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Home My WebLink About16 Consideration to Approve Agreement with ATTTRUCKEE DONNER Public Utility District MEETING DATE: July 6, 2022 TO: Board of Directors AGENDA ITEM #16 FROM: Joe Horvath P.E., Electric Utility Director/Assistant GM SUBJECT: Consideration of a Joint Relocation and Reimbursement Agreement with AT&T Corporation for Fiber Optic Cable Relocation Work APPROVED BY Brian C. Wright, General Manager RECOMMENDATION: a) Make a finding to dispense with competitive bidding and negotiate with AT&T Corporation (AT&T) to perform the work to relocate the District's fiber optic cable (Fiber Optic Cable Relocation Work) necessary for the Town of Truckee's Church Street Extension Project. b) Authorize the General Manager to execute a Joint Relocation and Reimbursement Agreement with AT&T, in substantially the same form as presented and subject to District Counsel review, in an amount of $42,020, plus a twenty percent change order allowance for a total authorization not to exceed $50,425 for the Fiber Optic Cable Relocation Work necessary for the Church Street Extension Project. BACKGROUND: Truckee Development Associates (TDA) is currently developing the Truckee Railyard project (Railyard Development), a 34-acre parcel adjacent to the Union Pacific Railroad (UPRR) east of Downtown Truckee. The Railyard Development is bounded on the north and east by Trout Creek, the south by the UPRR, and is accessed from the west by means of Church Street and Truckee Way (formerly Donner Pass Road). As part of the Railyard Development, TDA extended Church Street through the UPRR balloon track. A second access from Glenshire Drive to the east will be necessary for complete access to this new development. The Town of Truckee (Town) contracted with Q&D Construction to construct a second access from Glenshire Drive (Church Street Extension Project), with work currently underway and planned for completion by the end of the year. The Church Street Extension Project will extend Church Street to Glenshire Drive, including a new crossing of Trout Creek. The new intersection with Glenshire Drive will be configured as a roundabout. The design includes the installation of storm drains and a storm water Page 1 of 4 detention basin along Glenshire Drive at the location of the roundabout. The District owns and operates one 96 count fiber optic cable located within a 2" PVC conduit along Glenshire Drive that is directly affected by the Church Street Extension Project (the Project). This fiber optic cable is critical to SCADA communications and site security at District Water and Electric facilities. In addition, the District owns a 1" innerduct co -located within the same 2" PVC conduit, along with a second 2" PVC conduit, currently empty, for potential future fiber optic system improvements. The District also owns 4 fiber strands in AT&T's 216 count fiber optic line that is also affected by the Project. District conduit and AT&T fiber optic cables and conduit are co -located in the same trench, covered entirely by a lean concrete backfill that was originally installed in about 1999. The District installed fiber optic cables along this section of Glenshire Drive in about 2013. The existing fiber optic conduits are in conflict with the planned location of the storm water detention basin along Glenshire Drive at the location of the new roundabout. The only method to resolve the conflict is to lower the existing fiber optic conduit trench by about 6 feet in the vicinity of the storm water detention basin. ANALYSIS AND BODY: In September, 2021 Shasta Consulting Group, Inc. (Shasta), on behalf of AT&T, contacted District staff about a proposed joint project to relocate fiber optic communication facilities on Glenshire Drive as a result of the Town's Church Street Extension Project. The proposed project scope of work generally included the following: 1. Temporarily removing AT&T, TDPUD, Level 3, and Zayo (Level 3 and Zayo are co - located within AT&T conduit) fiber optic communication cables from existing conduits; 2. Excavation and realignment of existing joint communication trench to a depth of 6' below finish grade of the proposed storm water detention basin; 3. Splicing and installation of conduits to accommodate the change in trench depth; and 4. Reinstallation of fiber optic communication cables through the new conduit sections. Staff anticipates that a large cost savings could be realized by entering into a cost sharing agreement with AT&T for the proposed work. A considerable amount of staff and outside resources would be required to perform design engineering, bid document development, and construction contract management if we were to independently relocate District - owned fiber optic facilities. Staff would be essentially duplicating work that AT&T is already performing for relocation of their facilities within the same joint trench. AT&T fiber optic facilities are critical to nationwide communication and internet traffic. This work is performed by specialized and highly experienced communication contractors. The same standard of care would be applied to District -owned facilities if the District entered into a cost sharing agreement with AT&T to perform the required work. This mitigates risk and is a significant advantage to the District. On May 19, 2022, staff received a Joint Relocation and Reimbursement Agreement (Agreement) from AT&T to perform the required work (Attachment 1). The overall engineer's cost estimate to perform the work is $210,100. The Agreement stipulates that cost sharing among communication providers shall be based on the number of conduits owned by each communication provider (District has 2 conduits) compared to the total number of conduits (10) that must be relocated for all providers. Therefore, the District's Page 2 of 4 share of the overall estimated cost is twenty percent, or $42,020. The project bid opening and award is scheduled to occur on July 21, 2022. AT&T will notify participants, including the District, of the actual cost and cost sharing amounts at that time. An amendment to the Agreement will be required if the bid award exceeds the engineer's estimate. Staff recommends that the Board make a finding to dispense with competitive bidding because it is in the public's best interest to have AT&T perform the work for the reasons outlined above. Various California court decisions, including Graydon v. Pasadena Development Agency, 104 C.A. 3d 631 (1980), hold that if the subject of a contract is such that competitive proposals would be unavailing or would not produce an advantage, and the advertisement for competitive bids would thus be undesirable or impractical, a public agency may dispense with competitive bidding. Staff also recommends that the Board authorize the General Manager to execute a Joint Relocation and Reimbursement Agreement with AT&T in substantially the same form as presented and subject to District Counsel review, in an amount of $42,020, plus a twenty percent change order allowance for a total authorization not to exceed $50,425. A twenty percent contingency is recommended for greater flexibility due to the critical nature of the fiber optic relocation work necessary to support SCADA and site security communications at District facilities. This level of contingency will also help to cover additional cost sharing if the bid award contract amount is in excess of the engineer's estimate. Goals and Objectives: This item is in support of the following goals and objectives: District Code1.05.020 Objectives: 1. Responsibly serve the public. 4. Provide reliable and high -quality electric supply and distribution system to meet current and future needs. 5. Manage the District in an environmentally sound manner 6. Manage the District in an effective, efficient, and fiscally responsible manner. Strategic Goals: 1. Manage for Financial Stability and Resiliency 2. Environmental Stewardship: Create a sustainable resilient environment for all of our communities. 4. Take the best of private sector thinking to modernize the utility and add value to our communities. FISCAL IMPACT: The Board approved FY22-23 Budget includes $1,343,800 in FY22, and $230,500 in FY23, for Phase 6 of the SCADA Reliability Improvement Project (SRIP 6). SRIP is the overall project name given to efforts to replace older communication systems with fiber optic cable to District Water and Electric facilities. The District has successfully completed 5 phases of this project since 2011. Although the work to relocate existing fiber optic cables was not anticipated during the budget process, staff anticipates sufficient funds exist within this capital expenditure item to cover the cost of SRIP Phase 6 and the proposed relocation work with AT&T. Page 3 of 4 ATTACHMENTS: Attachment 1 - Joint Relocation and Reimbursement Agreement, AT&T Corporation Page 4 of 4