REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department BY: ROBIN O'MALLEY, Facilities Manager General Services Department, Facilities Management Division DEBBIE BERNARD, Capital Development Specialist General Services Department, Facilities Management Division SUBJECT ..Title Actions pertaining to the Municipal Service Center (MSC) Generator Upgrade project: 1. Adopt finding of a Categorical Exemption pursuant to Section 15301(b) Existing Facilities and Section 15302(c) Replacement or Reconstruction of the California Environmental Quality Act (CEQA) Guidelines 2. Award a construction contract to ????? of ??? in the amount of $??????? for the construction of the MSC Generator Upgrade Project (Bid File 12300704) (District 3) ..Body RECOMMENDATION Staff recommends that Council adopt a finding of a Categorical Exemption and award a construction contract with ????? of ?? for $??????? for the MSC Generator Upgrade Project and authorize the Director of General Services or designee to execute all related documents. EXECUTIVE SUMMARY The MSC was constructed in the late 1970's to early 1980's and is the central hub for critical city services. These services include Fleet Maintenance, Facilities Maintenance, Traffic Operations Center, Street Maintenance, Solid Waste Management, 911 backup center, liquid natural gas (LNG) fuel station, unleaded fuel station, and houses critical citywide communication infrastructure necessary for all city services, including public safety. The existing generator was part of the original construction, has exceeded its useful life expectancy, and parts are no longer manufactured. Additionally, the MSC's electrical infrastructure is obsolete, does not meet current safety/code requirements, and parts are no longer manufactured. To bridge the gap, refurbished parts have been used to keep systems operating, however this is becoming increasingly more difficult. Recent power outages have shown that the existing system was unable to maintain power resulting in disrupted citywide communications. This project will replace the emergency generator and the current obsolete infrastructure. Two generators will be installed with one dedicated to providing backup power for critical communications systems. The COVID-19 pandemic caused global supply disruptions, which significantly impacted both the schedule and overall cost of the project. The consumer price index (CPI) for generators and switchgear have increased 23% and 32% respectively since March 2020. These increases have well outpaced inflation and equipment lead times have increased to one year or more. BACKGROUND Located at 2101 'G' Street, the MSC sits on approximately 27.11 acres, has 26 buildings or canopy structures within its campus and was constructed in the late 1970's to early 1980's. The MSC is home to many city services. These services include Fleet Maintenance, Facilities Maintenance, Traffic Operations Center, Street Maintenance, Solid Waste Management, 911 backup center, LNG fuel station, unleaded fuel station, and houses critical citywide communication infrastructure necessary for all city services, including public safety. The Department of Transportation bus yard is located at the MSC, however it has separate electrical and emergency backup systems. The generator is original to the facility construction and has passed its useful life expectancy. The existing generator requires substantial maintenance, and parts are no longer available. It is underpowered for the increase in electrical loads since the facility was built. The existing system cannot provide reliable backup power to several critical systems within the MSC, including citywide communications. Recent power outages at the MSC have shown that the generator was not capable of maintaining workable services to all the buildings, resulting in disrupted citywide communications and network services. The MSC's electrical infrastructure supporting the generator is obsolete, does not meet current safety/code requirements, and parts stopped being manufactured many years ago. To bridge the gap, refurbished parts have been used to keep systems operating, however this is becoming increasingly more difficult as not all parts can be found refurbished. This project will replace the emergency generator and current obsolete infrastructure. Two generators will be installed with one dedicated to providing backup power for critical communication systems. Two diesel fuel tanks will be installed, ensuring backup power can be maintained during Public Safety Power Shutoffs. Obsolete electrical infrastructure will be replaced with modern electric switchgears which include modern safety measures not previously available in the existing systems. The COVID-19 pandemic caused global supply disruptions significantly impacted both the schedule and overall cost of the project. The consumer price index (CPI) for generators and switchgear have increased 23% and 32% respectively since March 2020. These increases have well outpaced inflation and equipment lead times have increased to one year or more. On October 22, 2020, Council approved a consultant agreement with Borrelli and Associates, Inc. for the design and preparation of construction documents for the MSC Generator Upgrade Project. A Notice Inviting Bids was published on October 5, 2022, distributed to ??? building exchanges, and posted on the City's website. The specifications were distributed to ??? prospective bidders. ??? bid proposals were received and opened in a public bid opening on November 1, 2022, with the bid amounts ranging from $?,???,??? to $?,???,???. Staff has determined that ????? is the lowest responsive and responsible bidder. The City Attorney has approved the contract as to form. ENVIRONMENTAL FINDINGS Staff has determined that a Categorical Exemption is appropriate, based on Section 15301(b) Existing Facilities and Section 15302(c) Replacement or Reconstruction of the CEQA Guidelines. Section 15301(b) exempts the repair or minor alteration of existing publicly owned utilities used to provide electric power. Section 15302(c) exempts the replacement of existing utility systems involving negligible expansion of capacity. Furthermore, Staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. Staff recommends Council, based upon its own independent judgment, adopt finding of a Categorical Exemption per staff determination, pursuant to Section 15301(b) and Section 15302(c) of the CEQA Guidelines for the MSC Generator Upgrade Project. LOCAL PREFERENCE Local preference was not implemented as the lowest responsive and responsible bidder is a local company as defined by FMC Section 4-108. FISCAL IMPACT The General Services Department, Facilities Management Division will utilize existing funds within the Division's Repair and Replacement Projects funding and this project is in the FY23 Adopted Budget. Attachments: Bid Evaluation Fiscal Impact Statement Standard Contract