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HomeMy WebLinkAbout06. Consider authorizing 3 consulting services agreements and two additional full-time equivalent stff to augment Permit Counter and Right-of-Way services Page 1 of 9 Item 6. CENTRAL SAN BOARD OF DIRECTORS vie . , . , , . . POSITION PAPER MEETING DATE: AUGUST 1, 2019 SUBJECT: CONSIDER AUTHORIZING THE GENERAL MANAGER TO: 1) EXECUTE TWO PROFESSIONAL CONSULTING SERVICES AGREEMENTS, EACH WITH A THREE-YEAR TERM, IN AN AGGREGATE AMOUNT NOT TO EXCEED $675,000 TO PROVIDE RIGHT-OF-WAYON-CALL SERVICES; 2) EXECUTE ONE PROFESSIONAL CONSULTING SERVICES AGREEMENT WITH A ONE-YEAR TERM I N AN AMOUNT NOT TO EXCEED $250,000 TO PROVIDE ON-CALL SERVICES FOR THE PERMIT COUNTER;AND 3) TEMPORARILY INCREASE THE TOTAL NUMBER OF FULL TIME EQUIVALENT (FTE) STAFF BY TWO ADDITIONAL FTES SUBMITTED BY: INITIATING DEPARTMENT: AMANDA CAUBLE, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES- PDS-PLANNI NG AND APPLIED RESEARCH REVIEWED BY: DAN FROST, SENIOR ENGINEER DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERINGAND TECHNICAL SERVICES Roger S. Bailey General Manager ISSUE The Board of Directors' authorization is required for the General Manager to execute agreements in an amount greater than $100,000. BACKGROUND In the past, the Planning and Development Services Division has contracted with a number of consulting firms on both a task-by-task basis and through on-call contracts but has procured those services in a August 1, 2019 Regular Board Meeting Agenda Packet- Page 29 of 50 Page 2 of 9 piecemeal fashion as tasks and needs were identified, and now desires to streamline the process. The purpose of this on-call agreement process is to simplify and accelerate the delivery of small-to medium- sized tasks, and to augment Central San staff's ability to manage an increasing workload by pre-qualifying firms and establishing on-call contractual relationships between Central San and consulting firms. As documented in the Capital Improvement Budget, capital expenditures are expected to increase from $45 million in fiscal year(FY) 2018-19 to $66 million in FY 2019-20, to $97 million in FY 2020-21, and to $106 million in FY 2021-22. As workload increases, consulting firm support is needed to continue to provide necessary Planning and Development services. The funds for these on-call support agreements are already included in the Operations and Maintenance and Capital budgets for FY 2019-20. On-call agreement scope categories will support the Development Services section in two areas: 1) Permit Counter Staff Augmentation and 2) Right-of-Way (ROW) Support. Staff augmentation is needed to support Permit Counter staff due to increasing workload from development review and staffing changes. Support is needed in the ROW group to assist with the increasing workload from Capital Projects and development review. The Development Services support agreements are used to augment staff during peak workload periods and will be adjusted to match the levels of work and Central San's customer service needs. As an example, the new Uniform Building Code (UBC)will take effect on January 1, 2020 and staff anticipates a sharp increase in new connections as applicants try to grandfather their building plans under the old UBC requirements. Request for Qualifications Process Staff prepared and posted a Request for Qualifications on PlanetBids and the Central San website. On May 24, 2019, four Statements of Qualifications were received and evaluated for Development Services. The four firms were invited to participate in interviews conducted on June 13, 2019. Staff reviewed each firm's qualifications, past experience, past performance, availability, and interview, and selected the firms best suited for Central's San's anticipated needs. Staff is recommending award of three on-call agreements that support Development Services. Attachment 1 summarizes the firms selected and each firm's associated scope of service. The recipients of the on-call agreements understand that such an agreement is not a guarantee of work. This selection process and award of an agreement provides go-to firms when Planning and Development Services support is required. This allows Central San staff to expedite the process of completing work and addressing tasks as needed, and to respond to needs in an efficient and responsive manner. For ROW Support, two firms were chosen to allow staff the ability to select a firm based on schedule, expertise, and/or availability depending on task needs. Central San's practice of using on-call agreements has been very successful. Executing this type of agreement allows for reduced administration costs and staff time (including the Purchasing staff) needed to procure firms, issue, and manage individual agreements for each project or task. The tasks developed under these on-call agreements are typically to address ongoing, immediate, and/or short-term tasks; whereas, individual and separate agreements are typically issued for larger projects with defined scopes and schedules. Following discussion and deliberation at the Real Estate, Environmental and Planning Committee meeting on July 22, 2019, staff developed additional alternatives to provide the desired services based on the Committee's input. Staff is recommending a new approach to provide the desired support and staff augmentation by using consultants for ROW services and temporarily adding two FTEs to train for Permit Counter support. While these two new, additional staff are being recruited, a consultant from 4Leaf, I nc., currently providing this support and familiar with Permit Counter workflow, will continue to provide as- needed services for the Permit Counter on an interim basis until these two new positions are filled. This August 1, 2019 Regular Board Meeting Agenda Packet- Page 30 of 50 Page 3 of 9 new approach is listed below under Alternative 4, which is now the recommended approach and alternative. ALT ERNAT IVES/CONSIDERAT IONS The Board could consider several alternatives to accomplish the desired support and staff augmentation: Alternative 1: Use Consultants to Temporarily Augment Staff. Under this alternative, Central San would contract with the three consultant firms listed in Attachment 1 to temporarily augment existing staff. This alternative is currently being used by Central San. Staff would recommend authorizing the General Manager to execute three professional consulting services agreements with the following firms to provide on-call services for the Planning and Development Services Division, each with a three-year term ending June 30, 2022: 1. 4Leaf, Inc. with a cost ceiling of $650,000 for Permit Counter services; 2. Associated Right of Way Services, Inc. with a cost ceiling of $450,000 for ROW services; and 3. Kathleen West Rodriguez with a cost ceiling of$225,000 for ROW services. Alternative 2: Use Temporary Employees. Under this alternative, Central San would hire temporary employees to augment existing staff. This alternative has been used in the past with limited success as temporary staff often do not serve the entire term of service when they find permanent positions elsewhere. Therefore, this alternative is not recommended. Alternative 3: Temporary Increase of FTE. Temporarily increase the number of FTEs to provide services in-house rather than hiring consultants. It is anticipated that at least two, and maybe up to three, long-term employees within the division will retire within the next two years. Under this alternative, Central San would hire two Permit Counter review and one ROW support FTEs which will temporarily increase the total number of employees.As the General Manager has set the goal not to increase the total number of FTEs approved by the Board and to keep the budget flat, these three additional FTEs would be of a temporary nature. This temporary increase in the total number of FTEs would be reduced back to the approved amount upon staff retirement expected in FY 2019-20 or FY 2020-21. Alternative 4: This alternative combines components from Alternatives 1 and 3. Under this alternative, Central San would hire the recommended ROW consultants from Alternative 1; however, with a shorter contract term of 12 months for the Permit Counter staff augmentation, while recruiting to hire two additional FTEs. A three-part implementation plan is proposed: Part A. Under this alternative, staff proposes to hire the two consultant firms listed above in the position paper to temporarily augment existing staff for the ROW group. Currently, this alternative is successfully being used by Central San, therefore, this is a viable alternative. Under this alternative, staff recommends authorizing the General Manager to execute two professional consulting services agreements with the following firms to provide on-call services for the Planning and Development Services Division, each with a three-year term, not to exceed an aggregate amount over the three-year term ending June 30, 2022: 1. Associated Right of Way Services, Inc. with a cost ceiling of$450,000; and 2. Kathleen West Rodriguez with a cost ceiling of$225,000. Part B. As stated in Alternative 3, temporarily increase the number of FTEs to provide the services in- house rather than hiring consultants. Under this alternative, staff would hire two FTEs which would temporarily increase Central San's total number of employees from 291 to 293 FTEs. This temporary increase in the total number of FTEs would be reduced back to the approved amount of 291 FTEs upon staff retirement expected in FY 2019-20 or FY 2020-21. August 1, 2019 Regular Board Meeting Agenda Packet- Page 31 of 50 Page 4 of 9 Part C. While recruitments are conducted for the two FTEs listed above under Part B, staff would still require a consultant firm to assist the Permit Counter in the interim. 4Leaf, I nc. is currently providing these services for the Permit Counter, but their current contract expires July 31, 2019. Therefore, staff would also recommend authorizing the General Manager to execute a professional consulting services agreement with 4Leaf, I nc. for a term up to 12 months, not to exceed $250,000, ending June 30, 2020, to provide on-call services for the Planning and Development Services Division for the Permit Counter. Alternative 5: Do Nothing. This alternative would provide no additional support to staff. This is not recommended as it likely would not allow staff to meet the desired level of customer service at the Permit Counter and respond to the increasing volume of ROW workload from Capital Projects and development review. Alternative 4 is the recommended alternative. FINANCIAL IMPACTS A description of anticipated scope, anticipated annual expenditures, and the agreement amounts for each firm is listed in Attachment 1. 1. The services provided are paid for and budgeted in the Board-approved Capital Improvement Budget for FY 2019-20. 2. The additional $100,000 fee for the Permit Counter augmentation is already included in the overall project cost for the Enterprise Resource Planning software. 3. Cost for two proposed FTEs, Engineering Assistant 1/11. COMMITTEE RECOMMENDATION The Real Estate, Environmental & Planning Committee reviewed this matter at the meeting on July 22, 2019 and recommended taking this item to the full board for deliberation and discussion. A member of the committee preferred Alternative 4. RECOMMENDED BOARD ACTION 1. Authorize the General Manager to execute professional consulting services agreements with the following firms to provide on-call services for the Planning and Development Services Division: • 4Leaf, I nc. with a cost ceiling of$250,000 with a one-year term for Permit Counter services; o Associated Right of Way Services, I nc. with a cost ceiling of$450,000 with a three-year term for Right-of-Way services; and • Kathleen West Rodriguez with a cost ceiling of $225,000 with a three-year term for Right-of- Way services. 2. Authorize the General Manager to temporarily add two full-time equivalent (FTE) staff to provide Permit Counter support, increasing the total number of FTEs from 291 to 293 to provide the services in-house rather than hiring consultants. This temporary increase in the total number of FTEs would be reduced back to the approved amount of 291 FTEs upon staff retirement expected in FY 2019-20 or FY 2020-21. Strategic Plan Tie-In GOAL ONE: Provide Exceptional Customer Service Strategy 1 - Build external customer relationships and awareness, Strategy 3- Maintain a strong reputation in the community August 1, 2019 Regular Board Meeting Agenda Packet- Page 32 of 50 Page 5 of 9 GOAL THREE:Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage costs ATTACHMENTS: 1. Summary of Anticipated Services for Alternative 4 2. Presentation August 1, 2019 Regular Board Meeting Agenda Packet- Page 33 of 50 Page 6 of 9 Attachment 1 Summary of Anticipated Scope of Services for Alternative 4 Description of Anticipated Estimated Total Firm Scope of Services for Expenditures Agreement On-call Agreement Per Year Amount 41-eaf, Inc. Permit Counter Staff Augmentation $250,000 $250,000- Associated 250,000Associated Right of Way Services, Inc. Right-of-Way Support $150,000 $450,000 Kathleen West Rodriguez Right-of-Way Support $75,000 $225,000 Total $475,000 $925,000 This agreement is for up to one year,ending June 30,2020. August 1, 2019 Regular Board Meeting Agenda Packet- Page 34 of 50 PLANNING AND DEVELOPMENT ON-CALL AGREEMENTS Danea Gemmell Planning and Development Services Division Manager :•. • Meeting August1 • q�b• Alks- r5•Sr►_ CENTRAL SAN REQUEST FOR • PROCESS April 26-May 24,2019 Request for Qualifications Four Firms Submitted SOQs Four Firms Shortlisted for Interviews Three Firms Selected and Notified REEP Committee— July 22,2019 Board Award of Contract— August 1,2019 S �■ __s—=+ -- CENTRALSAN • 1 • -• :•. • • � •- •. ORM aw-rST-Ewme ffeffm Page 8 of 9 SCOPE OF SERVICES Development Services Support Permit Counter Staff Augmentation: • Provide front line support at Central San's Permit Counter; assist the public by handling service requests by telephone, e-mail, or in person • Review and interpret plans Right-of-Way Support: • Evaluate right-of-way and other real property-related work for Central San collection system and pumping stations; identify real property rights ik ` 3 PROPOSED ON-CALL SERVICES Description of Anticipated Estimated Total Scope of Services for Expenditures Agreement • Agreement 4 Leaf, Inc. Permit Counter Staff $250,000 $250,000* Augmentation Associated Right of Right-of-Way Support $150,000 $450,000 Way Services, Inc. Kathleen West Right-of-Way Support $75,000 $225,000 Rodriguez 'This agreement is for up to one year,ending June 30,2020. 1 li 2 August 1, 2019 Regular Board Meeting Agenda Packet- Page 36 of 50 Page 9 of 9 ALTERNATIVES/CONSIDERATIONS • Alternative 1: Use consultants to temporarily augment staff. • Alternative 2: Use temporary employees. • Alternative 3: Temporary increase of FTEs. Alternative 4: This alternative combines component of Alternatives 1 and 3. • Alternative 5: Do nothing alternative. � 5 RECOMMENDED BOARD ACTION 1. Authorize the General Manager to execute the following three agreements, to provide on-call services for the Planning and Development Services Division: a) A professional consulting services agreement for Permit Counter services with 41-eaf, Inc.with a cost ceiling of$250,000 with a one-year term; b) A professional consulting services agreement for Right-of-Way services with Associated Right of Way Services, Inc.with a cost ceiling of $450,000 with a three-year term;and c) A professional consulting services agreement for Right-of-Way services with Kathleen West Rodriguez with a cost ceiling of$225,000 with a three-year term. 2. Authorize the General Manager to temporarily add two FTEs to provide Permit Counter support, increasing the total number of FTEs from 291 to 293 to provide the services in-house rather than hiring consultants. This temporary increase in the total number of FTEs would be reduced back to the approved amount of 291 FTEs upon staff retirement expected in FY 2019-20 or FY 2020-21. - E 6 CENTRAL SAN 3 August 1, 2019 Regular Board Meeting Agenda Packet- Page 37 of 50