HomeMy WebLinkAbout07.b.Authorize the General Manager to execute three-year professional engineering services agreements with Consoilidated CM, Inc. and Harvest Technical Services, Inc. for inspection services for construction projects on an as-needed basis Central San 7mbo
BOARD OF DIRECTORS
POSITION P
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.ffliv.:
Brad ker, Associate Engineer
Leide c Engineering and Technical
Services/Ca Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
C. Mizutani—Senior Engineer
E. Capital—Lopez i I P o� c
p r je is Division Manager
ef
JM. Petit—Director of Engineering and Technical Services Roger S.Manager Genera!Manager
ISSUE: Board authorization is required for the General Man to execute a
professional engineering services agreement in an amount greater than $100,000.
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 Fiscal Year
(FY) 2010-17 through FY 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 Cogeneration
Optimization; 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.
The service provided under these agreements aligns with Central San's Strategic Plan,
specifically Goal No. 0, which is to "Maintain a Reliable Wastewater Infrastructure."
ALTER NATIVESMONSIDE RATIONS: Central San staff could provide these
inspection services; however, this is not recommended since it is more cost effective to
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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
use consultant inspectors to meet the seasonal peak construction months and would
impact project engineering duties already assigned or ongoing. The FY 2016-17 Cl B
Treatment Plant program has an estimated $g.5 million in construction contracts that
will require inspection and more projected in the following years. The Board may elect to
limit the agreement cost ceilings, but this is not recommended since the proposed costs
are very competitive, and the longer-term blanket agreements allow for less staff time in
soliciting and administrating several agreements.
FINANCIAL IMPACTS: Central San has historically been using external construction
inspection services on an annual basis to inspect projects in the treatment plant. The
total cost for the construction inspection agreements presented in this position paper is
expected to reach $350,000. The Consolidated CM, Inc. and Harvest Technical
Services, Inc. agreements are anticipated to reach $475,000 and $375,000,
respectively. The hourly rate for the proposed inspectors ranges from $73 to $124
depending on the specialty qualifications required for the construction.
The services provided under these agreements are on an as-needed basis and paid for
under project budgets approved in the CI B, and no additional budgets are being
requested. Funding is expected to be phased over the three years as shown below.
Any monies not used in a prior year will roll over.
Contractor Year 1 Year 2 Year 3 Total
Consolidated CM $225,000 $125,000 $125,000 $475yOOO
Harvest Technical $125,000 $125,000 $125,000 $375,000
Total $850X0_
COMMITTEE RECOMMENDATION: The Engineering and operations Committee
reviewed this subject at the meeting on February 22, 2017, and provided no
recommendation. Member Causey supported the position paper but requested some
clarifications stating that this was a one-year agreement with an option to extend and
allow carry over of unused funds. Member Nejedly did not support the position paper
stating that the cost was too high.
RECOMMENDED BOARD ACTION: Authorize the General Manager to:
1. Execute a three-year professional engineering services agreement with
Consolidated CM, Inc. in an amount not to exceed $475,000 for inspection
services under the Headworks Screening Upgrade, District Project 7327,
including other construction projects on an as-needed basis; and
2. Execute a three-year professional engineering services agreement with Harvest
Technical Services, Inc. in an amount not to exceed $375,000 for inspection
services for construction projects on an as-needed basis.
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