HomeMy WebLinkAbout03.b. Review draft Position Paper to authorize the General Manager to execute three-year professional engineering services agreements with Lee & Ro, Inc. and Brown and Caldwell in an amount not to exceed $500,000 each to provide as-needed design and cons Page 1 of 3
Item 3.b.
CENTRAL SAN BOARD OF DIRECTORS
vie POSITION PAPER
Hill Tim DRAFT
MEETING DATE: DECEMBER 10, 2019
SUBJECT: REVIEW DRAFT POSITION PAPER TOAUTHORIZE THE GENERAL
MANAGER TO EXECUTE THREE-YEAR PROFESSIONAL ENGINEERING
SERVICES AGREEMENTS WITH LEE & RO, INC. AND BROWN AND
CALDWELL IN AN AMOUNT NOT TO EXCEED $500,000 EACH TO
PROVIDE AS-NEEDED DESIGN AND CONSTRUCTION SUPPORT
SERVICES FOR CAPITAL IMPROVEMENT PROJECTS
SUBMITTED BY: INITIATING DEPARTMENT:
CHATHURAABEYRATHNA, ASSOCIATE ENGINEERING AND TECHNICAL SERVICES-
ENGINEER CAPITAL PROJECTS
REVIEWED BY: CRAIG MIZUTANI, 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
Central San staff has several in-house design projects and construction activities that often require civil,
mechanical, structural, electrical, instrumentation, and controls engineering. Central San currently has
discipline specific as-needed services contracts; however, some work, specifically at the treatment plant,
requires coordination between multiple engineering disciplines. The purpose and scope of the as-needed
service agreements is to assist or augment Central San staff by having the selected consultants perform
design and engineering support services during construction, and other related engineering work on
upcoming capital projects.
Staff prepared and posted a Request for Proposal on PlanetBids and the Central San website for
professional engineering services for the Treatment Plant Piping Renovations, Phase 10, District Project
7369 (Piping Phase 10) and as-needed services for other projects. On October 30, 2019, five proposals
were received and evaluated from: Black and Veatch, Kennedy Jenks, Brown and Cauldwell (B&C),
December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 14 of 18
Page 2 of 3
HDR, and Lee & Ro, Inc. (Lee & Ro). Staff selected Lee & Ro and B&C as the best-fit firms based on
their experience, past performance, and proposed fees. Contracting with two firms allows staff the
flexibility to respond to urgent design, construction, and operations and maintenance needs.
The engineering agreement with Lee & Ro will primarily be utilized to design Piping Phase 10. This
project will improve the treatment plant 1-water system by replacing the storage tanks and
associated piping which is deteriorating, as well as other mechanical and electrical components that have
reached the end of their useful life.
The engineering agreement with B&C will be used for design of smaller projects under the Uniform Public
Construction Cost Accounting Act (UPCCAA) and other renovation projects. The as-needed services will
be used by the Capital Projects Division to help support Operations and Plant Maintenance, which allows
for quick response to issues at the treatment plant, pump stations, and general improvement type projects.
These services may also be used by Central San's operations and maintenance departments.
The practice of using as-needed or on-call agreements has been very successful at Central San.
Executing this type of agreement allows for reduced administration costs and staff time needed to issue
individual agreements for each project.
ALTERNATIVES/CONSIDERATIONS
Central San's Capital Improvement Program has grown significantly in the last several years. An
alternative to the as-needed contracts would be to hire more in-house full-time or temporary
engineers. The additional engineers, possibly two to three associate engineers, could use the existing
discipline specific engineering services agreements to support Operations, Planning, and Capital Projects
Division needs.
Another alternative for performing some of the UPCCAA projects would be to have Central San's
Maintenance Department perform some of the work. However, staff in the Maintenance Department is
unavailable due to the normal day-to-day work within the treatment plant, performing needed routine
maintenance and repairs, and supporting numerous capital projects. Additionally, under the UPCCAA,
Central San force account work is limited to $60,000. Therefore, this alternative is not recommended.
Lastly, another option would be to select only one of the two firms. However, having two as-needed
contracts available allows more flexibility since one firm may not always have staff readily available when
requests are made. Additionally, each of these two firms have their own focus of expertise that will be
needed on the various projects. For example, the majority of Lee & Ro's task will be on the Piping Phase
10 project, while B&C will handle the majority of the other as-needed services since their Walnut Creek
office has more specialty services available locally. Therefore, this alternative is not recommended.
FINANCIAL IMPACTS
The total cost for the as-needed engineering services could reach up to $1,000,000 over a three-year
period, if fully utilized. Each agreement is estimated to cost $500,000. The agreement with Lee & Ro will
be used to design the Piping Phase 10 project, which is in the fiscal year(FY) 2019-20 Capital
mprovement Budget (CI B) on page 195 with a total estimated project budget of $3.75 million. Other
services that will be provided under these agreements will be paid for and budgeted under various
projects identified in the yearly CI B. UPCCAA projects will be mainly funded by the Annual I nfrastructure
Replacement, District Project 7370 that includes a total estimated budget of$5.6 million between FY
2019-20 and FY 2020-21. Occasionally, when the services do not result in a capital improvement, these
costs are charged to the Operating budgets.
December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 15 of 18
Page 3 of 3
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this subject at the December 10, 2019 meeting
and recommended
RECOMMENDED BOARD ACTION
Authorize the General Manager to execute three-year professional engineering services agreements with
Lee & Ro, Inc. and Brown and Caldwell in an amount not to exceed $500,000 each to provide as-needed
design and construction support services 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
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
December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 16 of 18