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HomeMy WebLinkAbout06. Authorize agreements with TJC and Associates, Inc. and ArcSine Engineering to provide as-needed electrical, instrumentation, and controls engineering services Page 1 of 3 Item 6. CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: NOVEMBER 1, 2018 SUBJECT: AUTHORIZE THE GENERAL MANAGER TO EXECUTE PROFESSIONAL ENGINEERING SERVICES AGREEMENTS WITH TJC AND ASSOCIATES, INC. AND ARCSINE ENGINEERING IN AN AMOUNT NOT TO EXCEED $375,000 EACH TO PROVIDE AS-NEEDED ELECTRICAL, INSTRUMENTATION, AND CONTROLS ENGINEERING SERVICES SUBMITTED BY: INITIATING DEPARTMENT: NATHAN HODGES, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Deputy General Mgr.Ann Sasaki for General Manager Roger S. Bailey 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 staff has several in-house design projects or construction activities that often require Electrical, Instrumentation, and Controls (EIC) engineering. The purpose and scope of the as-needed service agreements is to assist or augment Central San staff by having the selected consultants perform condition assessments, design services, construction support services, and other related EIC engineering November 1, 2018 Regular Board Meeting Agenda Packet- Page 58 of 499 Page 2 of 3 work. The as-needed services are used by the Capital Projects Division to help support Operations and Plant Maintenance, which allows for quick response to EI C questions and issues on treatment plant or pump station projects. These services may also be used by Central San's maintenance engineering, electrical shop, and control systems staff during operations and maintenance activities. The practice of using as-needed or on-call agreements has been very successful at Central San. Executing this type of agreement allows for reduced administration costs and staff time needed to issue individual agreements for each project. The tasks developed under these agreements are typically in support of rehabilitation or replacement work designed by in-house engineers who do not have a professional license for E I C. Larger tasks are typically included in design agreements with consultants, such as the Solids Handling Facility Improvements, or other larger engineering efforts. The last EI C as-needed services agreement was executed with Montgomery Watson Harza (MW H) in an amount of $300,000. In 2016, the MW H agreement was closed with the completion of the design work related to the Pump and Blower Building Seismic Upgrades, District Project 7291. Staff prepared and posted a Request for Proposal on PlanetBids and the Central San website for the as- needed EIC engineering services. On September 12, 2018, five proposals were received and evaluated. Staff selected TJC and Associates, Inc. and ArcSine Engineering 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 Central San could combine this as-needed E I C services with a broader scope of as-needed services to support operations, planning, and Capital Projects Division's needs. Some agencies package professional engineering services to include EIC and other disciplines such as civil, mechanical, geotechnical, or structural engineering and develop master service agreements which are typically managed by larger engineering firms. However, Central San's practice of using smaller and multiple engineering firms has been cost-effective and successful in responding to urgent projects with qualified experts. Therefore, this alternative is not recommended. Central San's Capital Improvement Program has grown in the last several years. With each project, especially at the treatment plant, there are significant elements of the scope associated with EI C. An alternative could be to hire more in-house EIC engineers, which is not recommended. The Capital Projects Division has one Electrical Associate Engineer position, which is currently being filled. Another alternative would be to have Central San's Operations Department, electrical and instrument shops perform the work. However, staff in these shops are unavailable due to their normal day-to-day work with the treatment plant, performing routine needed maintenance and repairs and supporting numerous capital projects. Therefore, this alternative is not recommended. Another option would be to only select one of the two firms. However, having two firms available allows more flexibility as this is an as-needed contract, and they may not always have staff readily available when we request them or have the expertise for the project, as each of these two firms have their own focus on expertise that we will need to utilize at times on various projects. Therefore, this alternative is not recommended. FINANCIAL IMPACTS The total estimated cost for the as-needed E I C services could reach up to $750,000 over a three-year November 1, 2018 Regular Board Meeting Agenda Packet- Page 59 of 499 Page 3 of 3 period, if fully utilized. Each agreement may cost$375,000. The services provided are paid for and budgeted under projects identified in the yearly Capital Improvement Budget. In 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 item on October 8, 2018 and recommended approval of the agreements. RECOMMENDED BOARD ACTION Authorize the General Manager to execute professional engineering services agreements with TJC and Associates, I nc. and ArcSine Engineering in an amount not to exceed $375,000 each to provide as- needed Electrical, Instrumentation, and Controls engineering services. Strategic Plan Tie-In GOAL TWO: Strive to Meet Regulatory Requirements Strategy 1 - Strive to achieve 100%permit compliance in air, water, land, and other regulations 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 lifecycle November 1, 2018 Regular Board Meeting Agenda Packet- Page 60 of 499