Item-15

ITEM:		ACTION ITEM

15.	CONSIDER EXPENDITURE FOR THE SANTA MARGARITA WATER TREATMENT FACILITIES CONSTRUCTION MANAGEMENT SERVICES

Meeting Date:			August 19, 2019	Budgeted:	Yes

From:			David J. Stoldt	Program/	Water Supply Projects
			General Manager	Line Item:	35-04-786004

Prepared By:			Maureen Hamilton	Cost Estimate:	$218,822

General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on August 12, 2019 and voted 3 to 0 to place this on the August 19 agenda as an Action Item.
CEQA Compliance: The Board adopted an addendum to the ASR EIR/EA for the Santa Margarita Water Treatment Facilities project on July 15, 2019.

SUMMARY: Staff is proposing to begin construction of the Santa Margarita Water Treatment Facilities Project (Project) at MPWMD’s Santa Margarita site located at 1910 General Jim Moore Boulevard (GJMB) this fall. The Project includes construction of disinfection facilities required for California-American Water (Cal-Am) to recover Pure Water Monterey (PWM) water from the Seaside Groundwater Basin (SGB).

During construction the owner or an owner representative is required to perform construction management (CM) tasks including:

· Schedule review and analysis

· Project cost control including progress payment review, change order management, and design clarifications

· Progress meetings coordination

· Permit and property agreement compliance monitoring

· Submittal management

· RFI management

· O&M coordination

· Inspections including structural, mechanical, electrical, and civil

Due to limited staff managing multiple projects, staff proposes to enter into a contract for CM services for the Project.

On July 1, 2019, MPWMD issued Request for Proposals for Construction Management Services for construction of the Project. One proposal was received from Psomas on July 31, 2019.

RECOMMENDATION: That the Board of Directors:

1. Authorize the General Manager to enter into a contract with Psomas for a contract amount of $190,280, with a 15% contingency to be authorized by MPWMD staff, for a total amount not-to-exceed (NTE) $218,822.

DISCUSSION: The Project was conceived to fulfill water production needs described below:

· The Santa Margarita site has existing temporary disinfection capability for one well. Permanent water treatment is required at the Santa Margarita site.

· Water treatment chemicals are disallowed at the Seaside Middle School ASR site because the location is elevated above a playground. Without disinfection, the two ASR wells at the Seaside Middle School can only be utilized for injection.

· Utilizing existing ASR wells is the least expensive option to create additional production capacity required for Cal-Am to recover PWM water from the SGB.

· Conveyance between the Seaside Middle School and Santa Margarita sites already exists. Conveying Seaside Middle School water to Santa Margarita for disinfection will be the most economical means to provide disinfection capability for Seaside Middle School production water.

The work to complete the project will be highly dependent on materials lead time and weather. Construction, and thus CM services requirements, will not occur full-time over the winter. In order to provide CM services to meet weather limitations and Contractor/subcontractor schedule requirements, a local consultant and/or consultant already scheduled to work in the area is desirable to keep the cost of service at a minimum.

A Request for Proposals (RFP) for Project CM services was issued July 1, 2019. Staff notified the following firms that the RFP was available:

A job walk was conducted on July 23, 2019. Representatives from MWHC, Carrollo Engineers, and Psomas attended the job walk.

Proposals were opened on August 1, 2019; one proposal was received from Psomas.

Psomas is a 600 employee firm that has been in business for 72 years and is employee owned. In 2018 Psomas acquired the Covello Group with over 250 years of combined experience providing CM services for water resources projects. The CM team, part of the Covello Group acquisition, lives and works in the Santa Cruz/Monterey area. The team will consist of a Project Manager, Lead Inspector, and Field Engineer, and as-needed a Regional Manager, geotechnical sub-consultant, electrical engineer sub-consultant, and a coatings sub-consultant. The CM team has worked on the following water resources projects recently:

· Pure Water Monterey Source Waters

· Pure Water Monterey Injection Wells

· Pajaro Valley Water Management Agency Recycled Water Storage and Distribution Pump Station Improvement

· Pajaro Valley Water Management Agency Blended Well Pipeline

· Pajaro Valley Water Management Agency K-1 Pipeline

· Soquel Creek Water District O’Neil Ranch Well and Water Treatment Plant

· Soquel Creek Water District Polo Grounds Well and Treatment Facilities

The proposal is a time and materials basis, allowing for flexibility with weather and Contractor schedules. Service is required part time, and hours will only be billed as required. Staff experience with this CM team is that billing is for work required, and after significant scope changes the contract for another project is still within the original approved contract agreement allocation.

Services after substantial completion will be required to support construction of works not required to begin disinfection, to provide project close-out services, and to support system start-up.

Fifteen percent (15%) contingency is being requested due to likely scope changes driven by new or changing water supply portfolio requirements, permit conditions, and regulatory requirements. Scope changes require additional work to process RFIs, quotations, change orders, submittals, schedules, and payment requests. The contract agreement will be written for the base fee, with contingency being awarded by staff only if required.

The Request for Proposals for Construction Management Services can be found in Exhibit 15-A. The Agreement between MPWMD and Psomas for Construction Management Services, including the Psomas proposal, can be found in Exhibit 15-B.

EXHIBITS

15-A Request for Proposals for Construction Management Services

15-B Agreement between MPWMD and Psomas for Construction Management Services

U:\staff\Boardpacket\2019\20190819\ActionItems\15\Item-15.docx

Cost Estimate:

$218,822