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Home My WebLink About03.a. Review draft Position Paper to award a construction contract in the amount of $543,900 to Pacific & Power Systems, Inc., the lowest responsive bidder for the Plant Control System Network Upgrades, District Project 7317A; consider exemption from the Page 1 of 6 Item 3.a. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER DRAFT MEETING DATE: FEBRUARY5, 2019 SUBJECT: REVIEW DRAFT POSITION PAPER TO AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $543,900 TO PACIFIC & POWER SYSTEMS, INC., THE LOWEST RESPONSIVE BIDDER FOR THE PLANT CONTROL SYSTEM NETWORK UPGRADES, DISTRICT PROJECT 7317A; CONSIDER EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT(CEQA);AND AUTHORIZE UP TO A 15-PERCENT CONTI NGENCY SUBMITTED BY: INITIATING DEPARTMENT: MARK WENSLAWSKI,ASSOCIATE ENGINEER ENGINEERINGAND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: NATE MORALES, SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE The Board of Directors (Board) must award the contract or reject bids within 50 days of the bid opening.Authorization is also required for the General Manager to execute the Contract Documents subject to submittal requirements and include up to a 15-percent contingency. BACKGROUND The Plant Control System Network Upgrades, District Project(DP)7317A(Project) serves two purposes: 1)to install a communication cable necessary for the new server room currently under construction; and 2)to improve the reliability of the wastewater treatment plant(plant)control systems network. 1. New Server Room -The Server Room Relocation Project, DP 8243, was awarded at the November 1, 2018 Board Meeting, and construction has begun to relocate the existing server room from the basement of the Plant Operations Building (POB)to the ground level. The server room hosts informational technology(IT)equipment for the business networks, plant process control, and pumping stations. Before the server room can be relocated, the network connections must be installed in order to minimize disruption to plant and business operations. New network cabling will be installed in the new server room, while leaving cabling in the existing server room to keep the current IT equipment operational.Areas at the Martinez campus that connect to the new server room include: Headquarters Office Building, POB, Household Hazardous Waste, 4737 Imhoff Place, the Lab, and other buildings. 2. Plant Control System Reliability- Central San Operations staff is in the process of strengthening the communication backbone that connects the plant Operators to the process. Currently, the network is largely comprised of a single non- redundant fiber optic communication cable. This project will install a new armored fiber optic cable between the server room and eight control system network panels. The new network will be self-healing ring topology, which will provide complete redundancy for the plant control system. The ring topology allows network communication to continue in the event a cable is damaged or with other problems that may occur. February 5, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 3 of 18 Page 2 of 6 The Project was initially included as an additive bid item under the POB Seismic Upgrades and Server Room Relocation, DP 7362 and DP 8243, respectively. The bid price from that low bidder for the effort was $700,000.At the time of award, staff noted that the fiber optic work did not receive appreciable interest when bundled with the larger project and recommended that rebidding the work scope could result in cost savings. Central San staff repackaged the Project and revised the qualifications to allow licensed electrical contractors to bid the work. The Engineer's estimate for construction was $600,000. This project was advertised on January 9 and January 14, 2019. Five (5)sealed bids were received and publicly opened on January 24, 2019. The Engineering Department conducted a technical and commercial review of the bids and determined that Pacific& Power Systems, I nc. is the lowest responsive and responsible bidder with a total bid amount of$543,900.A summary of bids received is shown in Attachment 1. Central San staff will administer the construction contract and will provide contract management and administration, office engineering, and submittal review. Construction inspection will also be done by Central San staff due to their familiarity with the plant control system network. CEQA Staff has concluded that this project is exempt from CEQA under Central San's CEQA Guidelines Section 15301, since it involves minor alterations to existing public facilities involving no expansion of use, and CEQA Guidelines Section 15302, since it involves replacement of existing public facilities at the same location and with the same purpose.Approval of this project will establish the Board's independent finding that this project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS The Plant Control System Network Upgrades is a combination of three capital projects in the Fiscal Year(FY)2018- 19 Capital I mprovements Budget(Cl B). These projects include the scope of work identified for the Plant Control System Network Upgrades on page 173 of the Cl B; the PLC Systems Upgrades on page 171 related to upgrading the equipment necessary for the new fiber optics; and the network improvements related to the new server room in the IT Development budget. These project elements are interdependent and are needed to complete the network upgrades at the Martinez campus. Staff had to consider all three projects and elements to achieve the best design solution. Bidding the design together provides several advantages such as compatibility and better overall project costs. Staff recommends awarding the contract. However, the following alternatives could be considered: Alternative 1 -The Board may request to split the network cable installation and only install the cable required to migrate the server room and postpone the plant network cable replacement to a later date, which is not recommended. The bids would have to be rejected by the Board, and additional work and coordination would have to take place that would ultimately increase project costs and complicate the future installation with the following: • The addition of temporary network cabling and the potential of damaging existing cabling by doing two installations within the same conduits. • At least two network shutdowns would be required versus one shutdown for the current approach. This increases the installation complexity and adds operational risks. • Additional costs will be incurred to coordinate routing some network cables into the server room as additional conduit space will be required to maintain existing network connections and bring in new network cables. • By splitting up the Project, the plant networking cable will be a mix of cables that may not be compatible. This may require the installation of additional networking equipment. Overall, this alternative extends the amount of time the plant network remains at risk. The plant and pumping station networks are connected to the server room. By performing all the cabling work at the same time, staff can more efficiently mitigate risks. Alternative 2 -The Board may elect to reject all bids and provide another alternative. FINANCIAL IMPACTS The total estimated costs for constructing this project is $650,000,which includes planning, design, construction contract, contingency, and construction management costs as shown in Attachment 2. February 5, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 4 of 18 Page 3 of 6 This project will span two fiscal years (2018-19 and 2019-20)and is being funded by the projects in the following table: A+B A B Total Amended FY 2018-19 FY 2019-20 Estimated Proposed Total DP Project Name Budget Budget Budget Transfers Budget 7317 Plant Control System $430,000 $ 0 $430,000 $455,000 1,2 $885,000 Network Upgrades 7304 PLC Systems Upgrade $685,000 $113,300 $798,300 <$330,000> $468,300 8240 IT Development- $150,000 $ 0 $150,000 <$125.000> $25,000 Network Fiber Only $1,265,000 $113,300 $1,378,300 $ 0 $1,378,300 There is adequate funding for the proposed Project. Upon award, staff will transfer and amend the budgets from each project under the General Manager delegation of authority for the Capital Program. 1 The transfer will be classified as "Bundling" in the ongoing Cl B transfers analysis. 2 The allocation of the transferred funds between the two years will be: $342,000 in FY 2018-19 and $113,000 in FY 2019-20. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at the February 5, 2019 meeting and recommended RECOMMENDED BOARD ACTION Staff recommends the following: 1. Find that the Project is exempt from CEQA; 2.Award a construction contract in the amount of $543,900 for the construction of the Plant Control System Network Upgrades, District Project 7317A, to Pacific& Power Systems, Inc., the lowest responsive bidder; and 3.Authorize the General Manager to execute the Contract Documents subject to submittal requirements and include up to a 15-percent contingency. Strategic Plan Tie-In GOAL ONE:Provide Exceptional Customer Service Strategy 2- Improve Interdepartmental Collaboration GOAL TWO:Strive to Meet Regulatory Requirements Strategy 1 - Strive to achieve 100%permit compliance in air, water, land, and other regulations GOAL THREE:Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage costs GOAL FIVE:Maintain a Reliable Infrastructure Strategy 3-Protect District personnel and assets from threats and emergencies GOAL SIX.Embrace Technology, Innovation and Environmental Sustainability Strategy 2-Evaluate Business Processes and Optimize Business Operations February 5, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 5 of 18 Page 4 of 6 ATTACHMENTS: 1. Summary of Bids 2. Post Bid/P reconstruction Estimate February 5, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 6 of 18 Page 5 of 6 ATTACHMENT 1 PLANT CONTROL SYSTEM NETWORK UPGRADES DISTRICT PROJECT 7317A SUMMARY OF BIDS PROJECT NO.: 7317A NO. OF ADDENDA: 1 DATE/TIME: JANUARY 24, 2019/2:00 PM PROJECT NAME: PLANT CONTROL SYSTEM NETWORK UPGRADES PROJECT MANAGER: MARK WENSLAWSKI PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA ENGINEER'S ESTIMATE: $600,000 NO. BIDDER BID PRICE Pacific & Power Systems, Inc. Fairfield, California $543,900 2 Crosspoint General Engineering $581,965 Palo Cedro, California ' 3 Elite Cable Systems Inc. $644,875 Gold River, California ' Bockmon & Woody Electric Co., Inc. 4 Stockton, California $719,365 D.W. Nicholson Corporation 5 Hayward, California $813,600 BIDS OPENED BY /s/ Donna Anderson DATE: January 24, 2019 February 5, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 7 of 18 Page 6 of 6 ATTACHMENT 2 PLANT CONTROL SYSTEM NETWORK UPGRADES DISTRICT PROJECT 7317A POST-BID/PRECONSTRUCTION ESTIMATE No. Item Description Amounts % Construction Cost 1. CONSTRUCTION a. Construction Contract $543,900 b. Contingency at 15% $81,100 SUBTOTAL-CONSTRUCTION COST $625,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces -Construction Management(CM) $15,000 -POD Coordination(Plant) $10,000 SUBTOTAL-CONSTRUCTION MANAGEMENT $25,000 4% 3. TOTAL PROJECT ESTIMATED COST $650,000 *This Project will be primarily managed, inspected, and coordinated through the POB Seismic Upgrades and Server Relocation Project. The$25,000 CM budget represents additional budget that may be required to support unforseen conditions and contingency related work. February 5, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 8 of 18