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HomeMy WebLinkAbout05. Authorize engineering agreements for specialty coating inspection services Page 1 of 3 Item 5. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: NOVEMBER 19, 2020 SUBJECT: AUTHORIZE THE GENERAL MANAGER TO EXECUTE TWO PROFESSIONAL ENGINEERING SERVICE AGREEMENTS WITH BAY AREA COATING CONSULTANTS, INC. AND JDH CORROSION CONSULTANTS, I NC. FOR A THREE-YEAR TERM I N AN AMOUNT NOT TO EXCEED $250,000 EACH TO PROVI DE SPECIALTY COATI NG 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 Roger S. Bailey General Manager 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 November 19, 2020 Regular Board Meeting Agenda Packet- Page 35 of 152 Page 2 of 3 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. 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 and they 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 matter on November 3, 2020, and recommended Board approval. 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. Strategic Plan Tie-In GOAL TWO:Environmental Stewardship Strategy 1—Achieve 100%compliance in all regulations GOAL THREE: Fiscal Responsibility November 19, 2020 Regular Board Meeting Agenda Packet- Page 36 of 152 Page 3 of 3 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 19, 2020 Regular Board Meeting Agenda Packet- Page 37 of 152