Monterey Peninsula Water Supply Project Governance Committee

 

 

Meeting Date:

April 16, 2014

 

 

 

Agenda Item:

2.

Review and Approve for Distribution the Draft Request for Proposals (RFP) for a Contract to Conduct Value Engineering Analysis of CDM Desalination Project Designs

 

 

From:

MPRWA Executive Director Cullem

 

 

SUBJECT:       

Receive, discuss, revise, and approve the Request for Proposal (RFP) and  Scope of Work for a Value Engineering (VE) Study of the Monterey Peninsula Water Supply Project (MPWSP)

                 

RECOMMENDATION:

It is recommended that the Governance Committee approve the RFP and scope of work for a VE study of Cal-Am’s Desal facility 30% design.

 

DISCUSSION:

Section II of the Amended and Restated Agreement to form the Monterey Peninsula Water Supply Project Governance Committee defines “Value Engineer” as, “The professional engineer(s) to be retained by, or to consult with, Cal-Am to perform a value engineering analysis for the Desalination Project to potentially lower the costs of, or maximize the value of, the Desalination Project to Cal-Am’s ratepayers, including matters concerning the cost effectiveness, performance, reliability, quality, safety, durability, effectiveness, or other desirable characteristics of the Desalination Project”.

 At its meeting of March 31, 2014, the Governance Committee (GC) voted to advertise, select, and award a contract for a VE study on Cal Am’s Desal project at the 30% design level, per Section V. of the Governance Committee Agreement. The Governance agreement currently allows the Committee to select the VE consultant, but it will be modified to have the Committee advertise and award the contract in lieu of Cal-Am doing so.

Since the GC has no mechanism to directly award contracts, the Committee requested that the Monterey Peninsula Water Management District (MPWMD) and/or the Monterey Peninsula Regional Water Authority (MPRWA) prepare a draft RFP and administer the VE contract. Since time is of the essence, the General Manager of MPWMD and the Executive Director of the MPRWA agreed that the Water Authority would take the lead. Following RFP approval by the GC, the Water Authority will advertise the RFP, conduct a proposal review, and provide the consultant ranking to the GC. As soon as the GC selects the consultant, the Water Authority will award and administer the contract.

An initial draft RFP and Scope of Work for the VE study was prepared by Cal-Am before a decision was made by the GC to take responsibility for the contract. The initial Cal-Am draft was substantially revised by the Water Authority staff to incorporate issues of concern to the Authority and to the public, and to insure it is in conformance with public contracting requirements. It was reviewed by the MPRWA TAC on April 7th and by the Water Authority on April 10th. The suggestions and corrections of both have been incorporated into the final draft RFP.

BUDGET CONSIDERATIONS:

The Water Authority FY 2013-2014 budget will have to be increased by not-to-exceed $200,000 to pay for the VE study with the full cost to be reimbursed by Cal-Am per the Governance Agreement.

ATTACHMENTS:

Attachment 1 - Final Draft VE RFP (includes Exhibits A and B listed below)

Exhibit A - Final Draft VE Scope of Work

Exhibit B - Draft VE Contract