5 Resolution Approving the Purchase of MCC and Scada Equipment from Tesco Controls, Inc. for the Well No. 13 and Well No. 17 Projects, Making Findings Supporting that the Procurement for this Equipment is Exempt from Competitive Bidding Requirements, and Authorizing the Interim City Manager to Order the Equipment from this Select Manufacturer

Meeting Date: February 17, 2015

Note from TheGardeningSnail: Parts of this page may have been prepared by running a PDF Image Document through a program which converts image to text. My apologies for any Textual Gremlins that may have slipped in. Copy of the Original can be found on the City’s Website. I have also broken up some of the longer paragraphs for ease of reading.

5. Resolution Approving the Purchase of MCC and Scada Equipment from Tesco Controls, Inc. for the Well No. 13 and Well No. 17 Projects, Making Findings Supporting that the Procurement for this Equipment is Exempt from Competitive Bidding Requirements, and Authorizing the Interim City Manager to Order the Equipment from this Select Manufacturer

STAFF REPORT

AGENDA ITEM: Resolution Approving the Purchase of MCC and SCADA Equipment from Tesco Controls, Inc. for the Well No. 13 and Well No. 17 Projects, Making Findings Supporting that the Procurement for these Equipment is Exempt from Competitive Bidding Requirements and Authorizing the Interim City Manager to Order the Equipment from this Select Manufacturer.

MEETING DATE: February 17, 2015

PREPARED BY: Mario B. Gouveia, City Engineer

REVIEWED BY: Odi Ortiz, Interim City Manager

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RECOMMENDATION:

City Council to adopt Resolution No. 2015-_, authorizing the sole sourcing of Motor Control Center Equipment for the Well No. 17 Project and SCADA Programing Services for both Well No. 13 and Well No. 17 Projects.

The sole sourcing of MCC and SCADA equipment for Well No. 17 shall be subject to CDBG approval.

BACKGROUND:

The City of Livingston is currently completing projects to furnish and install an arsenic removal treatment system at Well No. 13 and to improve the new Well No. 17. T

he City is using Drinking Water State Revolving Funds (DWSRF) from the California Department of Water Resources to fund the improvements at Well No. 13.

The City is using a grant from the Community Development Block Grant Program (CDBG) to complete the improvements for Well No. 17.

The Well No. 13 Project is currently out to bid. The construction work for this project is scheduled for completion in June 2015.

Staff is currently preparing plans and specifications for the improvements at Well No. 17. The work for this project consists of equipping the well with a new pump and motor including the associated equipment such as the Motor Control Center and SCADA. This project is scheduled for start of construction in mid­ April 2015 and completed in mid-August 2015.

In order to meet the mid-August startup for Well No. 17, Staff determined that it was necessary to pre­ purchase the MCC and SCADA equipment due to the long delivery times typically associated with those types of equipment. In addition, the pre-purchase of the MCC and SCADA equipment would ensure consistency of equipment with all other City wells and provide cost savings by avoiding the installing contractor’s markup on the MCC and SCADA.

Staff contacted Tesco Controls, Inc. to obtain quotes and delivery schedules for the MCC and SCADA equipment. Tesco provided a lead time of 20 weeks to manufacture and deliver the equipment to be installed as part of the Well No. 13 and 17 Projects.

DISCUSSION:

Based on a project duration of approximately 150 calendar days, Staff estimates the improvements for Well No. 17 would be completed as soon as mid-August 2015 only if the MCC and SCADA equipment are pre-purchased by the City and made available to the contractor shortly after his start date.

Based on a 20-week lead time, the MCC and SCADA would have to be ordered and placed in production by February 20th to have it delivered around mid-July 2015.

However, if ordered by the contractor, the manufacturing for the MCC and SCADA equipment would not start until after mid-April 2015 and delivered in mid-September 2015. This latter delivery date plus the required installation time for the MCC and SCADA equipment would extend the project completion to around mid-October 2015.

Staff recommends that the City Council sole source the MCC and SCADA equipment based on attached quotes from Tesco Controls, Inc. The expedited equipment delivery resulting from the sole sourcing of the MCC and SCADA would provide the City with the fastest schedule for completing the Well No. 17 Project in 2015.

Staff is currently working with CDBG staff and anticipates their approval for sole sourcing the equipment by the week of the 23rd of February, 2015.

If authorized by the City Council, Staff won’t proceed with the equipment pre-purchase until it is approved by the CDBG office.

FISCAL IMPACT:

The total procurement cost for the MCC and SCADA equipment is $197,500.00. The MCC equipment quote is $175,000.00. The quote for SCADA equipment is $22,500.00.

The costs for this equipment would be funded from the DWSRF funds for Well No.13 and the CDBG and other local City funds for Well No. 17.

ATTACHMENTS:

1. Resolution No. 2015-

2. Tesco Quote for MCC Equipment

3. Tesco Quote for SCADA Programing

RESOLUTION NO. 2015-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON APPROVING THE PURCHASE OF MCC AND SCADA EQUIPMENT FROM TESCO CONTROLS, INC. FOR THE WELL NO. 13 AND WELL NO. 17 PROJECTS, MAKING FINDINGS SUPPORTING THAT THE PROCUREMENT FOR THESE EQUIPMENT IS

EXEMPT FROM COMPETITIVE BIDDING REQUIREMENTS, AND AUTHORIZING THE INTERIM CITY MANAGER TO ORDER THE EQUIPMENT FROM TIDS SELECT MANUFACTURER

WHEREAS, the City of Livingston is currently completing projects to rehabilitate the existing Well No. 13 and equip the new Well No. 17 which would provide an increased water production capacity for 2015; and

WHEREAS, the City must complete the improvements for Well No. 13 and place the well in production by June 2015; and

WHEREAS, the City desires to complete the improvements for Well No. 17 and place the well in production around mid-August 2015; and

WHEREAS, unless the City procures long lead project components ahead of the contractor’s contract for the construction of Well No. 17 Project, the current schedule of completion for this project would not meet the desired mid-August 2015 startup; and

WHEREAS, the City Council’s approval for sole sourcing these project components would provide consistency of equipment with other City wells and minimize training of City staff; and

WHEREAS, the City Council’s approval for sole sourcing these project components would provide cost savings by avoiding the installing contractor’s markup for the MCC and SCADA equipment; and

WHEREAS, the City desires to procure the MCC and SCADA equipment from Tesco Controls, Inc. for the quoted price of $175,000 for the MCC and $22,500 for the SCADA programing services contingent to CDBG program approval; and

WHEREAS, the pre-purchase of said equipment would allow the delivery dates to coincide with the contractor’s schedule for project completion around mid-August 2015 as preferred by the City; and

FINDINGS

WHEREAS, the City Council of the City of Livingston hereby finds as follows:

A. Competitive bidding for the purchase of MCC and SCADA equipment for the Well No. 13 and Well No. 17 Projects would prevent the City from providing an increased water production capacity for 2015 to help offset the impacts from the ongoing drought conditions; and

B. Competitive bidding of the work may jeopardize the City’s ability to provide an adequate and reliable water supply for the Livingston residents; and

C. Competitive bidding of the work would not allow the City to ensure consistency of equipment with other City wells and minimize training of City Staff; and

D. Competitive bidding of the work would not provide the City with cost savings on the project; and

E. There is an urgent need to purchase the equipment ahead of the contractor’s contract to have the MCC and SCADA available to the contractor shortly after his start of construction to complete the project by mid-August 2015.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livingston as follows:

Section 1. The above recitals are true and correct findings of the Livingston City Council.

Section 2. The purchase of MCC and SCADA equipment from Tesco Controls, Inc. as part of the Well No. 13 and Well No. 17 Projects is exempt from California Public Contract Code competitive bidding requirements pursuant to the established common-law doctrine articulated in the case of Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal.App. 3d 631.

Section 3. The Interim City Manager is hereby authorized and directed to procure the MCC and SCADA equipment from Tesco Controls, Inc. for the quoted price of $175,000 for MCC and $22,500 for SCADA Programing Services and complete all other work as necessary to expedite the delivery of said equipment.

Section 4. This Resolution shall take effect from and after the date of its adoption.

Section 5. Each portion of this resolution is severable. Should any portion of this resolution be adjudged to be invalid and unenforceable by a body of competent jurisdiction, then the remaining resolution portions shall be and continue in full force and effect, except as to those resolution portions that have been adjudged invalid. The City Council of the City of Livingston hereby declares that it would have adopted this resolution and each section, subsection, clause, sentence, phrase and other portion thereof, irrespective of the fact that one or more section, subsection, clause sentence, phrase or other portion may be held invalid or unconstitutional.

Passed and adopted this 17th day of February, 2015, by the following vote:

AYES:

NOES:

ABSENT:

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Rodrigo Espinoza, Mayor of the City of Livingston

ATTEST:

I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a Regular Meeting of the City Council of the City of Livingston this 17th day of February, 2015.

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Antonio Silva, City Clerk of the City of Livingston

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