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HomeMy WebLinkAbout09. Allow the General Manager to execute as-needed and amended engineering services agreements and find these agreements exempt from the California Environmental Quality Act (CEQA) (2)Page 1 of 5 Item 9. DCENTRALSAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: JUNE 1, 2023 SUBJECT: AUTHORIZE THE GENERAL MANAGER TO EXECUTE: 1) FOUR NEW AS -NEEDED PROFESSIONAL ENGINEERING SERVICES AGREEMENTS, EACH FOR A FIVE-YEAR TERM WITH: • BLACK & VEATCH CORPORATION, IN AN AMOUNT NOT TO EXCEED $800,000; • BROWN AND CALDWELL, I N AN AMOUNT NOT TO EXCEED $500,000; • HAZEN & SAWYER D.P.C., IN AN AMOUNT NOT TO EXCEED $700,000; • HDR I NC. I N AN AMOUNT NOT TO EXCEED $1,800,000; AND 2) THREE AMENDMENTS TO INCREASE EXISTING AS -NEEDED PROFESSIONAL ENGINEERING SERVICES AGREEMENTS WITH: • CAROLLO ENGINEERS, INC. FOR AN INCREASE IN THE AMOUNT OF $500,000 FOR A TOTAL AGREEMENT AMOUNT NOT TO EXCEED $700,000; • WEST YOST ASSOCIATES FOR AN I NCREASE I N THE AMOUNT OF $850,000 FOR A TOTAL AGREEMENT AMOUNT NOT TO EXCEED $1,450,000; • WOODARD & CURRAN, INC. FOR AN INCREASE IN THE AMOUNT OF $600,000 FOR A TOTAL AGREEMENT AMOUNT NOT TO EXCEED $1,200,000; AND 3) FIND THESE AGREEMENTS ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA) SUBMITTED BY: AMANDA CAUBLE, ASSOCIATE ENGINEER INITIATING DEPARTMENT: ENGINEERING AND TECHNICAL SERVICES- PDS-PLANNI NG AND APPLIED RESEARCH REVIEWED BY: DAN FROST, SENIOR ENGINEER DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER NITIN GOEL, OPERATIONS OPTIMIZATIONS DIVISION MANAGER EDGAR J. LOPEZ, PROVISIONAL DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES June 1, 2023 Regular Board Meeting Agenda Packet - Page 69 of 165 Page 2 of 5 Roger S. Bailey General Manager ISSUE The Board of Directors (Board) authorization is required for the General Manager to execute agreements in amounts greater than $200,000. BACKGROUND Six as -needed agreements were approved and executed in 2019 to provide as -needed collection system, treatment plant, and recycled water program support projected for a three-year period for the Planning & Applied Research and Special Projects & Asset Management groups. Some of these 2019 agreements have closed, and the remaining are expected to close by the end of Fiscal Year 2022-23. On September 1, 2022, the Board authorized as -needed agreements for the Planning and Development Services Division to support collection system program needs. The as -needed agreements discussed in this position paper are to support anticipated treatment plant and recycled water program needs for the Planning and Applied Research, Resource Recovery, and Operation Optimizations groups. As -needed agreements optimize procurement and management of as -needed services through a consolidated list of pre -qualified consulting firms. These as -needed agreements are for specialized expertise and professional experience for a variety of tasks that enable staff to address ongoing needs. As -needed agreements are separate from individual consulting agreements typically issued by the Capital Projects Division for evaluating and designing large capital improvement projects. The as -needed agreements allow Central San staff to expedite and assign work to pre -qualified firms in an efficient and responsive manner through the issuance of a task order which defines their respective scope of work, project cost, and delivery schedule. Task orders are negotiated, reviewed, and approved by the Division Manager, released, and tracked following a similar task order release process that has also been used successfully for both planning and capital project as -needed blanket purchase agreements. Consultant Selection Staff prepared and posted a Request for Qualifications on PlanetBids and the Central San website. On February 24, 2023, 11 Statements of Qualifications were received and evaluated for the Planning and Applied Research, Resource Recovery, and Operations Optimizations groups. After evaluating the firms based on qualifications, experience, past performance, and availability, seven firms were selected for as - needed agreements to support Central San's anticipated treatment plant and recycled water program needs. A summary of these firms and some of the specialties are provided below (the specialties are not considered an exhaustive list): Black & Veatch offers expertise in asset management and optimization, such as smart utility initiatives, condition assessment, artificial intelligence/machine learning, and other dynamic asset management planning and support. Black & Veatch also has expertise in incineration, air pollution control, treatment plant feasibility studies, and techno-economic evaluations for new technologies. Brown and Caldwell offers expertise in asset management and optimization, such as solids process optimization support, including incineration, expertise in PFAS and incineration research, electrical system optimization, and development of real-time data analytics and smart utility systems. Brown and Caldwell has worked with clients to bring data from many different sources together in a comment environment through artificial intelligence/machine learning and virtual representations. June 1, 2023 Regular Board Meeting Agenda Packet - Page 70 of 165 Page 3 of 5 Brown and Caldwell have implemented digital transformation of data and analytics to optimize chemical and energy consumption. Carollo Engineers, Inc. offers expertise in asset management and optimization, such as ultraviolet disinfection and recycled water process evaluations and optimizations, condition assessment, infrastructure analytics platforms, and smart utility systems. Carollo has been successfully providing as -needed services to Central San for the past few years. Hazen and Sawyer offers expertise in asset management and optimization, such as treatment plant performance troubleshooting, response to process upsets, and microbiology evaluation and training. Hazen and Sawyer also offers extensive experience in condition assessment and risk analysis for asset management and has been successfully providing as -needed services to Central San for the past few years. HDR offers expertise in asset management and optimization, such as steam and boiler feedwater chemical systems, treatment plant hydraulic modeling, treatment plant planning efforts, asset assessments, optimizations, and applied research projects. HDR supported Central San with evaluating optimization and upgrade opportunities to reduce nutrient loads for potential future regulatory requirements. HDR offers expertise in recycled water customer feasibility studies, recycled water master plans, condition assessments, water delivery reliability assessments, hydraulic modeling, and distribution system evaluation and design. HDR is also actively engaged with the Envision sustainability framework and Envision project assessments. HDR has been successfully providing as -needed services to Central San for the past few years. West Yost offers expertise in modeling platforms such as I nfoWater® used for recycled water modeling, optimization of the recycled water distribution system operation, and technical expertise in recycled water distribution system optimization and renovation. West Yost offers expertise in wastewater treatment feasibility studies and technical/economic/regulatory evaluations for new technologies and treatment concepts. West Yost has been successfully providing as -needed services to Central San for the past few years. Woodard & Curran offers expertise in recycled water program development and implementation, software modeling, and recycled water regulatory requirements, standards, guidelines, and engineering reports. Woodard & Curran has been successfully providing as -needed services to Central San for the past few years. The selected firms demonstrated their experience in a range of areas, complete with references and examples of successful projects. Overall, the selection of these top firms was based on their proven track record of success, relevant expertise, and ability to provide ongoing technical support to the Planning & Applied Research, Resource Recovery, and Operations Optimization groups for a wide range of future needs for the treatment plant and recycled water programs. Of the above seven consultants, three of the consultants (Woodard & Curran, West Yost, and Carollo Engineers) were also selected in 2022 to provide as -needed services for collection system program needs. This position paper includes amendments to those three collection system program as -needed services agreements to include additional as -needed support to the Planning & Applied Research, Resource Recovery, and Operations Optimization groups for treatment plant and recycled water program needs. California Environmental Quality Act (CEQA) Staff has concluded that these actions are exempt from CEQA under District CEQA Guidelines Section 15262, since they allow for further planning and feasibility studies for possible future actions which Central San has not approved, adopted, or funded, and the outcome of these tasks will not have a legally binding effect on later activities. Approval of these actions will establish the Board's independent finding that these agreements are exempt from CEQA. Central San will conduct an environmental evaluation of any environmental -altering physical project that is proposed in the future as a result of these studies to determine the need for any additional CEQA documentation. June 1, 2023 Regular Board Meeting Agenda Packet - Page 71 of 165 Page 4 of 5 ALTERNATIVES/CONSIDERATIONS 1. Execute 3-YearAs-Needed Agreements. This alternative reduces the agreement limits to cover the next three years of anticipated projects and tasks. Staff could return to the Board for approval to amend the agreements for a fourth and fifth year of support. This alternative was not recommended because it requires more administration and could limit the flexibility to assign task orders in Year three that are anticipated to continue into Years four and five. 2. Do Not Approve the Agreement. This alternative would be for the Board to direct staff not to execute the agreement as proposed. Instead, staff could administer multiple agreements as -needed within staff authority limits, similar to past practices. This is not recommended because it requires more administration time to solicit, execute, and manage multiple agreements. Additionally, this alternative would result in multiple agreements with the same consulting firm as tasks arise in order to keep projects on track and maintain the current high level of service. 3. Hire Additional Staff. This alternative would be to direct staff to hire additional temporary and/or permanent employees to augment staff's ability to complete the anticipated projects and tasks. This is not recommended because the work requires specialty expertise that is provided from industry leaders that perform similar tasks on a daily basis and have extensive experience across multiple projects and customers, whereas Central San benefits from that wide -spread experience. Due to the complex, as -needed, and temporary nature of these projects and tasks, it is recommended that these needs be met through consulting support instead of temporary or permanent employees. The as -needed agreements also enable Central San to access the consultant's wide range of industry experts (e.g., liquid process, varying solids processes, energy, mechanical, regulatory, etc.) tailored to the needs of the specific project or task. FINANCIAL IMPACTS The services provided are paid for and included in the Board -approved Budget. No additional funding for these as -needed agreements is required. This selection process and award of an agreement provides a go -to firm when support is required. This allows Central San staff to expedite the process of completing work and addressing tasks as needed, and to respond to needs in an efficient manner. Ongoing and additional specialty support needs are anticipated to address upcoming projects and tasks. COMMITTEE RECOMMENDATION The Real Estate, Environmental, and Planning Committee reviewed this matter at the meeting on May 17, 2023, and recommended approval. RECOMMENDED BOARD ACTION Authorize General Manager to execute the following four agreements, each with a five-year term to provide as -needed services: • A professional engineering services agreement with Black and Veatch Corporation with a cost ceiling of $800,000; • A professional engineering services agreement with Brown and Caldwell with a cost ceiling of $500,000; • A professional engineering services agreement with Hazen and Sawyer, D.P.C. with a cost ceiling of $700,000; • A professional engineering services agreement with HDR, Inc. with a cost ceiling of $1,800,000; and June 1, 2023 Regular Board Meeting Agenda Packet - Page 72 of 165 Page 5 of 5 Authorize the General Manager to execute amendments to increase the following three existing professional engineering services agreements: • Carollo Engineers, I nc. in the amount of $500,000 for a total agreement amount not to exceed $700,000; • West Yost Associates in the amount of $850,000, for a total agreement amount not to exceed $1,450,000; and • Woodard & Curran, I nc. in the amount of $600,000, for a total agreement amount not to exceed $1,200,000; and Find these agreements are exempt from the California Environmental Quality Act (CEQA) Strategic Plan re -In GOAL TWO: Environmental Stewardship Strategy 1 - Achieve compliance in all regulations, Strategy 3 - Be a partner in regional development of local water supply, Strategy 4 - Identify and advance sustainability initiatives, including reducing energy usage and emissions 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 1 - Manage assets optimally, Strategy 2 - Execute long-term capital renewal and replacement program GOAL SEVEN: Innovation and Agility Strategy 1 - Leverage data analytics to become a more efficient utility, Strategy 2 - Implement organization -wide optimization, Strategy 3 - Be adaptable, resilient, and responsive June 1, 2023 Regular Board Meeting Agenda Packet - Page 73 of 165