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HomeMy WebLinkAbout03.e. Review draft Position Paper to authorize the General Manager to execute professional engineering services agreements with Consolidated CM, Inc. and McMillen Jacobs Associates in an amount not to exceed $350,000 each to provide construction inspecti Page 1 of 2 Item 3.e. CENTRAL SAN BOARD OF DIRECTORS ' POSITION PAPER DRAFT MEETING DATE: APRIL 25, 2018 SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE PROFESSIONAL ENGINEERING SERVICES AGREEMENTS WITH CONSOLIDATED CM, INC. AND MCMI LLEN JACOBS ASSOCIATES I N AN AMOUNT NOT TO EXCEED $350,000 EACH TO PROVIDE CONSTRUCTION INSPECTION FOR COLLECTION SYSTEM CAPITAL IMPROVEMENT PROJECTS SUBMITTED BY: INITIATING DEPARTMENT: DAMASI0 ZEPEDA ARAGON, ASSOCIATE ENGINEERING AND TECHNICAL SERVICES- ENGINEER CAPITAL PROJECTS REVIEWED BY: SASHA MESTETSKY, SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE The Board of Directors' (Board) authorization is required for the General Manager 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 I mprovement Budget (CI B) - Collection System Program for Fiscal Year(FY) 2018-19. 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 this FY and going into FY 2018-19 indicates that hiring up to three additional inspectors will be necessary during the peak construction months (May through November). I n addition, the inspectors may be used to support similar construction activities in the Recycled Water Program. On J my 6, 2017, the Board authorized the General Manager to execute professional engineering service agreements with J N Engineering and Harvest Technical Services to provide collection system construction inspection services. Currently, staff utilizes the JN Engineering agreement, but has not utilized the Harvest Technical Services agreement due to a lack of sewer inspectors offered by Harvest Technical Services. April 25, 2018 EOPS Regular Committee Meeting Agenda Packet- Page 56 of 72 Page 2 of 2 JN Engineering is a small firm and does not have any other inspectors available. To obtain more inspectors for the upcoming construction season, staff advertised a Request for Proposal (RFP)for qualified and available inspectors. On February 28, 2018, a RFP was publicly advertised on Central San's website and PlanetBids. Eight firms responded with qualified proposals. After evaluating the proposals based on qualifications, fees, and proximity to Central San, staff selected the two top firms: Consolidated CM, I nc. and McMillen Jacobs Associates. These firms were also selected based on the proposed inspectors and availability. ALTERNATIVES/CONSIDERATIONS Central San engineering staff could provide inspection services; however, this is not recommended since these duties would take away from other project duties such as design, resident engineering, and management. 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 ceiling or duration, but this is not recommended since the proposed costs are very competitive, and a multi-year agreement allows for less staff time in soliciting and administrating yearly agreements. FINANCIAL IMPACTS The agreement amount for each firm may reach up to $350,000, for a total combined amount of $700,000. The agreement duration will be for two years. The hourly rate for the proposed inspectors ranges up to $135. 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. The services provided under these agreements are budgeted and will be paid for under capital projects in the CI B Collection System Program. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this agreement on April 25, 2018, and recommended approval. RECOMMENDED BOARD ACTION Authorize the General Manager to execute professional engineering services agreements with Consolidated CM, Inc. and McMillen Jacobs Associates in an amount not to exceed $350,000 each to provide construction inspection for collection system capital improvement projects. GOAL ONE: Provide Exceptional Customer Service Strategy 2- Improve Interdepartmental Collaboration GOAL TWO: Strive to Meet Regulatory Requirements Strategy 1 - Strive to Achieve 100% Permit Compliance in Air, Water, Land and Other Regulations, Strategy 2- Strive to Minimize the Number of Sanitary Sewer Overflows GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage Costs GOAL FIVE: Maintain a Reliable Infrastructure Strategy 2- Facilitate Long-term Capital Renewal and Replacement April 25, 2018 EOPS Regular Committee Meeting Agenda Packet- Page 57 of 72