Agenda

Monterey Peninsula Regional Water Authority (MPRWA)

SPECIAL MEETING

10:00 AM, Thursday, October 31, 2013
Monterey Council Chamber
580 Pacific Street
Monterey, California


ROLL CALL

PLEDGE OF ALLEGIANCE

PUBLIC COMMENTS
PUBLIC COMMENTS allows you, the public, to speak for a maximum of three minutes on any
subject which is within the jurisdiction of the MPRWA and which is not on the agenda. Any person
or group desiring to bring an item to the attention of the Authority may do so by addressing the
Authority during Public Comments or by addressing a letter of explanation to: MPRWA, Attn:
Monterey City Clerk, 580 Pacific St, Monterey, CA 93940. The appropriate staff person will contact
the sender concerning the details.

AGENDA ITEMS

1. Discuss, Review, and Authorize a Contract with Separation Processes Incorporated(SPI)
for Engineering Support Services on Behalf of the Governance Committee During Cal-
Am's Selection Process for the Design-Build Firm for the Monterey Peninsula Water
Supply Project, and Authorize the Executive Director to Negotiate, Prepare and Sign a
Water Authority Contract with SPI, and/or Sign an Agreement for a Water Authority Cost
Share with Another Public Agency Contracting with SPI for Said Services, at a Cost to the
Water Authority Not-to-Exceed $12,000 and Determine Role of Authority
Representative to the Governance Committee . - Cullem

ADJOURNMENT




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Agenda related writings or documents provided to the MPRWA are available for public
inspection during the meeting or may be requested from the Monterey City Clerks Office at 580
Pacific St, Room 6, Monterey, CA 93940. This agenda is posted in compliance with California
Government Code Section 54954.2(a) or Section 54956.


Monterey Peninsula Regional Water Authority
Agenda Report

Date: October 31, 2013
Item No: 1.



06/12
FROM: Executive Director Cullem

SUBJECT: Discuss, Review, and Authorize a Contract with Separation Processes
Incorporated(SPI) for Engineering Support Services on Behalf of the Governance
Committee During Cal-Am's Selection Process for the Design-Build Firm for the
Monterey Peninsula Water Supply Project, and Authorize the Executive Director
to Negotiate, Prepare and Sign a Water Authority Contract with SPI, and/or Sign
an Agreement for a Water Authority Cost Share with Another Public Agency
Contracting with SPI for Said Services, at a Cost to the Water Authority Not-to-
Exceed $12,000 and Determine Role of Authority Representative to the
Governance Committee
RECOMMENDATION:

Staff recommends that the Water Authority approve a contract with Separation Processes Inc.
(SPI) for engineering consultation services on behalf of the Water Authority, Monterey Peninsula
Water Management District (MPWMD), and Monterey County (the three public members of the
Governance Committee) relating to California-American Water Companys (Cal-Am) interview
and selection process for the Monterey Peninsula Water Supply Project (MPWSP)design-build
(DB) contractor, or, alternatively, reimburse a fair share of contract costs with the MPWMD and
Monterey County if either one executes the SPI contract. SPI previously consulted with the
Water Authority and completed the comparative study of desalination projects in 2012. Staff
also requests Authority approval for the Executive Director to prepare and sign the contract,
and/or authority to sign a reimbursement agreement with MPWMD and Monterey County.

DISCUSSION:
Cal-Am through a Request for Proposals (RFP) solicited sealed Proposals from pre-qualified
respondents (Proposers) for a contract to design, permit, and construct certain desalination
infrastructure associated with the Monterey Peninsula Water Supply Project (the Project). Cal-
Am issued a Request for Qualifications (RFQ) for the Project on April 1, 2013. Statements of
Qualifications (SOQs) were received from respondent contractors on May 1, 2013. Cal-Am
evaluated nine SOQs in accordance with the RFQ and has pre-qualified the following five
contractors to the RFQ as eligible to submit proposals in response to the RFP (Proposals):
Black & Veatch Construction, Inc.
CDM Constructors, Inc.
CH2M Hill Engineers, Inc.
Kiewit Infrastructure West Co.
MWH Constructors, Inc
MPRWA Meeting, 10/31/2013 , tem No. 1., tem Page 1, Packet Page 1


Cal-Am intends to conduct interviews with these five qualified contractors on November 5
th
and
6
th
. It intends to select a preferred contractor and begin negotiations with the preferred
contactor on November 15
th
in hopes of reaching agreement on a draft DB contract by early
December. Cal-Am projects that, if this schedule holds, it will issue the Cal-Am notification
under the Governance Committee Agreement for the Governance Committee to review and
provide recommendations concerning the draft DB contract and proposed contractor on or
about December 6th.
1
Together with the Cal-Am notification, Cal-Am will provide voluminous
documents relating to the procurement process to Governance Committee as background
material.
Legal counsel and staff of the Water Authority, MPWMD, and Monterey County agree that the
procurement process and the Governance Committees review and recommendations
pertaining the DB contractor and draft contract would be facilitated by the engagement of an
engineering consultant to participate in the procurement process (and consult separately with
with Messrs. Burnett and Stoldt) and to advise the Governance Committee following issuance of
the Cal-Am notification.
Attached is a scope of services that explains the services for which SPI would be retained. The
Water Authority, MPWMD, and Monterey County have reached an agreement with Cal-Am to
include Alex Wesner, Vice-President of SPI to observe the interviews and participate in the
selection process but not be a member of CAW's Evaluation Team or Selection Committee, and
for Mr. Wesner to consult with Jason Burnett and David Stoldt under confidentiality provisions of
a non-disclosure agreement throughout this process
Through this engagement, we anticipate that Messrs. Wesner, Burnett and Stoldt will be
prepared to brief the Water Authority and the Governance Committee on the process and
pertinent issues relating to the Governance Committees review and recommendations
concerning Cal-Ams recommended contractor and DB contract following issuance of the Cal-
Am notification. As agreed to previously and consistent with the usual practice for public and
private procurements, the documents and related information must be kept confidential during
the interviews and negotiations with the five firms. As such, representatives of the public
agencies will be asked to sign non-disclosure agreements stating that information they obtain
prior to the CalAm notification will be kept confidential so as to avoid allowing one of the five

1
The Governance Committee provides as follows:
Prior to the execution of any Contract not executed on or before the date that is thirty (30) calendar days after the
effective date of this Agreement, and upon presentation and recommendation by Cal-Am to the Governance
Committee after Cal-Am has reviewed and evaluated proposals or bids, as applicable, and negotiated with the
contractor a Contract that, in the opinion of Cal-Am, is ready for execution by and between Cal-Am and the
contractor, the Governance Committee may recommend which contractor should be retained under the Contract,
and issue any recommendations concerning the terms of the final Contract. When presenting a Contract to the
Governance Committee for its consideration and recommendation, Cal-Am shall provide to the Governance
Committee a copy of all responsive proposals or bids received for the pertinent work, except for any proprietary
information provided by contractors submitting responsive proposals or bids, together with a written description
of the process Cal-Am undertook to select a recommended Contractor, a summary of the considerations that Cal-
Am deems pertinent to support its recommendation, and any other information that Cal-Am believes will assist
the Governance Committee in its review of the recommended Contract and contractor.
MPRWA Meeting, 10/31/2013 , tem No. 1., tem Page 2, Packet Page 2


firms to learn anything about the bids or conversations from the other firms. After the CalAm
notification, the non-disclosure agreements will expire and all parties will be able to make any
information public. This proposal is consistent with the Governance Agreement, and staff
believes it to be of significant benefit to the public to have a Governance Committee
representative involved with the DB selection process.
Staff recommends Mr. Wesner of SPI to perform this work because he possesses significant
engineering and technical expertise with respect to membrane water treatment technology (e.g.
desalination) and DB contracts. Staff believes Mr. Wesner is appropriately qualified to
participate in and evaluate the selection process and make suggestions or recommendations to
the Governance Committee.
Costs for Mr. Wesners consultation are estimated at $30,000 and would be shared public
members of the Governance Committee (MPWMD, Monterey County, and the Water Authority.
For Planning and budgeting purposes, a contingency of 20% ($6000) is advised, bringing the
total budget requirement to $36,000, of which the Water Authoritys share would be $12,000.
The FY 2013/2014 Water Authority budget for Project Evaluation is $20,000, the full amount of
which remains available as of this date.
The interviews will take place 5-6 November 2013, so time is of the essence. Staff believes that
the only firm with current intimate knowledge of the project and with expertise available on such
short notice would be SPI.
In addition, since the cost to the Authority will be below the limit ($34,999) for our informal
procedure for procurement of Professional Services, staff recommends that the Water Authority
waive the usual informal procedure in this case and authorize a negotiated contract with SPI on
behalf of the Governance Committee. The Authority would then invoice MPWMD and the
County for their share. Alternatively, the Authority would contribute its fair share to MPWMD or
to the County if either Agency executes the subject contract in lieu of the Water Authority.

ATTACHMENTS:

Scope of Services



MPRWA Meeting, 10/31/2013 , tem No. 1., tem Page 3, Packet Page 3
Scope of Services

The Scope of Services for this Agreement Between The Monterey Peninsula Water Management District
and Separation Processes, Inc. for Consultation Services shall include the following:

Consultant shall enter into a Non-Disclosure Agreement with Cal-Am that shall provide that
Consultant shall not disclose any confidential information (as defined in the Non-Disclosure
Agreement) concerning Cal-Ams process for the selection of a design-build contractor (DB
Contractor) by Cal-Am and development of a draft design-build contract (DB Contract) for the
construction of Cal-Ams desalination plant as part of the Monterey Peninsula Water Supply
Project (MPWSP), except with respect to consultation with Jason Burnett and David Stoldt
provided that they have also entered into the Non-Disclosure Agreement with Cal-Am, until such
time as a draft Design-Build Contract is presented to the Governance Committee overseeing the
Monterey Peninsula Water Supply Project for review and recommendation.
Consultant shall review background documents pertaining to the DB Contractor selection process
provided by Cal-am.
Consultant shall attend interviews with finalist for award of the DB Contract scheduled for
November 5 and 6, 2013 as well as a post-interview debriefing with Cal-Am scheduled for
November 7, 2013, and shall provide insights and recommendation stemming from the interviews
to Cal-Am.
Consultant shall attend negotiations in November and December pertaining to the development of
a recommended DB Contract held between Cal-Am and the selected preferred DB Contractor,
and shall provide insights and recommendation stemming from the negotiations to Cal-Am.
Consultant shall communicate with Cal-Am as necessary throughout the interview and
negotiation process. All written correspondence shall be made by electronic mail to Richard
Svindland of Cal-Am, with copy to Anthony Cerasuolo and Lori Girard.
Consultant shall regularly update and solicit feedback from Jason Burnett and David Stoldt
throughout the interview and negotiation process, and as instructed by either of them,
communicate questions and recommendations to Cal-Am.
Once a draft DB Contract is presented to the Governance Committee overseeing the Monterey
Peninsula Water Supply Project for review and recommendation, Consultant shall timely prepare
and present to the Governance Committee a short written summary of Consultants pertinent
findings, observations, issues, and recommendations concerning the selected DB Contractor and
draft DB Contract.
Consultant shall attend at least one meeting of the Governance Committee to present
Consultants summary of pertinent findings, observations, issues, and recommendations
concerning the selected DB Contractor and draft DB Contract and to answer questions and
discuss the matter with the Governance Committee.

MPRWA Meeting, 10/31/2013 , tem No. 1., tem Page 4, Packet Page 4