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HomeMy WebLinkAboutCity of Tamarac Resolution R-2014-076Temp. Reso. #12517 June 20, 2014 Page 1 of 5 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-2014- 7& A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO ACCEPT AND EXECUTE CHANGE ORDER NO. 1 TO THE CONTRACT BETWEEN THE CITY OF TAMARAC AND CARDINAL CONTRACTORS, INC., FOR AN AMOUNT OF $107,994 FOR PURCHASE OF A CATERPILLAR TIER 4 COMPLIANT NON - EMERGENCY GENERATOR AND CANCEL THE TIER 2 COMPLIANT EMERGENCY GENERATOR ORDER TO COMPLY WITH MORE STRINGENT, CURRENT ENVIRONMENTAL PROTECTION AGENCY AIR EMISSION RULES; APPROVING FUNDING FOR THE PROJECT FROM THE APPROPRIATE UTILITIES OPERATIONAL ACCOUNT; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Tamarac owns, operates and maintains a Water Treatment Plant located at 7803 NW 61St Street; and WHEREAS, on August 28, 2013, the Tamarac City Commission approved Resolution No. R-2013-84 authorizing the City Officials to execute the agreement between the City of Tamarac and Cardinal Contractors, Inc., for an amount of $1,319,000 for construction of the Water Treatment Plant Emergency Generator Replacement Project (incorporated by reference and on file in the office of the City Clerk); and Temp. Reso. #12517 June 20, 2014 Page 2 of 5 WHEREAS, Purchase Order Number 160952 was issued to Cardinal Contractors, Inc., on September 17, 2013 and a Notice to Proceed was issued on November 18, 2013; and WHEREAS, Eckler Engineering, Inc., was awarded the contract for the sum of $53,600 to provide professional services for Construction Management of the Water Treatment Plant Emergency Generator Replacement Project under Task Authorization No. 13-05E approved by the City Manager on October 2, 2013; and WHEREAS, the City of Tamarac was informed by Florida Power and Light (FPL) on March 26, 2014 that all emergency generators existing at water treatment plants or purchased in the future must comply with the new, more stringent Environmental Protection Agency (EPA) Air Emission Standards to remain in FPL's Commercial/Industrial Load Control Program (a copy of said correspondence is attached as "Exhibit A'T and WHEREAS, the increased FPL electrical costs to the City of Tamarac would be $150,000 annually if we failed to comply with FPL's Load Control Program; and WHEREAS, calls were made to both Florida Department of Environmental Protection (DEP), FPL, and our contractor, Cardinal Contractors, Inc., and it was determined by Eckler Engineering, Inc., and the Tamarac Director of Public Services that Temp. Reso. #12517 June 20, 2014 Page 3 of 5 the Caterpillar Tier 2 Compliant Emergency Generator on order and ready to ship Did Not meet the Tier 4 Air Emission Standards and could not be run under FPL's Load Control Program; and WHEREAS, the decision was made by the Director of Public Services to cancel the order for the Caterpillar Tier 2 Compliant Emergency Generator and order a Caterpillar Tier 4 Compliant Non -Emergency unit which met all EPA Air Emission Standards and FPL Load Control Program contract conditions; and WHEREAS, the increased cost for the Caterpillar Tier 4 Compliant Non -Emergency Generator is $107,994; and WHEREAS, it is the recommendation of the Director of Public Services and the Purchasing and Contracts Manager that Change Order No. 1 to the agreement between the City of Tamarac and Cardinal Contractors, Inc., dated August 28, 2013, be approved, executed and funded; and WHEREAS, the City Commission of the City of Tamarac, Florida deems it to be in the best interest of the citizens and residents of the City of Tamarac to accept and execute Change Order. No. 1 in the amount of $107,994 to the agreement between the City of Tamarac and Cardinal Contractors, Inc., dated August 28, 2013; and Temp. Reso. #12517 June 20, 2014 Page 4 of 5 WHEREAS, approved funds in the amount of $107,994 are available within the Utilities Contingency Account #425-6001-536-97-02 for FY 2014. .k NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, THAT: SECTION 1: The foregoing "WHEREAS" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this resolution upon adoption hereof. The exhibits attached hereto are incorporated herein and made a specific part of this resolution. SECTION 2: The appropriate City officials are hereby authorized to accept and execute Change Order No. 1 in the amount of $107,994 to the agreement between the City of Tamarac and Cardinal Contractors, Inc., for the Water Treatment Plant Emergency Generator Replacement Project (a copy of which is attached hereto as "Exhibit B"). SECTION I An expenditure in the amount of $107,994 is approved to be funded from Utilities Contingency Account #425-6001-536-97-02. SECTION 4: All resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. SECTION 5: If any clause, section, other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or application; it shall not affect the validity of the remaining portions or applications of this Resolution. SECTION 6: passage and adoption. 2014. Temp. Reso. # 12517 June 20, 2014 Page 5 of 5 This Resolution shall become effective immediately upon its PASSED, ADOPTED AND APPROVED this qA- day of , HARRY DRESSLER, MAYOR ATTEST: PATRICIA TEUFE CITY CLERK CMC RECORD OF COMMISSION VOTE: MAYOR DRESSLER DIST 1: COMM. BUSHN L DIST 2: VICE MAYOR GOM� DIST 3: COMM. GLASSER DIST 4: COMM. PLACKO I HEREBY CERTIFY THAT I HAVE APPROVED THIS RESOLUTION AS TO FORM Vi n f.,SAMUEL S. GOREN CITY ATTORNEY Ili FPL* March 26, 2014 CITY OF TAMARAC 6011 Nob Hill Rd TAMARAC FL 33321 ATTN: Jack Strain Utilities Director Attention: 2014 rate termination opportunity "EXHIBIT A" TR #12517 As we've discussed, recent changes in Environmental Protection Agency (EPA) rules require owners of generators to comply with new, more stringent emission standards. Customers who rely on these generators to participate in Florida Power & Light Company's commercial load management programs must comply with the new rules. Compliance may require that a generator be retrofitted with additional emission controls or may require the purchase of a new generator. Participants in FPL's commercial load management programs receive significant financial benefits from these programs and we believe most participants will find that these savings allow for a relatively quick payback for the costs associated with any EPA --required equipment upgrades. Normally, these rates require long termination notices —five years for Commercial / Industrial Load Control (CILC) and Commercial Demand Reduction (CDR) and three years for Curtailabfe Service (CS) — for a customer to end participation. However, we recognize that the new EPA eules may make it cost -prohibitive for some customers to continue voluntary participation in these programs. We want to reasonably accommodate customer requests to exit the rate due to the impact of the EPA's new rules. Therefore, we are offering affected customers an opportunity to discontinue participation in these rates anytime in 2014 without incurring early termination charges. Please evaluate your decision very carefully. As stated, your financial savings from participating in these rates are significant. But, if you believe termination is necessary, please complete the enclosed form and return it to me no later than December 31, 2014. Please contact me if you have any questions. Thank you. Sincerely, Josh Wright 1 0 FPL. Florida Power & Light Commercial / Industrial Load Control Commercial / Industrial Demand Reduction Curtailable Service 14 EPA Change__i lations Rate Termination_ Opportunity and Request Form Summary Recent federal regulations require owners of generators to comply with new emission standards adopted by the Environmental Protection Agency (EPA). The standards are known as (EPA) 40 CFR Part 63 Subpart ZZZZ and 46 CFR part 60, subparts IIII and JJJJ. These new rules impact reciprocating internal combustion engines (RICE) of all sizes, including generators participating in utility -sponsored demand side management programs. It is the responsibility of generator owners to review EPA's RICE rules and ensure that their generators comply with these new rules. If you use a generator to participate in FPL's voluntary Commercial/Industrial Load Control (CILC), Commercial Demand Reduction (CDR) or Curtailable Service (CS) rates, you may be affected by these new rules. , We encourage customers to carefully evaluate their specific circumstances with respect to the new EPA regulations. Many customers are likely to find that continuing participation in the CILC/CDR/CS rate will be cost-effective taking into account the significant annual savings that these rates offer along with the costs of complying with the new EPA regulations. But, for some customers, the costs of complying with the new rules may not make continued participation cost-effective. The rates typically require termination notice of five years for CILC or CDR and three years for CS. In light of the significant compliance challenges the new rules may present to some customers, FPL is providing customers an opportunity to exit the rate due to the impact of the new EPA rules. H Customers who wish to exit the CILC/CDR/CS rates due to EPA rule compliance issues may do so in 2014 without incurring early termination charges. If you determine that termination is necessary, please submit this completed form to your FPL account manager no later than December 31 st, 2014. If you do not elect the termination option, then: 1. Your service will continue on the currently applicable rate 2. Your generator must comply with all local, state and federal regulations; and 3. All other rights and obligations under FPL's CILC/CDR/CS rates, as specified in the applicable agreement, remain in effect Termination Request The*termination option allows you to discontinue participation in FPL's CILC/CDR/CS rate upon receipt of the request by FPL. If the termination option below is chosen, your FPL account will be returned to the applicable Firm rate and you will no longer be subject to participating in FPL load control events. 0 1 choose to Terminate the FPL account(s) listed below from the CILC/CDR/CS rate and be placed on an applicable Firm service rate effective with the next billing period following the date of this request. Deadline for submitting this request is December 31't 2014. Signature On Behalf Of FPL Account(s) Number Date PJ- City of Tamarac CHANGE ORDER DATE OF ISSUANCE: 06-20-14 OWNER: CITY OF TAMARAC 7525 NW 88th Avenue Tamarac, FL 33321-2401 BID NO. 13-16B CONTRACTOR: Cardinal Contractors, Inc. Purchasing & Contracts Division CHANGE ORDER NO. 1 PROJECT NAME: Water Treatment Plant PROJECT NO. P.O. NUMBER Emergency Generator Replacement Project UT-12A 160952 IN COMPLIANCE WITH SPECIFICATIONS IN THE ABOVE REFERENCED CONTRACT, THE CONTRACTOR AND THE CITY DO BOTH HEREBY AGREE THAT THE CONTRACTOR SHALL MAKE THE FOLLOWING CHANGES, ADDITIONS OR DELETIONS TO THE WORK SPECIFIED IN THE PLANS AND SPECIFICATIONS: DESCRIPTION: Purchase a Caterpillar 800 KW Non -Emergency Generator at an increased cost of $107,994 and cancel the Caterpillar 1000 KW Emergency Generator to comply with more stringent Tier4 Environmental Protection Agency Air Emission Standards. PURPOSE OF CHANGE ORDER: The Purchase of the Caterpillar 800 KW Non -Emergency Generator is required to meet Tier 4 EPA Air Emission standards and will allow the Water Treatment Plant to remain on FPL's Load Control Program. The addition to Contract Time is required due to Broward County and Tamarac Permit Delays and generator change. CHANGE IN CONTRACT PRICE CHANGE IN CONTRACT TIME Original Contract Price Original Contract Time $ 11 319, 000.00 365 Days Change Order No. 1 Net Change From Previous Change Orders $ 1077994.00 0 Contract Price Prior To This Change Order Contract Time Prior To This Change Order $ 11319, 000.00 365 Days Net (Increase) Of This Change Order #1 Net (Increase) Of This Change Order $ 107, 994.00 120 Days Contract Price With All Approved Change Orders Contract Time With All Approved Change Orders $ 1,426,994.00 485 Days Acct No(s) Affected Amount Affected 425 1-536-97-02 $1079994.00 ROUTING: Dept. Director, Contractor, Purchasing Manager, City Manager, Purchasing Manager DIED u Services City Manager Director y /110/ ,� % Date / / / 1 � 7Date � � Date 4 Contractor William J. Mtoevitt, President