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HomeMy WebLinkAbout4.a. Receive infromal assessment on utilization of the uniform public construction cost accounting act (UPCCAA) since its implementation at Central San in September 2018 Page 1 of 5 Item 4.a. ,orVIOIN SAN December 17, 2019 TO: ADMINISTRATION COMMITTEE FROM: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE INFORMAL ASSESSMENT ON UTILIZATION OF THE UNIFORM PUBLIC CONSTRUCTION COSTACCOUNTING ACT (UPCCAA) SINCE ITS IMPLEMENTATION AT CENTRAL SAN IN SEPTEMBER 2018 Staff will present an informal assessment on the utilization of the UPCCAA since its implementation in September 2018 at Central San. Strategic Plan Tie-In GOAL ONE:Provide Exceptional Customer Service Strategy 2- Foster employee engagement and interdepartmental collaboration GOAL TWO: Strive to Meet Regulatory Requirements 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 FIVE: Maintain a Reliable Infrastructure Strategy 1 - Manage assets optimally throughout their lifecycle, Strategy 3- Protect District personnel and assets from threats and emergencies ATTACHMENTS: 1. Presentation December 17, 2019 Special ADMIN Committee Meeting Agenda Packet- Page 52 of 113 Page 2 of 5 UPDATE ON UNIFORM PUBLIC f CONSTRUCTION COST {� ACCOUNTING ACT (UPCCAA) AT CENTRAL SAN Administration Committee December 17, 2019 Edgar J. Lopez, P.E. Capital Projects Division Manager BACKGROUND Board adopted the UPCCAA on May 3, 2018, which became effective on September 1, 2018: • Informal bid threshold for projects $200,000 or below • Projects below $60,000, may be constructed under force account, negotiated contract, or by quotes • Limits are subject to change by the State; last update was January 1, 2019 • General Manager has the delegated authority to contract UPCCAA projects CENTRALSAN December 17, 2019 Special ADM IN Committee Meeting Agenda Packet- Page 53 of 113 Page 3 of 5 CONTRACTOR'S LIST Central San maintains a list for all contractors interested in UPCCAA informal quotes or bids: • Easy application process: Contractors provide license, select type of work, and state they have reviewed and can meet the safety, insurance, and bonding requirements. • Every year, staff posts a notice on PlanetBids, which connects to bidder exchanges and other resources in northern California, for additional participation interest. • Contractors can apply at any time, year-round, on Central San's website. • As of November 26, 2019, there are a total of 55 contractors, of which, 33 are General "A" licensed and 11 are within the service area. CENTRAL SAN r UPCCAA PROCESS IN CAPITAL PROJECTS Three types of contract solicitation requirements: • Projects between $60,000 - $200,000 • Informal bids • Contract requires bid bond, payment and performance bonds • Projects under $60,000 • Informal quotes • Contract requires payment and performance bonds • Projects under $25,000 • Informal quotes or negotiated contract • No bonding required CENTRALSAN December 17, 2019 Special ADM IN Committee Meeting Agenda Packet- Page 54 of 113 Page 4 of 5 UPCCAA PROJECTS TO DATE • Ten contracts completed under this program; most at the treatment plant • Five more projects are currently being developed for informal bids or quotes • Examples: Sludge blending pump replacement at the Solids Conditioning Building, concrete pad improvements at the Collection System Operations facility, and miscellaneous electrical breaker replacement at the treatment plant ACV), CENTRAL SAN ADVANTAGES OF UPCCAA • Found new Contractors to work at Central San; staff continues to encourage local contractors • Streamlines the process, administrative and time savings compared to traditional public bid • Example of Cost Savings: • Maintenance identified an HVAC unit that needed immediate replacement, received change order cost estimates from on-site contractors (best price received: $115,000), issued UPCCAA informal bid and received cost of$98,000; $17,000 savings • So far, UPCCAA has been successful at Central San and staff will continue to find new ways to make improvements AIMkCENTRALSAN 3 December 17, 2019 Special ADM IN Committee Meeting Agenda Packet- Page 55 of 113 Page 5 of 5 QUESTIONS? CENTRAL SAN 4 December 17, 2019 Special ADM IN Committee Meeting Agenda Packet- Page 56 of 113