REPORT TO THE CITY COUNCIL
July 28, 2016
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
BY: MICHAEL CARBAJAL, Division Manager
Department of Public Utilities - Water Division
SUBJECT
Title
Approve a consultant services agreement with Silveira Consulting for an amount not to exceed $103,545 to provide Labor Compliance Monitoring Services for the Phase 2 Regional Transmission Mains project (Citywide)
Body
RECOMMENDATION
1. Approve a consultant services agreement with Silveira Consulting for an amount not to exceed $103,545 to provide Labor Compliance Monitoring Services for the Phase 2 Regional Transmission Mains project.
2. Authorize the Director of Public Utilities, or designee, to sign the agreement on behalf of the City of Fresno.
EXECUTIVE SUMMARY
The Department of Public Utilities seeks Council approval for a professional consultant services agreement with Silveira Consulting to perform labor compliance monitoring services during the construction of the Phase 2 Regional Transmission Mains (RTMs). Labor compliance monitoring services are necessary to ensure the RTMs contractors comply with the Department of Industrial Relations performance standards. Silveira Consulting will support the City and enforce prevailing wage requirements for the RTMs project, monitor compliance by obtaining and reviewing certified payroll reports, respond to public record act requests, investigate complaints and other suspected violations, and recommend appropriate enforcement action when violations occur. Construction of the RTMs will begin during August 2016.
BACKGROUND
The Water Division has developed the City’s Metropolitan Water Resources Management Plan. The plan is comprised of multiple capital projects to provide a sustainable and reliable water supply for the community; repair and replace aging infrastructure; and eliminate the over drafting of the City’s groundwater resources. A major component of the plan is to construct the RTMs. Construction of the RTMs is scheduled to begin in August 2017; project completion is scheduled to occur April 2018.
Construction of the RTMs will require labor compliance monitoring services for hundreds of persons. The Water Division does not have a labor compliance monitoring program, nor staff to successfully meet the requirements of Department of Industrial Relations. In accordance with Fresno Municipal Code Chapter 4 Article 1 and Administrative Order 6-19, the Department of Public Utilities conducted a competitive process to select consultants to provide professional labor compliance and monitoring services for the construction of the RTMs. Announcements were published on July 17, 2015, in the Fresno Business Journal and posted to the City’s PlanetBids Online site. The request for qualifications requested that consultants provide a statement of qualifications (SOQ) by August 14, 2015 and the Water Division received 4 SOQs by the due date. The SOQs were evaluated by a selection committee consisting of representatives from the Water Division. Upon completion of the evaluation of qualifications submitted, 4 firms were shortlisted. On June 17, 2016 shortlisted firms were invited to submit a fee proposal for labor compliance monitoring services for RTMs. The City received price proposals from 2 firms. Silveira Consulting provided the best prices and was selected as being best to meet the City’s needs for this project.
The services required by this agreement will be completed in approximately 637 consecutive calendar days from the authorization to proceed. The contract is for a not to exceed amount of $103,545, paid on a time and material basis.
A standardized consultant service agreement has been used in accordance with Administrative Order 4-4, and the consultant’s Certificates of Insurance have been approved by the City’s Risk Management Division. Upon approval by the City Council, the agreement will be executed by the Director of Public Utilities or designee, who has been delegated this authority by the City Manager.
ENVIRONMENTAL FINDINGS
Approval of the consultant service agreement amendment is not a “project” within the meaning of Public Resources Code Section 21803 (CEQA Guidelines § 15378) because the organizational and administrative activities as identified in the consultant agreement will not result in direct or indirect physical changes in the environment.
LOCAL PREFERENCE
Local preference was not implemented because no local firms responded to the RFQ.
FISCAL IMPACT
There is no impact to the General Fund. This Consultant Agreement will utilize funding through the State Water Resource Control Board’s State Revolving Fund Low Interest Loan Program for construction of the RTMs. Appropriations are included in Water Division's FY 2017 Capital Improvement Program adopted budget in the State Low Interest Loan Fund (40162) for the project. The loan repayments were included in the water rate model used to create the five-year utility rate plan that was adopted by the City Council on February 26, 2015.
Attachments:
Consultant Services Agreement