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HomeMy WebLinkAbout03.b. Review draft Position Paper to authorize the General Manager to execute a professional engineering services agreement with HP Squared in an amount not to exceed $400,000 to provide specialty electrical engineering for Capital Improvement Projects Page 1 of 3 Item 3.b. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER DRAFT MEETING DATE: NOVEMBER 19, 2019 SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH HP SQUARED IN AN AMOUNT NOT TO EXCEED $400,000 TO PROVIDE SPECIALTY ELECTRICAL ENGINEERING FOR CAPITAL IMPROVEMENT PROJECTS SUBMITTED BY: INITIATING DEPARTMENT: ADAM ZARO, STAFF ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: NATHAN HODGES, SENIOR ENGINEER CLINT SHIMA, SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE 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 Six capital projects are planned to occur over the next four years and involve the addition of new electrical equipment to Central San's existing electrical distribution system. To ensure reliable and safe operation of the electrical distribution system, it is necessary to update the power system study, including arc flash analysis and relay settings, to reflect the new electrical equipment and power load. The purpose and scope of the agreement is to assist staff by having the selected consultant provide specialty electrical engineering for protective relay coordination and arc flash analysis studies, as well as to assist with any electrical design and construction support. Central San staff does not have the in-house resources or the expertise to perform protective relay coordination and arc flash analysis, and has worked with consultants in the past to complete these specialized technical tasks. The last comprehensive Treatment Plant Power System Study and Pump Stations Power System Study were completed in 2015 under the Electrical Renovations, District Project 7245. Updating the power studies will allow Central San to be in compliance with National Fire Protection Association (NFPA) 70E, Standard for Electrical Safety November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 7 of 56 Page 2 of 3 in the Workplace, and OSHA code requirements to perform such studies, such as Regulation 29 CFR 1910.132(d)(1), which requires employers to perform a personal protective equipment (PPE) hazard assessment to determine necessary PPE to perform the work. Executing an agreement spanning multiple projects and years allows for reduced administration costs and staff time needed to issue individual agreements for each project or spend more time in order to familiarize different consultants. It also facilitates a more consistent product utilizing the same specialist over multiple years, considering each project will impact the overall treatment plant electrical distribution. Staff prepared and posted a formal Request for Proposal (RFP) on PlanetBids and the Central San website. On October 14, 2019, five proposals were received and evaluated. Staff selected HP Squared as the best-fit firm based on their qualifications, experience, past performance, and proposed fees. HP Squared has staff that were involved in previous studies performed for Central San. ALTERNATIVES/CONSIDERATIONS Do not consolidate the specialty work into one consultant agreement and hire Central San staff capable of performing the tasks, which is not recommended for several reasons, including higher overall cost and, since the work is dependent on projects, is not considered to be a full-time position. FINANCIAL IMPACTS The total estimated cost to complete the specialty electrical engineering services outlined in the RFP is expected to reach $400,000 over a four-year period, if fully utilized. The services provided are paid and budgeted under projects identified in the annual Capital Improvement Budget. In some cases, when the services do not result in a capital improvement, these costs are charged to the Operating budget. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at the November 19, 2019 meeting and recommended RECOMMENDED BOARD ACTION Authorize the General Manager to execute a professional engineering services agreement with HP Squared in an amount not to exceed $400,000 to provide specialty electrical engineering for capital improvement projects. 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 3- Comply with all federal, state, and local regulations related to District administration GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage costs GOAL FOUR: Develop and retain a highly trained and innovative workforce Strategy 3- Meet or exceed industry safety standards November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 8 of 56 Page 3 of 3 GOAL FIVE: Maintain a Reliable Infrastructure Strategy 1 - Manage assets optimally throughout their lifecycle, Strategy 3- Protect District personnel and assets from threats and emergencies November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 9 of 56