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HomeMy WebLinkAbout09. Authorize agreement with ArcSine Engineering for specialty inspection services for capital projects Page 1 of 3 Item 9. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: MAY 7, 2020 SUBJECT: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH ARCSI NE ENGINEERING IN AN AMOUNT NOT TO EXCEED $350,000 FOR SPECIALTY ELECTRICAL, INSTRUMENTATION AND CONTROLS INSPECTION SERVICES FOR CAPITAL IMPROVEMENT PROJECTS SUBMITTED BY: INITIATING DEPARTMENT: KEITH GELLERMAN, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: SASHA MESTETSKY, SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey General Manager ISSUE Board of Directors' authorization is required for the General Manager to amend a professional engineering services agreement in an amount greater than $100,000 for agreements under$1 million. BACKGROUND Due to the wide variety of complex and critical projects Central San has undertaken, staff is in need of specialty inspection services to support the projects. Many of these projects require specialty inspections for electrical, instrumentation and controls (EI&C), welding, reinforced concrete, and masonry. An evaluation of the construction work projected this fiscal year and future years indicates that hiring two specialty inspection firms will be necessary during the peak construction months (May through November). Staff recommends hiring one firm for EI&C specialty inspection and one for structural inspection (welding, concrete, masonry, etc.). These inspection services may be used to support construction activities at the May 7, 2020 Regular Board Meeting Agenda Packet- Page 70 of 166 Page 2 of 3 treatment plant, in addition to collection system, recycled water, and other special projects. On January 24, 2020, a Request for Proposal was publicly advertised on Central San's website and PlanetBids for the construction inspection services. Five firms responded with qualified proposals for electrical inspection and three firms responded with qualified proposals for structural inspection. After evaluating the proposals based on qualifications and fees, staff selected the top firms: ArcSine Engineering (ArcSine)for E I&C specialty inspection and I nspection Services, I nc. (I SI)for structural specialty inspection. In addition to each firm's experience, selection was also based on their proposed inspectors and availability. ArcSine offers electrical inspectors that were or are certified journey-level electricians and have public works construction contract experience. ArcSine's main office is in Redding, California; however, they have inspectors located near Central San. IS I will be hired to perform structural inspection of steel, masonry, and other specialty structural work at an estimated cost of $175,000, which is within the General Manager's consultant agreement delegation of authority. ArcSine has an existing as-needed agreement with Central San for EI&C engineering services in the amount of $375,000. Upon Board approval, staff will amend the agreement terms to include the specialty inspection services at a cost ceiling of$350,000. The new total agreement cost ceiling with inspection will be $725,000 for an expected duration of three years. ALTERNATIVES/CONSIDERATIONS Central San Engineering staff could issue individual specialty inspection agreements for each project; however, this is not recommended since this will require significant staff time to advertise and execute agreements and staff would be unable to have a ready contract during an emergency situation. The Board may elect to limit the agreement cost ceiling or duration. This is also not recommended since the proposed costs are competitive and a multi-year agreement allows for less staff time in soliciting and administering yearly agreements. FINANCIAL IMPACTS The total cost for electrical inspection with ArcSine may reach $350,000 over a period of the agreement. The hourly rate for the proposed inspectors ranges from $126 to $165 per hour depending on the type of inspection needed for a project. A negotiated rate increase will be determined each year at the approval of Central San staff and will be limited by the Consumer Price Index. The duration of the inspection services is expected to be three years; however, construction and schedules may change over time for many reasons. Therefore, the agreement duration may be extended by staff to support the construction and completion of a project or if the agreement is not fully utilized, as long as the rates are still competitive. The inspection is on a as-needed basis to support electrical and controls construction work within a project and is not intended to be general inspection services. The inspection services provided for under this agreement revision are budgeted and paid for by capital projects in the Capital Improvement Budget. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at the meeting on April 14, 2020, and recommended approval. RECOMMENDED BOARD ACTION Authorize the General Manager to amend an existing professional services agreement with ArcSine Engineering in an amount not to exceed $350,000 for specialty electrical, instrumentation and controls May 7, 2020 Regular Board Meeting Agenda Packet- Page 71 of 166 Page 3 of 3 inspection 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 2- Strive to minimize the number of sanitary sewer overflows 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 2- Enhance relationships with employees and bargaining units, Strategy 3- Meet or exceed industry safety standards GOAL FIVE:Maintain a Reliable Infrastructure Strategy 2- Facilitate long-term capital renewal and replacement May 7, 2020 Regular Board Meeting Agenda Packet- Page 72 of 166