The URL can be used to link to this page

Home My WebLink About08.a. Amend Cost Limit for Sole-Source Payments to Solar TurbinesCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS = POSITION PAPER Board Meeting Date: March 19, 2015 Subject: AMEND THE COST LIMIT IN RESOLUTION NO. 2013 -032 FOR SOLE - SOURCE PAYMENTS TO SOLAR TURBINES, INC, FOR THE COGEN CONTROLS UPGRADE, DISTRICT PROJECT 7308 Submitted By: Initiating Dept. /Div.: Craig Mizutani, Senior Engineer REVIEWED AND RECOMMENDED FOR BOARD ACTION: C. Mizutani — Senior Engineer E. Lopez — Prov. Capital Projects Division Manager J -M Petit — Director of Engineering K. Alm Roger S. Bailey Counsel for the District General Manager ISSUE: Board approval is requested to amend Resolution 2013 -032 to increase the contract limits listed in the resolution from $650,000 to $750,000 for Solar Turbines, Inc. (Solar Turbines). Board authorization is required to amend an existing resolution. RECOMMENDATION: Amend Resolution No. 2013 -032 to increase the authorization of the General Manager for a sole- source contract with Solar Turbines from $650,000 to $750,000. FINANCIAL IMPACTS: A total of $99,898. This project is included in the 2014 -2015 Capital Improvement Budget (CIB) and the total estimated project cost is $1.38 Million which includes the $750,000 Solar Turbines contract. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: On September 5, 2013, the Board authorized a sole source contract with Solar Turbines for construction within the Cogen Controls Upgrade Project. The project was undertaken to replace the outdated /obsolete fuel and control systems of the District's cogeneration turbine. The upgrade was a requirement to allow the District to enter into a long -term maintenance agreement with Solar Turbines. The upgrade was completed in May of 2014 and the District will be entering into a long -term maintenance agreement this Fiscal Year (FY). The Board adopted Resolution No. 2013 -032 authorizing "the General Manager to enter into a sole- source contract with Solar Turbines in an amount not to exceed $650,000 for the installation of the fuel and controls upgrade...". The position paper for the resolution stated that "the estimated Solar Turbines contract cost for the upgrade is $650,000." This was based on estimates and proposals at the time of development of the Contract with Solar Turbines. Two contracts with Solar Turbines were issued by the District. The first was a "lump sum" contract for supply of the control panel and fuel system components. The second contract for the installation of the equipment was on a "time and materials" basis. The total of the two contracts was estimated at $635,112. C:\ Users \cgee\AppData \Local \Microsoft \Windows \Temporary Internet Files \Conte nt. 0utlook \SZPPEJUP \DRAFT Solar Turbines Amend PP.docx Page 1 of 3 V'A POSITION PAPER Board Meeting Date: March 19, 2015 Subject: AMEND THE COST LIMIT IN RESOLUTION NO. 2013 -032 FOR SOLE - SOURCE PAYMENTS TO SOLAR TURBINES, INC, FOR THE COGEN CONTROLS UPGRADE, DISTRICT PROJECT 7308 During construction, additional hardware (Prosoft Modicon Interface Modules) was required to allow for testing of the new control panels for compatibility with the District's Modicon system. The cost of the modules was approximately $27,000. In addition, costs were incurred for sales tax and shipping that were not included in the material supply purchase order. Finally, additional costs were incurred during installation due to the unique nature of the District's equipment. Specifically, the control panels contain specialized equipment that allows it to interface with the District's Modicon SCADA system. This is one of only a handful of applications where Solar Turbines has interfaced with Modicon as part of their package systems. The total cost from Solar Turbines at the end of the work totaled $749,897.30. This amounts to $99,897.30 over the estimated cost of $650,000 and is within the General Manager's authority for construction change orders. However, the resolution cost limit of $650,000 will need to be raised in order to process the final contract invoices. The Cogen Controls Upgrade is included in the FY 2014 -2015 CIB on page TP -17. The total estimated project costs shown in the CIB is $1.30 Million. The final project cost is estimated to be $1.38 Million, which includes the final contract costs by Solar Turbines. To complete the payment, an additional allocation of $84,000 will be required from the FY 2014- 2015 Treatment Plant Program. This amount is within the General Manger's authority for project overruns within 15 percent of the total project costs. Staff has conducted a budget analysis of the FY 2014 -15 Treatment Plant program and concluded that there are sufficient funds as shown in the following table: FY 2014 -15 Allocation Budget TP Program Authorized Estimated Allocations for Projects, Includes Contingency. $ 4,486,000 Supplemental Board Authorizations $ 519,450 Allocations Returned from Closeouts $ 0 Total Board Authorized FY 14 -15 Allocations $ 5,005,450 FY 2014 -15 Allocations to Date $ 1,905,450 This Allocation for DP 7308 $ 84,000 Remaining Unallocated Budget $ 3,016,000 Page 2 of 3 POSITION PAPER Board Meeting Date: March 19, 2015 Subject: AMEND THE COST LIMIT IN RESOLUTION NO. 2013 -032 FOR SOLE - SOURCE PAYMENTS TO SOLAR TURBINES, INC, FOR THE COGEN CONTROLS UPGRADE, DISTRICT PROJECT 7308 COMMITTEE RECOMMENDATION: The Engineering and Operations Committee reviewed this position paper at its meeting on March 11, 2015 and recommended »» RECOMMENDED BOARD ACTION: Staff recommends amending the cost limit for payments to Solar Turbines, Inc. in Resolution No. 2013 -032 from $650,000 to $750,000 under the Cogen Controls Upgrade, District Project 7308. Attached Supportinq Documents: 1. Invoice summary Page 3 of 3 Solar Turbines Invoice Summary & Delay Impacts of Control Console Invoice No. * Amount Description 13510000982 $70,447.50 Equipment Downpayment 13510001029 $498,772.75 85% material, Installation, Sales Tax on material = $39,920.25 11016016411 $15,258.00 A. Biesemeyer 4/4/14 to 4/10/14 11016016471 $18,690.00 A. Biesemeyer 4/11/14 to 4/17/14 11016016472 $18,690.00 A. Biesemeyer 4/18/14 to 4/24/14 11016016578 $65,596.91 Jon Bendert. 4/18/14 to 5/6/14. 19 days on site (7 proposed) 11016017318 - $27,661.91 Credit memo for inv. 11016016578 11016016658 $10,934.50 Josh Ing. 4/25/14 to 4/28/14 2 days at CCCSD 11016016659 $17,136.00 A. Biesemeyer 4/25/14 to 5/1/14 11016016660 $15,626.00 A. Biesemeyer 5/2/14 to 5/7/14 11016016819 $4,218.00 Eric Senn 7/10/14 to 7/11/14 LEL Sensor Troubleshooting 11016017075 $3,173.00 A. Biesemeyer 7/28/14 to 7/29/14 - Punchlist Items 13510001250 $39,016.55 Prosoft modules & Control Panel /Tool Box Shipping Charges Total Invoices $749,897.30 Orig. Contract $635,112.00 Paid to Date $648,418.75 Resolution Limit $650,000.00 Amount Over Resolution Limit $99,897.30 * bold = paid