed price was more than
$250,000 below the second proposal, to work with them on proposed design concepts and budget.
The proposed price is $623,572. Although these projects are usually brought to the Authority
individually for design as professional services and a separate award of construction, this project
was put out as a design -build project due to its specialized nature. Under this contract the Authority
is paying for design, materials, sales taxes, and construction. To break this down further, the design
services, materials, and construction costs will roughly total $130,500 for the carport structures. The
solar photovoltaic array design, materials, and construction will cost about $493,072; and these
costs together total the lump sum of $623,572.
This lump sum amount of $623,572 is the initial investment cost for the entire project, but the Palm
Desert Redevelopment Agency will apply for the California Energy Commission's Emerging
Renewables Program Rebate. The rebate, based on current specifications, will amount to
approximately $162,400 in savings, reducing the costs of the entire project to about $461,150. This
sum of $461,150 will pay for the design and engineering of the carports and photovoltaic solar
arrays, materials, sales taxes, and construction of both the carports and photovoltaic solar arrays.
The simple payback for the photovoltaic solar arrays alone will be approximately sixteen years. The
initial cost after rebates, minus the costs attributable to the carports equals $330,648. So the total
amount (after rebates) for the photovoltaic solar arrays will be reaped back by the Housing Authority
in savings from energy costs and reduced tenant subsidies after a time period of nine years. The
Authority will continue to save money and reduce energy demands in our city thereafter. A detailed
technical analysis of energy savings, cost -benefits, and payback periods is attached to this report.
The information is summarized in the table on the following page:
GIRDAIMELISSA WIGHTMANIPALM VILLAGE APARTMENTS\ STAFF REPORT- NEGOTIATED CONTRACT 2ND TIME 2 DOC
STAFF REPORT
Authorize Negotiations with Top Ranked Contractor
Page 3 Of 3
July 13, 2006
Apartments 1, 2, 5 — 9 (2.8 KW)
Building A Common Area (4.3 KW)
Apartments 3, 4 (4.3 KW)
Building B Common Area (4.3 KW)
Building C Common Area (4.3 KW)
Photovoltaic Panel Cost
Carport Structures Cost
Total Project Cost
Total Cost After Expected Rebates
Units
7
1
2
1
1
Est. Rebate
69,411
15,110
19,832
15,110
45,330
$ 493,072
$ 130,500
$ 623,572
$ 461,172
Payback Period
16 years
16 years
16 years
16 years
16 years
The Palm Village Apartments are currently under construction. Staff would like to proceed with this
project in a timely manner in order to have the carports completed along with the construction of the
apartments. If this project were to be put out to bid again, there is no reason to believe that more, or
more competitive, proposals would be received. Therefore, staff requests that they be authorized to
negotiate a final design -build agreement with Sunwize/Genself, and that the Chairman be authorized
to execute the agreement.
Staff recommends negotiating with the top -ranked contractor (SunWize Technologies, Inc./Genself)
for the design/build needs as required to complete this project. The second -ranked firm submitted a
cost almost 50% higher than SunWize's. The Director of the Office of Energy Management has
reviewed the SunWize / Genself proposal and concurs with the staff recommendation.
Submitted by:
AteGt.,),6<7
Missy W. tman
Project Coordinator
Department Head:
avid Yri
Director Redevelopment/Housing
Approval:
Carlos L. Orte•,= , Executive Director
Lauri Aylaian
Redevelopment Manager
Approval:
)1‘,/4
n McCarthy
Redevelop
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