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Home My WebLink AboutR23390 - CA#3 - Falcon Crest & La Rocca VillasPALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVE AMENDMENT NO. 3 IN THE AMOUNT OF $1,425,347 TO THE AGREEMENT (CONTRACT R23390) BETWEEN THE PALM DESERT REDEVELOPMENT AGENCY AND COMDYN PD, LLC, FOR THE IMPLEMENTATION FOR A PHOTOVOLTAIC PROGRAM FOR THE FALCON CREST AND THE LA ROCCA VILLAS DEVELOPMENTS SUBMITTED BY: CATHERINE WALKER, SENIOR MANAGEMENT ANALYST PAT CONLON, DIRECTOR OF ENERGY CONSERVATION CONTRACTOR: COMDYN PD, LLC 2800 28TH STREET, SUITE 206 SANTA MONICA, CA 90405 DATE: JULY 13, 2006 CONTENTS: CONTRACT AMENDMENT NO. 3 Recommendation: By Minute Motion, that the Agency Board: Approve Amendment No. 3 in the amount of $1,425,347 to ComDyn PD, LLC. for a change in the project scope to include the implementation of a photovoltaic (PV) system at the Falcon Crest and La Rocca Villa developments; and 2. Approve appropriation of $1,425,347 from the unobligated 20% Set -aside monies to Account No. 870-4698-466-4001. Executive Summarv: Approval of the staff recommendation will allow for a change in the scope of work at the Falcon Crest and La Rocca Villa developments to allow for solar panels on all 27 of the senior villas, two carports, and 74 of the single family homes. The installation of this photovoltaic system will offset approximately 57% of the average home's energy consumption in Southern California Edison's territory. The average annual cost savings per household is approximately $650. The Housing Authority will be able to recapture a portion of the photovoltaic costs through a decrease in the necessary allowance allocated to the senior villa residents. The Agency will also be able to reduce the amount of the subsidy necessary for the purchase of the single-family homes. Staff Report Approve Amendment No. 3 to ComDyn PD, LLC, for Photovoltaic System July 13, 2006 Page 2 of 4 The simple payback for these photovoltaic panels ranges from 13 years to 15 years based on current electrical rates. Rate increases scheduled for later this year will reduce payback periods further. Discussion : On July 14, 2005 the Agency Board entered into an Agreement between the Palm Desert Redevelopment Agency and Comdyn PD, LLC, for Fee Developer Services for Agency Owned Property Located in the City of Palm Desert (Contract No. R23390). Comdyn PD, LLC was awarded the contract to develop affordable housing on a 20-acre site located adjacent to Hovley Gardens at Merle Drive/42nd Avenue, the developments currently known as Falcon Crest and La Rocca Villas. In keeping with the City's energy efficiency programming, the Agency requested that Comdyn PD, LLC, look into the use of a photovoltaic system, as well as other energy efficiency programs to help offset energy consumption costs for future residents of both Falcon Crest and the La Rocca Villas. ComDyn PD, LLC, researched and received proposals from three firms and has selected Power Light. This contract amendment allows for solar panels on all 27 of the senior villas, on two carports that will provide power for the community room and the common area at the senior villas, and on 74 of the single-family homes. None of the other single- family homes will accommodate photovoltaic systems due to their solar orientation and/or rooflines. Power Light estimates that a new home in the Falcon Crest community with a south facing 2.5kW solar system is expected to produce 3,609 kW per year, which is equal to 57% of the average historical home energy consumption in Southern California Edison's territory. Since the Falcon Crest/La Rocca Villas community is comprised of multifamily and relatively small single- family homes, the solar electricity production may exceed the 57% figure listed above depending on the size and orientation of each photovoltaic system, the size of the family, home, as well as several other factors. The $1,425,347 also includes the cost of a monitoring system run by Power Light that will be able to detect problems with the system as soon as they arise. Residents will have access to this program for the life of the product and Power Light will actively monitor the system during the 5-year warranty. Cost of work (Power Light's base bid) $1,296,892 Optional Monitoring 53,560 Contractor's Fee (4.5% of lowest bid) 49,895 ComDyn PD, LLC, PV Developer Fee 25,000 Total construction change order $1,425,347 G:1RDA1Beth Longman\Staff Reports\Walker\ComDyn Amend No 3 071306.doc Staff Report Approve Amendment No. 3 to ComDyn PD, LLC, for Photovoltaic System July 13, 2006 Page 3 of 4 The relative costs for the senior project and the single-family housing are broken out as follows: Units Unit Cost Total Cost Villas (1.5KW) 27 $ 10,339 $ 279,153 Community Center (5KW) 1 $ 29,178 $ 29,178 Common Area (3.8KW) 1 $ 24,120 $ 24,120 Senior Villas Total $ 332,451 SFR (2.5KW) 46 $ 14,229 $ 654,534 SFR (1.9KW) 15 $ 11,700 $ 175,500 SFR (1.5KW) 13 $ 10,339 $ 134,407 Falcon Crest Total $ 964,441 Monitoring Options 103 $ 520 $ 53,560 Payback Period 15 years 13 years 14 years 14 years 15 years Comdyn PD, LLC, has determined that PowerLight offers the strongest track record and history, and long-term success for the following reasons: PowerLight is an established, privately held company that has been in operation for more than 15 years. PowerLight has won many awards for its work, including the Environmental Protection Agency Green Power Leadership Award for its work for the City of Fresno, City of Vallejo and County of Alameda. PowerLight has installed its Building Integrated Photovoltaic (BIPV) product for prominent homebuilders such as Shea Homes and Centex Homes with positive results and references. Most references have multiple projects completed as well as planned future projects. Power Light has developed more sophisticated design detailing and an installation protocol clearly defining the integration of their BIPV product with S-tile profile roofs, and tightly controls its installations with a turnkey operation. Power Light offers online monitoring of each individual system the company installs, a feature that differentiates and distinguishes Power Light from its competition. This allows for quick warranty response time. G:\RDA\Beth Longman\Staff Reports\Walker\ComDyn Amend No 3 071306.doc Staff Report Approve Amendment No. 3 to ComDyn PD, LLC, for Photovoltaic System July 13, 2006 Page 4 of 4 Power Light's past and current clients include Shea Homes, William Lyon Homes, Centex Homes, Standard Pacific Homes, Toyota, Johnson & Johnson, FedEx, USPS, University of California, and may other builder, public and private clients. Following approval to proceed with bidding by the Redevelopment Agency, Comdyn PD, LLC, issued an RFP to three bidders, received bids and statements of qualifications, researched all references, conducted interviews with bidders where we reviewed shop drawings, installation manuals and installation procedures. Two bidders were not selected because ComDyn PD, LLC, research uncovered the fact that, in comparison to Power Light, these bidders: Are newly formed and without a track record in residential BIPV solar and have limited experience supplying/installing this particular BIPV product, which concerned Comdyn PD, LLC, due to the importance of demonstrated success and experience with this product. Have not finalized detailing for the physical integration of BIPV tiles with an S-Tile roof (S-tile profiles present specific challenges which require careful attention to flashing), which concerned Comdyn PD, LLC, due to the concern for water intrusion. r Do not yet have a fully developed warranty service program, which concerned Comdyn PD, LLC, due to the need for strong warranty service to Falcon Crest homeowners and the Redevelopment Agency (for the Senior Villas). Agency Staff recommends the approval of Amendment No. 3 in the amount of $1,425,347 for the purpose of implementing a photovoltaic program at the Falcon Crest and La Rocca Villa developments. Submitted by: 1 ./Z;(J" A� Catherine Walker Senior Management Analyst Pat Conlon Director of Energy Conservation roval: i MCCarthy, R development Department Head: Dave Yrigoy�( 2� Director ent/Housing Paul S. Ci on, of Finance ll o ro q CarloO a, Exec. Direct - ' Longman\Staff Reports\Walker\ComDyn Amend No 3 071306.doc z 0 0) 0 0 a� CU W p 0 w a E c F cn i > 0 PALM DESERT REDEVELOPN[ENT AGENCY CONTRACT AMENDMENT Contract Purpose: Develop affordable housing on 20 AC site Contractor's Name: ComDyn PD, LLC Contract # / P.O. # R24000 I Change Order No. 3 Contingency: YES NO Account No. 870-4698-466-4001 Project No. You are hereby requested to comply with the following changes from the contract plans and specifications: DESCRIPTION OF CHANGES DECREASE INCREASE (Supplemental Plans and Specifications Attached) In Contract Price In Contract Price Implementation of photovoltaic system at Falcon Crest & La Rocca Villas $1,425,347.00 TOTALS: NET CHANGE IN CONTRACT PRICE: JUSTIFICATION: TOTAL BUDGET FOR PROJECT: + 26,184,129.00 Less: Expend. & Encumb. To Date: - 26,184,129.00 Less: This Change Order Amount: - 1,425,347.00 BALANCE OF BUDGET REMAINING FOR PROJECT: -1,425,347.00 CONTINGENCY: Amount Approved by Council: + Less: Prior Change Order(s): - Less: This Change Order: - Balance Remaining of Contingency: $1,425,347.00 The amount of the Contract will be (Decreased) Increased by the Sum of: One Million Four Hundred Twenty-five Thousand Three Hundred Fortv-seven and no/100 Dollars ($1,425,347.00 ). This document will become a supplement to the Contract and all provisions will apply hereto, all items included above must have required signatures as per the purchase resolution. 1. REQUESTED BY: 2. ACCEPTED BY: EXECUTIVE DIRECTOR CONTRACTOR 3. CERTIFIED FUNDS AVAILABLE: 4. APPROVED BY: FINANCE DIRECTOR JIM FERGUSON, CHAIRMAN 7/13106 NOTE: No payments will be made prior to Exec. Dir. and Agency Board approval SECRETARY 7/13/06