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HomeMy WebLinkAbout2021 07 12 Consent 304 - Independent Audit of Veolia's performance .44 P'rt' • CONSENT AGENDA ITEM 304 CITY COMMISSION AGENDA I JULY 12, 2021 REGULAR MEETING 1959 00 WE TITLE Independent Audit of Veolia's performance SUMMARY Section 14.1 the the contract with Veolia for the Utilities Operation, Maintenance and Management Services requires an independent audit of Veolia's performance. This audit will take two months and cost $69,855.02 RECOMMENDATION Authorize the City Manager to execute a Purchase Order with Carollo Engineers to perform an audit of Veolia's performance as required by contract. 1 200 East Robinson Street,Suite 1400,Orlando,Florida 32801 Engineers...Working Wonders With Water® P.407.478.4642 F.407.478.4643 Exhibit A City of Winter Springs Operational Audit June 22, 2021 SCOPE OF SERVICES General The City of Winter Springs(CITY)owns and operates a complete Utility consisting of water,wastewater, and reclaimed facilities.The CITY entered into a Utilities Operation, Maintenance and Management Services agreement with Veolia Water Services North America-South(VWNA)on October 21, 2019 for purposes of continued operation and maintenance of these facilities. As required by Section 14.1 the Operational Contract,the CITY requests an operational audit of the operation of the treatment and pumping facilities by VWNA.The intent of this audit is to identify permit and contractual compliance,work practices, communication protocols, procedures and documentation, and operation and maintenance practices compared to industry practices. Carollo Engineers, Inc. (CONSULTANT)shall provide the services described herein to CITY underthe terms of the master contract.The scope of services for the CONSULTANT will include the tasks indicated below. Certain assumptions have been made in preparing this Scope of Services.To the extent possible,they are stated herein, and are reflected in the attached project budget. WATER OUR FOCUS OUR BUSINESS OUR PASSION 2 City of Winter Springs Operational Audit Scope of Services Page 2 Task 1— Project Management Task 1 includes aspects of project and quality management to provide effective delivery of the PROJECT. Specific items included in Task 1 are detailed in the subtasks described below. Task 1.1—Project Management, Communications, and Meetings The CONSULTANT will provide overall project management and communication between its staff, subconsultants,and the CITY.The CONSULTANT will track and manage the budget, project tasks, and schedule. The CONSULTANT will attend and manage project meetings and site inspections. CONSULTANT will provide monthly progress reports that identify the work that has been performed during the month and the work that is anticipated in the upcoming month.These reports will be delivered as part of the monthly progress payment request. Task 1 Deliverables: Monthly progress reports(pdf). 'ask 2—Contract and Regulatory Compliance CONSULTANT will review the contract between VWNA and CITY(specifically Sections 3 through 6)and the following FDEP permits: Public Water Supply Permit#3590879. NPDES Permit No. FLA011067 and associated reuse requirements(R-001, R-002 and R-003). NPDES Permit No. FLA011068 and associated reuse requirements(R-001). CONSULTANT will document VWNA's compliance with the requirements in the contract and permits. CONSULTANT will develop a technical memorandum(TM)documenting the findings from Task 2. Task 2 Deliverables: Technical Memorandum. Task 3—Work Practices CONSULTANT will review scheduling,overtime,training, safety practices and construction management services.CONSULTANT will review these items to determine that the facilities are adequately staffed, workers are receiving proper training, are required to follow safe work practices and that personnel are not conflicted with multiple assignments. CONSULTANT will document VWNA's compliance with the requirements in the contract and permits. CONSULTANT will develop a technical memorandum(TM)documenting the findings from Task 3. Task 3 Deliverables: • Technical Memorandum. ___ carollo.com 3 City of Winter Springs Operational Audit Scope of Services Page 3 Task 4—Communications Protocols, Practices and Documentation CONSULTANT will review the communications protocols for effectiveness and how well these practices are being followed. CONSULTANT will review communication documentation to determine the effectiveness in VWNA's ability to retrieve information and verify notices and filings. CONSULTANT will document VWNA's compliance with the requirements in the contract and permits. CONSULTANT will develop a technical memorandum(TM)documenting the findings from Task 4. Task 4 Deliverables: • Technical Memorandum. Task 5—Operation and Maintenance Practices Compared to Industry Practices CONSULTANT will visit the facilities to perform a facility operational audit(gap analysis)at each treatment facilityto understand the current state of facility operations. Focus areas include: 1. Assessing condition and functionality of physical equipment, instrumentation, and the SCADA system. 2. Assessing key performance indicators(KPI)used at each facility that are used to make process and operational changes. 3. Identifying and prioritizing overlooked or neglected equipment and components. 4. Evaluating means and methods to document and initiate repairs or replacement of equipment and components. 5. Review Work Order system: issuing, close out,documentation of work orders and decision matrices for critical equipment maintenance. 6. Reviewing Standard Operating Procedures(SOPS)for usefulness and how well SOP are followed. 7. Evaluate methodology and documentation used to establish annual budgets. CONSULTANT will document VWNA's compliance with the requirements in the contract and permits. CONSULTANT will develop a technical memorandum(TM)documenting the findings from Task 5. Task 5 Deliverables: • Technical Memorandum. Task 6 (Optional): Supplemental Services Based on Audit Findings Based on the audit findings, CITY may wish to retain CONSULTANT to develop additional plans, manuals, procedures or KPI to improve plant operations, efficiency, and compliance. Examples of additional tasks that may arise from the audit findings or suggested follow-up activities are: 1. Revise the work order procedures to develop an effective and efficient approach. 2. Evaluate methodology, key performance indicators, and documentation used to establish annual budgets. 3. Establish system to produce annual facility operating plans. Provide a template and train on the method. carollo.com 4 City of Winter Springs Operational Audit Scope of Services Page 4 4. Develop a Facility Operating Plan for the one or more of the treatment facilities. 5. Identify key performance indicators(KPI)that should be monitored for plant performance and efficiency improvements. 6. Develop a"Compliance Roadmap"that identifies all contract and permitting compliance requirements along with the submittal dates. 7. Other task as identified in the audit findings. Task 6 Deliverables: • As defined by the task. City Responsibilities /Assumptions Because of the nature of this project, certain assumptions apply to this Scope of Services.To the extent possible,these assumptions are stated within this document and are reflected in the budget. If the project task requirements are different from the assumptions presented in this Scope of Services, or if the CITY desires additional services,the resultant change in scope will serve as a basis for amending this project assignment or initiating the development of a new project assignment as agreed to by both the CITY and CONSULTANT.The following assumptions and CITY responsibilities apply to this project: The CONSULTANT shall be entitled to rely upon the accuracy of the data and information supplied by the CITY without independent review or evaluation. The CITY shall attend all site visits and meetings to maintain the progress of the project according to the schedule. The CITY will provide the CONSULTANT with access to treatment facilities for data gathering, data validation and the design process. The CITY will assist with data collection and site testing as necessary, including accompanying the CONSULTANT and leading operation of the facility. The CITY will provide all required information within the period established in the schedule contained in this Scope of Services.The schedule is based on timely receipt of data from the CITY. The CITY shall review Draft deliverables and provide comments to the CONSULTANT on a prompt basis. The services to be performed by the CONSULTANT are intended solely for the benefit of the CITY. No person or entity not a signatory to this Scope of Work shall be entitled to rely on the CONSULTANT's performance of its services hereunder,and no right to assert a claim against the CONSULTANT by assignment of indemnity rights or otherwise shall accrue to a third party as a result of this Scope of Work or the performance of the CONSULTANT's services hereunder. In providing opinions of cost,financial analyses, economic feasibility projections, and schedules for potential projects, CONSULTANT has no control over cost or price of labor and material; unknown or latent conditions of existing equipment or structures that may affect operation and maintenance costs; competitive bidding procedures and market conditions;time or quality of performance of third parties; quality,type, management,or direction of operating personnel; and other economic and operational factors that may materially affect the ultimate project cost or schedule.Therefore, CONSULTANT makes no warranty that the CITY's actual project costs,financial aspects, economic feasibility, or schedules will not vary from CONSULTANT's opinions, analyses, projections, or estimates. carollo.com 5 City of Winter Springs Operational Audit Scope of Services Page 5 Schedule The services described above are anticipated to be completed in accordance with the following summary. The CITY desires the project to be completed on a priority schedule and the CONSULTANT will make efforts to accelerate the project schedule where possible. However,there are many factors which may affect this overall schedule,and this will require prompt attention and involvement from the CITY to maintain project progress.The schedule below is the CONSULTANT's best estimate based on preliminary information,and may vary based upon available data, meeting schedules, and review periods. Unless noted otherwise,time durations listed below are weeks measured from the date upon which the CONSULTANT received the notice to proceed for the work. Weeks - r NTP 1—Project Management 8 2—Contract and Regulatory Compliance 4 3—Work Practices 6 4—Communication Protocols, Practices,and Documentation 8 5—Operational and Maintenance Practices Compared to 8 Industry Practices 6—Supplemental Services(As-needed) TBD It has been assumed that the CITY will complete all reviews within 1 week of receiving the submittals. It is expected that all tasks in this scope of services will be completed within 16 weeks of receiving a notice to proceed. Project Fee Compensation for the services described above shall be delivered for the amount of$69,855.02.The basis for this is a combination of not-to-exceed/hourly amount as provided in the attached Exhibit B. carollo.com 6 m E E E E t o � r 9 O m m a v n n v n n v n n v o n o 0 0 o ry g am 3 0 sW s6 s r E o� as U u ~ D m -LaL' 7