 Hey Gina and Roberta. Hi Mark. We're recording to YouTube just so you know and then I've just made you a co-host So you'll have the ability to share your screen. Oh, you're muted. You're on mute Sorry about that. Am I gonna control the presentation? Yeah, that's how we're doing the subcommittees now. Are you ready for that? Yeah, I think so yeah Okay, let me just I might need a second to set up Okay, you got plenty of time to do it about five minutes. Nice to see you all again I'm Mark. Hi. Hello. Hello How are you doing Lisa? I'm okay. I'm Waddling a little bit still and unoppressive on camera, but I'm better 42 is amazing. I'll tell you Hey, the beard is gone Dan. You're you're you're out of the house and beard free Yeah, I've been beard free for a couple months. Yeah, I just really really noticed it today back in the office Yeah, try and so I think we have everyone correct Gina and Roberta I think we may be waiting for Jen perhaps Emma Okay, I'll be honest chair Galvin. I remember the previous subcommittee you added beard as well So I was like, you know, I think I think I can go without shaving, but now I kind of regret that decision No offense for me if you don't want to shave it's a pain in the you know what I Thought it was a requirement For the men Well, I'm very excited to be presenting these this topic to you. I really appreciate you you guys coming together to To go over these contracts We're just we're interested closer and closer on this project. It's getting real exciting That's good It's been a long time coming. Oh, yeah There they are Good afternoon director Burke and deputy director Walton Good afternoon Hello, no, all right. Well, it's 101. So I believe we have everybody here. So I'll call the meeting of the VPU contracts subcommittee to order and Secretary Atha if you could do a roll call, please Yes, chairman Galvin here Boardman bad and for here board member mullin here Great, thank you all for being here a reminder to please mute your phones or microphones when you're not speaking and To also put away all cell phones and personal computers So we will move forward with the agenda which item number two is public comments We are now taking public comments on item two if you wish to make a comment via zoom Please raise your hand if you're dealing dialing in via telephone, please dial star nine to raise your hand Secretary Atha. Do we have anyone? We have no public comments. There's a shock Okay, then we'll move to item 3.1 director Burke Thank you chair Galvin and members of the subcommittee We have one item for you today It's a proposed project work order number two for engineering services during construction with Corolla engineers and a proposed professional services agreement for construction management and inspection with so much and Surveysing engineer mark has re will be making the presentation Thank you director Burke Okay, good afternoon chair Galvin and members of the board I'm very excited to be presenting these two contracts Before you today, I will be sharing my screen. Hey terrific So as director Burke pointed out, I will be discussing two contracts related to the construction of the Laguna treatment plant disinfection improvements project First I'll be discussing the second amendment to our design contract with Corolla engineers and This is to provide engineering services during construction, which I'll highlight the details of later And then secondly, I will be introducing a new professional services agreement for your consideration And that is for construction management and inspection services associated with the same project So today I'll go over the project status where we currently are and where we're headed with this project I'll discuss the second amendment to our existing design PWO with Corolla engineers I'll go over the new PSA for your consideration with somus out of Walnut Creek And again, that's for construction management and inspection services I'll also discuss how all of these costs tie into the overall delivery of the project and the overall project cost And ultimately make a recommendation to the subcommittee. So to recap the purpose of this project is twofold First we the division of drinking water derated our existing UV facility from its design peak wet weather flow capacity of 67 mgd or a million gallons per day to about 48.5 mgd And this required us to modify our operations and maintenance to remain in compliance as we then were to upgrade our facility Second our existing UV facility is also beyond its useful service life at about 22 years So this is a basic diagram of the two key components of the project the UV and diversion UV shown in purple and the lower left and a version shown in red So our UV system is designed for just a 70 million gallon per day peak wet weather capacity and The diversion pipeline is a is a 42 inch pipeline that conveys what we call non compliant effluence back to the beginning of the plant for retreatment. And why this is important. Normally, if we have A UV system malfunction in the rare events that it occurs we circulate what we call non compliant effluent effluent that has not met the regulatory requirements for disinfection. We have to circulate that from the discharge ponds across the street to the head of the plant, which is a process that's both expensive and difficult for plant operators. And so this new system will provide additional time for plant staff to respond to non compliance issues and it'll allow us to recirculate non compliant flows within the boundaries of the plant itself. So it allows for greater operational flexibility and it's a great addition to the plant. So as you know, we've come a long way with this project since beginning in 2012 with several thorough pre design analyses. And we're approaching design completion and preparing to enter a 30 to 36 month construction season or period. So the most recent actions taken by the board have been the first design amendment to the project work order with Corolla engineers and this was back in 2019 And recently in August 2020 the board approved a memorandum of understanding and professional services agreement with Calgon carbon or UV equipment supplier. And this was so that they could also provide additional services during design so they could submit their design documents for incorporation into our contract. So we're wrapping up 90% design now and UV supplier Calgon is wrapping up their their design submittal for our contract documents as we speak. And I am happy to report that we've remained on schedule since the first project work order amendment back in August 2019 So to provide a brief recap of the original PWO with Corolla engineers. This was a project work order executed for design services after a competitive solicitation. We ultimately selected Corolla engineers because of their unparalleled expertise in UV systems. There was really no other alternative for For the design of this system. They are the experts. They are the industry leaders. And so we made that selection after a competitive process. As you know, in 2019 we executed an amendment and this amendment addressed additional budget needs for project delays and scope changes that came about as a result of our initial Value engineering study performed in 2017 and it also addressed some delays that we observed due to the Tubbs wildfire. Now the second amendment for which we're seeking approval. Was anticipated previously and it's it addresses our need for engineering services during construction from our original design engineers. And the reason why we wouldn't want to procure these services elsewhere is because there's really no other Firm that would best be suited for these services on this existing design contract. In other words, our existing designers, their experts in the contract documents that we're generating and they're best suited most economically and Technically for the questions request for information and submittals that we're going to be getting from the contractor. So that's why we pursue amendments to our existing contract versus going out to a new solicitation process and we can highlight this more in subsequent slides as well. So before entering construction, we need to amend our design contracts and as I mentioned this engineering services during construction. This essentially addresses the contractor's needs for reviews and responses to submittals and request for information. It provides our existing designer to develop change orders and design clarifications through the course of construction. And it also allows our designers to provide record drawings, support commissioning and startup services for existing you are for our new UV system and also to provide project close out. So again, I do want to reiterate that this was anticipated. The service is needed. We were planning for it. We budgeted for it and we actually We notified the board of this need back in 2019 for our initial our initial amendment to the contract. So this slide breaks down the amendments fee into the total of 1211 tasks rather and it represents a total cost of about 2.1 million and if approved this design contract will be revised to about six and a half million dollars. We will discuss later how the this amendment fits in with our overall cost estimates and budget. In the effort associated with engineering services during construction. I want to highlight is is important to develop later in the in the design development. Because it's too complex of a project to estimate at the beginning of the design project. So in some more simpler projects, we can anticipate these services ahead of time, but for a large scale complex project we really need the details of the design to to essentially determine what's needed for services during construction. So that's why we pursue it as an amendment later on. And this provides just a little bit more context and kind of illustrates the breakdown of the fee. You know, you can think of the majority of the scope attributed to three categories in blue we've got overall project management and progress meetings. In orange we've got responses and reviews for submittals request for informations and change orders. And to give you an idea, we're currently estimating about 250 shop drawing submittals 65 re submittals and over 50 change orders on this contract. So it's a large effort and it's a very complex project and that's why we're here today. And then shown in gray is our kind of what we can think of as our as our close out besides actually closing out the project, we need to develop record drawings which highlights the changes made during construction. We need to support commissioning and startup services and we also have to develop an operation and maintenance manual for plant staff. So moving on to the construction management and inspection contract now we released an RFP in August of August 17 of this year. And proposals were evaluated from one to 10 based on criteria such as responsiveness to the RFP qualifications and demonstrated abilities and of course references and experience as well. And to highlight just a few of these items, you know, responsiveness to the RFP is how well the consultants met the minimum expectations or minimum requirements of the request for proposals. That includes things like an executive summary proposed organization chart and time commitments to the project and things of that nature. We look at the qualifications of the team by analyzing licensures years of experience, experience with similar work, and in this case, it was UV and title 22 regulations. Now of course we look at the work plan and the scope of services to determine, you know what the proposed consultant strategy is for in this case facilitating construction. You know how will they allocate the resources, you know what is the file management procedures they're planning to use. How many project meetings do they recommend and and you know what are the key reporting mechanisms. So as we go through construction it's we need these services because we don't have the resources in house to manage such services. And so this this slide goes over our kind of our selection process. I want to point out that this was an incredibly robust process. It included thorough proposal evaluations, several review board meetings. We conducted interviews. We contacted all references for the for all proposals. So we took this process extremely seriously. The review panel consisted of five staff, a deputy director to supervising engineers, one superintendent and the wastewater plants and one civil engineering technician, which we felt provided the breadth of knowledge necessary for making a selection on this project. We, we received three proposals, and we ultimately and unanimously shortlisted to consultants for for interviews. Ultimately so much was selected, because they demonstrated a number of things. They demonstrated the greatest CM experience, both related to water and wastewater treatment plants, as well as UV systems. They also experienced they demonstrated the greatest experience with the claims process. So as as you can imagine on complex large scale projects, propensity of claims is more likely. So we wanted to select the firm with substantial experience with the claims process as well as experience mitigating these claims. So they demonstrated more experience with that. They were also able to commit more staff time to this project than any other consultant, which is very important for this project. They also had relevant project experience and they had the best recommendations out of all three consultants. And not forefront, but it is part of our consideration they had a more competitive fee at $4.5 million. And this was well within our city estimates. And just to provide a little bit more context. They showed seven projects on their core team with UV components ranging in flows up to 30 mgd and cost between 15 and 110 million dollars. This time commitment that they demonstrated consisted of over 60 hours of time for their UV expert and project manager. They're allocating almost full time construction management services which no other firm could provide. And similar to the other firms they're also providing full time inspection and resident engineer services. And they also had excellent references as I've mentioned. They've demonstrated a successful history with many municipalities. And below are just a few of the commendations that I heard after reaching out to all seven of the firm's references. And so now as we look at both contracts together and our existing contracts for design, I wanted to provide an idea of how much we are expecting to spend for these consultant services. This slide demonstrates that from left to right, you can see the consultant service tasks which are basically either design or construction related services. The associated fee and the fee as a function of construction as a percent of the construction cost and our city budget as a percent of total construction. And this is mainly to demonstrate that these services are both within our expectations and they're also within what we've budgeted for on this project. We don't labor all of the items but with regards to the CM and inspection contract, it came in at about $4.5 million, which represents about 9.6% of total construction cost. We see very typically construction management services on the range of about nine to 12%. And we on a project such as this where 1% can make a big difference we wanted to budget on a higher range so we budgeted for 12%. So as we look at these costs as a function of the overall project, you can kind of see how it fits in so we've received our 90% submittal for the construction cost which is an updated construction cost from the time I last presented. And it still shows a construction cost of $47 million, 35 attributed to UV and 12 million for the diversion system. We are still estimating project delivery costs at approximately 35% or $16.5 million. And so on the previous slide I showed that we have about $11 million that we're anticipating for consultant contracts, which leaves about $5.5 million for in-house labor, in-house overhead, miscellaneous expenditures, and also an overall contingency. So I am pleased to report that this is the same slide that I presented back in August 2019. The only difference now is we've got more accurate estimates and we've got fees that are associated now with our budgets. So moving on to the impacts that an approval of these two projects would have on the overall project. We do not need any more funds for this project. The funds have already been appropriated. And so approval of these two contracts will have no impact on our overall budget. To remain pursuant to CEQA, we have developed an addendum to our incremental recycled water program EIR, Environmental Impact Report. And what this IRWP program EIR is, is it's a programmatic environmental impact report for the Laguna treatment plant for numerous projects, including what they at the time saw as a need to replace our UV system eventually. The ultraviolet system is already in the project description on the original EIR, but we needed an addendum to identify some other nuances of our project, such as our electrical load center and our diversion pump station and pipeline and some other minor pertinences on the project. So the addendum reflects best practices and we've identified that there are no additional impacts from our existing or our proposed project to the existing EIR. And when we come before the board in November, we will be presenting these CEQA documents for the board's consideration. And so before we actually execute the two contracts that we're talking about today, the PWO amendment and the CM contract, the board will need to make a number of, will consider a number of actions. And so I wanted to kind of highlight a couple of those. The board will need to consider this addendum and they will need to determine or make a determination that our UV project fits within the scope of the overall programmatic EIR. The board will need to consider the approval of Laguna treatment plant disinfection improvements project. And the board will need to adopt the revised project specific mitigation monitoring and reporting program. And that basically evaluates based on the original EIR the impacts of these projects. It's updates the impacts based on current best practices and it ensures that our UV project does not have impacts and access of the original EIR. So those are a number of actions the board will have to take prior to execution of our two proposed contracts. So should the board approve these two contracts, we anticipate completion of design in spring of next year and anticipate a 30 to 36 month construction period beginning mid year next year. So on November 19, we will bring three items to the board, consideration of our environmental documents, our project work order amendments and our construction management and inspection contracts. And also I wanted to highlight that there will be a few sole source items that will need to seek approval for, which will come at a later date. And of course, execution of our, of our proposed construction contract mid year next. And so with that, you know, I do recommend that the subcommittee support both contracts first the design PWA amendment number two for engineering services during construction with coral engineers in an amount not to exceed 2,131,132. And I have the subcommittee support a professional services agreement with soma's out of Walnut Creek, California for CM and inspection services in the amount not to exceed 4,471,746. And I'd be happy to take any questions that you have. Thank you, Mark. Board member questions comments. Or committee member I should say. Thank you, Mr. Chair. Thank you for the presentation mark. I always appreciate the work that goes into these and when you make presentations to bodies like this it's in plain English that we can all understand so I appreciate that. I I'm supportive and I understand the staging process for a project this big it. Correct me if I'm wrong this looking at the dollars is this about the biggest project we've done since the geysers. I believe so. Yes, director Burke can chime in. I don't, I can't think of a single one as big as this project. Yeah, nothing, nothing's coming to mind. So this is probably our next biggest. That being said, I would, I would recommend when this comes to the full board that you say that I think it's important that we all understand and the public that follows this understands what a big deal this is so my my only other questions are related to the some of the steps that you outlined towards the end and again I'm supportive of the of the two consultant agreements in front of us. But the one that's coming on the horizon is the hardware side where we're going to be buying equipment. And we've had this discussion before because we ran into that issue with a previous project where the timeline we allowed we locked in for a period of time. And for whatever reason it got delayed and we fell out of that deadline and had to pay another million dollars for the equipment. And the reason I raise it again is there's an environmental step along the way here. And I think we all appreciate and recognize that that can be a slippery slope, particularly with a facility like this that the whole county watches. And a lot of people watch everything we do down at the Laguna treatment plant. And this is a big deal. And I just want us to be prepared if we get challenged on our environmental certification for this. And it causes delays that we're prepared on the hardware side where we negotiate prices with a sole source vendor. So that we don't get caught up in because of a six or a nine month delay because some environmental issues, we end up paying a million dollars more for this equipment. So I just raise that as a, as a kind of a flag as we move forward with this but everything else on it. I again I appreciate the information and I'm prepared to support it. Well, thank you board member moon. I do have a number of points if I may to what you're bringing up and it is a great concern. I apologize for my lay person discussion about the environmental process. I think I will be inviting our environmental expert to the presentation with, of course, if it's approved by the director to describe describe the process but as I understand it we went out of an abundance of caution to develop an addendum to our EIR. In some cases our attorneys wondered why we didn't just go for a notice of exemption because in many cases we're replacing the facilities that were there. But due to some additional items on the contract, we decided to be safe we would do an addendum. This is not an environmental document that is going to be circulated for public comments. This is not an item that needs to be certified by the board the board has already certified the programmatic EIR. This merely provides an addendum that identifies some additional tasks and identifies these additional tasks as no impact to items identified in the original EIR. We'll be able to just to speak to this in more detail in the November meeting, but we do not see this as as being a hold up on the project. But I hear your concern loud and clear and we've already been been focusing on that as well so our, our procurement of our UV system the hardware that you're speaking of. This specifically terminates if you want to think of it like that or is open to negotiation mid year 2021. So it was the project would still have to be delayed about a year for that to be a concern. And that was a concern you raised at the subcommittee when we went to award or when we went to seek approval for the MOU and the PSA with Calvin and I spoke personally with the deputy or with the director with Calvin Carmen and they recognize that need, and they understood that to not be a necessity so they, they recognize the importance of this project for for their portfolio as well and they remember, you know, the need for for flexibility in the event that that occurs, but that is a very rare occurrence from where we stand today I do not see that happening. One last item if I may as well. When I did mention sole source, it was actually unique to our UV procurement so we did go through a pre selection process where we ended up selecting Calvin carbon, which was not a sole source really because we evaluated a number of manufacturers. The sole source that we're, we're speaking of that I'm speaking of today is just a number of items, not yet fully identified that we know we will need specific to the plant specific to this project for mainly for continuity of the existing facility so for example we typically sole source our programmable logic controllers, basically the minds the computers of our operation systems for consistency those all have to be the same and so I will be taking an item before the board for consideration for them for those types of sole source needs essentially so just wanted to provide that clarification. Thank you. Lisa comments or questions. Thank you, especially for clearing up I also had a question on the sole source but but your response to to work member more and took care of it. Really just wanted to appreciate you and the team for anticipating the questions around the RFP and for the responses and your diligence and contract and contacting the references. I imagine what predicting a project like this would entail, especially with constantly changing ingredients that we have major ones like labor and the cost of everything in the face of several disasters so I appreciate it. And finally, it's very general and it's not even really that specific to this is it struck me when you were going through it that because this project is so substantial. And because you know we anticipate several change orders and the process is what it is. There are other cost efficiencies that can be identified for the future. I don't, I'm not asking for a report back I'm not asking for data. It's just a comment to be able to decrease that amount of change orders and other cost for the firm and then in turn for the city. I know that's, you know, it's the core of our of our sector and in trying to crack that nut but it just struck me that there's an awful lot of of change anticipated. I have full confidence that the team is is doing this as efficiently as possible but I'm always interested in in any of the expert feedback on your experience on that. So, thank you. Yeah, well thank you so much for the comments and question board member baton for. I first want to say, and I truly say this from the bottom of my heart, I get great support services from director Burke and deputy director Walton, they're fantastic support for me. So I do appreciate your comment there. What you're speaking to is is is important and it's, it's kind of a, you know, a trade off that we analyze on a day to day basis with what we do. As the project grows in size and complexity as we see with the UV project it's, it does become more challenging to mitigate these types of concerns like change orders and request for information. And I will argue that on our contracts, they are appropriate. If we were to develop plans and specifications that did not have changes in the field, we would have spent too much money through the design process and development process for the contract docs. So it's kind of a fine line where we want to have a buildable set of plans and specs, but we also don't want to over design it we want to, you know, we, we expect change orders. The second point I want to make to that is, you know, the numbers that I kind of threw out are what we used to estimate and what the consultants ultimately used to to propose a fee to us. And truly we don't know exactly where the actual numbers will fall. And so that does come about during construction, but we do a number of things to to seek greater efficiency every day. The reason why we're on this project is our constructability review. So, we are actually the reason why we're trying to procure construction management and inspection services now, as opposed to maybe during the advertising period for construction is because we specifically want our construction manager to review our plans and specs for what's called a constructability review. And they take kind of a new third party perspective, you know, unique to the plans, and they look at details like errors and omissions. So, we find that that's going to be a helpful and mitigating some of the, some of the larger changers that may come about. So that's certainly a great point you bring up and we do look at ways for increasing our efficiency. Fantastic. Thank you so much. And I, if agree with with with Matt that anything that you can build into the presentation for the full board to really showcase the substantialness of the project but also about how much thought has been put into the sequencing of how you're approaching the project, how complex it is, and really showcasing how beautifully you're moving forward with it I think is well deserved and will be well taken. Thank you. Thank you so much. Thank you. I'm obviously fully supportive of both of these contracts it's really exciting to see this project moving forward. I know we still have a long ways to go. I, it's still mind boggling that it's almost three year construction time frame. You would think you know you deliver the UV system and you plug it in and away we go and it just doesn't happen that way so understand that but I think this will be well received by the full board I think the comments that you've received from Matt and Lisa are appropriate and hopefully will allow you to kind of fine tune the presentation to the full board. But I think we're ready to go forward so any other comments Matt or Lisa. Okay. Then we'll now take public comments on item 3.1. Do you wish to make a comment via zoom please raise your hand. If you're dialing in via telephone please dial star nine to raise your hand. Secretary, do we have anyone. Cheryl gavin there are no public comments. Thank you. I'll then ask for a recommendation or motion from the committee to the full board. I don't have it in front of me. My apologies. Do I need to read the entire thing or may I say so. Second. So we have a motion and a second to recommend approval of both of these contracts to the full board. Secretary, if you would do a roll call please. I remember bad and for I board member molland. I very good passes unanimously. Director Burke anything else. I just really want to compliment the team and the staff this is both board member bad important and board member molland pointed out. This is a huge project that has been many years in the making, and we just have some great great staff and leadership moving this forward and couldn't be in better hands than with both Mark and Emma leading the effort to get this done so. I'm excited to see this project going forward and and just really thank the board to support as we've gone through this so thank you so much to the subcommittee for all your hard work and we're very much looking forward to bring this to the board and we will highlight really the size and nature of this project because it really has been a great amount of effort and a really great project. Great. Well done Mark thank you for the presentation. At least I thank you for making the time to be available today. And if there's nothing else will adjourn the subcommittee meeting and see you all next time. Thanks everyone. Thank you.