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HomeMy WebLinkAbout06-20-23 EO&WR Committee Packet 1 OTAY WATER DISTRICT ENGINEERING, OPERATIONS, & WATER RESOURCES COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA Boardroom TUESDAY JUNE 20, 2023 12:00 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 INCLUDING AN ITEM ON TODAY’S AGENDA DISCUSSION ITEMS 3. AWARD OF TWO (2) PROFESSIONAL SERVICES AGREEMENTS FOR AS-NEEDED CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES TO CDM SMITH, INC. AND VALLEY CONSTRUCTION MANAGEMENT, EACH IN AN AMOUNT NOT-TO-EXCEED $800,000. THE TOTAL AMOUNT FOR THE TWO (2) AGREEMENTS WILL NOT EXCEED $800,000 DURING FISCAL YEARS 2024 AND 2025 (ENDING JUNE 30, 2025) (CAMERON) [5 MINUTES] 4. ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM UPGRADE UPDATE (KERR) [5 MINUTES] 5. ADJOURNMENT BOARD MEMBERS ATTENDING: Mark Robak, Chair Jose Lopez 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 2 agenda and all attachments are also available by contacting the District Secretary at (619) 670-2253. If you have any disability which would require accommodation in order to enable you to par-ticipate in this meeting, please call the District Secretary at 619-670-2253 at least 24 hours prior to the meeting. Certification of Posting I certify that on June 16, 2023, I posted a copy of the foregoing agenda near the regu-lar 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 June 16, 2023. /s/ Tita Ramos-Krogman, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: July 5, 2023 SUBMITTED BY: Kevin Cameron Engineering Manager PROJECT: Various DIV. NO.ALL APPROVED BY: Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Award of Two (2) Professional Services Agreements for As- Needed Construction Management and Inspection Services to CDM Smith, Inc. and Valley Construction Management for Fiscal Years 2024 and 2025 GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award two (2) professional service agreements for As-Needed Construction Management and Inspection Services (CMIS) and to authorize the General Manager to execute the agreements with CDM Smith, Inc. (CDM Smith) and Valley Construction Management (Valley CM), each in an amount not-to-exceed $800,000. The total amount for the two (2) agreements will not exceed $800,000 during Fiscal Years 2024 and 2025 (ending June 30, 2025). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into two (2) professional services agreements for As-Needed CMIS with CDM Smith and Valley CM, with each agreement in an amount not-to-exceed $800,000 for Fiscal Years 2024 and 2025. The total amount for the two (2) agreements will not exceed $800,000 during Fiscal Years 2024 and 2025. AGENDA ITEM 3 2 ANALYSIS: The District will require the services of two (2) professional CMIS consultants in support of the District’s Capital Improvement Program (CIP) projects for two (2) fiscal years, FY 2024 and FY 2025 (ending June 30, 2025). The District has used an as-needed agreement for construction management and inspection services in previous years. Use of the As-Needed CMIS has provided the District with the ability to obtain consulting services in a timely and efficient manner and supplement the District inspection staff to adequately handle the demand for construction management and inspection needs. This is particularly useful when projects or developers require after hours and/or night work. The District staff will identify tasks for specific projects and request cost proposals from the two (2) consultants during the contract period. Each consultant will prepare a detailed scope of work, schedule, and fee for each task order, with the District evaluating the proposals based upon qualifications and cost. The District will enter negotiations with the consultants, selecting the proposal that has the best value for the District. Upon written task order authorization from the District, the selected consultant shall then proceed with the project as described in the scope of work. The anticipated CIP projects that are estimated to require construction management and partial inspection for Fiscal Years 2024 and 2025, at this time, are listed below: CIP Capital Facilities Project ESTIMATED CMIS COST Various Recycled and Sewer R. W. Chapman Water Reclamation Facility Improvements $75,000 P2058 PL - 20-Inch, 1296 Zone, Proctor Valley Rd from Melody Rd to Highway 94 $30,000 P2171 PL - 20-Inch, 1296 Zone, Proctor Valley Rd from Pioneer Way to Melody Rd $30,000 P2460 I.D. 7 Trestle and Pipeline Demolition $25,000 P2563 Res - 870-1 Reservoir Cover/Liner Replacement $50,000 P2578 PS - 711-2 (PS 711-1 Replacement and Expansion) - 14,000 GPM $50,000 3 CIP Capital Facilities Project ESTIMATED CMIS COST P2608 PL - 8-inch, 850 Zone, Coronado Avenue, Chestnut/Apple (PH II) $30,000 P2609 PL - 8-inch, 1004 Zone, Eucalyptus Street, Coronado/Date/La Mesa (PH II) $30,000 P2615 PL - 12-Inch Pipeline Replacement, 803 PZ, Vista Grande $40,000 P2639 Vista Diego Hydropneumatic Pump Station Replacement $50,000 P2631 1485-2 Reservoir Interior/Exterior Coating & Upgrades $35,000 P2646 North District Area Cathodic Protection Improvements $20,000 P2655 La Presa Pipeline Improvements $40,000 P2657 1485-1 Reservoir Interior/Exterior Coating & Upgrades $35,000 P2673 803-4 Reservoir Interior/Exterior Coating & Upgrades $35,000 R2121 Res - 944-1 Reservoir Cover/Liner Replacement $50,000 Various Inspection in Support of Development Projects in the District $75,000 TOTAL: $700,000 The scopes of work for the above projects are estimated from preliminary information and past projects. Staff believes that an $800,000 cap on each of the As-Needed CMIS contracts is adequate, while still providing a buffer for any unforeseen tasks. The As-Needed CMIS contracts do not commit the District to any expenditure until a task order is approved to perform work on a CIP project. The District does not guarantee work to the consultants, nor does the District guarantee that it will expend all the funding authorized by the contract on professional services. The District solicited for Construction Management and Inspection Services by placing an advertisement on the Otay Water District’s website and using Periscope S2G, the District’s online bid solicitation website on February 7, 2023. The advertisement was also placed in the Daily Transcript. Five (5) firms submitted a Letter of Interest and a Statement of Qualifications. The Request for Proposal (RFP) for As-Needed CMIS was sent to all five (5) firms resulting in three (3) proposals received on April 6, 2023. They are as follows: 4 • Capo Projects Group, San Clemente, CA • CDM Smith, Irvine, CA • Valley Construction Management, San Diego, CA The two (2) firms that chose not to propose were Alyson Consulting and PdM Consulting. In accordance with the District’s Policy 21, staff evaluated and scored the three (3) written proposals, and all firms were interviewed on May 9, 2023. CDM Smith and Valley CM received the highest average score based on the written proposals and oral interviews for their services. Subsequently, the composite hourly rate scores were included and CDM Smith and Valley CM were the most qualified consultants with the best overall total scores. A summary of the complete evaluation is shown in Attachment B. CDM Smith and Valley CM submitted the Company Background Questionnaire, as required by the RFP, and staff did not find any significant issues. In addition, staff checked their references and performed an internet search on the companies. Staff found the references to be excellent and did not find any outstanding issues with the internet search. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The funds for these contracts will be expended for a variety of projects, as previously noted above. These contracts are for as- needed professional services based on the District’s need and schedule, and expenditures will not be made until a task order is approved by the District for the consultant’s services on a specific CIP project. Based on a review of the financial budgets, the Project Manager anticipates that the budgets will be sufficient to support the professional as-needed consulting services required for the CIP projects noted above. The Finance Department has determined that the funds to cover these contracts will be available as budgeted for these projects. STRATEGIC GOAL: This project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water 5 agency by providing stellar service, achieving measurable results, and continuously improving operational practices." GRANTS/LOANS: Not applicable. LEGAL IMPACT: None. KC:mlw C:\OneDrive\Otay Water District\ENG OPERATING - Documents\As-Needed Services\Construction Management and Inspection Services\FY 2024-2025\Staff Report\BD 07-05-23-Consultant Selection for As-Needed Engineering CM and Inspection Services.docx Attachments: Attachment A – Committee Action Attachment B – Summary of Proposal Rankings ATTACHMENT A SUBJECT/PROJECT: Various Award of Two (2) Professional Services Agreements for As- Needed Construction Management and Inspection Services to CDM Smith, Inc. and Valley Construction Management for Fiscal Years 2024 and 2025 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on June 20, 2023. 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. Qualifications of Team Responsiveness and Project Understanding Technical and Management Approach INDIVIDUAL SUBTOTAL - WRITTEN AVERAGE SUBTOTAL - WRITTEN Consultant's Commitment to DBE Additional Creativity and Insight Strength of Project Manager Presentation and Communication Skills Responses to Questions INDIVIDUAL TOTAL - ORAL AVERAGE TOTAL ORAL TOTAL SCORE WITHOUT FEE Proposed Rates* TOTAL SCORE 30 25 30 85 85 Y/N 15 15 10 10 50 50 135 15 150 Poor/Good/ Excellent Kevin Cameron 26 21 26 73 13 10 7 6 36 Brandon DiPietro 25 20 26 71 10 11 7 6 34 Jon Chambers 27 22 26 75 10 10 9 8 37 Steve Beppler 26 23 27 76 10 10 6 6 32 Trevor Rodgers 20 25 25 70 12 12 7 7 38 Kevin Cameron 28 23 27 78 12 13 8 7 40 Brandon DiPietro 27 21 27 75 12 12 7 8 39 Jon Chambers 28 24 29 81 11 12 9 8 40 Steve Beppler 28 23 28 79 13 14 9 9 45 Trevor Rodgers 30 25 25 80 12 12 8 7 39 Kevin Cameron 29 24 28 81 13 14 9 9 45 Brandon DiPietro 29 24 29 82 14 15 8 9 46 Jon Chambers 28 24 28 80 11 13 9 8 41 Steve Beppler 29 24 29 82 14 14 9 9 46 Trevor Rodgers 25 25 26 76 12 12 9 8 41 Selected Firm Consultant Weighted Rate Score Notes: Capo $195 10 1. The fees were evaluated by comparing the weighted rates for five positions. The sum of the weighted rates are noted on the Rates Scoring Chart. CDM Smith $248 1 2. Review Panel does not see or consider rates when scoring other categories. Rates are scored by a staff member who is not on the Review Panel. Valley CM $161 15 ATTACHMENT B SUMMARY OF PROPOSAL RANKINGS As-Needed Construction Management - Fiscal Years 2024 and 2025 WRITTEN Valley Construction Management Y RATES SCORING CHART CDM Smith 79 41 121Y 80 Y Excellent REFERENCES 44 Excellent 35 11810 1 15 ORAL 139 MAXIMUM POINTS Capo Projects Group 73 108 120 124 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: July 5, 2023 PROJECT: Various DIV. NO.ALL SUBMITTED BY: Michael Kerr, Information Technology Manager APPROVED BY: Adolfo Segura, Chief of Administrative Services Jose Martinez, General Manager SUBJECT: INFORMATIONAL ITEM – ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM UPGRADE GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To provide an informational item regarding the progress of the District's planned Enterprise Resource Planning (ERP) system upgrade. ANALYSIS: An Enterprise Resource Planning (ERP) system is an integrated system of software applications that allows an organization to manage its business processes and services. For nearly twenty years, the District has depended on the Tyler Eden ERP system to manage its core business functions including Financial, Human Resources, Purchasing, Permitting, and Utility Billing services. Unfortunately, the District’s ERP system, Tyler Eden, is approaching end-of-life (EOL) status (March 2027), and no additional updates will be made with only limited support. Given the EOL status, staff planned for and added a key objective in the District’s new strategic plan to conduct a needs assessment in order to identify a replacement for the District’s current ERP system, Tyler Eden. AGENDA ITEM 4 The District identified several crucial requirements for the new ERP system to include support for next-generation web-based applications, mobile features, business intelligence, financial analysis tools, and cloud-based hosting. These requirements encompass the need for a functional system that can effectively cater to the diverse and evolving needs of running a mid-size agency like the District. Furthermore, it is essential for the new ERP system to seamlessly integrate with other existing District systems in order to maximize efficiencies throughout all District departments. Over the past four years, staff evaluated a number of ERP systems, including Tyler Munis, Eden’s successor. During this time, District staff carefully reviewed the Munis ERP system and concluded that it correctly fits our future business and service needs. To validate this direction, staff contacted several public agencies to benchmark and gather additional input on the performance and value of the Tyler Munis ERP system. In addition, given the District's current Tyler licensing agreement, a significant cost typically associated with a new ERP system will be waived, saving the District substantial money. Furthermore, recognizing the high level of sensitivity associated with billing and customer interactions, staff is currently conducting additional evaluations of alternative Customer Service options, which includes assessing the suitability of the Tyler Munis ERP Utility Billing component. The implementation of the Tyler Munis ERP system will be an extensive project spanning multiple fiscal years. To ensure a successful implementation, the project will be divided into four main phases, allowing critical milestones to be achieved as we progress toward the go-live of the new ERP system. During the first phase, staff will evaluate, validate, and adopt new and more efficient workflows and business processes. Deliverable details for subsequent phases will be developed in conjunction with Tyler’s project management team. Estimated completion of the new Tyler Munis ERP system is expected to occur during the FY26-FY27 period. Proposed Timeline The project timeline outlines the sequential execution of these phases to ensure a well-structured and coordinated approach to the project. Each phase contributes to the overall success of the initiative by ensuring accurate data conversion, effective system implementation, efficient project management, and comprehensive user training. Below is a breakdown of the tentative project timeline and the proposed completion date for each phase: Phases* Completion* Module Go-Live Deliverables* April 2024 June 2025 Financial July 1, 2025 Chart of Accounts, General Ledger, Accounts Receivable, Purchasing, Capital Projects January 2025 December 2025 Human Capital Management/ Payroll January 1, 2026 Human Resources, Time & Attendance, Employee Records, Benefits October 2025 June 2026 Permitting July 1, 2026 Licensing, Permitting, Inspections April 2026 June 2027 Utility Billing July 1, 2027 Utility Billing, Customer Information System *estimated Next Steps Staff will present a final recommendation to the Board in August, seeking approval for the new ERP system. The request for approval will incorporate all the research, evaluations, and considerations made by staff, providing the Board with a comprehensive overview of the proposed system and its benefits for the District. FISCAL IMPACT:Joe Beachem, Chief Financial Officer Funding for the first phases of the upgrade has been allocated in the recently adopted FY24 CIP & Operating budget. Funding requests for the remaining phases will come before the Board for consideration at a subsequent date. STRATEGIC GOAL: This project will, in part, achieve the strategic objective of conducting a needs assessment and replacing the District's financial management system under the category of implementing technologies to improve response time, security, and operational effectiveness. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – PowerPoint Presentation ATTACHMENT A SUBJECT/PROJECT: INFORMATIONAL ITEM – ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM UPGRADE COMMITTEE ACTION: The Finance & Administration Committee met on June 21, 2023, to discuss this item. The Committee supports 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 by the committee prior to presentation to the full Board. Enterprise Resource Planning (ERP) System Update ATTACHMENT B Implementation of Tyler Eden System –May 2004 Tyler Eden System Sunset (EOL) – March 2027 Dec 2022 –Current April 2024-June 2025 Jan 2025 –Dec 2025 Oct 2025-June 2026 Apr 2026 –June 2027 Analysis Demonstrations/Recommendation Demonstration and Evaluation of Vendor Systems; Recommendation, Enhancing Requirements, Preparatory work for solicitation if needed, Board Approval Phase I: Financials Implementation, conversion, training, Project Management, etc., Phase II: HCM/Payroll Implementation, conversion, training, Project Management, etc., Phase III: Enterprise Permitting Implementation, conversion, training, Project Management, etc., Phase IV: Utility Billing Implementation, conversion, training, Project Management, etc., Kickoff, Interview, Initial Requirements [communications plan, business requirements, etc.] May 2022 –Dec 2022 Enterprise Resource Planning (ERP) Upgrade (Projected)