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HomeMy WebLinkAbout04.a. Review draft Position Paper to authorize the General Manager to amend an existing professional engineering services agreement with McMillen Jacobs Associates in an amount not to exceed $50,000, increasing the contract cost ceiling to $300,000 to su Page 1 of 2 Item 4.a. Algi CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER DRAFT MEETING DATE: MAY 11, 2021 SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH MCMI LLEN JACOBS ASSOCIATES IN AN AMOUNT NOT TO EXCEED $50,000, INCREASING THE CONTRACT COST CEILING TO $300,000 TO SUPPORT THE SOUTH ORI NDA SEWER RENOVATIONS, PHASE 8, DISTRICT PROJECT 8461 SUBMITTED BY: INITIATING DEPARTMENT: EDGAR J. LOPEZ, CAPITAL PROJECTS ENGINEERING AND TECHNICAL SERVICES- DIVISION MANAGER CAPITAL PROJECTS REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE The existing agreement was completed in 2019 under the previous Capital Improvement Program authorization limits. The Board of Directors (Board) authorization is required since the requested amount of $50,000 will exceed the General Manager's delegated authority and the work is urgent and needed for the South Orinda Sewer Renovations, Phase 8, District Project 8461 (Project). BACKGROUND On April 4, 2019, the Board authorized an on-call or as-needed agreement with McMillen Jacobs Associates (MJA)for geotechnical engineering services to assist in the design and construction of capital improvement projects. The purpose of the on-call geotechnical engineering service agreements is to provide varied levels of geotechnical expertise to assist staff with projects managed or designed by the Capital Projects Division. MJA was used during the design of the Project and provided the technical criteria used for the trenchless technology (pilot-guided boring) proposed under the Project.Although the agreement cost is almost fully utilized, staff is recommending to continue using MJA to support the Project since they are the responsible firm in charge for geotechnical engineering design under the Project. ALTERNATIVES/CONSIDERATIONS Other alternatives existing, such as hiring a separate firm or not authorizing the amendment, which are not recommended for the reasons stated above, especially that the work is needed to support an ongoing construction project. May 11, 2021 EOPS Regular Committee Meeting Agenda Packet- Page 3 of 11 Amended Meeting Time Page 2 of 2 This issue is related to the transition period and the changes made to the Board Policy addressing delegated limits under the Capital Improvement Program, which was modified in part to increase the limits for efficiency purposes. If the subject agreement was initiated under the new policy, the amendment would have been able to reach $300,000 without additional Board approval. Therefore, the future agreement will have higher limits as adopted by the Board. FINANCIAL IMPACTS The cost for the amendment will be in an amount not to exceed $50,000, increasing the agreement cost ceiling to $300,000. The budget for these services were included and authorized by the Board on March 4, 2021 when the Project was awarded for construction. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this item at its May 11, 2021 and recommended RECOMMENDED BOARD ACTION Authorize the General Manager to amend an existing professional engineering services agreement with McMillen Jacobs Associates in an amount not to exceed $50,000, increasing the contract cost ceiling to $300,000 to support the South Orinda Sewer Renovations, Phase 8, District Project 8461. Strategic Plan Tie-In GOAL FIVE:Infrastructure Reliability Strategy 2—Execute long-term capital renewal and replacement program May 11, 2021 EOPS Regular Committee Meeting Agenda Packet- Page 4 of 11 Amended Meeting Time