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Home My WebLink About03.h. Increase cost limit for sole-source payments to Solar Turbines re Cogen Controls Upgrade, District Project 7308Central Contra Costa Sanitary District 3 , r BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: March 19, 2015 Subject: RESCIND RESOLUTION NO. 2013 -032 AND ADOPT NEW RESOLUTION TO INCREASE THE COST LIMIT 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: E. Lopez — Capital Projects Prov. Division Manager `. J -M Petit — Director of Engineering and Technical K. Alm Roger S. Baileyl SBrVICeS Counsel for the Di riot General Manager ISSUE: Board approval is requested to increase the contracNftnits listed in Resolution No. 2013 -032 from $650,000 to $750,000 for sole- source payments Solar Turbines, Inc. (Solar Turbines). Board authorization is required to rescind the resolution and adopt a new resolution with increased contract limits. RECOMMENDATION: Rescind Resolution No. 2013 -032 and adopt new resolution 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 Fiscal Year (FY) 2014 -15 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, District Project (DP) 7308. The project was undertaken to replace the outdated /obsolete fuel and control systems of the District's cogeneration turbine.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. 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. Page 1 of 3 POSITION PAPER Board Meeting Date: March 19, 2015 Subject: RESCIND RESOLUTION NO. 2013 -032 AND ADOPT NEW RESOLUTION TO INCREASE THE COST LIMIT 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 must 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 -15 CIB on page TP -17. The total estimated project cost 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- 15 Treatment Plant Program. This amount is within the General Manger's authority for project overruns within 15 percent of the total project cost. 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 2014 -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: RESCIND RESOLUTION NO. 2013 -032 AND ADOPT NEW RESOLUTION TO INCREASE THE COST LIMIT FOR SOLE - SOURCE PAYMENTS TO SOLAR TURBINES, INC, FOR THE COGEN CONTROLS UPGRADE, DISTRICT PROJECT 7308 COMMITTEE RECOMMENDATION: The Engineering & Operations Committee reviewed this position paper at its meeting on March 11, 2015 and recommended rescinding Resolution No. 2013 -032 and adopting a new resolution to increase the cost limit for the work. RECOMMENDED BOARD ACTION: Staff recommends rescinding Resolution No. 2013 -032 and adopting a new resolution to increase the cost limit from $650,000 to $750,000 for sole- source payments to Solar Turbines, Inc. under the Cogen Controls Upgrade, District Project 7308. Attached Supportinq Documents: 1. Invoice summary 2. Proposed resolution for sole - source payments to Solar Turbines, Inc. Page 3 of 3 ATTACHMENT 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 ATTACHMENT 2 RESOLUTION NO. 2015- bQii A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT APPROVING A SOLE - SOURCE CONTRACT WITH SOLAR TURBINES, INC. FOR FUEL AND CONTROL SYSTEM UPGRADES TO THE COGENERATION SYSTEM WHEREAS, the Central Contra Costa Sanitary District's (District) Purchasing Procedures Manual Section 5.3.15 provides that, in those cases involving a unique or novel product application required to be used in the best public interest, a governmental entity may specify such unique or novel product as an appropriate sole source; and WHEREAS, the District has a Solar Centaur 40 gas turbine generator set as part of its cogeneration system which is in need of a fuel and control system upgrade; and WHEREAS, Solar Turbines, Inc.'s proprietary technology can be utilized and incorporated to upgrade the District's gas turbine generator set, thereby extending the service life of the turbine and increasing reliability and maintainability; and WHEREAS, Section 3400(c) of the California Public Contract Code sets forth certain conditions under which a particular material or product or service may be purchased without the necessity of competitive bidding; and WHEREAS, in order to allow for future long -term maintenance, it is prudent to have the upgrade performed by Solar Turbines, Inc., the original equipment supplier. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District (the Board) as follows: THAT the Board hereby adopts the recitals set forth above as the basis of its findings. 2. THAT the Board finds the public interest is best served by utilizing the unique technology and proprietary knowledge that Solar Turbines, Inc., the original equipment manufacturer, has developed to upgrade the gas turbine generator set, which is part of the cogeneration system. 3. THAT, in accordance with Section 3400(c) of the California Public Contract Code, the Board finds that the proprietary technology offered by Solar Turbines, Inc. shall be utilized in the District's treatment plant to repair, modify and upgrade the District's Solar Centaur 40 gas turbine generator set, and that a sole- source contract with Solar Turbines, Inc. meets the criteria set forth in that section. Central Contra Costa Sanitary District Resolution 2015- 00& Sole- Source Contract — Solar Turbines, Inc. Page 2 of 2 4. THAT that the contract is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines Section 15301 since it involves repairs to an existing public facility involving no expansion of use. 5. THAT the Board authorizes the General Manager to enter into a sole- source contract with Solar Turbines, Inc. in an amount not to exceed $750,000 for the installation of fuel and control system upgrades to the cogeneration system, Cogen Controls Upgrade Project, District Project 7308. PASSED AND ADOPTED this 19th day of March, 2015, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSTAIN: Members: Michael R. McGill President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District