HomeMy WebLinkAbout04.b. Review draft Position Paper to authorize the General Manager to amend two professional engineering services agreements to increase each in the amount of $500,000, with: 1) MWH Constructors, Inc., increasing the cost ceiling to $2.6 million, and 2) Page 1 of 3
Item 4.b.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
DRAFT
MEETING DATE: AUGUST 10, 2021
SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL
MANAGER TOAMEND TWO PROFESSIONAL ENGINEERING SERVICES
AGREEMENTS TO INCREASE EACH IN THE AMOUNT OF $500,000, WITH:
1) MW H CONSTRUCTORS, INC., INCREASING THE COST CEILING TO
$2.6 MILLION, AND 2) CAROLLO ENGINEERS, INC., INCREASING THE
COST CEILING TO $1.3 MILLION, TO CONTINUE AS-NEEDED
CONSTRUCTION MANAGEMENT SERVICES FOR DISTRICT PROJECTS
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
Board of Directors' (Board) authorization is required for the General Manager to increase a professional
engineering services agreement in an amount greater than $200,000.
BACKGROUND
The Capital Projects Division oversees the design and construction of projects to rehabilitate and or
improve the treatment plant (plant), collection system, general facilities, and recycled water infrastructure at
Central San. An evaluation of the construction work projected over the next few years indicates that there is
a need to hire support in the field of construction management, which includes resident engineering,
general inspection, electrical inspection, and other similar duties. The support is focused on projects within
the plant or pumping stations and includes the Laboratory Roof and Seismic Upgrades, Maintenance
Reliability Center Building and Maintenance Shop Improvements, Annual Infrastructure Replacement, and
the San Ramon Electrical Improvements included in the Fiscal Year(FY) 2021-22 Capital Improvement
Plan and other projects in the next two years. Additionally, staff plans to use these services to assist with
several informal projects under the Uniform Public Construction Cost Accounting Act (UPCCAA) urgent
projects to efficiently use consultant inspection time.
Staff prepared and posted a Request for Proposals (RFP) on PlanetBids and the Central San website on
May 24, 2021 for as-needed construction management (CM) services for up to a three year term. The
RFP also included services for the Electric Blower Improvements and Treatment Plant (TP) Piping
August 10, 2021 Special EOPS Committee Meeting Agenda Packet- Page 12 of 31
Page 2 of 3
Renovations, Phase 10 projects at the plant, and that other future services may be added as needed. On
J une 18, 2021, Central San received four proposals.After a detailed review and interviews conducted, the
two top ranked proposers were Carollo Engineers, Inc. (Carollo) and MW H Constructors, Inc. (MW H).
This determination was based on experience, past performance, electrical or key personnel, and
proposed fees.
Contracting with two firms provides Capital Projects the maximum flexibility to accommodate project
needs and timelines. Furthermore, as-needed contracts result in a lower overall cost and reduce staff
administration time required to issue smaller and separate agreements per project.
Central San has a similar agreement in scope with MW H under the Filter Plant and Clearwell
Improvements project. Staff recommends to include these services to that existing agreement in lieu of
executing a separate contract since the insurance and terms of the agreement are the same. The existing
agreement with MW H is valued at$1.2 million. The proposed increase will add the as-needed services for
other District Projects for$500,000, which will result in a new cost ceiling of$2.6 million.
Carollo will be assisting with CM services for the Electric Blower Improvements and TP Piping
Renovations, Phase 10 projects. The Board authorized the Carollo CM agreement at the July 15, 2021
Board Meeting for$800,000. The proposed increase will add the as-needed services for other District
Projects for$500,000, which will result in a new cost ceiling of$1.3 million.
ALTERNATIVES/CONSIDERATIONS
The Board has the following two alternatives or may provide alternate direction as follows:
1. Consolidate the work into one agreement, which is not recommended. Having two agreements allow
for flexibility when urgent or immediate work is needed.Also, the Carollo agreement contains key
electrical CM staff that are the best fit for the upcoming construction activities.
2. This is a new as-needed agreement for Capital Projects, other construction related services exist
such as inspection. These agreements differ since the scope of services include resident
engineering, especially for electrical, instrumentation, and controls. Several of the key members for
both firms were former contractors or worked in the trades and will assist in verifying that the
workmanship provided by the contractors meets code, in compliance with the contract documents,
and is of high quality.
FINANCIAL IMPACTS
Approximately$1,000,000 for a total term of three years or about$333,000 per year. The services will be
paid by projects already budgeted for in the FY 2021-22 Budget and are on an as-needed basis.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this subject at the meeting on August 10, 2021, and
recommended
August 10, 2021 Special EOPS Committee Meeting Agenda Packet- Page 13 of 31
Page 3 of 3
RECOMMENDED BOARD ACTION
Staff recommends the Board authorize the General Manager to amend two professional engineering
services agreements to increase each in the amount of$500,000 to continue as-needed construction
management services for District Projects, as follows:
1. MW H Constructors, Inc., increasing the cost ceiling to $2.6 million; and
2. Carollo Engineers, Inc., increasing the cost ceiling to $1.3 million.
Strategic Plan Tie-In
GOAL TWO:Environmental Stewardship
Strategy 1—Achieve 100%compliance in all regulations
GOAL FOUR: Workforce Development
Strategy 4—Meet or exceed industry safety standards
GOAL FIVE:Infrastructure Reliability
Strategy 2—Execute long-term capital renewal and replacement progv am, Strategy 3—Protect personnel and assets
from threats and emergencies
GOAL SIX:Innovation and Optimization
Strategy 2—Improve and modernize operations through technology and efficiency measures
August 10, 2021 Special EOPS Committee Meeting Agenda Packet- Page 14 of 31