HomeMy WebLinkAbout04.c. Review draft Position Paper to authorize the General Manager to execute three-year technical consulting services agreements with Consolidated Engineering Laboratories and Terracon Consultants, Inc., in an amount not to exceed $225,000 each, to prov Page 1 of 3
Item 4.c.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
DRAFT
MEETING DATE: JUNE 2, 2020
SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL
MANAGER TO EXECUTE THREE-YEAR TECHNICAL CONSULTING
SERVICES AGREEMENTS WITH CONSOLIDATED ENGINEERING
LABORATORIES AND TERRACON CONSULTANTS, INC., I N AN AMOUNT
NOT TO EXCEED $225,000 EACH, TO PROVIDE ON-CALL MATERIAL AND
COMPACTION TESTING SERVICES FOR THE CAPITAL IMPROVEMENT
PROGRAM
SUBMITTED BY: INITIATING DEPARTMENT:
WILLIAM GRANT, 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
ISSUE
The Board of Directors' (Board) authorization is required for the General Manager to execute a technical
consulting services agreement in an amount greater than $200,000.
BACKGROUND
Central San uses consultant services for material and compaction testing to support capital improvement
projects during construction, especially in the Collection System Program. The two current material and
compaction testing on-call agreements are nearing their authorized cost limits and are set to
expire. The scope of work includes, but is not limited to, varied levels of verification and material testing,
concrete sampling, and backfill compaction. For example, sewer renovation projects in the Collection
System Program use on-call compaction testing services to determine if proper soil or engineered backfill
is compacted to Central San specifications, and the results are typically shared with the county or cities as
a requirement of the encroachment permits issued for the construction project. Another example is
concrete sampling, which is done to verify compressive strength for manholes or other structures. As part
of these agreements, test reports are completed by certified technicians and laboratories. The reports
provide staff an assurance that the contractors are providing the correct materials and workmanship
according to the Contract Documents.
June 2, 2020 EOPS Regular Committee Meeting Agenda Packet- Page 324 of 328
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Historically, the Collection System staff within Capital Projects has been the main user of these services.
However, staff anticipates that projects across the Ten-Year Capital Improvement Plan (Cl P)will require
more material and compaction testing services in the next three years. Projects like the Filter Plant and
Clearwell Improvements - Phase 1 A, Pump Station Upgrades - Phase 1, and several treatment plant
projects will need to use these services. Thus, staff is recommending using three consultants and issuing
three-year agreements based on the ongoing and proposed construction work in the CI P.
Staff prepared and posted a Request for Proposal on PlanetBids and the Central San website. On May
11, 2020, 11 proposals were received and evaluated. Staff selected Consolidated Engineering
Laboratories, Construction Testing Services, Inc., and Terracon Consultants, Inc. as the best-fit firms
based on their experience, qualifications, fees, and past performance. Contracting with three firms allows
staff flexibility to respond to urgent design, construction, and coordination needs throughout the Capital
Program since many of the projects will occur at the same time.
Construction Testing Services, I nc. is new to Central San and is relatively smaller than the other two firms;
therefore, staff proposes executing an agreement within the General Manager's delegation of authority, in
the amount of$150,000, in order to gain working knowledge and experience with the firm.
ALTERNATIVES/CONSIDERATIONS
The practice of using as-needed or on-call agreements has been very successful. Executing this type of
agreement allows for reduced administration costs and staff time needed to issue individual agreements
for each project. The tasks developed under these agreements are typically low cost and consolidating the
work is recommended.
An alternative would be to include these services under an existing consultant construction management
services agreement; however, there are several construction projects that are managed by Central San
staff and the rates provided by these recommended firms are commonly lower.
Another alternative would be to hire staff to perform the work, similar to other agencies. This is not
recommended as it would not be cost effective or practical since the work is specialized in nature, typically
seasonal, and would require several employees to cover projects throughout the Central San service area.
FINANCIAL IMPACTS
The total cost for the two Board authorized agreements is expected to reach up to $450,000 over a three-
year period, if fully utilized, with each agreement to not exceed $225,000. A third proposed agreement for
$150,000 will be authorized by the General Manager. The hourly rates for the services range from $90-
$130 and are on an as-needed basis to support projects. Overall, the total anticipated services, including
all three proposed agreements, is estimated to be up to $600,000 over the three-year term.
Each 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 remain
competitive. The services provided under these agreement are funded by project budgets approved in the
annual Capital Improvement Budget; no additional funds are being requested.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this subject on June 2, 2020, and recommended
June 2, 2020 EOPS Regular Committee Meeting Agenda Packet- Page 325 of 328
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RECOMMENDED BOARD ACTION
Authorize the General Manager to execute three-year technical consulting services agreements with
Consolidated Engineering Laboratories and Terracon Consultants, Inc., in an amount not to exceed
$225,000 each, to provide on-call material and testing services for capital improvement projects.
Strategic Plan re-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 3- Meet or exceed industry safety standards
GOAL FIVE: Maintain a Reliable Infrastructure
Strategy 2- Facilitate long-term capital renewal and replacement, Strategy 3- Protect District personnel and assets
from threats and emergencies
June 2, 2020 EOPS Regular Committee Meeting Agenda Packet- Page 326 of 328