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HomeMy WebLinkAbout#10 Construction Inspection Services AGENDA ITEM #10 Public Utility District m MEETING DATE: February 7, 2024 TO: Board of Directors FROM: Neil Kaufman, System Engineer SUBJECT: Consideration of Approval to Award a Contract to Perform Construction Inspection Services /%/j r --- Cf-!^-APPROVED �- BY: Brian C. Wright, General Manager RECOMMENDATION: Award a contract to Construction Materials Engineers (CME) to perform construction inspection services during calendar 2024 for an amount not to exceed $300,000, plus a ten percent change order allowance for a total authorization not to exceed $330,000. BACKGROUND: Since 2015, the Water Department has utilized an outside consultant to perform construction inspection of both District-funded and developer-funded construction projects. The consultants have been selected through a Request For Proposals (RFP) process. Per District policy, the selection of a consultant to provide construction inspection services can be renewed for up to two additional years beyond the base year. Previous RFPs for construction inspection were issued in 2015, 2018 and 2021. In each case, the base contract was renewed for an additional two years. ANALYSIS AND BODY: A new RFP was issued in December 2023 to cover construction activities during the summer of 2024. The submittal deadline for proposals was January 12, 2024. Three proposals were received in response to the RFP. • Alpha CM — Folsom, CA • Construction Materials Engineers (CME) — Reno, NV • MCK — Sacramento, CA A staff committee of three employees reviewed the proposals based on the following criteria: Page 1 of 4 Page 16 of 73 • Experience of the firm with similar water system construction inspection assignments • Past experience of proposed inspectors with similar water system construction inspection assignments • Procedures methodology and quality assurance/quality control • Cost On a technical level, CME was rated well above the other two firms. Technical Scoring Firm Overall Rank CME 1 MCK 2 Alpha CM 3 The proposed costs were then evaluated. A typical workday was assumed for evaluating costs. This typically assumes there will be a single inspector who will perform inspection work on both District-funded and developer projects on a given day. This typical workday involves • Five hours of inspection of District-funded projects • Three hours of inspection of developer-funded projects • 40 miles of travel within the Truckee area • Travel time and mileage from the corporate office to Truckee It should be noted that the actual inspection activities on any given day will vary. Some examples could be, insufficient developer-funded inspections or multiple inspectors could be required due to critical items such as tie-ins or pressure testing. The cost scoring based on this typical day is summarized below: Cost Scoring Firm Rank MCK 1 Alpha 2 CME 3 The cost proposals from Alpha and MCK were very similar. CME was slightly more Page 2 of 4 Page 17 of 73 expensive. The hourly rates for on-site inspection were essentially the same for all three firms, with a range from $160 to $190 per hour, depending upon the individual inspector and whether the project is subject to the payment of prevailing wages. The main differences in cost were related to how travel time and mileage would be handled. The overall ranking (technical capability & cost) of the proposers is: Overall Scoring Firm Rank CME 1 MCK 2 Alpha CM 3 Therefore, it is recommended that the contract be awarded to CME. About $388,000 was spent on construction inspection during the summer of 2023, which was associated with a very busy construction seasons for the TDPUD, with a very short period of time to complete the projects. To accommodate the number of projects, there were effectively two inspectors on a full-time basis for the period from June to October 2023. The amount of developer-funded construction during 2023 was minimal. For the summer of 2024, the major District-funded projects to be constructed are: • Completion of the remaining work on both of the District's Pipeline Replacement — 2023 contracts • District Pipeline Replacement — 2024 • Hirschdale Pipeline • Interior and exterior coating of Bridge Street 6170 Tank #2 • Ski Run Tank replacement It is expected that the amount of developer-funded work will be higher during 2024. 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. Page 3 of 4 Page 18 of 73 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. 3. Engage with our customers and communities in a welcoming and transparent way to identify opportunities. FISCAL IMPACT: A separate work order is created for each developer project. Inspection of developer constructed facilities is billed against the appropriate work order, and the costs are paid by the developer. The Water Department generates an estimate of the level of inspection effort required for a given project, and collects a deposit for those costs at the time the development agreement is signed. If the total inspection costs exceed the initial deposit, the developer is billed for these additional costs. If the initial deposit is not exceeded, the remaining funds are returned to the developer. When an outside firm is used to perform the construction inspection, those costs are billed against the deposit collected from the developer. The District incurs minimal financial costs associated with accounting and contract management. The process for District-funded projects in similar, separate internal work orders are established for each project, and the inspection time spent on that project is allocated to the appropriate internal work order. About $388,000 was spent with CME on outside inspection of water system construction projects in 2023. Total construction inspection costs covering both District- funded and developer-funded projects are estimated at $300,000 for the 2024 construction season. There is some uncertainty associated with this estimate, and a 10 percent change order allowance is recommended. There are sufficient funds within the board's approved water utility capital budget to fund the requested cost of inspection services for District-funded projects. ATTACHMENTS: None Page 4 of 4 Page 19 of 73