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HomeMy WebLinkAboutR-88-0553J-88-573 5/25/88 RESOLUTION NO. i A RESOLUTION AUTHORIZING AN INCREASE IN THE AMOUNT OF $150,000 IN THE CONTRACT BETWEEN THE CITY OF MIAMI AND MARINA POWER COMPANY DATED MARCH 17, 1988, FOR THE INSTALLATION OF 399 CERTIFIED ENERGY CONCEPT ELECTRIC METERS AT THE DINNER KEY MARINA, WITH FUNDS THEREFOR TO BE TEMPORARILY PROVIDED FROM FUNDS ALREADY APPROPRIATED TO THE DINNER KEY MARINA RENOVATION/EXPANSION PROJECT, NO. 414005, TO BE REPLACED IN THE SAME AMOUNT WITH MONIES FROM DINNER KEY MARINA ENTERPRISE FUND RETAINED EARNINGS; FURTHER RATIFYING, APPROVING AND CONFIRMING THE CITY MANAGER'S WRITTEN FINDING THAT THE HEREIN INCREASE RESULTED FROM EMERGENCY CIRCUMSTANCES BY AN AFFIRMATIVE VOTE OF FOUR/FIFTHS OF THE MEMBERS OF THE CITY COMMISSION, AND ADOPTING THE FINDINGS AND CONCLUSIONS SET FORTH IN THE PREAMBLE OF THIS RESOLUTION. WHEREAS, pursuant to Resolution No. 88-5, adopted January 14, 1988, there exists a contract dated March 17, 1988, between the City of Miami, Florida and Marina Power Company for the furnishing and installation of utility pedestals for the Dinner Key Marina; and WHEREAS, it has been determined that the additional installation of 399 Energy Concept Meters to the utility pedestals will permit accurate recording of electric consumption and will reduce energy costs for both vessel owners and the City; and WHEREAS, an increase in the contract of $150,000 is required to cover the costs of installing 399 certified Energy Concept meters at the time of manufacturing the power pedestals; and WHEREAS, the City Manager has made a written finding that a valid emergency exists for said increase, due to the fact that a delay to such installation will result in an additional increase of $20,000 for labor and materials to the detriment of the City's welfare and convenience; and CITY COL11-aISSION WIEETING OF JUN 9 1988 WHtREAS, the directors of the Departments of Parks, Recreation and Public Facilities and Public Works recommend an increase in the contract to cover said costs; and WHEREAS, funds to cover the increase are available from funds already appropriated to the Dinner Key Marina Renovation/Expansion Project, No. 414005 and will be replaced at a later date in the same amount by Dinner Key Marina Enterprise Fund Retained Earnings; NOW, THEREFOREIBE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section I. After a properly advertised public hearing, the findings of the City Manager as set forth in the preamble to this resolution are hereby ratified by an affirmative vote of four/fifths of the City Commission, and adopted as if fully set forth in this section, together with all other findings and conclusions in the Preamble. Section 2. The contract between the City of Miami, Florida and Marina Power Company, dated March 17, 1988, is hereby increased by $150,000 with funds therefor to be temporarily provided from funds already appropriated to the Dinner Key Marina Renovation/Expansion Project, No. 414005, said funds to be replaced in the same amount at a later date with funds from Dinner Key Marina Enterprise Fund Retained Earnings through an amendment to the Capital Improvements Appropriations Ordinance. PASSED AND ADOPTED this 9th day of June , 1988. ATTWA6e��— MATI-r-HIRAI, CITY CLERK XAVIER L. SUARU9, MAYOR SS-5553 - 2 BUDGETARY REVIEW AND APPROVAL: MANOHAR S. A, DIRECTOR 'MANAGEMENT AND B 6Efi FINANCE REVIEW AND APPROVAL! i/ CARLOS nAR CIA, FINANCE DIRECTOR CAPITAL PROJECTS REVIEW AND APPROVAL: SERG RIGUEZ, DIRECTOR PL NI DEPARTMENT PREPARED AND APPROVED BY: ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY APPROVED AS TO FORM AND - CORRECTNESS: O E FE ANDEZ CI ATTORNE 88-553 'G �F CITY OF MIAMI. FLORIDA iNTER-OFFIOE MEMORANCIUM Honorable Mayor and Members of the City Commission Cesar H. Odio City Manager �,tp RECOMMENDATION: DATEJ U 2 1988 FILE SU9JECT Dinner Key Marina Electric Metering - Resolution for Increase in Contract REFERENCES - ENCLOSURES It is respectfully recommended that the City Commission adopt the attached resolution authorizing an increase in the amount of $150,000 in the contract between the City of Miami anti Marina Power Company, for the installation of 399 certified Energy Concept meters at Dinner Key Marina. Funds will be temporarily provided from funds already appropriated to the Dinner Key Marina Renovation/Expansion Project, No. 414005, which will be replaced at a later date in the same amount from Dinner Key Marina Enterprise Fund Retained Earnings through an amendment to theCapital Improvement Appropriations Ordinance. The resolution further ratifies and confirms the City Manager's finding that - said increase resulted from emergency circumstances perilous to the welfare and convenience of the City. BACKGROUND:. The Department of Parks, Recreation and Public Facilities has prepared the attached legislation. The Department of Public Works has reviewed the feasibility and cost of submetering electric power to individual boat slips at Dinner Key Marina (see the attached memo dated May 9, 1988). That Department has determined that there exists a need for an increase in the amount of the contract for the installation of 399 electrical meters to the utility pedestals already purchased. The Marina now provides electrical power purchased at a low bulk rate by the City and distributed by a City owned system. Boat owners are not responsible for their individual electric bills. Instead, such service is provided gratis as part of the dockage fee. The City's cost of providing the slips with electrical power has increased substantially each year since 1985. Electrical costs presently account for approximately 30 per cent of the operating expenses at Dinner Key Marina. In fiscal year 1986 - 1987, operating expenses totaled $352,306, and $106,890 of this amount is attributed to electrical costs. 88-5 )3 0 0 Honorable Mayor and Members of the City Commission Page 2 We have learned that upon completion of the new piers, the City will no longer receive a bulk power rate because the Marina will have direct service from Florida Power and Light and will be charged their standard rate. We have also learned that FP & L will not separately meter its service to each vessel. Additionally,' the new Marina will have provisions for 170 additional vessels, many of which will be larger in size and will contain more electrical equipment, therefore consuming more power. There is substantial justification for the installation of separate meters. First, electrical costs can be accurately anti directly passed on to the vessel owner, who would pay only for the amount of service -actually used, as with residential utility customers. Further, it is estimated that submetering will offset 80 per cent of the City's electricity costs at this facility. Metering will -also allow the Marina to recover costs -associated with utility rate changes that occur during the season, which is impossible under the present system. The increasing cost of electricity has made metering a trend among new marinas, thus this renovated facility will not face undue competition in the private or commercial marina market. Lastly, under the present system, boaters who conserve electricity are penalized in that they are forced to subsidize high energy users. The City's intends to submeter all slips 35 feet and over. With 399 such slips, the total cost is estimated at $150,000. The attached study by the Parks and Public Facilities Department (dated May 25, 1988) shows that this investment will be recouped within the first eighteen (18) months of operation. The quotation submitted by the contractor, Marina Power Company has been reviewed and found to be fair and reasonable. It is imperative that the contractor install the necessary meters at the same time it installs the pedestals so as to avoid additional labor and material costs. Once the utility pedestals are in place, the cost of installing the same meters will result in an added cost of $20,000 (an increase of approximately $50 par unit). The Administration recommends that the installation of meters in the power pedestals not be postponed to a future phase in order to avoid the considerably higher costs of installation. 2 88-553 CITY OF MIAMI. IrL01110A INTEROFFICE MEMORANDUM s Walter E. Colby, Director aA,I May 90 1988 NLI- g-3202E Parks, Recreation and Public Facilities %li"JEC? Dinner Key Marina Electric Metering Donald W. Cather rrEFERENCE4 Director of Public Works F.Nf•L OSURF.t: The following report is in response to,your request regarding the feasibility and cost of metering electric power to individual boat slips on the new piers at the Dinner Key Marina. Each new boat slip will have electric service provided in a utility pedestal which contains special receptacles for the boats to plug into for electric power. The electric power available ranges from 30 to 50 amp single phase for small and medium size boats to 100 amp three phase for the largest boats. Typically, the utility pedestal purchased for this project is designed to serve two boat slips on an individual basis. These utility pedestals have provisions for the future installation of electric meters which will separately measure the power consumption at each boat slip. These meters can be read at the utility pedestal or they can be. wired into a central monitor located in the dockmaster's office. Electric service for the marina will be provided directly by Florida Power & Light (FPL) and each pier will be separately metered. FPL will not meter the electric service to each boat slip. By using its own readings at the individual boat slips on these piers, the City could prorate the pier electric power costs equitably to the individual boat owners. According to our consultants, recent changes in Public Service Commission regulations would allow the City to bill the boat owners on this prorated basis provided no markups or profit would be added to the bills. The existing marina has been using electric power pure -based at a low bulk rate which is being distributed through a City -owned system at Dinner Key. This system is old, deteriorated, and is being replaced. The new marina will have direct service from FPL at their standard rates. The new piers will have more electric power available and there will be provisions for 170 additional boats and for larger boats. In addition, new boats have more electrical equipment which consumes more power. For these reasons, electric power costs will increase significantly.at the new marina even wi..hout a rate increase. J 88-5:',3 0 W Walter E. Golby May 90 1988 Page 2 It is inevitable that dockage rates will increase for the new marina. Rather than an "across the board" increase, it might be fairer to consider charging the individual boat owners for the electric power they consume, in addition to the basic dockage rate. The larger boats and "live aboards" would be paying more based on their consumption. Smaller boats which use little or no power would pay less. On this basis, boat owners will tend to be more conservation conscious. Some unoccupied boats at Dinner Key run their air conditioning full time. Currently, the trend in private matrinas is towards separate electric metering of individual boat slips. The Coral Reef Yacht Club has recently made this change and is charging a refundable deposit of $150 for meter installation at each slip. Boat owners are currently being billed 8 1/2 cents/kwh. Coral Reef Yacht Club had cheaper FPL type meters installed at $150/each. The meters proposed in this report are higher quality, built into the pedestal, certified, UL approved, and will provide for remote reading. The cost is a little higher. Attached to this report is a proposal we requested from Marina Power Co., the utility pedestal supplier, to provide factory installed electric meters. This report includes a price breakdown for meters from two manufacturers. The installed cost of meters from both manufacturers is $175 each for single phase and $425 to $450 each for 3 phase. In addition, there is electronic hardware, software and field wiring necessary for a complete system which is a substantial part of the cost. . Boats 30 ft. and- smaller usually have relatively little electrical . equipment to justify the needs for metering. Assuming boat sizes 35 ft. and larger would require electric meters, Marina Power has estimated the cost of adding meters for 399 boats to be $114,725 plus field wiring. This is the equivelent of $288/meter for each boat slip, plus field wiring, which would increase the cost to over $300/each. If you want to proceed with the factory installation of electric meters, we will need a decision by June 3rd plus a source of funding. A project of this magnitude will probably require City Commission approval since the marina funding is already tight. Please note that our utility pedeAtals can have the electric meters installed later at cost of about $225/each to cover the additional labor. The field wiring costs will also be considerably higher. Another* alternative would be to install meters for the larger boat slips, 40 ft. (or 45 ft.) and up. AIP/bf Irl 88-Si:" W rROM C:Ity OP MIAMI. I-LORIDA INttft-0F1r1C€ M MORANDUM Cesar 4, od io City Manager Walter E. Golby, Director Department of Parks, Recreation and Public Facilities DATE SUBJECT REFERENCES: ENCLOSURES. kILE. Dinner Key Marina Electricity Metering The following is an analysis, with attachments, supporting the authorization of an increase in the amount of $150,000 in the contract between the City ,.)f Miami and Marina Power C.-)mpany for the installation of 399 certified energy concept electric meters at Dinner Fey Marina. The Department requests that funds be temporarily allocated from the current Dinner Key Marina Renovation/Expansion Capital Improvements Project, No. 414005. An amendment to the Capital Improvements Appropriation ordinance is being prepared for the next Available Commision Meeting to replace these funds in the same amount using Dinner Fey Marina Enterprise Fund Retained Earnings. The Department of Parks, Recreation and Public Facilities has reviewed the return on investment and cash payback period on proposed expenditures for factory installed electric meters. Approximately 400 boat slips will have electric meters installed, along with field wiring and computerization fbr remote readings at the Marina Dock Office. The Department has determined that our initial investment of $150,000 will be recovered in 2.5 years from the dare of installation. The rate of return on investment during the first year will be 34 percent and increase to 48 percent the following year. Expected cash collected during the first year is estimated to be $51,000 and $72,000 each year thereafter. Cash recovery during the first year is affected by the construction schedule and completion of individual piers throughout the year. Projections are based on completion dates provided by the contractor (Misener Marine Construction, Inc.) and the Department of Public Works. Q 88--553 0 Cesar H, Odio, City Manager page 2 The reconstruction and renovation of the piers will be completed by fiscal year 1989-90, thus the Department expects a short payback period. The Department expect:. the Marina to recoup 80 percent of the amount budgeted for electrical cost as a result of sub -metering individual boat slips. This fiscal year the Marina budgeted $130,000 towards electrical costs. The average cost for electrical utilities for the previous two fiscal years was $102,000. No additional expenses are expected, the Marina will use current manpower to perform all administrative and maintenance functions associated with sub -metering slips. Approved: Cesar H. Odio City Manager WEG/JR/bc/cm k 9/13/08 BUMF h*V op AtntctrATttn RY11*i U*S 1kWN kLr.etotC Uttt,tTits " 1968 - loot AVE*AOL thkCTRtC MONTHLY pt.fr&AICAt. Ptt:A i METERfy WMENtR Ph%1 tNt T6TAL ----.ta----.Gii i-------------i GILL L•i i'ir�iL iGli iii A� K, a 163 11 oil 10�Sdf,1 h $6 11 sit t,440 10 0 st.S 01360 �� f► rt3 1$3 3 tit 5+530 a.Yii GLLL4i ii Gi.i----� s----ii iiiLiii:-t--..---+---..-.iii----J.•ii iYirL 'fCtTAt.t 4t)6 fiSf"1.176 ii----------- ------ i--+-A- * NOTF.•t Monthly payment partods are haeed on the conatetletlAn schedute provided by the contractor (Mibener Marine Conatruntion. Inc.) and the Department of Puhlic Works Average electric payment is bnned on dntn prevlAed by Blaekpoint Marina and the Coral Reef Yacht Cluh. - Electrtcat costa for 35 to 80 font nnn- liveaboard vessels range between $10.00 to 07A.00 per n"eMth. SUMMARY Or ARTYCIPATRn REVENUP.S FROM ELECTRIC 11TILIT288 PY 1909 - 1990 AVrpht;R ELECTRIC MONTHLY RT.SCTRICAL PIERS METERS PAYMENTS PAYMPNT TOTAL, -------------------------•--------------------• r. or GG 400 12 $19 a72.0n0 SUMMARY or RATURN ON INVESTMRNT OM EXPENnITURES FOR ZLE(7fRIC METERB P►"CRNT OF YEAR RETURN ON INVh9TMEt7T ------------------.. ----- — —------------------- FY 88-89 $156.000 - 34% FY 89-90 Q1S0.000 - 48% Q 72.n0A -- ------------------------------- BABRD ON EXPRCTEn NET CASH FLOW THE PAT a3ACK PERIOD Ntr t. Sits 2.5 YRAn9. StINKARY OP RLRCTRiCAY. METER" PER PIER PIER f.STIMATED 11t1MEER A ---- -6 e 55 C R2 0 36 F 78 F' 68 G,uG 55 --------------------------------- TOTAW 400 Source, Allan Poms, Chief Architect, l)e1NArtment of F'ublil Works 0 -o File 140M Cesar H. Od 1 O � City Manager Di" DF MIAMI. FLORIDA INTER -OP ICt MEMORANDUM DAtE FILE SUBJECT Dinner Key Marina Electric Metering Resolution for Increase in Contract REFERENCES. ENCLOSURES Based on the information supplied to me by the Departments of Public Works and Parks, Recreation and Public Facilities, I have found that there exists an emergency need for an increase in the contract amount of $150,000 in the agreement between the City of Miami, Florida and Marina Power Company. This increase will cover the costs of installing certified Energy Concept meters at the time of manufacturing the power pedestals. The reason for the emergency need is as follows: The Department of Public Works has determin;-d that all slips over 35 feet in size at Dinner Key Marina must be submetered. Upon the completion .of the piers, the Marina will purchase electricity from Florida Power and Light at a higher rate. The submetering of larger vessels will reduce the cost of electricity at the new Marina by 80 per cent. * An increase in the contract for the placement of meters at the time of manufacturing, will save the City approximately $20.,000 in installment costs. REVIEWED AND APPROVED AS TO DEPARTMENTAL REQUIREMENTS: DONALD W. CATHER, DIRECTOR DEPARTMENT OF PUBLIC WORKS REVIEWED AND APPROVED AS TO DEPARTMENTAL REQUIREMENTS: WALTER E. GOLBY, DIRECTOR DEPARTMENT OF PARKS, RECREATION AND PUBLIC FACILITIES 101 f38-553