HomeMy WebLinkAbout9 Construction Inspection AGENDA ITEM #9
Public Utility District m
MEETING DATE: October 4, 2023
TO: Board of Directors
FROM: Neil Kaufman, System Engineer
Chad Reed, Water Utility Director
SUBJECT: Consideration for a Contract Amendment with Construction
Materials Engineers (CME) to Perform Construction Inspection in
2023.
APPROVED BY:
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to execute a contract amendment with Construction
Materials Engineers (CME) to perform construction inspection services for an additional
amount of $150,000 and a new not to exceed total contract amount of $450,000 for
calendar year 2023.
BACKGROUND:
Since 2015, the Water Department has utilized an outside consultant to perform
construction inspections of various developer-funded and District-funded projects,
including annual pipeline replacement, new water pipeline and pump station projects.
Most recently, the Water Department issued a Request for Proposal (RFP) for
construction inspection services in January of 2021. Six proposals were received in
response to that RFP. As a result of this RFP process, a contract was awarded to CME
at the April 7, 2021 Board meeting. The contract with CME was renewed for 2022 and
2023 as part of the annual procurement process. This is the final year of the three-year
contract with CME for construction inspection services. Staff will go out to RFP during
the winter of 2023-2024 for construction inspection services to ensure a contract is in
place prior to the 2024 construction season.
ANALYSIS AND BODY:
For calendar 2021, a total of$127,894 was paid to CME for construction
inspection. For calendar 2022, a total of $188,888 was paid to CME for construction
inspection. These expenditures covered one inspector on a full-time basis for the entire
construction season with additional part-time support on an as-needed basis.
For calendar 2023, it was recognized that additional construction efforts would be
required when considering the five major capital construction projects that would be
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occurring during the construction season of 2023. Some of these projects are:
• 6170 Tank #2
• District Pipeline Replacement — 2023 — Contract A
• District Pipeline Replacement — 2023 — Contract B
• Pioneer Trail Booster Pump Station
• Pioneer Trail Pipeline
Therefore, an authorization for a total contract amount not to exceed $300,000 was
recommended and approved at the December 7, 2022 Board meeting.
To date, in 2023, about $220,000 has been paid to CME. This covers construction
inspection activities through the end of August. Since construction activities began in
late May, there have been two inspectors on a full-time basis covering the District
projects. Throughout September, there has been one inspector also working Saturdays
as the contractors have increased their efforts in order to complete projects before the
winter. Based on the current workload, it is expected that the original $300,000
authorization will be exceeded. It is recommended that the contract authorization for
the calendar year be increased to $450,000. Staff is anticipating next year's
construction inspection to be significantly lower due to fewer capital construction
projects.
GOALS AND OBJECTIVES:
District Code 1 .05.020 Objectives:
1. Responsibly serve the public.
3. Provide reliable and high-quality water supply and distribution system to meet
current and future needs.
6. Manage the District in an effective, efficient, and fiscally responsible manner.
District Code 1 .05.030 Goals:
1. Manage for Financial Stability and Resiliency
2. Environmental Stewardship: Create a sustainable resilient environment for all our
communities.
4. Take the best of private sector thinking to modernize the utility and add value to our
communities.
FISCAL IMPACT:
Sufficient funds exist in the respective projects contingency amounts incorporated
within each project's approval. To date, approximately 1% of total contingency
authorization (10%) for these projects has been utilized. In the event, through
completion of projects, the contingency amounts are exhausted (not expected and not
forecasted), the water utility has sufficient reserve funds of$6.2M to fund an overage.
ATTACHMENTS:
None
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