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HomeMy WebLinkAbout1979-01-17; Encina Joint Advisory Committee Ad Hoc; MinutesENCINA JOINT POWERS MINUTES OF THE JOINT ADVISORY COMMITTEE MEETING HELD ON WEDNESDAY, JANUARY 17, 1979 AT THE ENCINA WATER POLLUTION CONTROL FACILITY CONFERENCE ROOM Ed Stiles, Chairman Stanley Mahr, Vice Chairman 1. CALL TO ORDER Chairman Stiles called the meeting to order at 9:03 A.M. ROLL CALL Present t Vista Sanitation District City of Carlsbad Buena Sanitation District San Marcos County Water District Leucadia County Water District Encinitas Sanitary District County of San Diego JAC Administrator JAC Counsel Encina Joint Powers Absent: Vista Sanitation District San Marcos County Water District Guests: C M Engineering Associates Carlsbad Journal County of San Diego Joe Zapotocky A. J. Skotnicki, Mary Casler Ed Stiles, Bill Dominguez Stanley Mahr Dick Hanson, Stan Van Sickle Mark Schneider, Jack Filanc . Jim Frandsen Ron Beckman Roy H. Gann, Esq. Les Evans, Mary Taylor Dan Carr Jim McKay John Murk Jan Stevens Keith Boger - 1 - JOINT ADVISORY C^^ITTEE MEETING MINUTES - JANUARY""!? , 1979 Guests (continued); Encinitas Sanitary District Jack Kubota L. A. Times Nancy Ray League of Women Voters Ruth Honnold Leucadia County Water District Eric Elliott Lowry & Associates v Bob Hanson San Marcos County Water District Leo Smith Times-Advocate Tony Knight Private Citizen Fred Wilson 2. MINUTES OF THE JAC MEETING OF DECEMBER 20, 1978 Chairman Stiles asked for the approval of the December 20, 1978 minutes. Mr. Zapotocky moved that the minutes be approved as submitted. Seconded by Ms. easier, the motion carried unanimously. INFORMATION Chairman Stiles asked Mr. Evans to report on the County's findings on the Industrial Waste Discharge Study. Mr. Evans stated that the County found nothing that we didn't al- ready know about and we were unable to establish any relationship between any of the problems we are having at Encina and any of the industrial waste which we know is being discharged to the plant. At the present time, the chemist is working on the possibility that there are some kinds of compounds, that are actually forming. In -•---•• other words, different chemicals coming into the plant and then mixed with other chemicals form other compounds. We have not can- celled out the theory that chlorination causes the problems. Basically, Mr. Evans felt that C M Engineering have concluded that whatever is causing the foaming can be eliminated or controlled with increased heating and mixing. We have Digester No. 2 in oper- ation with increased heating and mixing and there has been no evi- dence of foaming. Mr. Dominguez said that there was still a pretty strong odor on 1-5. Mr. Evans reminded him that we still have one completely dead di- gester and we were centrifuging over 30,000 gallons of raw sludge every day. With only one digester in operation, we can't digest - 2 - JOINT ADVISORY (^^IITTEE MEETING MINUTES - JANUARY 17, 1979 all the sludge that we remove from the sedimentation tank. There's very little digestion going on at the plant at this time. Mr. Evans continued that the contractor has fixed the cover on Di- gester No. 1 but we're about two weeks away from having Digester No. 1 completed and ready to fill. It Could take anywhere from 3 days to 6 months to get -the digester back into full operation. Digester No. 3 is being used as a dump for everything that Digesters No. 1 and No. 2 can't take. 4. DESIGN REVIEW COMMITTEE MEETING OF JANUARY 4, 1979 Mr. Evans stated that Brown and Caldwell, based on their prelimi- nary studies, recommended that activated sludge would be a better way to go than the biofiltration process they have been recommend- ing for the last four or five years. The reason for this is because at the completion of the pilot studies they were doing for the Seattle Metro System and the EPA, they have determined that the biofilters would have to be larger than they originally suspected; that the secondary clarifiers would have to be larger; that the secondary clar- ifiers would require tube settlers (which is essentially a method of increasing the settling in the secondary clarifiers); chemical treat- ment would also have to be available; and sludge thickening before it goes to the dewatering system. This increases the cost of biofiltration to about $3 million over what it would cost to put in an activated sludge system. The acti- vates sludge system is a system that allows a much higher quality ef- fluent more compatible with reclamation and, since the first cost of activated sludge is now cheaper, they are recommending switching to activated sludge. He said that the agencies have gone along with a switch to activated sludge which would mean amending the Brown and Caldwell contract. Mr. Zapotocky said that he had spoken to some of his board members about this and they were up in the air because there had been such a strong recommendation about biofiltration and now to come in at this late date with an estimate of $200,000 for additional costs for design. He said that Vista Sanitation District's position would probably be in accord with what Nancy Quan said. It was hard for them to understand why the state of the art has changed in the last two or three years. Mr. Evans said that, from a negotiating point of view, he had checked with the State on their history of negotiations and what it cost to design the different types of systems and they agreed that there is — 3 — -JOINT ADVISORY Cqf%TTEE MEETING MINUTES - JANUARY**!?, 1979 a greater level of effort in designing an activated sludge system than in designing a biofiltration stystem. Mr. Schneider said that he thought Brown and Caldwell was trying to sell us a new concept in their project report and biofiltration operating costs were so much lower than activated sludge. Now we find out that they never had a proven record that these biofilters would work. Mr. Evans said he thought we should pay the additional cost of de- signing an activated sludge system. He didn't think we should pay any additional cost for any re-designing they might have to do or any additional time they might take because of having to go back to re-design. He did think we should pay any additional cost that we would have incurred if we had gone to activated sludge in the first place. Mr. Mahr asked if Mr. Evans had any idea as to what the difference in cost would have been. Mr. Evans said the State is trying to work put something now on what they feel the additional will be. The additional 30 sheets of drawings seem to be an accurate estimate on the part of Brown and Caldwell. We now need to develop a level of effort. We will probably have to sit down with those 30 drawings and go through Brown and Caldwell's past cost records. He was sure that would be the starting point of those negotiations. The State indicated they would be looking very hard at those nego- tiations. They're not interested in paying Brown and Caldwell for changing their minds at this point after selling us on a different concept. ' Although the biofiltration process would have worked, we still know it's going to cost a lot more to operate an activated sludge system than it would be to operate a biofiltration system as it now has to be built. The cost data that Brown and Caldwell have developed shows that it's going to cost more now to build a bio- filtration plant and cost less to operate and it's going to give us not as good a quality of effluent as an activated sludge pro- cess. The activated sludge process would be cheaper to build and more expensive to operate and would give us a better quality ef- fluent. If we're talking about reclamation, it would be better to have activated sludge. Mr. Zapotocky said that it occured to him that in the design of the one in Washington State, someone had to have an idea several years ago, when it was drawn, that it was going to work and it - 4 - JOINT ADVISORY O^IITTEE MEETING MINUTES - JANUARY 17, 1979 seemed to him that this pre-dated the time that biofiltration was recommended to Encina. He added that it seemed that we were pay- ing the cost of being a proving ground. Mr. Evans said that Seattle was actually the proving ground. They had a biofiltration system and that was the pilot study that Brown and Caldwell was using to develop the information they gave us. The other biofiltration systems, which are in operation, are all preceeded or backed up by some other process. Ours was going to be the first, full-scale biofiltration system but it was based on a lot of work and the work has developed to another stage and they now feel they underestimated the cost of building a biofiltration system that would work. Mr. Dominguez asked if the old report estimates and cost differ- ential would at least give us an indicator of what our fair share of the new recommendation would be. Mr. Evans said he had all the negotiation files on the biofiltra- tion process but how they could be used to compare with activated sludge he wasn't sure. He said he would have to go through the files. Mr. Zapotocky said that Vista Sanitation District would have to have a lot more evidence to support Brown and Caldwell's conten- tion and, if they have any basis at all of getting that kind of money and these additional hours, it's got to be supported by more than this. Mr. Evans said that this wasn't a request for a contract amendment. This was just for the JAC"s information and we haven't even begun to negotiate with Brown and Caldwell. He said that he expected to receive a letter from the State approving a switch to the acti- vated sludge process. Mr. Filance asked what the latest word was on the ocean discharge. Mr. Evans said that the EPA hasn't made up its mind as to what the rules for application are going to be. In fact, the State has come up with a two page memorandum which now authorizes those agencies, who are delaying their design and. upgrading to secondary treatment, to do dual planning for both secondary treatment and meeting a State ocean plan. Whichever way the EPA goes, they will build that facility. The State has asked if we were interested in doing dual planning. Mr. Evans told them he didn't think we were. If we should happen - 5 - JOINT ADVISORY COMTNTTEE MEETING MINUTES - JANUARYS?, 1979 to get a modification and be able to go with a lesser standard, we would probably blend the higher quality effluent with the lower quality effluent to meet a lower standard rather than build a com- pletely different plant that would meet a lower standard. Mr. Mahr asked if the change in process from biofiltration to acti- vated sludge is going to delay the design or if Brown and Caldwell are going ahead with other parts of the design. Mr. Evans said that Brown and Caldwell were going ahead with other parts of the design. If we can't work out some kind of agreement with them by March, it will start causing some problems. But, at this point, it's not going to delay the project. Mr. Schneider said, to his knowledge, the best way to go would be activated sludge to control the odors. Mr. Zapotocky agreed with Mr. Schneider but added that it was still a puzzlement that this had to occur at the last minute. What this has done is push us into some "fast-track" plan with a completion date of September 30. Mr. Evans said the State indicated that "fast-tracking" to simply meet a September 30 deadline is not something they want to do. Mr. Zapotocky asked if the items, which were not grant eligible, were any significant amount of money. Mr. Evans said he wasn't sure but the State had guidelines and has commented on the information we have submitted to them so far but they will need more information. 5. RWQCB STAFF REPORT - CEASE AND DESIST ORDER Mr. Evans commented that the staff report pretty well summarizes what has happened from the time the cease and desist order in July through where we stand now. Weather permitting, the cover on Digester No. 1 should be completed next week and we plan to haul seed sludge from Point Loma so we can start that digester almost immediately and try to alleviate the problems we're having with centrifuging undigested sludge. The RWQCB seems to agree that this is the fastest way to do it and they don't have any Bother recommendations on how we could do it faster and better. He felt that this was the recommendation that the staff would make to the Board on Monday, January 22. He wasn't sure what *c.tion the Board would take but if they are convinced we're doing the best we can and the delays were unavoidable, then they will be - 6 - .JOINT ADVISORY CO^ITTEE MEETING MINUTES - JANUARY*"^?, 1979 willing to work with us on a new time schedule. But if they think there are things we haven't done, they might take punitive action. Mr. Evans said that he and Clyde Dietrich were meeting with the RMQCB staff on Friday to bring them up-to-date on exactly where we -ire so that any of the RWQCB staff, who might be making a presenta- tion on Monday, will know exactly where we stand. Because Mr. Evans would be in Guam, he said it would be to our ad- vantage if some of the JAC would go to the meeting on Monday. Mr. Dietrich will be going down and Mr. Stiles will speak on behalf of the Joint Advisory Committee. ROUTINE REPORTS 6. OPERATIONS AND MAINTENANCE REPORT Mr. Evans said that almost everything in the Operations and Main- tenance Report had been covereed previously. The exception being that we are putting in a lot of overtime because we are trying to operate the centrifuge about 14 hrs./day to make sure that we don't supernate (which means we're not wasting any material from the di- gesters baqk through the system). We're removing the same amount of sludge from the digesters each day as we put into the digesters. This helps reduce the odors by not recycling raw sludge back through the plant. It helps not only meet our ocean discharge requirements but it also keeps all of the odors in the enclosed centrifuge area. We can expect to continue putting in overtime at least until we get this digestion system under control. Mr. Skotnicki asked if we were still testing dewatering systems. Mr. Evans said that we were complete on the testing and have a re- port from C M Engineering Associates which was very technical. He offered to give a copy to anyone wanting one. Essentially, the re- port points out that there are several dewatering devices which had been tested that would meet our needs. The reports suggests adver- tising for bids and writing specifications that would include de- watering devices, which we found to be most satisfactory, and have them meet a performance standard. Mr. Skotnicki asked how long our present equipment could withstand this operating schedule without breakdown. Mr. Evans said it had broken down several times and when it breaks down, we rent a unit. Unfortunately, the rental units do not fit - 7 - JOINT ADVISORY (^MITTEE MEETING MINUTES - JANUARyi?, 1979 inside our enclosure so When we have a rented unit, the odors are magnified. Mr. Zapotocky noted that we had a million gallons less of septage discharge in 1978 than in 1977. Mr. Evans said the septage haulers had been contacted and they ex- plained to us that they are able to dump at the Mira Mesa dump free. The only reason they dump here is if they have a job in the immediate area where it's cheaper for the driver to make a run here and go back and pick up another load. They try to avoid dumping here because it's so expensive. 7. EXPENDITURE REPORT Mr. Evans said the Expenditure Report was not included because of the early date of the January meeting. Mr. Evans gave the flows for the month of December, 1978 as follows: Vista Carlsbad Buena San Marcos Leucadia Encinitas 3.3870 2.9097 .5415 2.4045 2.1395 .5178 11.9000 million gallons He said that these flows were inflated somewhat by the rain and that it will be more this month. He noted that the flows were peaking over 20 million gallons. ACTION 8. MANAGEMENT SUBCOMMITTEE RECOMMENDATIONS Chairman Stiles stated that between the time of the last Management Subcommittee meeting of December 27 and today, there"s been a pos- sible change in what the committee would report to the JAC as a whole. He deferred this item to next month's meeting. Mr. Zapotocky asked if he could explain. He said that he felt that since Vista and Carlsbad had met, an apology was owed to the rest of the agencies. Vista and Carlsbad felt it was worth it to sit down one more time and see if there was some way they could reach - 8 - JOINT ADVISORY COl^STTEE MEETING MINUTES - JANUARY T7, 1979 an agreement on a reorganizational plan that would, in fact, bring about independent operation of the plant and develop a language acceptable to Carlsbad's principals. He said there was a meeting on January 11 between two Board Members from Vista Sanitation District and two Council Members from the City of Carlsbad and, at,that time, a strong opinion was expressed that we should explore it further. The Carlsbad City Manager is attempting to put together a meeting involving legal representatives of the agencies to see if there is at least a further avenue to pro- ceed toward an independent operation that is acceptable to everyone. Mr. Gann said that he would completely verse the counsels of the agencies and it would probably take no more than 15 - 20 minutes to give them sufficient background and understanding of the objective as well as the difficulties in trying to reach that objective. A meeting between the counsels would be set and their findings would be submitted to the Subcommittee and then to the JAC. Chairman Stiles asked Ms. Taylor to set up a Subcommittee meeting after the Vista and Carlsbad counsels had met with Mr. Gann. The recommendation of the meeting between the counsels would be sub- mitted, in writing, prior to the Subcommittee meeting. Mr. Mahr asked if this counsel meeting would be just Carlsbad and Vista or for all of the agencies. Mr. Schneider said that he felt that the Carlsbad and Vista counsels should meet and then send a copy of their recommendations to the other agencies who would then go ahead and contact their attorneys. 9. RECOMMENDATION FOR ADDITIONAL LABORATORY STAFFING Mr. Evans said we were working the operators very long hours and one of the operators is spending a good part of every morning doing a lot of routine testing in the laboratory. The tests are more criti- cal than ever at this time because we're operating only one digester and sometimes we're operating on the edge of our discharge require- ments to the ocean. Based on the morning tests of suspended solids, a lot of times we change the operation of the plant. The digesters are tested once or twice a day to see if we are going to have to add more chemicals. The laboratory operation is critical and it's being overloaded. Mr. Evans believed it would be worth our while to try to get a temporary laboratory technician and that we could do it cheaper than what we -* Q — JOINT ADVISORY OftMMITTEE. MEETING MINUTES - JANUAllB/17, 1979 are paying at present to have one of the operators do the testing. He also felt that it would free the chemist to do some of the more sophisticated testing that we are doing to get the digesters and centrifuge operating well. Money, in this case, is not a problem since we are under budget because of the four positions that have not been filled. The County is not in any position to fill this temporary position. Mr. Evans was reluctant to make any long term decision at present which might affect the changes we would make in the laboratory. He added that he had evaluated whether we might send out some of the tests to a private laboratory but most of the tests, which seem to be causing an additional problem, is testing that we're doing to try to meet our discharge requirements while the plant is torn up. For the above reasons, Mr. Evans said he would like to go to the City of Carlsbad's Personnel Department and attempt to hire a laboratory technician through their temporary agency. Mr. Schneider asked if Keith Boger and whoever else was in the laboratory were doing any testing for other county agencies. Mr. Evans replied that Keith Boger was no longer in the labora- tory and that he was working downtown. He asked Mr. Boger to explain, Mr, Boger said that we have only one chemist and student assis- tant doing all the testing at both San Elijo and Encina. Most of the chemist's work, at present, is for Encina. Mr. Zapotocky asked the duration of this temporary position. Mr. Evans said it would be from week to week and he felt that it would be at least until our solids handling problems were straightened out because we have to know every day how the di- gesters are, Mr. Schneider moved that we fill the temporary position of lab- oratory technician through the City of Carlsbad's personnel temporary services. Seconded by Mr. Zapotocky, the motion carried. Mr. Evans explained that we will give the City of Carlsbad the qualifications of the job and they, in turn, would give them to the temporary agency who would do the hiring. The agency would then bill the City of Carlsbad since, technically, the technician would be an employee of the agency. - 10 - JOINT ADVISORY O/*^ITTEE MEETING MINUTES - JANUARY**!?, 1979 10. PHASE III CONSTRUCTION Mr. Evans referred to the memorandum dated January 11, 1979 in the Agenda Packet. He continued that things have changed since the memorandum was written. First of all, the State is very interested in obligating the $27 million that has been set aside for the Encina project. This year, a lot of the projects that were budgeted are lagging and not ready to go. The State would like us to have the design completed early in September so they can obligate their money for the following fiscal year which begins October 1, 1979. Our staff met with the State on January 15 and they admitted if we don't make the deadline, there'.s not much they can do. They are not going to take away our money. They are asking us if we can possibly be ready to obligate the money with bidable plans and specifications by early September. Brown and Caldwell were at this meeting and explained to the State that, even with the change to activated sludge, they could have bidable plans and specifications ready by September 15. The plans and specifications would probably not be quite complete. All the process drawings and specifications would be complete but the instrumentation and electrical specifications would not be complete, They asked if the State would accept the plans and specifications in that condition and go to the EPA and ask to obligate funds. The State agreed that they would. Another alternative would be to give the documents to contractors and come back later with addendums. The JAC agreed that this was a bad approach. Brown and Caldwell and the State agreed that the money could be obligated even with the change to activated sludge by September 15. Another possibility is that we could amend our contract with Brown and Caldwell and try to "fast-track" the project which, essentially, looks like we would be having Brown and Caldwell finish up the plans for all the upgrading, excavation and dirt work that needs to be done out here and maybe have that out to bid and under con-' struction before all the plans and specifications are complete, We could start some of the concrete work, build the flood control channel through the plant, actually stage the construction, and commit the amount of money the State wants to commit that way. - 11 - JOINT ADVISORY C^^ITTEE MEETING MINUTES - JANUARY 17, 1979 The Construction Management Subcommittee has been evaluating pro- posals from several firms on managing the construction project. We have a $40 million project here whether it is multiple contracts or single project and that is what Brown and Caldwell are estima- ting construction costs are going to be. There are some advantages to breaking that contract into smaller packages besides just trying to "fast-track" in order to meet a State deadline. We could expect not only to give local contractors some business but maybe get a better price from a local contractor than we would get from somebody out of State bidding a $40 million project. There just aren't any contractors around here that could put up a bond on a $40 million project. Another advantage might be by "fast-tracking" and getting under way earlier, we would save some money on inflation. If we wait until early 1980 to bid the project as a whole, costs are probably going to be greater than they would be if we started bidding pack- ages as early as late 1979. Another advantage would be to reduce the design and construction period by 6 months. The construction manager feels that by staging contracts we would be able to complete the whole project by as much as 6 months earlier than the projected dated of July, 1982. The problems with this approach is if you have multiple contracts and you "fast-track" the contracts, it's going to increase your administrative costs for administering the construction. We'll have more inspectors out here at one time. Another disadvantage is that we would have to amend our contract with Brown and Caldwell for preparing multiple bid packages. They're going to have to first complete the grading plans and specifications, then they're going to have to do the work first on whatever packages are devel- oped. So there are advantages and disadvantages. Mr. Zapotocky said that another disadvantage is at the time we enter into the initial contract, we're not going to know how many dollars we're looking at. Mr. Evans said he didn't think we would do this unless we were con- vinced that the total dollars would be less. We already know we don't have to do it to meet any State deadline. The reason for multiple contracts would be to have the project on line out here 6 months before our projected deadline and to spend less money. Chairman Stiles asked Mr. Filanc's opinion on "fast-tracking". - 12 - JOINT ADVISORY C^^ITTEE MEETING MINUTES - JANUARY 17, 1979 Mr. Filance said that he had seen it work successfully in several areas. There again, he thought that the construction manager with his management of the overall concept is really the key. His opinion, in the phase of the industry in which he was in, was that the large contracts generally are built by attorneys. You're better off staging which is "fast-tracking". It requires fine tuning but with a large contractor,-you've going to have the same thing. The large contractor would have more leverage over us. You can take a minor part of a job (say, a mistake or omission) and use that to blow it out of proportion in relationship to delays. Mr, Filance said he had visited a Cleveland plant which was about a $55 million project and they had six contractors working on the site which was probably 25% the size of Encina. He watched the management team handle the job and thought they did a phenomenal job with the least amount of adversity and litigation. He felt it can be done successfully. He agreed with Mr. Evans that it would cut time and, because we're in a sewer moratorium, it should be done. Mr. Skotnicki asked whether this was a recommendation for Lowry & Associates and their joint venture to handle the "fast-tracking". Mr, Evans said with the assistance of the SWRCB, the EPA and several other California agencies and out-of-State agencies that are "fast- tracking" projects, we developed a list of consulting firms who we felt were strong in managing construction projects. From this list, we narrowed them down to five firms which were interviewed. The Interview Committee was made up from one member of each agency which included Jack Filanc, Ron Beckman, Don Todd, Eric Elliott and Dwight Smith, From those five firms, we narrowed it down to two firms which we felt stood above the others, We contacted references on those firms; both references of specific people the firms were recommending to accomplish the construction management of a multiple contract ap- proach and references for the firm in general. At the conclusion of our evaluation process, we felt that the joint venture of Lowry & Associates/Construction Control Services was best equipped and in which we had the most confidence. We then sat down with Lowry & Associates and worked out a scope of work (which was passed out at the JAC January 17, 1979 meeting). Mr. Evans asked the JAC to look at the Organization Chart noting that, essentially, the key person would be the Contract Administrator and Resident Engineer and that person would be Bob Hanson of Lowry & Associates who has quite a bit of experience in managing multiple - 13 - • JOINT ADVISORY CO^^TTEE MEETING MINUTES - JANUARY 17, 1979 contracts and is doing it right now. He asked Bob Hanson to explain his background in managing multiple contracts and what he thought would be a good approach to the pro- ject. Mr. Hanson said his background was in both construction and en- gineering. He has had about 20 years in either contruction and engineering or as a Chief Engineer for a District. In the exper- ience that he has had, he said that it is ideal if you can go to contracts with one contractor up to a certain size project. But when you get into a very large project, the disadvantage is that it costs more money on the administrative side of it. Mr. Skotnicki asked Mr. Hanson if he would specifically go on record for recommending a contract of our size that would break down into a "fast-track" project. Mr. Hanson said he would go on record as recommending it. However, they had a report in process now analyzing the advantages/disadvan- tages of "fast-tracking" and are working it out with the design en- gineer. Mr. Mahr asked Mr. Evans how soon he felt this was essential that we get this decision made. Mr, Evans said, at the present time, Brown and Caldwell's staff are working on our project and Bob Hanson and his people are trying to develop a report which would identify multiple contracts. The scope of work describes what each of the people in the organization will do. No matter whether we have six contracts or two contracts, some- body is going to have to be responsible for the inspection and the construction management. A lot of this he could do as far as the administrative part of it in administering the grants, all the EEO and the fair labor practices but there's a lot that he couldn't do because he wasn't a Construction Manager. He felt we needed a Con- struction Manager and that the committee, which has been meeting for the past several months, has developed a scope of services that the Construction Manager would perform whether or not there was a single contract or multiple contracts. The scope of services is on Page A-l, A-2 and part of A-3 and he felt it's pretty much as we have been discussing informally for the past few months. First of all, the Construction Manager would assist the Consulting Engineer in packaging the project, review it for construetability and get it out. Also, the Construction Manager would identify equipment-that has long lead times which could be purchased early - 14 - /•""> •' JOINT ADVISORY CJLJlTTEE MEETING MINUTES - JANUARY 17, 1979 to expedite delivery. During construction, the Construction Mana- ger would provide inspection services, maintain logs, insure that plans were up-dated and, essentially, provide the entire staff to make sure that the contractor or contractors complied with the project as designed in spec. Mr. Evans recommended that the JAC authorize Mr. Gann to draw up a contract in the same format that he's used for Brown and Caldwell, Arthur Beard, etc. Mr. Schneider asked if we would have to renegotiate the contract with Arthur Beard because of the "fast-tracking". Mr. Evans replied to the negative and added that his recommendation to authorize Mr. Gann to draw up the contract that would include the scope of work, Exhibit "A", along with whatever supplement to the Basic Agreement is needed by Vista Sanitation District to authorize them to enter into a contract for Construction Management Services and submit that supplement and that contract to the Encina agencies for approval. Mr. Zapotocky moved that the JAC authorize Mr. Gann to draw up a contract with Lowry & Associates/Construction Control Services, in- cluding the scope of work and whatever supplement is necessary by Vista Sanitation District to enter into a contract for Construction Management Services. Seconded by Mr. Mahr, the motion passed, Mr, Gann asked about the compensation schedule. Mr, Evans said the compensation would be on a cost reimbursement schedule with cost ceiling the same as we have used on the last four contracts. Yesterday afternoon, the Encina Negotiating Com- mittee met with Lowry & Associates and estimate a cost ceiling of $1,167,027,85. We've talked to the SWRCB and this contract would be 8733% grant eligible. The State has not yet a lot of experience with this kind of contract although they are gearing up to do it and are writing guidelines. The $1,167,027.85 would be approx- imately 2.9% of the estimated construction cost which falls within a broad range that the State feels is reasonable for multiple con- tracts of this complexity, Mr. Beckman said that we're not dealing with choosing an optional We have a choice. We're either going to use it this or we' re going to have to hire the people ourselves to do things or we're going to have to pay more on a contract to have a prime contractor do it. The only real optional element of ii:, and they are specifically identifiable, are the acceleration - 15 - •JOINT ADVISORY CCTTEE MEETING MINUTES - JANUARYTf? , 1979 of the contracts to break them into multiple and "fast-track". The vast bulk of that cost, as staggering as it sounds, are costs which you have to do anyway. On smaller contracts in the range of from $100,000 to $1 million, the administrative costs, which are normally associated, are in the range of 5 to 6%. He strongly urged that the JAC give this consider- ation. Chairman Stiles said that in Phase I, II and IIA, we were al- ways in trouble and never had any place to go or no one to turn too. He said he kind of liked this idea. At least we could back these people up against the wall. Mr. Skotnicki asked whether this motion also approved the "fast-tracking" method. Mr. Evans answered that he felt we should wait until we get a report back from Brown and Caldwell and Lowry & Associates before we do that. Mr. Gann said he would have the contract ready in a few days. ADJOURNMENT There being no further business, the meeting adjourned at 11:08 A.M. The next regularly scheduled JAC meeting will be on Wednesday, February 28, 1979 at 9:00 A.M. at the Encina Water Pollution Control Facility. Respectfully submitted, M. Gunn Taylor Secretaxy^to the JAC - 16 -