HomeMy WebLinkAbout03.a. Execute Two Professional Engineering Services Agreements 1) ArcSine Engineering NTE $600,000; and 2) Joe Hill Consulting & Engineering Corp. NTE $250,000 for As-Needed EI&C Engineering Services; 3-yr. TermPage 1 of 3
Item 3.a.
DCENTRALSAN
MEETING DATE: MARCH 13, 2023
BOARD OF DIRECTORS
POSITION PAPER
DRAFT
SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL
MANAGER TO EXECUTE TWO PROFESSIONAL ENGINEERING
SERVICES AGREEMENTS WITH 1) ARCSI NE ENGINEERING I N AN
AMOUNT NOT TO EXCEED $600,000; AND 2) JOE HILL CONSULTING &
ENGINEERING CORPORATION INANAMOUNT NOTTO EXCEED $250,000
TO PROVIDE AS -NEEDED ELECTRICAL, INSTRUMENTATION, AND
CONTROLS ENGINEERING SERVICES FORATHREE-YEAR TERM IN
THE CAPITAL IMPROVEMENT PROGRAM
SUBMITTED BY: INITIATING DEPARTMENT:
MARK WENSLAWSKI, ASSOCIATE ENGINEERING AND TECHNICAL SERVICES -
ENGINEER CAPITAL PROJECTS
REVIEWED BY: NATHAN HODGES, SENIOR ENGINEER
EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER
DANEA GEMMELL, PROVISIONAL DIRECTOR OF ENGINEERING AND
TECHNICAL SERVICES
ISSUE
The Board of Directors authorization is required for the General Manager to execute a professional
engineering services agreement in an amount greater than $200,000.
BACKGROUND
Central San staff has several in-house design projects or construction activities that often require electrical,
instrumentation, and controls (EI&C) engineering. The purpose and scope of the as -needed agreements
is to assist or augment Central San staff by having the selected consultants perform condition
assessments, design services, construction support services, and other related EI&C engineering work.
These E I &C services may also be used by Central San's maintenance reliability engineering, electrical
shop, and control systems staff during operations and maintenance activities or questions at the treatment
plant or pumping stations. The Capital Projects Division is routinely asked electrical questions and has one
in-house engineer expert, therefore, the agreements allow for a quick response to E I &C work.
March 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 3 of 43
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The practice of using as -needed or on -call agreements has been very successful at Central San.
Executing this type of agreement allows for reduced administration costs and staff time needed to issue
individual agreements for every project. The tasks developed under these agreements are typically in
support of rehabilitation or replacement work designed by in-house engineers who do not have a
professional license for E I &C or smaller capital projects. Larger tasks are typically included in design
agreements with consultants for their respective project.
The previous E I &C as -needed agreements were executed with TJ C and Associates, I nc. and ArcSine
Engineering (ArcSine) in an amount of $375,000 each or $750,000 in total. Staff is requesting a $100,000
or a 13-percent increase due to the amount of work planned in the treatment plant in the next three years.
Staff is proposing to allocate the majority of the work with ArcSine as they have proven to be the best fit
with Central San's EI&C standards. Joe Hill Consulting & Engineering Corporation is a new firm to Central
San and seems very promising; therefore, staff is proposing a lesser amount as an introductory -type
agreement.
Staff prepared and posted a Request for Proposals on PlanetBids and Central San's website for the as -
needed E I &C services. On January 20, 2023, nine proposals were received and evaluated. I nterviews
were conducted between February 21 and 27, 2023. Staff selected ArcSine and Joe Hill Consulting &
Engineering Corporation as the best qualified firms based on their experience, past performance, and
proposed fees.
ALTERNATIVES/CONSIDERATIONS
Central San could combine services with a broader scope of as -needed services to support operations,
planning, and Capital Projects Division needs. Some agencies package professional engineering services
to include E I &C and other disciplines such as civil, mechanical, geotechnical, or structural engineering and
develop master service agreements which are managed by larger engineering firms. However, Central
San's practice of using smaller and multiple engineering firms has been cost-effective and successful in
responding to urgent projects with qualified experts. Therefore, this alternative is not recommended.
Central San's Capital Improvement Program has grown in the last several years. With each project,
especially at the treatment plant, there are significant elements of the scope associated with El &C. An
alternative could be to hire more in-house EI&C professional engineers which has been attempted on
several Capital Projects recruitments with minimal outside interest.
Another alternative would be to have Central San's Operations Department, electrical and instrument
shops, perform the work. However, staff in these shops are unavailable due to their normal day-to-day work
with the treatment plant, performing routine needed maintenance and repairs and supporting numerous
capital projects. Therefore, this alternative is not recommended.
Another option would be to only select one of the two firms. However, having two firms available allows
more flexibility to respond to urgent needs, and they may not always have staff readily available when
Central San requests them, or have the expertise for the project, as each of these two firms have their own
focus on expertise that we will need to utilize at times on various projects. Therefore, this alternative is not
recommended.
FINANCIAL IMPACTS
The total estimated cost for the as -needed E I &C services could reach up to $850,000 over a three-year
period, if fully utilized. The services provided are paid for and budgeted under projects identified in the
yearly Capital I mprovement Budget. I n some cases, when the services do not result in a capital
improvement, these costs are charged to the Operating budgets.
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COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this subject at its March 13, 2023 meeting and
recommended
RECOMMENDED BOARD ACTION
Authorize the General Manager to execute two professional engineering services agreements with 1)
ArcSine Engineering in an amount not to exceed $600,000; and 2) Joe Hill Consulting & Engineering
Corporation in an amount not to exceed $250,000 to provide as -needed electrical, instrumentation, and
controls engineering services for a three-year term in the Capital Improvement Program.
Strategic Plan re -In
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 SIX: Infrastructure Reliability
Strategy 1 - Manage assets optimally
March 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 5 of 43