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HomeMy WebLinkAbout09. Authorize three professional engineering services agreements for construction inspection of collection system projects with ICM Group, Condolidated CM, and JN Engineering Page 1 of 3 Item 9. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: OCTOBER 6, 2022 SUBJECT: AUTHORIZE THE GENERAL MANAGER TO EXECUTE THREE PROFESSIONAL ENGINEERING SERVICES AGREEMENTS FOR COLLECTION SYSTEM PROJECTS CONSTRUCTION INSPECTION UNDER THE CAPITAL IMPROVEMENT PROGRAM, EACH FORA THREE- YEAR TERM, WITH THE FOLLOWING FIRMS AND IN AMOUNTS NOT TO EXCEED: • ICM GROUP, INC. FOR $1,000,000; • CONSOLI DATED CM, I NC., FOR $500,000; AND • JN ENGINEERING FOR $500,000 SUBMITTED BY: INITIATING DEPARTMENT: KEITH GELLERMAN, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: SASHA MESTETSKY SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER 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, or will be, presented to the Board for award in the Capital I mprovement Budget (CI B) - Collection System Program for Fiscal Year(FY) 2022-23 and through FY 2025-26. Central San staff routinely provides construction management, administration, resident engineering, and limited inspection duties for sewer renovation projects, and supplements with outside inspectors as needed. An evaluation of the construction work projected indicates that hiring up to five inspectors will be necessary during the peak construction months (May through November). I n addition, the October 6, 2022 Regular Board Meeting Agenda Packet- Page 105 of 317 Page 2 of 3 inspectors may be used to support similar construction activities for the Treatment Plant and other Programs. On June 22, 2022, a Request for Proposal was publicly advertised on Central San's website and PlanetBids for as-needed construction inspection. Seven firms responded with qualified proposals for construction inspectors.After evaluating the proposals based on qualifications, fees, references, and proximity to Central San, staff selected the top three firms: I CM Group, I nc. (I CM), J N Engineering (J N), and Consolidated CM, Inc. (CCM). These firms were selected based on the proposed inspectors and availability to perform the type of work needed for the projects included in the CI B. ALTERNATIVES/CONSIDERATIONS Central San Engineering staff could provide inspection services; however, this is not recommended since these duties would take away from project duties such as design, resident engineering, and other construction support engineering-related services. Collection system inspection is seasonal work and using consultant inspectors to meet the seasonal demand has been cost effective compared to hiring permanent inspectors. 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. There are thirteen full-time Central San employees tasked with design and construction management duties for the collection system capital program. During the seasonal construction peak period, up to six outside contract employees are used to support sewer renovation projects. These outside consultant services consists of four construction inspectors and two surveyors; and represents a staffing increase of approximately 46-percent. FINANCIAL IMPACTS The total cost for construction inspection is expected to reach $2,000,000 over the period of the agreements. Staff determined that I CM had several well qualified inspectors for sewer renovation work and it was decided that they could have multiple inspectors in use at a time, which is the reason the agreement cost ceiling is $1,000,000 compared to $500,000 for JN and CCM. The hourly rate for the proposed inspectors ranges from $105 to $165 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 CIB, and no additional funds are being requested. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject on September 14, 2022 and recommended approval. RECOMMENDED BOARD ACTION Authorize the General Manager to execute three professional engineering services agreements, each for a three-year term, for collection system projects construction inspection under the Capital I mprovement Program with the following firms and in amounts not to exceed: • I CM Group, Inc. for$1,000,000; • Consolidated CM, Inc., for$500,000; and • JN Engineering for$500,000. October 6, 2022 Regular Board Meeting Agenda Packet- Page 106 of 317 Page 3 of 3 Strategic Plan Tie-In GOAL ONE: Customer and Community Strategy 1—Deliver high-quality customer service GOAL TWO:Environmental Stewardship Strategy 1 -Achieve compliance in all regulations GOAL FOUR: Governance and Fiscal Responsibility Strategy 3- Maintain financial stability and sustainability GOAL FIVE: Safety and Security Strategy 2- Protect personnel and assets from threats and emergencies GOAL SIX:Infrastructure Reliability Strategy 2- Execute long-term capital renewal and replacement program October 6, 2022 Regular Board Meeting Agenda Packet- Page 107 of 317