REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: KEVIN NORGAARD, PE, Assistant Director Department of Public Utilities - Utilities Planning & Engineering PETER A. MARACCINI, PE, PHD, Licensed Engineer Manager Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to the Upgrade of Programmable Logic Controller #1 and #5 at the Fresno-Clovis Regional Wastewater Reclamation Facility (Bid File 12400442) (Council District 3): 1. Adopt a finding of Categorical Exemption pursuant to Class 1, Section 15301 (Existing Facilities) of the California Environmental Quality Act Guidelines. 2. Award of a construction contract to Telstar Instruments of Sacramento, California, for the total base bid amount of $737,000. ..Body RECOMMENDATIONS Staff recommends that the City Council adopt a finding of Categorical Exemption pursuant to Class 1, Section 15301 (Existing Facility) of the California Environmental Quality Act (CEQA) Guidelines for the replacement of Programmable Logic Controllers #1 and #5 (Project); award a construction contract for the Project to Telstar Instruments, in the total base bid amount of $737,000; and authorize the Director of Public Utilities, or designee, to sign and execute all documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The existing Programmable Logic Controllers (PLC's) at the Fresno-Clovis Regional Wastewater Reclamation Facility (RWRF) are no longer reliable nor supported by the manufacturer. Upgrading PLC #1 & #5, located in the Blower and Digester Control buildings, will ensure continuous and reliable operation of the vital wastewater treatment activities at RWRF. After a competitive bidding process, the Department of Public Utilities is seeking to award a contract to Telstar Instruments, with the total base bid amount of $737,000. The bid expires on February 14, 2024. BACKGROUND The PLC's in the Blower and Digester Control buildings are vital to the wastewater treatment operation at the RWRF. These PLC's are used for plant process control of multiple critical pieces of equipment. If they were to fail, it could potentially impact the RWRF's ability to properly monitor and treat wastewater. The Project will replace the existing Modicon 800 Series PLC's with new Modicon M580 PLC's. The 800 Series PLC's are 30 years old, are no longer supported by the manufacturer, and no longer have any available replacement parts. The Project consists of replacement of the PLC's and upgrade of the existing software program. The Notice Inviting Bids was advertised and published in the Fresno Business Journal, Planet Bids, and posted on the City's website on November 15, 2023. Eight (8) building exchanges received the Notice Inviting Bids. Project specifications were distributed to 21 prospective bidders. One (1) sealed bid proposal was received and opened in a public bid opening on December 12, 2023. Telstar Instruments was determined to be the sole lowest responsive and responsible bidder, with the total base bid amount of $737,000. Their bid price is 0.4% below the budget allocation of $740,000. The bid will expire within 64 days of bid opening, on February 14, 2024. Staff recommends that the City Council award a construction contract to Telstar Instruments, of Sacramento, California, in the base bid amount of $737,000, as the lowest responsive and responsible bidder. The Director of Public Utilities, or designee, will execute the construction contract upon City Council approval. The City Attorney's Office has reviewed and approved this item as to form. ENVIRONMENTAL FINDINGS Staff have performed an environmental assessment for the Project and have determined it is categorically exempt pursuant to CEQA Guidelines Section 15301/Class 1 (Existing Facility), which exempts repair or minor alteration of existing public or private structures, facilities or mechanical equipment, involving negligible or no expansion of existing or former use. The Project will replace existing 800 series PLC's with new Modicon M580 PLC's and upgrade the technology to maintain the operability and reliability of the RWRF. There will be no expansion of the existing use. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2, apply to this Project. LOCAL PREFERENCE Local preference according to the Fresno Municipal Code Section 4-108 was not implemented as the sole lowest responsive and responsible bidder is not a local business. FISCAL IMPACT This project has no impact on the General Fund and is located in Council District 3. Funding is included in the Fiscal Year 2024 Capital Improvement Budget within the Wastewater Management Division's Sewer Enterprise Fund 40501. Attachments: Attachment 1 - Environmental Assessment Attachment 2 - Bid Evaluation and Fiscal Impact Statement Attachment 3 - Sample Contract Attachment 4 - Vicinity Map