HomeMy WebLinkAbout08. Authorize agreement with JDH Corrosion Consultants and Alisto Engineering Group for on-call corrosion engineering services Page 1 of 3 Item 8. CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: JULY 19, 2018 SUBJECT: AUTHORIZE THE GENERAL MANAGER TO EXECUTE PROFESSIONAL ENGINEERING SERVICES AGREEMENTS WITH JDH CORROSION CONSULTANTS, INC. AND ALISTO ENGINEERING GROUP IN AN AMOUNT NOT TO EXCEED $150,000 EACH TO PROVIDE ON-CALL CORROSION ENGINEERING SERVICES FOR DISTRICT 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 Roger S. Bailey General Manager ISSUE The Board of Directors authorization is required for the General Manager to execute a professional engineering services agreement in an amount greater than $100,000. BACKGROUND Central San uses outside corrosion engineering services to assist in the design and construction of capital July 19, 2018 Regular Board Meeting Agenda Packet- Page 36 of 111 Page 2 of 3 improvement projects. The purpose of the on-call corrosion agreements is to provide varied levels of corrosion engineering expertise to assist staff with projects managed or designed by the Capital Projects Division. These services include concrete and materials field assessments related to wastewater exposure, recommendations for cathodic protection, testing, and other specialty corrosion services. I n addition, these agreements provide similar assistance with evaluating assets for the Operations and Maintenance groups at Central San. Having an on-call corrosion specialist is a significant benefit when equipment or structures (i.e tanks) are out of service and items are identified for immediate evaluation or repair. Staff prepared and posted a Request for Proposal on PlanetBids and the Central San website for on-call corrosion engineering services. On June 18, 2018, four proposals were received and evaluated. Staff selected J DH Corrosion Consultants, Inc. and Alisto Engineering Group as the best-fit firms based on their experience, past performance, and proposed fees. Contracting with two firms allows staff some flexibility to respond to urgent design, construction, and operations and maintenance needs. ALTERNATIVES/CONSIDERATIONS The practice of using as-needed or on-call agreements has been very successful. Executing this type of agreement allows for reduced administration costs and staff time needed to issue individual agreements for each project. The tasks under these agreements are typically low cost and consolidating the work is recommended. Larger tasks are typically included into design contracts with consultants, such as the Solids Handling Facility Improvements or other larger engineering efforts. Although cathodic protection is within the scope of services, this is not intended to supplement the annual survey of Central San's comprehensive cathodic protection program managed by the Operations group. The on-call agreements are used for critical or urgent design and construction services related to cathodic protection. FINANCIAL IMPACTS The two agreements are estimated to cost up to $100,000 per year($50,000 each). Central San may extend each contract for up to two additional years, totaling $300,000 ($150,000 each) over the three years. The services provided are paid for and budgeted under projects identified in the yearly Capital I mprovement Budget. I n some cases, when the services do not result in a capital improvement, these costs are charged to the Operating budgets. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at its July 9, 2018 and recommended approval. RECOMMENDED BOARD ACTION Authorize the General Manager to execute professional engineering services agreements with J DH Corrosion Consultants, Inc. and Alisto Engineering Group for an amount up to $150,000 each to provide on-call corrosion engineering services for capital improvement projects. Strategic Plan re-In GOAL TWO: Strive to Meet Regulatory Requirements July 19, 2018 Regular Board Meeting Agenda Packet- Page 37 of 111 Page 3 of 3 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 1 - Manage assets optimally throughout their lifestsyle, Strategy 2- Facilitate long-term capital renewal and replacement, Strategy 3- Protect District personnel and assets from threats and emergencies July 19, 2018 Regular Board Meeting Agenda Packet- Page 38 of 111