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HomeMy WebLinkAbout07. Review draft Position Paper to authorize agreements for construction inspection services for Treatment Plant Capital Improvement Projects Centra! Sart 70 f BOARD OF DIRECTORS D 0ID ' v AYY 0,S1 71 N Pailill Board Meeting Date: March 2, 2017 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH CONSOLIDATED CM, INC. AND HARVEST TECHNICAL SERVICES, INC. TO PROVIDE CONSTRUCTION INSPECTION FOR CAPITAL IMPROVEMENT PROJECTS AT THE TREATMENT PLANT Submitted By: Initiating Dept./Div.: Brad Leidecker, Associate Engineer Engineering and Technical ' g Services/Ca ital Projects ! s REVIEWED AND RECOMMENDED FOR BOARD ACTION: C. Mizutani—Senior Engineer E. Lopez—+Capital Projects Division Manager JM. Petit— Director of Engineering and Technical services Roger . Bailey General Manager ISSUE: Board of Directors' (Board) authorization is required for the General Manager to execute a professional engineering services agreement in an amount greater than 1007000. BACKGROUND: Several construction projects have been or will be presented to the Board for award in the Capital Improvements Budget (CIB) Treatment Plant Program. Central San staff routinely provides construction management, administration, resident engineering, and limited inspection duties for projects, and supplements with inspectors as needed. An evaluation of the projected construction work remaining in FY 2010-17 through F'Y 2017-19 indicates the need to hire up to three additional inspectors for the peak construction months (May through October). staff has estimated up to 2,500 hours of inspection services under the recently awarded Headworks Screening Upgrade project and up to 1,500 hours for the Piping Renovations, Phase 9; Fire Protection System Improvements, Phase 2; Treatment Plant Energy Cogenerationp timization; Multiple Hearth Furnace Burner Replacement, and other projects identified in the current CIB. In addition, the inspectors may also be used to support construction of projects in the recycled water and general improvement programs. On January 24, 2017, a Request for Proposals was publicly advertised on Central San's website and PlanetBids, a service Central San uses to advertise electronically for solicitation of proposals. Eight firms responded with qualified and responsive proposals. After evaluating the proposals based on qualifications, fees, and rate schedules, and proximity to Central San, staff selected two of the eight firms: 1) Consolidated CM, Inc. and 2) Harvest Technical services, Inc. Page 1 of 2 POSITION PAPER Board Meeting Date: March 2, 2017 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH CONSOLIDATED CM, INC. AND HARVEST TECHNICAL SERVICES, INC. TO PROVIDE CONSTRUCTION INSPECTION FOR CAPITAL IMPROVEMENT PROJECTS AT THE TREATMENT PLANT The service provided under these agreements aligns with Central San's Strategic Plan, specifically Goal No. 6, which is to "Maintain a Reliable Wastewater Infrastructure." ALTERNATIVES/CONSIDERATIONS: None. FINANCIAL IMPACTS: The total cost for construction inspection services is expected to reach $850,000 for three years. The hourly rate for the proposed inspectors ranges from $73 to $124 depending on the specialty qualifications required for the construction. These costs are budgeted within projects identified in the CIB, and no additional budgets are being requested. The Consolidated CM, Inc. agreement and Harvest Technical Services, Inc. agreement are anticipated to reach $475,000 and $375,000 respectively, if fully executed at the discretion of Central San. COMMITTEE RECOMMENDATION: The Engineering and Operations Committee reviewed this subject at the meeting on February 22, 2017, and recommended approval of the agreements. RECOMMENDED BOARD ACTION: Staff recommends the following: 1. Authorize the General Manager to execute a professional engineering services agreement with Consolidated CM, Inc. with a cost ceiling of $225,000 for inspection services under the Headworks Screening Upgrade, District Project 7327, and other construction projects on an as-needed basis. 2. Authorize the General Manager to execute a professional engineering services agreement with Harvest Technical Services, Inc. with a cost ceiling of $125,000 for inspection services for construction projects on an as-needed basis. 3. Authorize the General Manager to extend both agreements for up to two years at a cost ceiling up to $125,000 per year. Page 2 of 2