SR - AGR-6127 - INSTALLATION CALSENSE CENTRAL IRRIGATION SYSTEM CONTROLLERS SANTIAGO HILLS LANDSCAPE MAINTENANCE DISTRICT011 A'
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AGENDA ITEM
Date: July 8, 2014
TO: Honorable Mayor and
Members of the City Council
THRU: John W. Sibley
City Wnager
FROM: Marie nigh
Community Se ces Dir ct r
1. SUBJECT
ReviewedNerified By:
City Manager
Finance Direct r
To Be Presente y: Marie
Knight
X Cons Calendar _
City Mgr Rpts
Council Reports
Legal Affairs
Boards /Cmtes
Public Hrgs
Admin Reports
Plan /Environ
Approval of an agreement with Magnetic Electric, Inc., to install Calsense central irrigation
system controllers in the Santiago Hills Landscape Assessment District for the amount of
$81,725.
2. SUMMARY
This agreement with Magnetic Electric, Inc. will upgrade the existing irrigation system to a
centralized one that utilizes weather data, allowing for better management through remote access
and the potential for significant water savings.
3. RECOMMENDED ACTION
1.) Approve an additional appropriation of $42,405.48 from unreserved Fund 291 (Santiago Hills
86 -2 Landscape Maintenance — Irvine) to 291.7024.56015.20181 (Santiago Hills LAD
Calsense Installation);
2.) Approve the agreement with Magnetic Electric, Inc. to install Calsense Irrigation System
Controllers; and
3.) Authorize the Mayor and the City Clerk to execute the agreement on behalf of the City.
4. FISCAL IMPACT
After the appropriation, funds will be available to cover the cost of installation:
291.7024.56015.20181 (Santiago Hills LAD Calsense Installation) $81,725
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5. STRATEGIC PLAN GOAL(S)
GOAL 3
A. Refurbish, maintain, develop and /or expand public use places and spaces.
6. GENERAL PLAN IMPLEMENTATION
Infrastructure Element Goal 3.0: Ensure adequate maintenance of public rights -of -way to
enhance public safety and improve circulation.
Policy 3.2: Provide sufficient levels of street sweeping, landscaping, graffiti abatement,
shopping cart and bulk item removal from streets, sidewalks, alleys, and other public rights -of-
way.
7. DISCUSSION and BACKGROUND
Background
The Santiago Hills Landscape Assessment District (District) comprises over 32 acres of
landscape, lighting, and other infrastructure maintained by the City under service agreements.
Funds supporting the maintenance of the District landscape and other infrastructure are derived
from an annual assessment of property owners within the District.
The cost for all maintenance in the District, including irrigation water, has steadily increased in
recent years. In 2007, prior to the water rate increases, property owners in the District voted on a
measure to increase the assessment to address rising maintenance costs. The property owners
voted to reject the increased assessment, requiring the City to reduce service levels for landscape
maintenance, including reducing the frequency of shrub pruning and tree trimming; elimination
of fertilizer applications, over seeding turf, and other aspects of ongoing maintenance efforts.
Meanwhile, the aging infrastructure is demanding more resources to maintain it. The irrigation
system is extensive, providing water to turf, shrubs and trees in medians, parkways, and common
area landscapes within the Santiago Hills community. Costs for water have risen significantly
over the last few years and will continue to increase annually through 2017. The recent increases
have resulted in a 42% increase in rates since 2010 and water costs have risen exponentially for
the District. Anticipated increases annually through 2017 will result in a total estimated
expenditure increase by 2017 of as much as 50% over the current budget if reductions in use are
not made. A significant reduction in water use is now the only viable option for reducing costs
without wholesale elimination of landscape.
Discussion
In an effort to accomplish ongoing reductions in water consumption for the landscape, the
Community Services Department is proposing to replace the thirty two (32) irrigation controllers
in the District with a Calsense centralized irrigation control system. Calsense irrigation control
systems have already been introduced in City parks and are proving to accomplish significant
ITEM 07/08/14
savings as well as maximizing staff s ability to more effectively manage the systems throughout
the city. The Community Services Department advertised Bid 134 -26 and received bids from two
(2) companies. The lowest responsible bid was received from Magnetic Electric, Inc. for $69,795
and a system programming alternate bid of $4,950 for a total amount of $74,745. It is
recommended that the contract include a 10% contingency of $6,980 for unforeseen conditions
which may arise, for a total contract amount of $81,725.
This project was bid previously through an informal bid process in which the City Council
awarded a contract to Landscape Dynamics to perform the installation. Staff later determined
that some inconsistencies in the bid process would necessitate the project to be re -bid through a
formal public works bid process. The resulting bids were significantly higher than the original
bid from Landscape Dynamics, who chose not to submit a bid due to their workload, therefore an
additional appropriation of $42,405.48 from unreserved Fund 291 balance is needed to complete
this project.
To help offset the cost of this project, staff applied to the Metropolitan Water District of
Southern California (MET) for funding available through their Savings Incentive Program
(Program). The Program allows for the reimbursement of up to 50% of the project costs based on
.60 cents per 1,000 gallons saved per year over the project life, up to a maximum of 10 years.
MET confirmed that the project is eligible for funding per the Program criteria. MET will
provide up to half of the maximum incentive upon verification of project completion and full
project operation. The remainder of the incentive is based upon realization of the water savings
claimed on the application and will be paid by MET after 12 months of operation with
documentation verifying the water savings. Staff submitted the Program application based on an
assumption of a 30% water savings. An agreement between the City and MET has been executed
and received by the City.
The MET Incentive funds will offset up to 50% of the project cost, leaving the Santiago Hills
Landscape Assessment District a small fund balance that will allow staff to further its efforts
toward reducing water and maintenance costs through redesign and landscape of areas within the
District. As such, the Community Services Department plans to move forward to request
proposals from landscape designers to redesign several landscape areas within the District to
replace turf with landscape that requires less maintenance and is more drought tolerant. This
effort, along with the installation of the Calsense irrigation systems, will help significantly
toward keeping expenditures more in line with revenues in the District. Further reductions in
services however, may still be necessary going forward if no increase in the property assessment
is realized.
8. ATTACHMENTS
Bid Abstract
Draft Agreement
Savings Incentive Program Agreement
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