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HomeMy WebLinkAbout03.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 Hazen and Sawyer, P.C. 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: SEPTEMBER 16, 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 HAZEN AND SAWYER, P.C. TO PROVIDE ON-CALL SERVICES FOR THE PLANNING AND DEVELOPMENT DIVISION FOR A THREE-YEAR TERM SUBMITTED BY: INITIATING DEPARTMENT: DANEA GEMMELL, PLANNING AND ENGINEERING AND TECHNICAL SERVICES- DEVELOPMENT SERVICES DIVISION PDS-PLANNING AND APPLIED RESEARCH 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 (typically over$1,000 and less than $100,000 per task order)which enables staff to address ongoing needs. 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 $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, 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 September 16, 2019 REEP Committee Meeting Agenda Packet- Page 8 of 32 Page 2 of 3 cost, and delivery schedule. Task orders will be negotiated, approved, released, and tracked following a similar task order release process used for capital project on-call agreements. 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 Hazen and Sawyer, P.C. (Hazen and Sawyer)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: • District Project 7363 -Treatment Plant Planning (Specifically, Treatment Plant Performance Troubleshooting): Central San's existing biological secondary treatment process routinely experiences fluctuations in performance, and occasionally, rapid consultant support is beneficial for troubleshooting performance issues. Being a live, biological process, there are many factors that can influence performance and it is beneficial to maintain a consultant expert that is familiar with the process and its performance history. Paul Pitt of Hazen and Sawyer has provided this troubleshooting support through similar on-call agreements and has helped Central San staff by evaluating secondary treatment samples, identifying organism types, and providing process modification and response recommendations.As Central San works to optimize its secondary process, it's beneficial to maintain a local, on-call expert that can respond to biological process inquiries and respond to troubleshooting requests. • Microbiology & Microscopic Evaluation Training and Support: In addition to evaluating and troubleshooting biological processes, Hazen and Sawyer and Paul Pitt offer training for staff to better understand the range of microbiology that can exist within Central San's system, the process parameters that help to control and select for different microbiology, and to train staff on proper microscope and staining techniques that are required to identify organisms present in the wastewater. I n general, the expertise that Hazen and Sawyer offers will be utilized to support staff with performance troubleshooting and response to process upsets, and for microbiology evaluation and training. The services provided will benefit Central San's Engineering, Operations, and Laboratory staff. Hazen and Sawyer and Paul Pitt have previously provided service under similar on-call arrangements for Central San and for other agencies such as the San Francisco Public Utilities Commission. Staff have been very satisfied with Hazen and Sawyer and Paul Pitt's experience and recommendations. ALTERNATIVES/CONSIDERATIONS Staff evaluated several alternatives for the Board to consider: Alternative 1: 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 is not recommended because it requires more administration than the recommended action and could limit the flexibility to assign task orders in Year 2 that are anticipated to continue into Year 3. Alternative 2: Do Not Approve the Agreement. This alternative would be for the Board to direct staff not to execute the agreement as proposed. Instead, staff could continue current and past practice to administer multiple agreements as-needed within staff authority limits. This is not recommended because it requires more administration time to solicit, execute, and manage multiple agreements.Additionally, this alternative would result in multiple agreements with the same consulting firm as tasks arise in order to keep projects on track and maintain the current high level of service. September 16, 2019 REEP Committee Meeting Agenda Packet- Page 9 of 32 Page 3 of 3 Alternative 3: Hire Additional Staff. This alternative would be for the Board to direct staff to hire one full- time equivalent to augment staff's ability to complete the anticipated projects and tasks. This is not recommended because the support needs may be infrequent and can be addressed as the tasks and needs arise. The work also requires specialty expertise that is best provided from a limited number of industry leaders that perform similar tasks on a frequent basis across multiple projects and customers, where Central San benefits from that extensive wide-spread experience. FINANCIAL IMPACTS The amount for this on-call agreement is $50,000 per year for a three-year total contract amount of $150,000. Hazen and Sawyer have been informed and understand 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 are 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 September 16, 2019, and recommended RECOMMENDED BOARD ACTION Staff recommends authorizing the General Manager to execute an agreement with Hazen and Sawyer, P.C. 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 GOAL FOUR: Develop and retain a highly trained and innovative workforce Strategy 1 - Ensure adequate staffing and training to meet current and future operational levels GOAL FIVE: Maintain a Reliable Infrastructure Strategy 1 - Manage assets optimally throughout their lifecycle September 16, 2019 REEP Committee Meeting Agenda Packet- Page 10 of 32