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RESOLUTION NO. 2014-081 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A $900,000 DESIGN BUILD AGREEMENT BETWEEN THE CITY AND SYSTEMS INTEGRATED INC. FOR THE UPGRADE AND REPLACEMENT OF THE SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) SYSTEM TO MONITOR PUMPS AT VARIOUS CITY FACILITIES (SW218 - REPLACE ALARM-WASTEWATER AND SW273 - SCADA SYSTEM PHASE II) AND AUTHORIZING THE APPROPRIATION OF $50,000 OF LOCAL GOVERNMENT PARTNERSHIP FUNDS TO CAPITAL IMPROVEMENT PROJECT SW273 TO IMPLEMENT A PILOT BUILDING ENERGY MANAGEMENT AND MONITORING SYSTEM (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On May 21, 2013, the City received one bid for the Supervisory Control and Data Acquisition (SCADA) systems upgrade and replacement project. The project is included in the Capital Improvement Projects (CIPs) SW218 and SW273. Today’s action is to accept the bids, award the contract to Systems Integrated Inc. in the amount of $900,000, authorize entering into a Design-Build Agreement with Systems Integrated Inc., and appropriate $50,000 in Local Government Partnership funds from San Diego Gas & Electric and the California Public Utilities Commission to support a portion of the scope of work related to implementing a pilot building energy management and monitoring system.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project falls under the Class 1(d) Categorical Exemption in accordance with to Section 15301(d) of the State CEQA Guidelines because it involves only the approval of an agreement to update and replace the SCADA monitoring system. Thus, no further environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not Applicable.
DISCUSSION
Supervisory Control and Data Acquisition (SCADA) systems are computer systems that gather information, such as where a failure on a pump or a system leak has occurred, and transfer the information back to a central site, alerting the home station that the problem has been detected. The City first installed a SCADA system in 2004 to monitor pumps at various City facilities and the pools & pumps crews realized overtime savings of approximately 75-80% in the first year by being able to receive warnings and address issues before system failures occurred.
An upgrade and replacement of the system is needed to meet the City's SCADA standards and to add new points in need of monitoring, including off-road trunk lines. The project is included in the Capital Improvement Projects (CIPs) No. SW218 and No. SW273. Public Works staff prepared specifications and advertised the project on March 18, 2013. On May 21, 2013, the Director of Public Works received one (1) bid as follows:
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Contractor |
BID |
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1 |
Systems Integrated |
$790,000 |
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2 |
TESCO Controls |
0 |
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3 |
Southern Contracting |
0 |
The bid submitted by Systems Integrated Inc. is consistent with the Engineer’s estimate of $800,000. Staff checked their references and received favorable comments and reviewed their bid and determined that the bid package is complete, with no errors or omissions. Therefore, staff recommends awarding a Design-Build contract to Systems Integrated Inc. The Design-Build Agreement is presented for your approval on the City’s standard form, customized for this particular scope of work. Key provisions include:
1. Guaranteed Maximum Price. Design Builder is obligated to complete the Project at a cost not to exceed $900,000 ($790,000 base bid, plus $110,000 contingency).
2. Date for Completion. The Project must be completed as agreed upon within the project schedule set at 90% construction documents. Unauthorized delays may result in liquidated damages of $100 per day.
3. Phased Design and Construction Work. The Project will be completed in three phases, including Design Development, Final Construction Plans and Construction.
4. Payments; Hold Back. The Design Builder shall be paid based on a percentage of completion, with a 5% hold-back for 35 days to allow for administrative process finalization.
5. Bonds, Indemnity, Insurance. The contract requires bonding, indemnities and insurance per City standards in order to secure contract performance and mitigate risk.
Wage Statement
The contractors who bid on this project are not required to pay prevailing wages to persons employed by them for the work performed under this project. However, a "Notice to Contractors" was sent to various trade publications in order to encourage disadvantaged business enterprises (DBEs) to bid on the project.
Disclosure Statement
Attachment 2 is a copy of the Contractor’s Disclosure Statement.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2(a)(1), is not applicable to this decision. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong & Secure Neighborhoods and a Connected Community. This action supports the goal of providing Strong & Secure Neighborhoods, which includes maintaining and operating the wastewater facilities by ensuring state of the art automated monitoring for failures of our facilities.
CURRENT YEAR FISCAL IMPACT
The balance of funds in Capital Improvement Projects (CIPs) SW218 (Replace Alarm-Wastewater) and SW273 (SCADA System Phase II) from the Sewer Enterprise Fund will be used to fund this project. In addition, this action appropriates $50,000 in existing Local Government Partnership funds from San Diego Gas & Electric and the California Public Utilities Commission (Fund 28500) from the Supplies & Services expenditures category to CIP SW273 (Master Project 26022730) to support a portion of the scope of work related to implementing a pilot building energy management and monitoring system. There is no direct impact to the General Fund for this project.
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PROJECT COSTS |
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A. D/B Agreement Amount (Systems Integrated Inc.) |
$790,000 |
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B. Project Contingency |
$110,000 |
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TOTAL PROJECT COSTS |
$900,000 |
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FUNDING SOURCES |
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SW218 - Replace Alarm-Wastewater |
$100,000 |
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SW273 - SCADA System Phase II |
$750,000 |
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SDG&E Local Government Partnership (Fund 28500) |
$50,000 |
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TOTAL FUNDING SOURCES |
$900,000 |
ONGOING FISCAL IMPACT
After installation is completed, the system will require routine maintenance, which is already included in the Public Works Department’s annual budget.
ATTACHMENTS
1. Design-Build Agreement
2. Contractor’s Disclosure Statement