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Home My WebLink About03.c. Review draft Position Paper to authorize the General Manager to execute a professional engineering services agreement in an amount not to exceed $900,000 with West Yost Associates to provide on-call services for the Planning and Development Divisio Page 1 of 3 Item 3.c. 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 $900,000 WITH WEST YOSTASSOCIATES 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 & 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)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 needed 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. Task orders will be negotiated, approved, released, September 16, 2019 REEP Committee Meeting Agenda Packet- Page 11 of 32 Page 2 of 3 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 &Applied Research section and Special Projects &Asset Management section.After evaluating the firms based on qualifications, past experience, past performance, availability, and an oral interview, staff selected West Yost for an on-call agreement as the firm best suited for Central San's anticipated needs to support the Planning &Applied Research section and Special Projects &Asset Management section, including the following example scope areas: • District Project 7370 -Annual Infrastructure Replacement and Treatment Plant Condition Assessments: This holding account project was established to perform inspections and condition assessments of treatment plant infrastructure (i.e. mechanical and electrical equipment, piping systems, and other facilities) and to fund the spin-off of capital projects to complete design and construction of any necessary infrastructure renovation. West Yost and their sub-consultant, V&A, will assist staff with physical inspection and condition assessment of treatment plant equipment and facilities in poor or unknown condition (e.g. buried and submerged piping and concrete). This will not be duplicating efforts currently being performed under other capital projects such as, the Steam and Aeration Blower Systems Renovations project. That task is already being performed by a different consultant under District Project 7349 - Steam and Aeration Blower Systems Renovations project. • District Project 7366 - Recycled Water Distribution System Renovations Program: West Yost recently completed development of a recycled water I nfoWater®model and surge analysis of the Zone 1 distribution system as part of a separate project in FY 2018-19, under a separate contract which is now expired. West Yost has significant experience in several modeling platforms including both I nfoWorks® I CM and I nfoWater®that would be beneficial for Central San. Under this new agreement, West Yost will support staff in developing the recycled water distribution system renovation program, assist with modeling requests, and assist in the optimization of the recycled water distribution system operation (e.g. prioritizing maintenance and inspections, water age modeling for chlorine residual management and optimal flushing routines, etc.).As needs are identified, additional tasks under this agreement may include design for small upgrades to the distribution system. I n general, the expertise that West Yost offers will be utilized in providing field evaluations, treatment plant condition assessments, and technical expertise in recycled water distribution system optimization, modeling, and design of small capital improvements. 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 Two that are anticipated to continue into Year Three. 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 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 12 of 32 Page 3 of 3 Alternative 3: Hire Additional Staff. This alternative would be to direct staff to hire additional temporary and/or permanent employees to augment staff's ability to complete the anticipated projects and tasks. This is not recommended because the work requires specialty expertise that is provided from industry leaders that perform similar tasks on a daily basis and have extensive experience across multiple projects and customers, where Central San benefits from that wide-spread experience. Due to the complex, as- needed, and temporary nature of these projects and tasks, it is recommended that these needs be met through consulting support instead of temporary or permanent employees. The on-call agreements also enable Central San to access the consultant's wide range of software modelers and condition assessment discipline experts (e.g. electrical, mechanical, civil, corrosion)tailored to the specific project scope, inspection technologies, and types of assessments to be considered. Because the specific expertise varies by person, it is likely that several additional employees would be required to meet all of the anticipated project and task needs. FINANCIAL IMPACTS The amount for this on-call agreement is $300,000 per year for a three-year total contract amount of $900,000. West Yost has been informed and understands that this on-call agreement is not a guarantee of work and could be terminated at any time. This selection process and award of an agreement provides go-to firms 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 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 and 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 West Yost Associates, with a cost ceiling of$900,000 for a three-year term, to provide on-call services for the Planning and Development Services Division. Strategic Plan re-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 September 16, 2019 REEP Committee Meeting Agenda Packet- Page 13 of 32