1 TO: City Council
FROM: Andrew Vialpando, City Manager
PREPARED BY: Lina Hernandez, Deputy City Manager / Public Works Director MEETING DATE: October 1, 2024
SUBJECT: Set a Public Hearing to Consider Authorizing a Design-Build and Energy Saving Services Contract with Schneider Electric Buildings Americas, Inc. for the Lomita City Hall HVAC Upgrade Project
RECOMMENDATION
Set a Public Hearing on October 15, 2024, to consider authorizing design-build and energy saving services contract with Schneider Electric Buildings Americas, Inc pursuant to California Government Code 4217.10-4217.18 for the Lomita City Hall HVAC Upgrade Project.
BACKGROUND
Lomita City Hall is a two-story building constructed in 1975 with a Heating, Ventilation and Air Conditioning (HVAC) system that has not been upgraded since that time. The existing HVAC system is a double deck system, consisting of a hot deck and a cold deck.
This system uses a gas furnace as the source of energy to cover air conditioning needs for approximately 22,000 square feet of office space. The current HVAC system has reached the end of its useful life and is slated to be upgraded.
The City received federal funding from the American Rescue Plan Act (ARPA) that may be applied towards this project if the contract is awarded by the end of this calendar year.
To expedite the delivery of the project pursuant to federal and state public contracting laws, a Design-Build delivery method was undertaken whereby the selected firm performs both design and construction work.
On June 4, 2024, the City Council adopted Resolution 2024-15 (attached) authorizing the City Manager to sign an Investment Grade Audit Agreement/Letter of Intent to award a design-build contract to Schneider Electric Buildings Americas, Inc. pursuant to California Government Code Sections 4217.10-4217.18 for the Lomita City Hall HVAC Upgrade
CITY OF LOMITA
CITY COUNCIL REPORT
Item No.
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2 Project. These codes were enacted in 1984 as a result of an energy crisis to assist public agencies in expediting and financing energy conservation measures. This Code eliminates the necessity to separately contract for the design and construction phases of a project. It also provides public agencies an exemption from statutory competitive bidding requirements for public works energy service contracts related to renewable energy and energy conservation. Under the provisions of the law, the agency must:
• Provide a two-week public notice before authorizing the procurement. • Find that the funds for the repayment of the financing or the cost of design, construction, and operation of the facility, or both, as required by contract, are projected to be available from revenues derived from the annual savings of the projects implemented.
City staff and Schneider Electric have been working closely on developing a new design that creates lasting value for a City facility, leads to long-term energy savings and efficiency, in addition to minimizing the City’s carbon footprint in the region. The design for the new HVAC has since been completed.
DISCUSSION
Prior to approving the final design plans, the City must hold a public hearing pursuant to California Government Code 4217.10-4217.18. Staff recommends holding the public hearing during the City Council’s regularly scheduled public meeting on October 15, 2024 at the 6:00 p.m. At that time, a Resolution with the Design Build Construction Contract and construction estimate will be brought before the City Council for consideration. Once again, the ARPA funding is contingent upon the City Council awarding this project by the end of this calendar year. If approved by the City Council, the construction phase is anticipated to commence in early 2025.
A Public Notice (attached to this report) will be posted by the City Clerk informing members of the public who may be seeking information about this project to contact the Department of Public Works prior to October 15, 2024.
FISCAL IMPACT
There is no fiscal impact associated with setting the Public Hearing. A comprehensive report will be presented to the City Council at its meeting on October 15 as part of the Public Hearing discussing the fiscal impact of the project.
OPTIONS
1. Approve staff’s recommendation.
2. Provide alternative direction.
3 ATTACHMENTS
1. Resolution 2024-15 with the Investment Grade Audit Agreement/Letter of Intent
2. Notice of Public Hearing for the proposed Design-Build HVAC System Upgrade Project
Reviewed by: Approved by:
_______________________ ______________________
Gary Y. Sugano Andrew Vialpando
Assistant City Manager City Manager
Prepared by:
__________________________
Lina Hernandez
Deputy City Manager / Public Works Director