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HomeMy WebLinkAboutStaff Report 12088 City of Palo Alto (ID # 12088) City Council Staff Report Meeting Date: 6/20/2022 Report Type: Consent Calendar City of Palo Alto Page 1 Title: Approval of Contract Number C23181853A With Accurate Structural Incorporated for a Total Not-to-Exceed Amount of $2,405,369 for the Installation of 9 Electric Station Perimeter Security Lighting/Camera Additions From: City Manager Lead Department: Utilities Recommendation 1. Approve and authorize the City Manager or their designee to execute contract C23181853A with Accurate Structural Incorporated (Linked Document) in an amount not-to-exceed $1,924,295 over the two-year term of the Agreement for upgrades and new installation of perimeter lighting and cameras at all nine Electric Substations as part of the Substation Physical Security (WBS EL-16003) Capital Improvement Project. 2. Authorize the City Manager or designee to negotiate and execute one or more change orders to the contract with Accurate Structural Incorporated for related additional, but unforeseen work which may develop during the project; the total of which shall not exceed $481,074 or 25% of the contract price; for a maximum total not-to-exceed amount of $2,405,369. Background City of Palo Alto Utilities (CPAU) owns and operates the electric system serving approximately 30,000 customers. The city receives power over PG&E transmission lines at 115,000 volt (115 kV) and transforms this to 60,000 volt (60 kV) to feed the city’s electric sub-transmission system linking nine distribution substations. Security threats to utility infrastructure has become an on- going security issue due to recent attacks on infrastructure across the United States and world- wide. These attacks have taken the form of cyber or physical attacks on the infrastructure. In response, the Federal Government and State regulatory entities have increased their recommendations for ensuring the safety of utility infrastructure. This project addresses recommendations that were the result of Security Risk Assessment performed by Burns and McDonnell on the City’s electric substation infrastructure. City of Palo Alto Page 2 Discussion The Utilities Department commissioned a Security Risk Assessment of all the City’s electric substations by Burns and McDonnell, an engineering / construction company, to determine which measures could be taken to improve the security of the City’s electric utility substation assets. Federal regulations and recommendations have significantly escalated in recent years after the ballistic attack on the PG&E Metcalf electric station in 2013, resulting in the federal North American Electric Reliability Corporation’s (NERC) CIP-14, which the utility is abiding by. The Burns and McDonnell study found that the lighting and ability to conduct surveillance and deterrence was in overall poor condition at the Palo Alto stations, and as a result, suggested significant perimeter lighting and camera upgrades / new installations. The completed system will consist of lighting poles installed at specific perimeter locations at the nine electric substations, with downward facing pendant light fixtures that have prismatic glass to reduce LED glare, intelligent foot-candle control for accurate lighting distribution where directed, dimming features to keep the foot candle level low unless a trespasser is sensed, and visors to limit light pollution. Video cameras will also be mounted on the poles, with present- day analytics added at the Utility Control Center that will allow for alarming, detection, and quick review of camera footage. Lighting and camera equipment specifications, foot-candle distribution efficacies, and complete construction drawings were developed for the upgrades, and approved by the City of Palo Alto Planning Department’s Architectural Review Board and also by the Stanford Real Estate Architectural Review Board (for Hanover, Hansen Way, and Quarry Road Electric Substations), as the land where these three electric substations are located is owned by Stanford. These upgrades and new installations will improve the physical security of CPAU’s critical infrastructure and are in line with federal and state recommended guidelines. Solicitation Process On March 10, 2022, a notice soliciting Invitation for Bids (IFB) for the Nine Electric Substation Security Upgrades was posted at City Hall and on the Planet Bids portal. The solicitation was open for four weeks and bids were received from three qualified bidders on April 5, 2022. City of Palo Alto Page 3 Summary of Solicitation Process Proposal Title Electric Substation Security Upgrades Proposal Number IFB181853A Proposed Length of Project 24 months Number of Proposal packages downloaded 21 Total Days to Respond to Proposal 26 days Number of Proposals Received 3 Bid Range $1,924,295 to $2,444,900 Company Name Location (City, State) Amount Accurate Structural Inc. Yucaipa, California $1,924,295 The following criteria was used during the evaluation process to identify the successful proposer: Lowest Responsible Bid. The City has, furthermore, conducted business with Accurate Structural Inc. in the past with satisfaction for a high voltage project well done. Staff is advancing this recommendation as reflected in the City’s adopted budget. Resource Impact Funding of $1.1 million is available in the FY 2022 Adopted Capital Budget in the Electric Fund under project Substation Physical Security (EL-16003), which is recommended for reappropriation to FY 2023. The remaining funds are programmed in the FY 2023 Capital Budget in the Electric Fund under project EL-16003. Annual and reappropriated funding is subject to City Council’s approval through the annual budget process. CPAU Engineering and Operations staff have sufficient capacity to support the installation of the new security equipment with inspections and safety observations. The larger 25% contingency is due to the reason that the B-Base bid amount represents a potential 10 light poles that may have to be installed later, depending on the approvals, procurement, and construction sequences of the security wall projects at Park Boulevard and Colorado which need to occur first. We anticipated this in this IFB by using the B-Base bid format. The expected price per pole of $32,218 for 10 poles is $322,188. That $322k, added to the standard 10% for unanticipated additional work would be a 27% contingency over the contract price. Utilities requests a 25% contingency to be conservative. Policy Implications This contract is on the City’s construction contract template, which permits the City to terminate without cause/for convenience by providing written notice to the contractor. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non-appropriation of funds or amending the contract to City of Palo Alto Page 4 reduce the cost, for example, by reducing the scope of work. The contract may also be temporarily suspended by written notice of the City Manager. Environmental Review Approval of the attached contract is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to section 15301 (Existing Facilities) of the CEQA Guidelines (14 CCR section 15301), since additional security features involve negligible or no expansion of existing or former use of the substations.