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HomeMy WebLinkAbout06.e. Authorize agreements with JN Engineering and Harvest Technical Svcs to provide collection system construction inspection services for capital projects 6.e. Central San BOAR[ OF DIRECTORS POSITION PAPER Board Meeting Date: July 6, 2017 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL ENGINEERING SERVICE AGREEMENT WITH JN ENGINEERING AND HARVEST TECHNICAL SERVICES TO PROVIDE COLLECTION SYSTEM CONSTRUCTION INSPECTION FOR CAPITAL PROJECTS Submitted By: Initiating Dept lDiv.: Amanda Schmidt Engineering and Technical Associate Engineer Services/Capit rojects REVIEWED AND RECOMMENDED FOR BOARD ACTION: S. Mestetsky--Senior Engineer E. Lopez—Capital Projects Division Manager Roger P P J g et JM. Petit—Director of Engineering and Technical Services General S.snag General Manager ISSUE: Board of Directors (Board) authorization is required for the General Manager to execute a professional engineering service agreement in an amount greater than $1001000. BACKGROUND: Several construction projects have been, or will be, presented to the Board for award in the Capital Improvements Budget (CIB) - Collection System Program. Central San staff routinely provides construction management, administration, resident engineering, and limited inspection duties for projects, and supplements with outside inspectors as needed. An evaluation of the construction work projected in Fiscal Year (FY) 2017-18 and the following two years indicates that hiring up to three additional inspectors will be necessary during the peak construction months (May through October). Currently, outside inspection is needed for the Martinez Sewer Renovations, Phase 5 and Lafayette Sewer Renovations, Phase 11 projects, and other projects identified in the proposed FY 2017-18 CI B. In addition, the inspectors may be used to support construction activities in the recycled water and general improvement programs. On May 10, 2017, a Request for Proposal was publicly advertised on Central San's website and PlanetBids (online bidding service). Twelve firms responded with qualified proposals. After evaluating the proposals based on qualifications, fees, rates schedules, and proximity to Central San, staff selected the top two firms, JN Engineering and Harvest Technical Services (Harvest). These firms were also selected based on the proposed inspectors and availability; having two firms available allows staff the ability to be flexible to hire qualified inspectors for a specific project or on an as--needed basis. Page 1 of 2 POSITION PAPER Board Meeting Date: July 5, 2017 subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL ENGINEERING SERVICE AGREEMENT WITH JN ENGINEERING AND HARVEST TECHNICAL SERVICES TO PROVIDE COLLECTION SYSTEM CONSTRUCTION INSPECTION FOR CAPITAL PROJECTS ALTERNATIVESICONSIDERATIONS: Central San engineering staff could provide all inspection services; however, this is not recommended since these duties would take away from other project duties such as design, resident engineering, and others. Collection system inspection is seasonal work and using consultant inspectors to meet the seasonal demand has been cost effective compared to hiring permanent inspectors. The Board may elect to limit the agreement cost ceilings or durations, 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 more agreements. Harvest was selected to provide inspection services for the Treatment Plant Program for FY 2017-18 and the following two years as authorized by the Board on March 2, 2017. Staff is in the process of executing this agreement and will combine the collection system inspection services to the agreement. Thus, only one new agreement with Harvest will be processed. FINANCIAL IMPACTS: The total cost for collection system consultant inspection services is expected to reach $050,000 for three years (average cost of approximately $215,700 per year). The hourly rate for the proposed inspectors ranges from $74 to $100. A negotiated hourly rate increase will be determined each year at the approval of Central San staff and will be based on the consumer price index or similar cost increases. Each agreement will have a cost ceiling amount as shown below and is estimated to be a three-year duration, although Central San will have the ability to opt out after the first year. The services provided under these agreements are paid for under project budgets approved at the time of award and included in the CIB, and no additional funds are being requested. COMMITTEE RECOMMENDATION: The Engineering and operations Committee reviewed this subject at the meeting on June 5, 2017, and recommended approval of the agreements. RECOMMENDED BOARD ACTION: Staff recommends the following: 1. Authorize the General Manager to execute a professional engineering service agreement with JN Engineering, with a cost ceiling of$350,000, for collection system inspection services. 2. Authorize the General Manager to revise a professional engineering service agreement with Harvest Technical Services to include collection system inspection with a cost ceiling of$300,000 for the services. Page 2 of 2