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HomeMy WebLinkAbout09-23-13 EO&WR Committee PacketOTAY WATER DISTRICT ENGINEERING, OPERATIONS & WATER RESOURCES COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA Board Room MONDAY September 23, 2013 12:30 P.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU- RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3. APPROVE A PROFESSIONAL SERVICES CONTRACT WITH CAROLLO ENGI- NEERS, INC. FOR DESIGN AND CONSTRUCTION SUPPORT OF THE 870-2 PUMP STATION PROJECT IN AN AMOUNT NOT-TO-EXCEED $624,910 (MARCHIORO) [5 minutes] 4. REJECT ALL BIDS FOR THE CONSTRUCTION OF THE 624-2 RESERVOIR INTE- RIOR/EXTERIOR COATINGS AND 458-2 RESERVOIR INTERIOR COATING AND UPGRADES PROJECT (CAMERON) [5 minutes] 5. STRATEGIC PERFORMANCE PLAN FISCAL YEAR-END 2013 REPORT (STE- VENS) [10 minutes] 6. SAN DIEGO COUNTY WATER AUTHORITY UPDATE (WATTON) [10 minutes] 7. ADJOURNMENT BOARD MEMBERS ATTENDING: David Gonzalez, Chair Gary Croucher 2 All items appearing on this agenda, whether or not expressly listed for action, may be delib- erated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the Dis- trict’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available through the District Secretary by contacting her at (619) 670-2280. If you have any disability that would require accommodation in order to enable you to partici- pate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on September 20, 2013 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on September 20, 2013. /s/ Susan Cruz, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 2, 2013 SUBMITTED BY: Jeff Marchioro Senior Civil Engineer Bob Kennedy Engineering Manager PROJECT: P2083- 001102 DIV. NO. 2 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Award of a Professional Engineering Services Contract for Design and Construction Support of the 870-2 Pump Station Project to Carollo Engineers, Inc. GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award a professional services contract to Carollo Engineers, Inc. (Carollo) and authorize the General Manager to execute an agreement with Carollo for design and construction support of the 870-2 Pump Station Project in an amount not-to-exceed $624,910 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a professional engineering services contract with Carollo for design and construction support of the 870-2 Pump Station Project in an amount not-to-exceed $624,910. AGENDA ITEM 3 2 ANALYSIS: The 870-2 Pump Station Project (Project) includes a new pump station to replace the District’s existing Low Head Pump Station (571-1 Pump Station) and High Head Pump Station (870-1 Pump Station). Exhibit A shows the location of the Low and High Head Pump Stations relative to the Roll (570-1) Reservoir. The two existing pump stations are reaching the end of their useful lives. A preliminary design report dated October 1995 by RBF Consulting (RBF) recommended replacement of the existing Low Head and High Head Pump Stations with a single 870-2 Pump Station. RBF also completed the final design to a 100% level; however, the project has been shelved since the 1999-2000 timeframe. Carollo and District staff reviewed RBF’s previous design deliverables to identify which elements of the previous design can be reused. Carollo will reuse as much of the previous design as possible; however, as part of Carollo’s scope of work, Carollo will revisit RBF’s previous design and associated assumptions to prepare a new stand-alone preliminary design report. The District requires a consulting firm to provide a range of professional services, including hydraulic and surge modeling, potholing, ground survey, demolition, grading & drainage, structural, mechanical, HVAC, electrical, instrumentation & control, process, cathodic protection, coatings, and constructability reviews associated with the Project. In accordance with the Board of Directors Policy Number 21, the District initiated the consultant selection process on June 4, 2013, by placing an advertisement in the San Diego Daily Transcript, and posting the Project on the District’s website for Professional Engineering Services. The advertisements attracted Letters of Interest and Statements of Qualifications from eleven (11) consulting firms. A Pre-Proposal Meeting was held on June 18, 2013. Eighteen (18) people representing nine (9) prime consulting firms attended the meeting. On July 3, 2013, proposals were received from the following seven (7) consulting firms: 1. AECOM 2. Richard Brady & Associates 3. Carollo 4. Civil-Source 5. Lockwood, Andrews & Newnam, Inc. (LAN) 6. RBF Consulting 3 7. Tran Consulting Engineers Among the potential engineering firms that submitted letters of interest but did not propose were Lee&Ro and URS. After the proposals were evaluated and ranked by a five-member review panel consisting of District Engineering and Operations staff, it was determined that three (3) proposals ranked sufficiently close to warrant being invited to make an oral presentation and respond to questions from the panel. After conducting the interviews on July 30, 2013, the panel completed the consultant ranking process and concluded that Carollo had the best approach to the Project and provided the best overall value to the District. A summary of the complete evaluation is shown in Exhibit B. Scope and fee negotiations with Carollo concluded on August 22, 2013 which resulted in a fee increase of $104,770 to their original proposed fee of $520,140. The construction support services scope of work was expanded from a $25,000 as-needed budget to a $120,240 not- to-exceed budget corresponding to a detailed scope of work. Other minor refinements to the scope resulted in an increase of $9,530 for a land surveying of the property. Carollo’s revised proposed fee, with adjustments described above, is $624,910. Staff reviewed each of Carollo’s scope and fee adjustments and concluded that each modification was fair and insignificant to the outcome of the selection process. Before scope adjustments were made, Carollo had proposed the lowest fee. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The Fiscal Year 2014 budget for CIP P2083 is $12,581,000. Total expenditures, plus outstanding commitments and forecast, including this contract, are $889,680. See Attachment B for budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget for CIP P2083 is sufficient to support the Project. Finance has determined that 100% of the funding is available from the Replacement Fund for CIP P2083. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” 4 and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. JM/BK:jf Y:\Board\CurBdPkg\ENGRPLAN\2014\BD 10-02-13\870-2 Pump Station Contract to Carollo (P2083)\BD-10-02-13, Staff Report, Award Engineering Contract to Carollo, (JM-BK) rev3.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map Exhibit B – Summary of Proposal Rankings ATTACHMENT A SUBJECT/PROJECT: P2083-001102 Award of a Professional Engineering Services Contract for Design and Construction Support of the 870-2 Pump Station Project to Carollo Engineers, Inc. COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on September 23, 2013. The Committee supported Staff's recommendation. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: P2083-001102 Award of a Professional Engineering Services Contract for Design and Construction Support of the 870-2 Pump Station Project to Carollo Engineers, Inc. Date Updated: 8/26/2013 Budget 12,581,000 Planning Conversion Cost Type 580,444 580,444 - 580,444 EXPENDITURES PRIOR TO 2004 Service Contracts 164 164 - 164 SAN DIEGO DAILY TRANSCRIPT Standard Salaries 23,013 23,013 - 23,013 34,770 - 34,770 34,770 INTERNATIONAL ENVIRONMENTAL CORP Total Planning 638,391 603,621 34,770 638,391 Design 001102 Service Contracts 1,300 1,300 - 1,300 INLAND AERIAL SURVEYS INC Standard Salaries 231,127 31,127 200,000 231,127 Service Contracts 504,670 - 504,670 504,670 CAROLLO 10,000 - 10,000 10,000 GEOTECHNICAL 20,000 - 20,000 20,000 BID DOC DISTRIBUTION Total Design 767,097 32,427 734,670 767,097 Construction 120,240 - 120,240 120,240 CAROLLO - - - - Total Construction 120,240 - 120,240 120,240 Grand Total 1,525,728 636,048 889,680 1,525,728 Vendor/Comments Otay Water District p2083-PS - 870-2 Pump Station (28,000 GPM) Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost (570-1) FirearmsTrainingFacility Alta Rd PROJECT SITE ROLLRESERVOIR LOW HEADPUMP STATION HIGH HEADPUMPSTATION OWD PROPERTY LINE(APPROX) ACCESS FROMALTA RD VICINITY MAP PROJECT SITE NTS ;&s DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?p ?ò Aä ?Ë ;&s ?p !\ P: \ W O R K I N G \ C I P P 2 0 8 3 8 7 0 - 2 P u m p S t a t i o n R e p l a c e m e n t \ G r a p h i c s \ E x h i b i t s - F i g u r e s \ E x h i b i t A , L o c a t i o n M a p . m x d OTAY WATER DISTRICT870-2 PUMP STATIONLOCATION MAP EXHIBIT A CIP P2083 0 250125 Feet F F EXHIBIT B SUMMARY OF PROPOSAL RANKINGS DESIGN AND CONSTRUCTION SUPPORT OF THE 870-2 PUMP STATION PROJECT Qualifications of Team Responsiveness and Project Understanding Technical and Management Approach INDIVIDUAL SUBTOTAL - WRITTEN AVERAGE SUBTOTAL - WRITTEN Proposed Fee* Consultant's Commitment to DBE TOTAL - WRITTEN Additional Creativity and Insight Strength of Project Manager Presentation and Communication Skills Responses to Questions INDIVIDUAL TOTAL - ORAL AVERAGE TOTAL ORAL TOTAL SCORE 30 25 30 85 85 15 Y/N Y/N 15 15 10 10 50 50 150 Poor/Good/ Excellent Rod Posada 26 23 27 76 13 14 8 8 43 Bob Kennedy 25 23 25 73 13 13 8 8 42 Dan Martin 27 23 27 77 13 14 8 8 43 Kevin Schmidt 25 22 25 72 13 12 9 7 41 Jose Martinez 26 21 25 72 12 13 9 8 42 Rod Posada 20 20 20 60 Bob Kennedy 19 17 20 56 Dan Martin 21 20 21 62 Kevin Schmidt 18 18 20 56 Jose Martinez 23 18 22 63 Rod Posada 28 24 28 80 14 13 9 9 45 Bob Kennedy 25 22 25 72 13 13 8 8 42 Dan Martin 28 24 28 80 14 13 8 9 44 Kevin Schmidt 25 22 25 72 13 12 10 10 45 Jose Martinez 28 21 25 74 13 12 8 9 42 Rod Posada 20 20 22 62 Bob Kennedy 20 17 20 57 Dan Martin 22 21 22 65 Kevin Schmidt 21 19 22 62 Jose Martinez 23 18 22 63 Rod Posada 20 20 22 62 Bob Kennedy 20 18 20 58 Dan Martin 23 19 23 65 Kevin Schmidt 22 18 20 60 Jose Martinez 24 17 21 62 Rod Posada 21 20 24 65 Bob Kennedy 20 18 21 59 Dan Martin 23 19 24 66 Kevin Schmidt 23 17 19 59 Jose Martinez 24 19 23 66 Rod Posada 28 23 27 78 12 14 8 7 41 Bob Kennedy 26 23 25 74 11 13 7 7 38 Dan Martin 28 23 27 78 12 13 7 7 39 Kevin Schmidt 26 20 26 72 12 14 7 7 40 Jose Martinez 26 20 24 70 11 13 7 7 38 Firm AECOM/Atkins/DLM Brady Carollo Civil-Source LAN RBF Tran Consulting *Note: Review Panel does not see or consider proposed fee when scoring other categories. The proposed fee is scored by the PM, who is not on Review Panel. Fee $911,480 $840,555 $520,140 $586,815 $1,093,271 $754,070 $542,243 Score 5 7 15 13 1 9 14 Brady NOT INTERVIEWEDRBF639Y72 72 59 7 66 66 75 NOT INTERVIEWED 121 REFERENCES Excellent44Carollo 76 15 91 135 62 NOT INTERVIEWED 127 LAN 61 1 6262NOT INTERVIEWED 39Y RATES SCORING CHART 13 75 Tran Consulting 74 14 88 Y Y Y Y WRITTEN ORAL Civil-Source Y 42 MAXIMUM POINTS 5AECOM/Atkins/DLM 7974 P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Staff Reports\Summary of Proposal Rankings.xls STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 2, 2013 SUBMITTED BY: Kevin Cameron Assistant Civil Engineer II Bob Kennedy Engineering Manager PROJECT: P2493-001103 P2535-001103 DIV. NOs.: 2,4 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Reject all Construction Bids for the 624-2 Reservoir Interior/Exterior Coatings & 458-2 Reservoir Interior Coatings and Upgrades Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) reject all bids for the construction of the 624-2 Reservoir Interior/Exterior Coatings & 458-2 Reservoir Interior Coatings and Upgrades Project (see Exhibits A-1 & A-2 for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to reject all bids for the construction of the 624-2 Reservoir Interior/Exterior Coatings & 458-2 Reservoir Interior Coatings and Upgrades Project. AGENDA ITEM 4 2 ANALYSIS: In June 2013, the District’s corrosion consultant, V&A Consulting Engineers, completed a Corrosion Control Program (CCP) that addressed the installation, maintenance, and monitoring of corrosion protection systems for the District’s steel reservoirs and buried metallic piping. The CCP included a reservoir maintenance schedule that showed the 624-2 Reservoir is due to be recoated on both the interior and exterior surfaces, and the 458-2 Reservoir is due to be recoated on the interior only. The exterior coating of the 458-2 was replaced in 2004. In addition to replacing the coatings of the reservoirs, structural upgrades will be added to comply with the current American Water Works Association (AWWA) and the Occupational Safety and Health Administration standards for both Federal (OSHA) and State (Cal-OSHA) levels. Staff developed contract documents and the Project was advertised for bid on July 31, 2013 on the District’s website and several other publications including the San Diego Daily Transcript. Two (2) addenda were sent out to all bidders and plan houses to address questions and clarifications to the contract documents during the bidding period. Bids were publicly opened on August 29, 2013 at 2:00 p.m., with the following results: CONTRACTOR TOTAL BID AMOUNT 1 Pacific Titan, Inc. $1,758,117.00 2 Paso Robles Tank, Inc. $1,961,750.00 3 Abhe & Svoboda, Inc. $1,964,502.00 4 Blastco, Inc. $2,531,912.00 5 Classic Protective Coatings, Inc. $3,002,500.00 The Engineer’s Estimate is $1,836,500. The low bidder, Pacific Titan, Inc. (Pacific Titan) did not include their SSPC QP-1 certification as part of their bid, which was a requirement of the contract documents. Pacific Titan was contacted after the bid opening and they notified the District that they do not hold a QP-1 Certification. Staff considered the bid unresponsive. After the bid opening, Staff received three (3) bids at 2:45 p.m. which were delivered via FedEx. All three (3) bids were stamped “Extremely Urgent” and had a requested delivery time of 10:30 a.m., August 29, 2013. The driver stated one of the FedEx planes was delayed arriving into San Diego, and these items missed the morning delivery. Staff rejected delivery of the bids and they were sent back “return to sender” unopened. 3 Since the low bidder was unresponsive, and three bids were rejected due to the late delivery by FedEx, Staff recommends rejecting all bids, and rebidding the Project. Rebidding will delay construction, therefore, the Project will be modified. Only the 624-2 Reservoir Interior/Exterior Coating will be included, and the 458-2 Reservoir Interior Coating will be removed from the scope of work. Removing the 458-2 Reservoir Interior Coating will ensure that all reservoirs will be back in service during the high peak demands of the summer months. The 624-2 Reservoir is larger than the 458-2 Reservoir (8.0 MG vs. 1.75 MG), and the 624-2 Reservoir’s coating replacement is more critical than the interior coating on the 458-2 Reservoir. Delaying the 458-2 Reservoir Interior Coating Project will not have an impact on the integrity of the facility. Staff anticipates submitting a Staff Report to the January Board Meeting for the award of a construction contract for the 624-2 Reservoir Interior/Exterior Coatings & Upgrade Project only and rebidding the 458-2 Reservoir Interior Coatings and Upgrade in the Winter of CY 2014. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. KC/BK:jf P:\WORKING\CIP P2493 & P2535 624-2 & 458-2 Reservoir Coating\Staff Reports\Construction Contractor\BD 10-02-13, Staff Report, Reject Bids for 624-2 & 458-2 Reservoir Coating,(KC-BK).docx Attachments: Attachment A – Committee Action Attachment B-1 – Budget Detail for CIP P2493 Attachment B-2 – Budget Detail for CIP P2535 Exhibit A-1 – Location Map for CIP P2493 Exhibit A-2 – Location Map for CIP P2535 ATTACHMENT A SUBJECT/PROJECT: P2493-001103 P2535-001103 Reject all Construction Bids for the 624-2 Reservoir Interior/Exterior Coatings & 458-2 Reservoir Interior Coatings and Upgrades Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on September 23, 2013. The Committee supported Staff's recommendation. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ATTACHMENT B-1 – Budget Detail SUBJECT/PROJECT: P2493-001103 P2535-001103 Reject all Construction Bids for the 624-2 Reservoir Interior/Exterior Coatings & 458-2 Reservoir Interior Coatings and Upgrades Project Date Updated: 8/23/2013 Budget 1,950,000 Planning Standard Salaries 569 569 - 569 Total Planning 569 569 - 569 Design 001102 Standard Salaries 27,983 20,383 7,600 27,983 Professional Legal Fees 239 239 - 239 STUTZ ARTIANO SHINOFF Consultant Contracts 2,715 2,715 - 2,715 CSI SERVICES INC Total Design 30,937 23,337 7,600 30,937 Construction Standard Salaries 76,820 1,820 75,000 76,820 Construcion Contract 1,413,500 - 1,413,500 1,413,500 CONSTRUCTION CONTRACTOR (ENGR. EST.) Service Contracts 47 47 - 47 SAN DIEGO DAILY TRANSCRIPT 65,160 - 65,160 65,160 HARPER & ASSOCIATES 37,000 - 37,000 37,000 CONSTRUCTION MANAGEMENT Equipment Rental 725 725 - 725 HORIZON CRANE SERVICE LLC Project Closeout 15,000 - 15,000 15,000 CLOSEOUT Project Contingency 70,675 - 70,675 70,675 5% CONTINGENCY Total Construction 1,678,927 2,592 1,676,335 1,678,927 Grand Total 1,710,433 26,498 1,683,935 1,710,433 Vendor/Comments Otay Water District P2493-624-2 Reservoir Interior/Exterior Coating & Upgrades Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost ATTACHMENT B-2 – Budget Detail SUBJECT/PROJECT: P2493-001103 P2535-001103 Reject all Construction Bids for the 624-2 Reservoir Interior/Exterior Coatings & 458-2 Reservoir Interior Coatings and Upgrades Project Date Updated: - 7/1/2013 Budget 425,000 Planning Standard Salaries - - - - Total Planning - - - - Design 001102 Standard Salaries 5,416 4,566 850 5,416 Consultant Contracts 2,715 2,715 - 2,715 CSI SERVICES INC Total Design 8,131 7,281 850 8,131 Construction Standard Salaries 12,164 1,164 11,000 12,164 Service Contracts 47 47 - 47 SAN DIEGO DAILY TRANSCRIPT Construcion Contract 363,000 - 363,000 363,000 CONSTRUCTION CONTRACTOR (ENGR. EST.) 10,000 - 10,000 10,000 HARPER & ASSOCIATES 8,000 - 8,000 8,000 CONSTRUCTION MANAGEMENT Project Closeout 5,000 - 5,000 5,000 CLOSEOUT Project Contingency 18,150 - 18,150 18,150 5% CONTINGENCY Total Construction 416,361 1,211 415,150 416,361 Grand Total 424,492 8,492 416,000 424,492 Vendor/Comments Otay Water District P2535-458-2 Reservoir Interior Coating Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost Chateau Ct Chateau Ct G o t h a m S t Lakeshore Dr Lakeridge Cir Lehigh Ave B ro o k sto n e R d Crosscreek Rd Lafayette Pl M a r q u e t t e R d Woodspring Dr Creekwood Way Kent S t Clearbrook Dr Wildbrook Pl Coldbrook Ct Willowbrook Ct 130 VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 P:\WORKING\CIP P2493 & P2535 624-2 & 458-2 Reservoir Coating\Graphics\Exhibits-Figures\624-2 Location.mxd OTAY WATER DISTRICT624-2 Reservoir Interior/ExteriorCoating and Upgrades EXHIBIT A-1 CIP P2493 624-2 Tank8.0 MG Steel Reservoir B r a n d y w i n e A v e O l y m p i c P k w y Morro Point Dr Point Barrow Dr Point la Jolla Dr W e s t P o i n t D r P o i n t D e f i a n c e C t Laguna Point Ct Malibu Point Ct Diablo Point Ct San Pedro Point Ct O l y m p i c P k w y 066065 VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 P:\WORKING\CIP P2493 & P2535 624-2 & 458-2 Reservoir Coating\Graphics\Exhibits-Figures\458-2 Location.mxd OTAY WATER DISTRICT458-2 Reservoir Interior Coating and Upgrades EXHIBIT A-2 CIP P2535 458-2 Tank1.75 MG Steel Reservoir STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 2, 2013 SUBMITTED BY: Geoffrey Stevens, Chief Information Officer PROJECT: Various DIV. NO. ALL APPROVED BY: German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: INFORMATIONAL ITEM - FY 2013 YEAR-END STRATEGIC PLAN AND PERFORMANCE MEASURES REPORT GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: See “Attachment A”. PURPOSE: To provide a fiscal year-end report on the District’s Strategic Performance Plan for FY 2013. ANALYSIS: The District has completed the second year of the three year Strategic Plan for Fiscal Years 2012-2014. Overall, results for both the Strategic Objectives and the Performance Measures exceeded the targets of 90% and 75% respectively. AGENDA ITEM 5 2 Strategic Plan Objectives Strategic Plan Objectives are designed to ensure staff is making the appropriate high-level changes necessary to move the agency in the planned direction to meet new challenges and opportunities. Objective results were on target at 95% complete, ahead or on schedule. These results are slightly higher than the previous year. Two (2) items are behind but being addressed. Four (4) items are excluded from the statistic because they are either “on hold” or did not begin until FY 14. 95% of Strategic Plan Objectives (41 of 43) Completed or On Schedule Performance Measures Performance measures are designed to track the day-to-day performance of the District. These items measure the effectiveness and efficiency of the daily operations and, where possible, staff utilizes the AWWA QualServe Benchmarks as the basis for comparison. The overall goal is that at least 75% of these measures be rated “on target”. Year-end FY 2013 District results also exceed the goal with 35 of 43 (81%) items achieving the desired level or better. 81% of Performance Measures (35 of 43) On or Above Target 3 Next Steps Staff is beginning to prepare the FY 15-17 Strategic Plan to be presented with the FY 15 Budget early next year. Every three (3) years the District is committed to taking a more in-depth look at the strategic issues we face and revising the major elements of the plan, including a review of the mission, vision, and goals. To accomplish this, staff will review current research on the industry and industry trends, as well as meet with staff to review the plan and obtain their comments and suggestions. Committee Reports – Slideshow The Strategic Plan results are presented to both the Finance, Administration, and Communications Committee and the Engineering, Operations, and Water Resources Committee with a specific focus on the most relevant information for each Committee. Strategic Plan Available to Board from the Internet All of the strategic plan results and associated details are provided in a real time, interactive web-based application available to the Board through a VPN connection available from the District Secretary. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Informational item only, no fiscal impact. STRATEGIC GOAL: Strategic Plan and Performance Measures reporting is a critical element in providing performance reporting to the Board and staff. LEGAL IMPACT: N/A. Attachments: Attachment A – Committee Action Report Attachment B – PowerPoint Presentation ATTACHMENT A SUBJECT/PROJECT: INFORMATIONAL ITEM - FY 2013 YEAR-END STRATEGIC PLAN AND PERFORMANCE MEASURES REPORT COMMITTEE ACTION: The Finance, Administration, and Communications Committee and the Engineering, Operations and Water Resources Committee met on September 17 and 23, 2013, respectively. Both Committees supported presentation to the full Board. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. Otay Water District Strategic Performance Plan FY 2013 Year-End Report Introduction •We are in the tenth year of strategic plan. •Overall plan is A three year plan FY 2012-2014. •Report to board twice per year . •This report is for year end 2013. •A - Plan reports on strategic objectives . •Those projects / tasks necessary to position Otay for change. •Summary level report on balance scorecard. •B - Plan reports on performance measures. •Specific measures of daily performance of critical activities (QualServe based when applicable). A. Strategic Plan Objectives •Overall Results •Breakdown By “Balanced Scorecard" •Designed to Ensure Broad Focus to Strategic Plan •Align Goals / Objectives with Four Key Dimensions •Customer •Finance •Business Process •Learning and Growth Results for FY2013 Year End Strategic Objectives 41 of 43 objectives complete, ahead or on target (95%) Target is 90% Balanced Scorecard Perspective •Industry Best Practice (Kaplan and Norton HBS) •Designed to Ensure Broad Focus to Strategic Plan •Align Goals / Objectives with Four Key Dimensions Customer Finance Business Process Learning and Growth Customer •Deliver high quality services to meet customer needs, and increase confidence of the customer in the value the District provides. •Maximize our Customer Satisfaction by expanding and improving communications Enhance communications with customers using our new phone system Regularly produce and evaluate communications tools and explore the effective use of new media options including: electronic newsletters, auto-dialer services, video stream Continue promoting the Water Conservation Garden as a venue for new homeowners, developers, businesses and existing homeowners Increase customers employing on-line bill payment Increase conservation related communications by expanding web-based information Financial •Provide enhanced value by directing and managing the financial issues that are critical to the District. •Improve Financial Information and Billing Systems Strengthen the long-term financial plan Develop Water and Sewer Capacity Fees for Expansion Re-negotiate the South Bay Water Reclamation Plant (SBWRP) Recycled Water Supply with the City of San Diego Evaluate the feasibility of replacing the existing customer information system or migrating to the new version of the Eden software Streamline requisition and purchasing procedures Improve financial planning and communication regarding the expenditure of District funds Business Process •Improve business functionality by constantly improving the efficiency and effectiveness of important processes. •Actively Manage Water Supply and Demand Prepare and implement a Wastewater Management Plan Implement the recommendations within the Integrated Water Resources Plan (IRP) to acquire alternative and/or additional potable and recycled water supplies and resource reliability Continue working with the City of Chula Vista (City) for the possible development of a MBR Plant and for a potential agreement with the City for recycled water supplies from the MBR Plant Work with the District’s largest potable water customers to convert landscape and interior water use to recycled water where fiscally feasible and safe Ensure best practices are followed in meeting the 20 by 2020 conservation targets including reclassification of industrial and commercial customers Educate and work with local agencies and others to influence developers, builders, and to incorporate practical water efficient practices in new construction Business Process (Continued) •Identify and implement improvements to the following business processes Strengthen CIP planning, budgeting, and cost tracking processes Implement a water loss management program Streamline Accounts Payable business processes Develop complete Asset Management Program Enhance security processes and planning Update the District’s National Incident Management System (NIMS) Emergency Management Update the District-wide Records Management program Improve and streamline meter related processes Implement GIS-centric work order system Streamline Inventory procedures Complete valve exercising program business processes Evaluate opportunities to combine or transfer similar work functions Business Process (Continued) Develop and implement large meter vault retrofit programs Develop large and small meter test bench strategy Replace SCADA software system Improve the operating cost and efficiency of data center and network services Streamline Finance business processes Develop data collection and condition assessment for collection system facilities Develop data collection and condition assessment for potable system facilities Develop gen-set load bank testing Streamline Customer Service business processes Implement the recommendation for improving response to extended power outages Implement wireless radio and data network for field operators Learning and Growth •Provide the leadership, tools, and management commitment to become a more results oriented culture. •Results-Oriented Workforce Identify management initiatives for represented/unrepresented employees in preparation for negotiations that will provide more efficiencies and more flexibility Evaluate polices and procedures as appropriate to streamline processes and ensure the District remains competitive Review classification plan with the goal of providing greater flexibility Negotiate a successor Memorandum of Understanding for represented employees for 2014 and beyond, and related compensations and benefits for unrepresented employees Senior Management Team to develop summary of expectations for management team to manage change in the future Update performance evaluation categories/program to ensure a results-oriented workforce and update and provide training if needed Evaluate pay-for-performance program to ensure the District is rewarding employees for innovations and business process review B. Performance Measures – Detail Meets or Exceeds Target Does Not Meet Target Yay! Boo! Results for FY2013 Year End Performance Measures 35 of 43 performance measures complete, ahead or on target (81%) by year end. Target is 75% Measure 1.2.101, Blanket Order Activity, aims to be above all set targets in order to have no less than 15% of material purchases acquired via blanket POs per quarter in a single year. Blanket Order Activity 1.2.101 Pe r c e n t a g e Total Customer Water Saved 1.3.102 Measure 1.3.102, Total Water Saved, aims to be above all set targets in order to save more than 100 acre feet of water in a single year. Ac r e F e e t Measure being Revised in FY14 Measure 1.3.103, Otay Water Use, aims to be below 172 Gallons Per Day Gallons Per Capita per Day 1.3.103 Ac r e F e e t Measure 1.1.100, Customer Satisfaction, is a once yearly survey that is reported on annually in the third quarter and represents the results for the given fiscal year. Customer Satisfaction 1.1.100 Measured Once per Fiscal Year Pe r c e n t a g e Health & Safety Severity Rate (QualServe) 1.4.104 Measure 1.4.104, H & S Severity Rate, aims to be below all set targets in order to have no more than 30% severity rate per quarter in a single year. Pe r c e n t a g e Measure 1.4.105, Turnover Rate, aims to be below all set targets in order to have less than 5% turnover in a single year. Pe r c e n t a g e Employee Turnover Rate 1.4.105 Measure 1.4.106, Training Hours per Employee, aims to be above all set targets in order to have more than 12 hours of training per employee in a single year. Training Hours per Employee 1.4.106 Ho u r s Measure 1.4.106, Training Hours per Employee, aims to be above all set targets in order to have more than 12 hours of training per employee in a single year. Safety Training Hours per Employee 1.4.107 Ho u r s Measure 2.2.201, Construction Change Order Incidence, aims to be below all set targets in order to have no more than 2 % in one year % rate of change orders in a single year. Construction Change Order Incidence (without allowances) 2.2.201 Pe r c e n t a g e Measure 2.2.200, CIP Project Expenditure vs. Budget, aims to be below all set targets in order to keep expenditures below 100% of the budgeted amount for a single year. Note: Annual result aims to be between 95-100% but is not to exceed 100%. Being significantly below target also gives the measure a “not on target” status. CIP Project Expenditure vs. Budget 2.2.200 Pe r c e n t a g e Measure 2.3.202, Mark Out Accuracy, aims to have no less than 100% mark out accuracy every quarter in a single year. Mark Out Accuracy 2.3.202 Pe r c e n t a g e Measure 2.3.203, Project Closeout Time, aims to be below all set targets in order to have an average closeout time of no more than 45 days per quarter in a single year. Note: No projects closed out in the 1st, quarter 2013 . Project Closeout Time 2.3.203 Da y s NA Answer Rate 3.1.300 Measure 3.1.300, Answer Rate, aims to be above all set targets in order to have an average answer rate of no less than 97% . Pe r c e n t a g e Measure 3.2.301, O & M Cost per Account, aims to be below all set targets in order to keep O & M cost per account less than $510.40 in a single year. O & M Cost per Account (QualServe) 3.2.301 Do l l a r s Measure 3.2.302, Billing Accuracy, aims to be above all set targets in order to have no less than 99.8% billing accuracy per quarter in a single year. Billing Accuracy (QualServe) 3.2.302 Pe r c e n t a g e Measure 3.2.302, Billing Accuracy, aims to be above all set targets in order to have no less than 99.8% billing accuracy per quarter in a single year. Overtime Percentage 3.2.303 Pe r c e n t a g e Measure 3.2.304, Sewer Rate Ranking, is a once yearly survey that is reported on annually in the first quarter and represents the results for the given fiscal year. The District’s goal was to be in the top 50. Sewer Rate Ranking 3.2.304 Measured Once per Fiscal Year Pe r c e n t a g e Measure 3.2.305, Water Rate Ranking, is a once yearly survey that is reported on annually in the first quarter and represents the results for the given fiscal year. The District’s goal was to be in the top 50. Water Rate Ranking 3.2.305 Measured Once per Fiscal Year Pe r c e n t a g e Measure 3.2.306, Debt Coverage Ration aims to be greater than 148%. It is measured annually. Pe r c e n t a g e Annual Measure Calculated in 4th Q Debt Coverage Ratio (QualServe) – YTD 3.2.306 Reserve Level 3.2.307 Measure 3.2.307, Reserve Level, aims to be no less than 85%. It is measured annually. Pe r c e n t a g e In Development Annual Measure Calculated at year end. Measure 3.3.308, Distribution System Loss, aims to be below all set targets in order to ensure less than 5% of unaccounted water in a single year. *The calculation is a year-to-date calculation, so Qtr Result = YTD Result. Distribution System Loss (QualServe) 3.3.308 Pe r c e n t a g e Customer Satisfaction with Website 4.1.400 Measure 4.1.400, Customer Satisfaction with Website, is a once yearly survey that is reported on annually in the second quarter and represents the results for the given fiscal year. Measured Once per Fiscal Year Pe r c e n t a g e Measure 4.3.401, Network Availability, aims to be above all set targets in order to have an average of no less than 99.2% network availability per quarter in a single year. Network Availability 4.3.401 Pe r c e n t a g e Website Hits 4.4.402 Measure 4.4.402, Website Hits, aims to be above all set targets in order to have an average of no less than 12,100 website hits per quarter in a single year. Nu m b e r o f H i t s Measure 5.1.500, Unplanned Disruptions, aims to be below all set targets in order to have no more than .7 disruptions per 1000 accounts in a single year. Note: Target is expressed as number of disruptions per 1000 accounts Unplanned Disruptions (QualServe) 5.1.500 Di s r u p t i o n s p e r 1 0 0 0 A c c o u n t s Measure 5.1.501, Technical Quality Complaint, aims to be below all set targets in order to have no more than 9 complaints per 1000 customer accounts in a single year. Technical Quality Complaint (QualServe) 5.1.501 Co m p l a i n t s p e r 1 0 0 0 A c c o u n t s Measure 5.2.502, Planned Drinking Water Maintenance Ratio in $, aims to be above all set targets in order to have no less than 66 % of all labor dollars spent on preventative maintenance per quarter in a single year. Note: Quarterly results are subject to change. Planned Potable Water Maintenance Ratio in $ (QualServe) 5.2.502 Pe r c e n t a g e Measure 5.2.503, Planned Recycled Water Maintenance Ratio in $, aims to be above all set targets in order to have no less than 70% of all labor dollars spent on preventative maintenance per quarter in a single year. Note: Quarterly results are subject to change. Planned Recycled Water Maintenance Ratio in $ 5.2.503 Pe r c e n t a g e Measure 5.2.504, Planned Wastewater Maintenance Ratio in $, aims to be above all set targets in order to have no less than 66% of all labor dollars spent on preventative maintenance per quarter in a single year. Note: Quarterly results are subject to change. Planned Wastewater Maintenance Ratio in $ (QualServe) 5.2.504 Pe r c e n t a g e Measure 5.2.505, Direct Cost of Treatment per MGD, aims to be below all set targets in order to have no more than $1000 per MG spent on wastewater treatment per quarter in a single year. Direct Cost of Treatment per MGD (QualServe) 5.2.505 Do l l a r s Measure 5.2.506, O & M Cost per MGP - wastewater, aims to be below all set targets in order to have no more than $1750 per MG spent on O & M for wastewater treatment per quarter in a single year. O & M Cost per MGP - Wastewater (QualServe) 5.2.506 Do l l a r s Measure 5.3.507, % PMs Completed – Fleet Shop, aims to be above all set targets in order to have no less than 90% of the scheduled PMs completed per quarter in a single year. % PMs Completed – Fleet Shop 5.3.507 Pe r c e n t a g e Measure 5.3.508, % PMs Completed – Reclamation Plant, aims to be above all set targets in order to have no less than 90% of the scheduled PMs completed per quarter in a single year. % PMs Completed – Reclamation Plant 5.3.508 Pe r c e n t a g e Measure 5.3.508, % PMs Completed – Reclamation Plant, aims to be above all set targets in order to have no less than 90% of the scheduled PMs completed per quarter in a single year. % PMs Completed – Pump and Electric 5.3.509 Pe r c e n t a g e Measure 5.3.510, % PMs Completed – Valve Maintenance Program, aims to be above all set targets in order to have no less than 90% of the scheduled PMs completed per quarter in a single year. % PMs Completed – Valve Maintenance Program 5.3.510 Pe r c e n t a g e Measure 5.3.511,Valve Exercising Program, aims to be above all set targets in order to have no less than 2400 valves exercised in a single year. Valve Exercising Program 5.3.511 Nu m b e r o f V a l v e s Measure 5.3.512, Water Distribution System Integrity, aims to be below all set targets in order to have no more than 16 leaks and breaks per 100 miles of distribution piping in a single year. Water Distribution System (Potable) Integrity (QualServe) 5.3.512 Le a k s o r B r e a k s p e r 1 0 0 M i l e s Measure 5.3.513, Planned Water Service Disruption Rate, aims to be below all set targets in order to have no more than 2.5 planned outages per 1000 accounts per quarter in a single year. Note: This measure is expressed as number of accounts affected per 1000 accounts Planned Water Service Disruption Rate (QualServe) 5.3.513 Di s r u p t i o n s p e r 1 0 0 0 A c c o u n t s Measure 5.3.514, Drinking Water Compliance Rate, aims to be no less than 100% every quarter in order to ensure the District meets all of the health related drinking water standards everyday for a single year. Potable Water Compliance Rate (QualServe) 5.3.514 Pe r c e n t a g e Measure 5.3.515, Collection System Integrity, aims to be below all set targets in order to have no more than 3.5 wastewater collection system failures per 100 miles of collection system pipeline in a single year. Collection System Integrity (QualServe) 5.3.515 Fa i l u r e s p e r 1 0 0 M i l e s No Spills in 2013! Measure 5.3.516, Replace Manual Read Meters with Automated Meters, aims to be above all set targets in order to have no less than 4500 meters replaced in a single year. Replace Manual Read Meters with Automated Meters 5.3.516 Nu m b e r o f M e t e r s Measure 5.3.517, Recycled Water System Integrity, aims to be below all set targets in order to have no more than 6.6 leaks or breaks per 100 miles of recycled distribution system in a single year. Recycled Water System Integrity 5.3.517 Le a k s o r B r e a k s p e r 1 0 0 M i l e s Measure 5.3.518, Sewer Overflow Rate, aims to have no overflows in a single year. Sewer Overflow Rate (QualServe) 5.3.518 Ov e r f l o w s p e r 1 0 0 M i l e s Next Steps FY2015 – 2017 Plan •Reevaluation of Current Goals and Strategies •Evaluation of Alternatives •Evolution of Strategy Maps •Begin in October 2014 •Finalize By March 2015 •Board Adoption with FY15 Budget Questions and Comments