REPORT TO THE CITY COUNCIL September 11, 2014 FROM: SCOTT L. MOZIER, PE, Director Public Works Department THROUGH: ROBERT N. ANDERSEN, PE, Assistant Director Public Works Department, Capital Management Division BY: MARK M. JOHNSON, Facilities Manager Public Works Department, Facilities Management Division L. NATHAN SANCHEZ, Project Manager Public Works Department, Facilities Management Division SUBJECT ..Title Actions pertaining to the Garage 8 Air Sensor Replacements and Exhaust Fan Controller Upgrade Project (Council District 3) 1. Adopt finding of a Categorical Exemption per staff determination, pursuant to Section 15301(d) of the California Environmental Quality Act (CEQA) Guidelines 2. Award a construction contract to Strategic Mechanical, Inc. of Fresno, California in the amount of $227,469 for the Garage 8 Air Sensors Replacement and Exhaust Fan Controller Upgrade Project ..Body RECOMMENDATION Staff recommends that City Council adopt finding of a Categorical Exemption, per staff determination, pursuant to section 15301(d) of the CEQA Guidelines and award a construction contract to Strategic Mechanical, Inc., of Fresno, California for the Garage 8 Air Sensors Replacement and Exhaust Fan Controller Upgrade Project (Project). EXECUTIVE SUMMARY The Project will replace the existing control system and air sensors that manage the four (4) large exhaust fans at the underground parking Garage 8 which is owned by the City of Fresno. The existing system has air sensors that are inoperable and obsolete thus requiring the exhaust fans to operate twenty-four (24) hours a day, 365 days a year. The replacement of the control system and exhaust sensors, in conjunction with replacing the existing fan motors with variable frequency drive motors, will reduce the ongoing operating cost of the Garage 8. The projected payback period for both phases of work is less than three years. BACKGROUND The existing air sensors in the Garage 8 are non-functional and obsolete. In addition, the existing outdated controls are not capable of communicating with the new sensors or handling future motor replacements. The arrangements for the existing components were designed to simply run in either an ON or OFF position. With the dilapidated air sensors being non-functional, the system is required to be left in an ON state where all four of the large fan motors currently run twenty-four (24) hours day, 365 days a year. As a result the motors have been running more hours than they were originally designed for thus shortening their life cycle and requiring frequent maintenance. This Project will install new air sensors throughout the parking structure, and upgrade the controller to a system that is capable of communicating with these new sensors. This upgraded controller would also be capable of handling future upgrades for new motors including motors that run at a Variable Frequency Drive (VFD) Speed. As part of the second phase to this project the four existing motors will be replaced with VFD motors to increase efficiency and maximize both energy and cost savings. The second phase will commence shortly after this first phase is completed and is estimated to cost an additional $125,000. The controller will work in conjunction with the new sensors to fully automate the VFD motors to not only turn on and off when needed, but the motors will also run at varied speeds to meet the demand, depending on the number of vehicles in the garage. This phase of the Project is eligible for a Pacific Gas & Electric (PG&E) rebate of approximately $54,000. The total cost saving derived from the project has an estimated payback period of three years for both phases. The Guardian Group Job Order Contracting (JOC) was approved by Council on December 17, 2009. This contract provides competitively bid fixed-unit pricing for construction tasks from local contractors which would provide Facilities Management Division with the ability to provide prompt response for building maintenance or construction services to City departments at competitive local market pricing. Staff recommends that City Council approve the agreement with Strategic Mechanical, Inc. which is one of the contractors under the JOC agreement: Staff is recommending approval of this agreement with Strategic Mechanical, Inc. in the amount of $227,469.78 for the construction of the Project and to authorize the Public Works Director or his designee to sign and execute the standardized contract on behalf of the City of Fresno. Funding for this Project is included in the FY15 budget. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this Project and has determined that it falls within the Categorical Exemption set forth in CEQA Guidelines Section 15301(d) (Existing Facilities). This exemption applies because this Project involves the rehabilitation of deteriorated mechanical equipment. Staff determined under the CEQA Guidelines this Project fits within the definition of existing facilities in 15301(d) Class 1, as Categorically Exempt from further CEQA review. Furthermore, Staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this Project. LOCAL PREFERENCE Local preference was not implemented because this item is a piggyback on existing competitively bid contract through a governmental entity. FISCAL IMPACT FY15 Facilities Fund appropriations, budgeted for maintenance operations, will provide funding of $107,200. The remaining $120,269 will come from the FY15 Parking Services General Fund appropriations. Upon completion of the project, the City is expected to receive a PG&E rebate of $54,000. It is also estimated that the City will recoup the total cost of the project in two and one half years, through cost savings.