Title
Approval of Services Agreement No. AGR 22-67a with Bohannan Huston Inc. in the amount of $1,500,000.00, plus Applicable Gross Receipts Tax
- AND -
Approval of Services Agreement No. AGR 22-67b with Miller Engineers Inc. d/b/a Souder, Miller & Associates in the amount of $1,500,000.00, plus Applicable Gross Receipts Tax, both for the Purpose of Water Systems Storage Tanks - Design, Inspection, Maintenance and Training Services
Recommended Action
I move that the County Council approve Services Agreement No. AGR 22-67a with Bohannan Huston Inc. in the amount of $1,500,000.00, plus applicable gross receipts tax, and Services Agreement No. AGR 22-67b with Miller Engineers Inc. d/b/a Souder, Miller & Associates in the amount of $1,500,000.00, plus applicable gross receipts tax, both for the purpose of Water Systems Storage Tanks - Design, Inspection, Maintenance and Training Services and forward to Council for approval.
Utilities Manager's Recommendation
The Utilities Manager recommends that Council approve the motion as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities reviewed this request at their regular meeting of March 16, 2022 and unanimously recommends that Council approve the motion as presented.
Body
These two agreements are for outside consulting firms, and their associated contractor team members, to provide the following services to DPU: 1) Development of improved field inspection forms and standard operating procedures; 2) Design and Project Inspection Engineering services for development and execution of projects regarding the rehabilitation of existing tanks or the addition of new tanks to the Water Production (WP) or Non-Potable (NP) systems; 3) Existing Tank Inspection services (coatings, cathodic protection, targets, control valves and add-on systems like communications equipment); 4) Minor Repairs of tank systems; 5) Immediate (or immediately scheduled for) repair & replacement of equipment found to be deficient during inspections; 6) Annual Training of GWS staff on various aspects of water storage tank facilities (with a lean toward State certification training and testing requirements). There are currently 25 storage tanks in the WP system and 4 in the NP system. Within the first seven (7) years of the FY 2023 proposed DPU 10-Year CIP Plan the following projects are anticipated: One (1) additional WP tank and two (2) additional NP tanks; Eleven (11) existing WP tank rehabilitations; and Eighteen (18) existing (WP & NP) tank inspections.
The term of this agreement starts as swiftly as possible so the first of the existing tank rehabilitation projects can begin on schedule to meet funding obligations - starting on 30 March 2022 and ending on 29 March 2029.
The costs for the services anticipated as a part all of the anticipated projects over the 7-year term of the agreement is $3,000.000. $3,000,000 over seven (7) years averages $428,571 per year or $93,750 per tank project, however each type of project will not occur every year and each type of project will vary in cost with tank size and type of services rendered. These services are anticipated to be split approximately equally between the two selected firms using these two separate agreements.
DPU/GWS staff has been losing system knowledge and operational experience over the past few years and this trend is likely to continue through the next seven (7) years. As a response to this, and as an alternative approach to succession planning, DPU is proposing the implementation of the two discussed equal but separate agreements with professional consultants and contractors who will augment the GWS crew's knowledge, experience and training. Having these proposed services provided by outside consultants and contractors, experienced with the most up to date industry standards and technology, will provide the GWS crew with the necessary training, skills and experience to provide excellent daily through annual operation and maintenance of all WP & NP water storage tank facilities. Having these firms available for engineering services will also improve the efficiency of major project execution.
Alternatives
The alternative is to not approve this agreement. The consequences of not approving this agreement would be a delay in the start of the scheduled first tank project which is funded by a source outside of the DPU. Staff would continue to do their best with the experience and resources available to them but water storage tank facilities would not receive the top tier operational and maintenance activities they could receive with the approval of this item.
Fiscal and Staff Impact
The major project engineering for new tanks and major rehabilitation projects is planned to be primarily financed with loan and or grant funding. The forms and standards development, existing tank inspection, repair & replacement and training services are anticipated to be funded in the WP & NP O&M budgets. Staff impact will be more efficient design and construction scheduling of major projects and more thorough facility inspections. Staff impact will also be the ability to have a reliable contractor, familiar with current industry standards, providing inspection and minor repair services. Staff impact will also be enhanced standard operating procedures and annual professional training on storage tank facilities.
Attachments
A - AGR22-67a Bohannan Huston_WSS Tanks - Design Insp Maint Training_FINAL
B - AGR22-67b Miller Engineers Inc. dba Souder Miller Associates_FINAL