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HomeMy WebLinkAbout09. Authorize two 3-year agreements for inspection services for capital improvement projects Page 1 of 3 Item 9. CENTRAL SAN BOARD OF DIRECTORS vie . , Hill. , , . . POSITION PAPER MEETING DATE: FEBRUARY20, 2020 SUBJECT: AUTHORIZE THE GENERAL MANAGER TO EXECUTE THREE-YEAR PROFESSIONAL ENGINEERING SERVICES AGREEMENTS WITH CONSOLIDATED CM, INC. AND HDR, INC. IN AN AMOUNT NOT TO EXCEED $500,000 EACH TO PROVIDE CONSTRUCTION AND SPECIALTY INSPECTION SERVICES FOR CAPITAL IMPROVEMENT PROJECTS AT THE WASTEWATER TREATMENT PLANT SUBMITTED BY: INITIATING DEPARTMENT: CRAIG MIZUTANI, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE The 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 Several construction projects have been or will be presented to the Board for award in the Capital Improvements Program relating to the wastewater treatment plant (plant) or general improvements. Central San staff routinely provides construction management, administration, resident engineering, and inspection February 20, 2020 Regular Board Meeting Agenda Packet- Page 80 of 161 Page 2 of 3 duties for projects and supplements with outside inspectors as needed. Construction inspection consists of general inspection duties to coordinate and monitor daily contractor activities and report any issues or conflicts to Central San's construction manager or engineer as problems arise. Inspectors are critical during construction since they are the field assurance that the project is built according to the approved project submittals and contract documents (specifications and drawings). Specialty services include inspection of electrical, instrumentation, control systems, specialty materials, welding, and other trades that require specialty training or knowledge. An evaluation of the projected construction activities remaining in Fiscal Year(FY) 2019-2020 through FY 2021-22 indicates the need to hire up to three additional inspectors for the peak construction months (May through October). Construction inspection and specialty services are needed for the Emergency Sludge Loadout Facility(ESLF) Upgrades, District Project (DP) 7348A and for the Mechanical and Concrete Renovations, DP 7351. In addition, future projects, including the Treatment Plant Piping Renovations- Phase 10, Safety Enhancements-Phase 5, and other projects in the plant or general improvements program will require the same outside services. On September 11, 2019, a Request for Proposals was publicly advertised on Central San's website and PlanetBids for as-needed construction inspection and specialty services. Five firms (Anchor CM, Consolidated CM, Inc. (Consolidated CM), HDR, Inc. (HDR), K&B Construction Services, Inc., and MCK Americas, Inc.) responded with qualified and responsive proposals. After evaluating the proposals based on qualifications, fees, references, and proximity to Central San, staff selected two firms - Consolidated CM and HDR. Both firms perform construction inspection; however, HDR was selected mainlyforthe specialty services offered under their proposal. A large portion of Consolidated CM's tasks will be on the ESLF project with a focus on general construction inspection, while HDR will provide specialty inspection services for electrical and controls work. ALT ERNAT IVES/CONSIDERAT IONS Central San has historically used external construction inspection on an annual basis to inspect projects in the plant.An alternative to the as-needed agreements would be to hire in-house construction inspectors or similar positions in the Capital Projects Division. This would require creating positions and hiring an additional two to three full-time or temporary staff. Based on the as-needed and seasonal time frame required for the construction projects, this alternative is not recommended. 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 services are requested.Additionally, each of these two firms have their own focus of expertise that will be needed on the various projects. Therefore, this alternative is not recommended. FINANCIAL IMPACTS The total cost for the two agreements presented is expected to reach $1 million over the period of the agreements. The Consolidated CM and HDR agreements are anticipated to reach $500,000 each. The hourly rate for the proposed inspectors ranges from $135 to $203 depending on the specialty qualifications required for the project. The agreement duration is expected to be three years; however, project schedules and construction may change over time for several reasons. Therefore, the duration of the agreements may be extended by staff to complete construction of a project or if the agreement is not fully utilized, as long as the rates are still competitive. The services provided under these agreements are funded by project budgets approved in the annual Capital Improvement Budget, and no additional funds are being requested. February 20, 2020 Regular Board Meeting Agenda Packet- Page 81 of 161 Page 3 of 3 COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at the January 14, 2020 meeting and recommended approval of the subject. RECOMMENDED BOARD ACTION Authorize the General Manager to execute professional engineering services agreements for a three-year term in an amount not to exceed $500,000 each with the following firms: 1. Consolidated CM, Inc. for as-needed construction inspection; and 2. HDR, I nc. for as-needed construction inspection and specialty services. 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 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 February 20, 2020 Regular Board Meeting Agenda Packet- Page 82 of 161