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Home My WebLink About03.b. Review draft Position Paper to authorize the General Manager to execute a professional engineering services agreement in an amount not to exceed $150,000 with Carollo Engineers, Inc to provide on-call services for the Planning and Development Divis Page 1 of 3 Item 3.b. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER DRAFT MEETING DATE: AUGUST 26, 2019 SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL ENGINEERING SERVICES AGREEMENT IN AN AMOUNT NOT TO EXCEED $150,000 WITH CAROLLO ENGINEERS, INC TO PROVIDE ON-CALL SERVICES FOR THE PLANNING AND DEVELOPMENT DIVISION FOR A THREE-YEAR TERM SUBMITTED BY: INITIATING DEPARTMENT: DANEA GEMMELL, PLANNING AND ENG-PDS-DIVISION MANAGER DEVELOPMENT SERVICES DIVISION MANAGER REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE The Board of Directors' authorization is required for the General Manager to execute agreements in an amount greater than $100,000 BACKGROUND Optimization of Current and Past Practice Using On-call Agreements for Specialized Expertise. Until now, the Planning and Development Services Division has contracted with many consulting firms through on-call agreements, but has procured those services on a case-by-case basis as tasks and needs are identified, sometimes, with multiple agreements with the same consultant but for different types of services. The purpose of the on-call agreement process is to optimize procurement and management of on-call services through a consolidated list of pre-qualified consulting firms that can provide specialized expertise and professional experience for a number of small to medium-sized tasks which enables staff to address ongoing needs and complete small to medium-sized projects. These on- call agreements are for specialized expertise and are separate from the individual consulting agreements typically issued by the Capital Projects Division for evaluating and designing large capital improvement projects. As documented in the Capital Improvement Budget, capital expenditures are expected to increase from $45M in Fiscal Year(FY) 2018-19; to $66M in FY 2019-20; to $97M in FY 2020-21; and to $106M in FY 2021-22. As workload increases, need for specialty expertise and support is essential to complete these critical projects and tasks. The Board's approval of on-call agreements authorizes Central San staff to assign work to pre-qualified firms through the issuance of a task order which defines their respective scope of work, project cost, and delivery schedule. August 26, 2019 REEP Committee Meeting Agenda Packet- Page 7 of 19 Page 2 of 3 Consultant Selection: Staff prepared and posted a Request for Qualifications on PlanetBids and the Central San website. On May 24, 2019, 12 Statements of Qualifications were received and evaluated for the Planning and Applied Research section and Special Projects and Asset Management section.After evaluating the firms based on qualifications, past experience, past performance, availability, and an oral interview, staff selected Carollo Engineers, Inc. (Carollo)for an on-call agreement as the firm best suited for Central San's anticipated needs to support the Planning and Applied Research section for the following example scope areas: • Planning and InfoMaster® Model Support: Carollo supported Central San staff for collection system and treatment plant planning for the Comprehensive Wastewater Master Plan, and since, provided planning support on other projects and tasks. Staff requires support on ongoing planning projects and tasks. Carollo also implemented the I nfoMaster0 risk and sewer renovation planning software model for Central San as part of the Comprehensive Wastewater Master Plan. Staff requires support to update and improve G IS data used in the model, to continue to update and improve the risk model to optimize the sewer renovation program. Sewer renovation planning and risk modeling is coordinated with Capital Projects for upcoming sewer renovation and with Collection System Operations to align with the sewer cleaning/maintenance and CCTV inspection programs. Due to the model's technical nature and use of complex statistical predictive tools, consultant support will help staff to better understand and optimize use of the software, leading to better sewer renovation planning for the Capital Improvement Plan. In general, the expertise that Carollo offers will be utilized for planning tasks and I nfoMaster0 model support. Carollo's understanding of the existing model and experience supporting other agencies in the implementation of their I nfoMaster®models will be beneficial to Central San. ALTERNATIVES/CONSIDERATIONS Staff evaluated several alternatives for the Board to consider: Alternative 1: Execute Three-year On-call Agreement As Recommended By Staff. This alternative is recommended because it provides staff the support needed to complete the anticipated projects and tasks, maintain the current high level of service, provides flexibility to staff to address issues as they arise, and minimizes administrative work by procuring and consolidating support services into fewer contracts. Alternative 2: Execute Two-year On-call Agreement. This alternative reduces the agreement limits to cover the next two years of anticipated projects and tasks. Staff could return to the Board for approval to amend the agreement for a third year of support. This alternative was not recommended because it requires more administration than Alternative 1 and could limit the flexibility to assign task orders in Year 2 that are anticipated to continue into Year 3. Alternative 3: Do Not Approve the Agreement. This alternative would be for the Board to direct staff not to execute the agreement. This is not recommended because it would result in the postponement of several tasks and projects, impact staff's ability to address ongoing customer requests and provide necessary support for Operations & Maintenance activities and capital projects, and overall reduce Central San's current level of service. I nfoMaster software is now an important tool used by the Planning and Applied Research section, Capital Projects, and Collection System Operations Divisions staff to assist in predicting the location and number of pipe segments within the collection system that will need replacement. It uses an algorithm using likelihood of failure and consequence of failure and is essential in predicting the level of funds that may be required in the 10-year Capital Improvements Plan (which is updated every year). August 26, 2019 REEP Committee Meeting Agenda Packet- Page 8 of 19 Page 3 of 3 FINANCIAL IMPACTS The amount for this on-call agreement is $50,000 per year for a three-year total contract amount of $150,000. Carollo has been informed and understands that this on-call agreement is not a guarantee of work. This selection process and award of an agreement provides a go-to firm when 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. Ongoing and additional specialty support needs were anticipated to address upcoming projects and tasks. The services provided are paid for and included in the Board-approved Budget. No additional funding for this on-call agreement is required. COMMITTEE RECOMMENDATION The Real Estate, Environmental & Planning Committee reviewed this matter at the meeting on August 26, 2019, and recommended RECOMMENDED BOARD ACTION Staff recommends authorizing the General Manager to execute an agreement with Carollo Engineers, I nc.with a cost ceiling of$150,000 for a three-year term, to provide on-call services for the Planning and Development Services Division. 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, 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 lifecycle, Strategy 2- Facilitate long-term capital renewal and replacement August 26, 2019 REEP Committee Meeting Agenda Packet- Page 9 of 19