HomeMy WebLinkAbout04.b. Review draft Position Paper to authorize the General Manager to execute two professional engineering service agreements with Bay Area Coating Consultants, Inc. and JDH Corrosion Consultants, Inc., for a three-year term in an amount not to exceed $2 Page 1 of 2
Item 4.b.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
DRAFT
MEETING DATE: NOVEMBER 3, 2020
SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL
MANAGER TO EXECUTE TWO PROFESSIONAL ENGINEERING SERVICE
AGREEMENTS WITH BAYAREA COATING CONSULTANTS, INC. AND JDH
CORROSION CONSULTANTS, INC., FOR A THREE-YEAR TERM IN AN
AMOUNT NOT TO EXCEED $250,000 EACH TO PROVIDE SPECIALTY
COATING INSPECTION SERVICES FOR CAPITAL IMPROVEMENT
PROJECTS
SUBMITTED BY: INITIATING DEPARTMENT:
CHATHU ABEYRATHNA, 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
The Board of Directors' (Board) authorization is required for the General Manager to execute a
professional engineering services agreement in an amount greater than $200,000.
BACKGROUND
Several construction projects have been presented to the Board for award in the Capital Improvement
Budget (CI B)for Fiscal Year(FY) 2020-21, and more will be presented for FY 2021-22. Central San staff
routinely provides construction management, administration, resident engineering, and limited inspection
duties for many of these projects. Certain construction support services, such as specialty coating
inspection, are provided by outside consultants. Coating inspection is a specialized service and requires
certifications from the National Association of Corrosion Engineers (NACE) as well as an understanding of
surface preparation and special training with different coating methods. Several upcoming projects include
critical protective coating activities, such as the Filter Plant and Clearwell I mprovements, Phase 1 A. Staff
proposes utilizing specialty coating inspectors to ensure a quality installation is provided by the contractors.
November 3, 2020 EOPS Regular Committee Meeting Agenda Packet- Page 14 of 41
Page 2 of 2
On September 9, 2020, a formal Request for Proposal was publicly advertised on Central San's website
and PlanetBids for as-needed specialty coating inspection services. Two firms responded with qualified
proposals: Bay Area Coating Consultants, I nc. and J D H Corrosion Consultants, I nc. Central San has
worked with both firms that have provided excellent services. Staff recommends executing contracts with
both firms.
ALTERNATIVES/CONSIDERATIONS
Central San Engineering staff could provide specialty coating inspection services; however, this is not
recommended since staff does not currently have the specialized training and skills required to provide
these services. Engineering staff could obtain the requisite training; however, this would be more costly
and time-intensive. Furthermore, these duties would take away from project duties such as design,
resident engineering, and other construction support engineering-related services. The Board may elect to
limit the agreement cost ceiling or duration, but this is not recommended since the proposed costs are
competitive, and a multi-year agreement allows for less staff time in soliciting and administrating yearly
agreements.
FINANCIAL IMPACTS
The total cost for specialty coating inspection is expected to reach $500,000 over the period of the
agreements. The cost ceiling for each of the two firms will be $250,000. The hourly rate for the proposed
inspectors ranges from $115 to $125 per hour. 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 are still competitive.
The services provided under these agreements are funded by project budgets approved in the annual
CI B, and no additional funds are being requested.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this subject on November 3, 2020, and
recommended
RECOMMENDED BOARD ACTION
Authorize the General Manager to execute professional engineering service agreements with Bay Area
Coating Consultants, I nc. and J D H Corrosion Consultants, I nc. for a three-year term in an amount not to
exceed $250,000 each to provide specialty coating inspection services for capital improvement projects.
Stratedc Plan Tie-In
GOAL TWO:Environmental Stewardship
Strategy 1—Achieve 100%compliance in all regulations
GOAL THREE: Fiscal Responsibility
Strategy 1—Maintain financial stability and sustainability
GOAL FIVE:Infrastructure Reliability
Strategy 1—Manage assets optimally to prolong their useful life, Strategy 2—Execute long-term capital renewal and
replacement program
November 3, 2020 EOPS Regular Committee Meeting Agenda Packet- Page 15 of 41