City Looks to Tap West Yost to Head Up 95 Million Dollar Wastewater Project

Greenwald-campaign-hsCouncilmember Greenwald Concerned with Using West Yost, Given Track Record

The city staff is recommending the council approve a resolution that would authorize City Manager Steve Pinkerton to execute a consultant agreement with the West Yost/Malcolm Pirnie Team to provide City Representative services for the Secondary and Tertiary Improvements Phase of the Wastewater Improvements Project (CIP No. 8219).

The proposed City Representative consultant agreement is for a not-to-exceed amount of $3,990,000; these funds are budgeted in CIP No. 8219 (Fund 532 – Sewer Capital Replacement Fund). It is the first portion of a forecasted total not-to-exceed fee of $5,390,000 for City Representative fees.

Staff acknowledges, “The actual expenditures may differ from the $95,000,000 forecast and will depend on construction market prices and project scope choices the City makes during the course of the project.”

wastewater-project-forecast

The scope of the project has been significantly reduced since the development of the Charrette Plan developed in 2010 by a panel led by Drs.Tchobanoglous and Schroeder, whose services were commissioned at the insistence of Councilmember Sue Greenwald and who were able to reduce the cost from around $200 million to the present $95 million.

There remain two significant concerns about the use of West Yost Associates on this project.  First, it was the consultant that pushed for the $200 million project back in 2008.

Westyost-2008-project

More importantly, there is a conflict of interest, as they have been advising the city on water projects and policy that they now stand to profit from, to the tune of nearly $4 million.

Councilmember Sue Greenwald strenuously objects to the use of West Yost Associates here.

“I am very unhappy about staff’s recommendation to choose West Yost Associates over Brown and Caldwell to be our city representative and initial designer for the wastewater treatment plant.  I have conveyed my opinions about this consulting contract to the city manager over a period of  many months,” the councilmember told the Vanguard on Monday.

She continued, noting, “West Yost Associates was one of the authors of the wastewater treatment plant proposal that was approximately $80 to $100 million more than necessary.”

According to the staff report, the project delivery process will be a design-build process, unlike the water supply project which includes the operation component.

Staff argues, “The project delivery process of design-build encourages a collaborative relationship between the owner and the design-builder. Paramount to developing a reliable and fruitful relationship is establishing clear goals, expected performance, evaluation criteria, and expected outcomes.”

The process comes with three major steps, including the establishment of expected performance and risks that “will be allocated between the Owner and design-builder,” the creation of documents to “conduct a concise, transparent process” and the design, build, and commission of the project.

According to the staff report, an RFQ was published in June 2011: “The City received statements of qualifications from two teams: Brown and Caldwell/SAIC and West Yost/ Malcolm-Pirnie.”

After a preliminary evaluation indicated that both teams were highly qualified, the selection committee invited both teams to submit a proposal. Both teams submitted a proposal.

After a lengthy process, the city determined the West Yost team ranked higher because “they had a better understanding of local issues, proposed a thoughtful method of moving the Charrette conceptual plan into a more complete plan that could be used as the basis of design-build contract documents, and proposed a more subtle approach to the design-build method which is more consistent with the City’s needs.”

Sue Greenwald argues that Brown and Caldwell, who were the other applicant has a solid track record and they were not involved in the previous design which the city ultimately rejected as inefficient from a cost perspective.

“I feel very strongly that we should select Brown and Caldwell as our City representative and to undertake  the initial design parameters of the wastewater treatment plant,” Councilmember Sue Greenwald said.

West Yost Associates is also involved with Woodland’s wastewater treatment plant and with the surface water JPA project.

“I think we will benefit from another set of independent eyes on our extraordinarily expensive new water/wastewater infrastructure projects.   There are many other reasons that I hold this opinion,” she said.

City staff has asked that Dr. George Tchobanoglous lead a Technical Advisory Group (TAG) for the project.  The team would review and evaluate major project decisions, and provide “specific expert scientific, engineering, and management guidance and advice for challenging issues.”

Writes staff, “It is likely that Dr. Tchobanoglous will staff the TAG with wastewater and construction industry professionals, academics, and other interested individuals who are experts in their fields with appropriate scientific and technical knowledge.”

They add, “Staff’s primary use of the TAG will be to provide independent review of staff recommendations related to council actions and review of major work products from the City Representative Team.”

However, Sue Greenwald remains concerned about the process itself.

“I think we should take a step back and reconsider a design, bid, build process rather than the current design-build process,” she told the Vanguard.

She noted, “Staff had initially recommended design-bid-build  process and I voted on it but it narrowly lost in a 3/2 split.   A number of potential bidders in the audience said that they would have to drop out of the process if we chose the  design-build alternative because only the larger companies can undertake such a massive project.”

“We will have fewer competitors under the current design-build.   If we are supposed to be taking advantage of the “favorable bidding environment;”  we should choose a process that can actually take advantage of this favorable bidding environment by having a larger number of bidders,” she said.

She added, “A number of professionals in the field have told me that they think that we could probably save 10% to 15% of the cost (about 10 to 15 million dollars) by reconsidering our decision to go with design-build and by choosing design-bid-build instead.  That would take this city representative contract off the table.”

That is certainly something that the city ought to consider.

Regardless, given the track record of West Yost, Sue Greenwald remains unconvinced.

“In any event, I would prefer to see Brown and Caldwell selected if we go forward as currently planned,” she said.

—David M. Greenwald reporting

Author

  • David Greenwald

    Greenwald is the founder, editor, and executive director of the Davis Vanguard. He founded the Vanguard in 2006. David Greenwald moved to Davis in 1996 to attend Graduate School at UC Davis in Political Science. He lives in South Davis with his wife Cecilia Escamilla Greenwald and three children.

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80 comments

  1. [quote]More importantly, there is a conflict of interests as they have been advising the city on water projects and policy that they now stand to profit from to the tune of nearly $4 million.

    [/quote]

    Stop right there. I have seen how these conflicts of interests play out for other projects with other cities. In my experience the consulting company is driven by which project will generate more profit for them. In this case they also appear to have a set idea in mind, which is not what one wants from an independent consultant.

    You need a truly independent consulting team advising the City.

    How come Sue is the only one who gets that?

    There is a difference between saying you are going to be fiscally responsible and doing it. Once again Sue is showing us what it truly means to be fiscally responsible.

  2. “A number of professionals in the field have told me that they think that we could probably save 10% to 15% of the cost (about 10 to 15 million dollars) by reconsidering our decision to go with design-build and by choosing design-bid-build instead. That would take this city representative contract off the table.”
    Anonymous sources, no doubt .

  3. David Greenwald said . . .

    [i]”More importantly, there is a conflict of interests as they have been advising the city on water projects and policy that they now stand to profit from to the tune of nearly $4 million.”[/i]

    Three questions David . . .

    1) How do water decisions pose a conflict of interest vis-a-vis the management of an already designed and specked wastewater treatment upgrade plan?

    2) What were the portions of the originally proposed Wastewater Treatment Plant upgrade that were removed from the final project?

    3) Given the recommendation of the Tchobanoglous led Technical Advisory Group (TAG) for the project, how can any project manager (regardless of who it is) have enough leverage during the project to change the direction of the project?

  4. Dr. Wu said . . .

    [i]”Stop right there. I have seen how these conflicts of interests play out for other projects with other cities. In my experience the consulting company is driven by which project will generate more profit for them. In this case they also appear to have a set idea in mind, which is not what one wants from an independent consultant.

    You need a truly independent consulting team advising the City.

    How come Sue is the only one who gets that?

    There is a difference between saying you are going to be fiscally responsible and doing it. Once again Sue is showing us what it truly means to be fiscally responsible.”[/i]

    Dr. Wu, go back and reread the article and the staff report. West Yost will not be “advising the City” in this role. The Tchobanoglous led Technical Advisory Group (TAG) will be “advising the City” for the project. The role proposed for Brown and Caldwell/SAIC or West Yost/Malcolm-Pirnie is one of project management and project coordination.

    Said another way, this is about project execution not project direction.

  5. Sue Greenwald said . . .

    [i]”A number of professionals in the field have told me that they think that we could probably save 10% to 15% of the cost (about 10 to 15 million dollars) by reconsidering our decision to go with design-build and by choosing design-bid-build instead.”[/i]

    If this is true, then I suggest that Sue share the names and contact information of these professionals in an electronic or written document. Saving 10% to 15% on a $95 million project is very meaningful given today’s economy and City Budget. Hopefully, this is a real opportunity to save rather than a hearsay opportunity to talk about saving. The ball is in Sue’s court.

  6. biddlin said . . .

    [i]”Anonymous sources, no doubt.”[/i]

    biddlin, that is a cheap shot. Lets give Sue an opportunity to provide the sources.

  7. To be fair, West Yost is simply more qualified and experienced working on Davis wastewater treatment plant projects than any other firm or team. They have been working on projects for the Davis plant for many many many years, and know the plant better than any other firm. It is difficult for other firms/teams to compete against a team that is so experienced with a client like this. I should know, since our firm competes with them.

    Although West Yost is being hired as the City program manager and preparing the preliminary design documents, they will be precluded from bidding on the design-build portion of the work. So a different engineering firm will be preparing the detailed design drawings for the secondary and tertiary treatment improvements at the plant as part of the design-build team.

    Typically, design-build is also a [b]less [/b]expensive way to go when the client generally knows what they want to construct, and it can be completed quicker as the staff report suggests. The other (unsaid) advantage of a design-build method of procurement is that staff only has to go back to Council once more for an agreement – with the design-build team, instead of up to three times for the designer, construction manager, and Contractor.

    The reason to not pick West Yost would be because the City would be unhappy with their previous recommendations for the STI work and wants a fresh perspective, if they had a negative perception of past performance on City projects, or the quality of their staff assigned to this project. Because the City typically performs a qualifications based selection of consultant firms. Not because of the potential profit motive for the company, their proposed role, or their perceived bias.

    The City representative acts as the City’s experts in managing the project. The TAG acts as a third-party reviewer to provide the City with expertise that is not typically found in City staffs. This is a pretty standard practice for large and complex public works projects. And especially since the City Council is being so vocal in their comments on wastewater contracts and the direction of the project, having that third party expertise available provides cover for staff to stand behind the proposed preliminary design and design build procurement method.

  8. Sue is a public figure with a public record . She uses this blog to make many unsubstantiated claims with unattributed quotes for which she subsequently never seems to provide citations . It is more than apparent that she represents the wishes of many Davisites and that many there are willing to overlook such lapses . If she does not want to be a target for “cheap shots”, perhaps she is in the wrong position .

  9. It would be a serious mistake to have Yost now be the consultant for this project after their previous plans for the wastewater treatment plant were found to be overly costly. Their work on the surface water project has been found to be flawed with investigations not carried out and serious data omissions. It is common knowledge that Yost and Don Saylor are politically “attached at the hip” and that through Saylor, Yost wields unacceptable local political power. Skepticism about conclusions that Yost will offer will inevitably be tainted and only fuel more citizen opposition and citizen-initiated referendums.

  10. biddlin said . . .

    [i]”Sue is a public figure with a public record. She uses this blog to make many unsubstantiated claims with unattributed quotes for which she subsequently never seems to provide citations. It is more than apparent that she represents the wishes of many Davisites and that many there are willing to overlook such lapses. If she does not want to be a target for “cheap shots”, perhaps she is in the wrong position.”[/i]

    You make some very good points, but in this case I think we should allow Sue to come forth with her specific information before you hoist her onto a petard.

  11. davisite2 said . . .

    [i]”It would be a serious mistake to have Yost now be the consultant for this project after their previous plans for the wastewater treatment plant were found to be overly costly. [b]Their work on the surface water project has been found to be flawed with investigations not carried out and serious data omissions.[/b] It is common knowledge that Yost and Don Saylor are politically “attached at the hip” and that through Saylor, Yost wields unacceptable local political power. [b]Skepticism about conclusions that Yost will offer will inevitably be tainted and only fuel more citizen opposition and citizen-initiated referendums.[/b]”[/i]

    Two questions davisite, 1) What investigations did West Yost not carry out, and what data did they seriously omit? 2) What conclusions do you expect that West-Yost will be offering if they are awarded the contract?

    I ask the second of those questions because of the proposed Tchobanoglous led Technical Advisory Group that will be “advising the City” for the project.

    [edit]

  12. I think Jim Yost and our own waste water plant upgrade team (Stan Gryzko and Mike Lindquist) are top-notch people and will do a great job in the end. I do question, though, whether the basis for choosing the West Yost design-build team was truly objective and transparent. For instance, following is the reported reasoning and basis for selection of the West Yost team:

    “…they had a better understanding of local issues, proposed a thoughtful method of moving the Charrette conceptual plan into a more complete plan that could be used as the basis of design-build contract documents, and proposed a more subtle approach to the design-build method which is more consistent with the City’s needs.”

    What does the above statement really say? What is a “…better understanding…” or a “…thoughtful method…” or a “…more subtle approach…”?. This reasoning really sounds more like “we just liked them better”. No where does it unequivocally state that they are more qualified to do the job or that they will do an equivalent job less expensively.

  13. maconi said . . .

    [i]”To be fair, West Yost is simply more qualified and experienced working on Davis wastewater treatment plant projects than any other firm or team. They have been working on projects for the Davis plant for many many many years, and know the plant better than any other firm. It is difficult for other firms/teams to compete against a team that is so experienced with a client like this. I should know, since our firm competes with them.”[/i]

    Thank you for sharing this professional perspective maconi.

  14. It is, after all, her own petard . A bit of etymology, petard comes from a middle French word, peter, meaning to break wind . Petard is still in usage meaning a firecracker or, in slang, a marijuana cigarette or a pistol .

  15. “To be fair, West Yost is simply more qualified and experienced working on Davis wastewater treatment plant projects than any other firm or team.”

    But are they more qualified? There seems room for some disagreement there after all, they were perfectly willing to push forward a $200 million project. It was only when other consultants and experts stepped in that these assumptions were questioned. Now it may be that the TAG team makes this concern moot, I’m not sure, but that’s not exactly a vote of confidence.

  16. marconi: [i]”To be fair, West Yost is simply more qualified and experienced working on Davis wastewater treatment plant projects than any other firm or team. They have been working on projects for the Davis plant for many many many years, and know the plant better than any other firm. It is difficult for other firms/teams to compete against a team that is so experienced with a client like this. I should know, since our firm competes with them.”[/i]

    This is a very strong statement coming from a competitor and it should be given strong consideration.

    My wife was Jim Yost and Bruce West’s first employee when they opened their doors at the Westlake shopping center a couple of decades ago. Bruce and Jim are fine people and they have hired outstanding employees. The civil engineering firm is highly respected and highly regarded throughout the state. They are an economic development success story for our city. They provide many high-paying jobs and contribute tax revenue to the city.

    Frankly, I see the demonization of West Yost being part of the larger troubling trend of our politicians being hostile to business. Also, I would point out the conflict of interest for Sue’s opposition to using West Yost since the opinions of these professional engineers have been in opposition to hers. Sue might need to recuse herself from this decision.

  17. Jeff, I read your last sentence as, [i]”Sue might need to rescue herself from this decision.”[/i] I thought that was an interesting turn of phrase, but then I reread it and corrected my misreading. It was funny though.

  18. [quote]City staff has asked that Dr. George Tchobanoglous lead a Technical Advisory Group (TAG) for the project. The team would review and evaluate major project decisions, and provide “specific expert scientific, engineering, and management guidance and advice for challenging issues.”

    Writes staff, “It is likely that Dr. Tchobanoglous will staff the TAG with wastewater and construction industry professionals, academics, and other interested individuals who are experts in their fields with appropriate scientific and technical knowledge.”[/quote]

    I am very encouraged that Dr. Tchobanoglous will staff a TAG to oversee this project. I have a good deal of respect for his opinions. However, it should be remembered Council member Greenwald ultimately did not agree with this very expert (Tchobanoglous) she herself chose, on the surface water issue.

    Tchobanoglous and Schroeder were in favor of moving forward with surface water first and foremost, then determine if there are not ways to save money on the wastewater treatment side. In fact, one of the experts Council member Greenwald selected (it was either Tchobanoglous or Schroeder – I think it was Schroeder) wrote an op-ed piece in the Davis Enterprise diametrically opposed to Sue’s position of delaying the surface water project for 20 years or more. At the time, if I remember rightly (and I believe I do), Sue was very dismissive of the two, saying they were only experts in wastewater management but not water issues.

    My problem here is that Council member Greenwald has made accusations of conflicts of interest and then stated various opinions as a preemptive strike, without attributing any of these opinions to any specific experts – in other words referring to “unnamed sources”, which tends to be a pattern with her commentary. Like Matt Williams, I am not certain I see any particular conflict of interest here.

    I have no particular feelings one way or the other about either of the consultants named, and am keeping an open mind. But thus far I do not find Council member Greenwald’s arguments particularly persuasive or convincing. It would be helpful if she could name the experts she is referring to, or come up with more of a basis for claiming some sort of conflict of interest.

  19. David asked me for my comments, and I provided them to him.

    I told him that it was my opinion that Carollo Design, West Yost Associates and staff each had an independent obligation to tell the city manager that there were more cost-effective designs for the wastenwater treatment, and none did so. It would have been a disaster to for the city to have built a waste water treatment plant twice as expensive as necessary, and it should not have been left to me to have to turn that decision around by locating other (unnamed) experts who advised me that the plant design was too expensive, finding the consultants who could better evaluate that, and then having beg the council for the better part of a year to hire those consultants.

    If you guys think it is a good idea to hire the same consultants who neglected to advise us that we could do the job for half the price, then that is your right.

    David asked me to go on record with my perspective, and I did.

  20. David: You could always ask the City staff person managing the contract to review the proposals from B&C/SAIC and West Yost/Pirnie to make your own decision about whose approach or qualifications are better. The cost portion of the proposal may be sealed, but the technical approach, experience, and staffing sections are public record once the contract is signed. It’s a pretty typical part of the debrief following a consultant selection.

  21. “This is a very strong statement coming from a competitor and it should be given strong consideration.”

    If we knew who it was coming from, we could perhaps give it strong consideration.

  22. [i]”If you guys think it is a good idea to hire the same consultants who neglected to advise us that we could do the job for half the price, then that is your right.”[/i]

    This gets us back to the point that there is not concensus that we could do the job for half the price. There are many of us that believe it is a water pipe dream, and the reality will be even higher costs.

    Again though, we can respect a well-respected local firm for their proven capabilities to do a job without projecting so much devious intent, can’t we?

  23. “it should be remembered Council member Greenwald ultimately did not agree with this very expert (Tchobanoglous) she herself chose, on the surface water issue.”

    In fairness, you are conflating surface and wastewater. She asked the city to bring them in for wastewater, she has argued that they are not as well versed on water supply issues. I’m not taking a position on that, but rather, I am attempting to explain her position accurately.

  24. David and Sue, any time that a project is pared down it 1) reduces costs and 2) changes functionality. To ensure that the discussion of the reduction of costs for the Wastewater Treatment Plant upgrade is complete, can one of you (or both of you) please post a description of how the upgrade functionality was changed in order to reduce the costs?

    Take a cue from the New York Times and give us, “All the news that’s fit to print” otherwise we will only get the news that fits.

  25. I’d rather have Sue give her initial perspective at the council meeting where staff and other council members can discuss the matter. Other than the fact that she agrees with David’s conflict of interest contention, it’s hard to understand why her opinion was solicited.

    It shouldn’t be surprising to anyone that she’d again invoke the unnamed sources means of buttressing her own opinions, particularly on this topic. biddlin’s shot may have been cheap, but it’s an easy one. We’ll see whether biddlin jumped to his conclusion too early.

    In addition, let’s give Councillor Greenwald a little love for sticking with [i]Vanguard[/i] readers through thick and thin. Even when things get a little pushy, she returns for more most of the time. (The DACHA hit-and-run op-ed that memorialized city council lies being a notable exception.)

  26. Maconi is an anonymous poster, claiming to be a competitor with no vested interest and an impartial view. If this is to be given any credence, Maconi should identify himself/herself so that we can form conclusions as to whether this claim is accurate. There is very big money involved in these contracts.

    The reasons that staff gave for selecting West Yost Associates were not compelling to me. They said that West Yost Associates could “communicate better with Davis citizens” and that Brown and Caldwell were “too engineering oriented”.

    No one has addressed the accountability issue. It is pretty darn scary to me that one layman councilmember had to intervene to keep the city from spending $80 to $100 million more than necessary.

    Brown and Caldwell have done work for the city in the past and are very well regarded in the field.

    Re Elaine Musser: I had many good talks with Dr. Tchabonoglous about the surface water project. He is not dogmatic at all; he would be the first to admit that it is a cost-benefit question and a judgement call and that affordability has to be taken into account. He is an expert in wastewater treatment and not in current regulations. His report suggested postponing the wastewater treatment plant in order to make the surface water project more affordable, just as I initially did and as Matt did. He will be the first to admit that he had not called up the Water Resources Control Board to look into the practicality of controlling costs by postponing the wastewater treatment plant. And Ed Schroeder believed the incorrect statements from staff and the JPA that we would lose our surface water rights if we postponed the project.

  27. [quote]David and Sue, any time that a project is pared down it 1) reduces costs and 2) changes functionality. To ensure that the discussion of the reduction of costs for the Wastewater Treatment Plant upgrade is complete, can one of you (or both of you) please post a description of how the upgrade functionality was changed in order to reduce the costs? –[b] Matt Williams[/b][/quote]Thanks for asking this question because it emphasizes my concerns. What made the initial design so concerning is that everyone I have talked with, including Dr Tchobanoglous, said that the design that was twice as expensive would give us no advantage. In fact, Dr. Tchobanoglous said that the less expensive design would be better because it would be more flexible and less expensive to expand while doing an equal job of meeting our wastewater objectives.

  28. Sue: Brown and Caldwell are a “big box” engineering firm. I am surprised that you would prefer them over West Yost, a smaller local company with a fine reputation.

  29. [quote]In fairness, you are conflating surface and wastewater. She asked the city to bring them in for wastewater, she has argued that they are not as well versed on water supply issues. I’m not taking a position on that, but rather, I am attempting to explain her position accurately.[/quote]

    Surface and wastewater issues are inextricably intertwined. Secondly, Council member Greenwald makes it quite clear in the above comment that she does not agree with the two experts she herself selected, and is dismissive of their opinions as uninformed, to wit:

    “He is an expert in wastewater treatment and not in current regulations.”
    “He will be the first to admit that he had not called up the Water Resources Control Board to look into the practicality of controlling costs by postponing the wastewater treatment plant.”
    “And Ed Schroeder believed the incorrect statements from staff and the JPA that we would lose our surface water rights if we postponed the project.”

    So the public has to decide who to believe, two experts Sue herself chose, or Sue herself, who staunchly disagrees with the two experts because they do not agree with her position on surface water.

  30. [quote]This gets us back to the point that there is not concensus that we could do the job for half the price. There are many of us that believe it is a water pipe dream, and the reality will be even higher costs.–[b]Jeff Boone[/b][/quote]Dr. George Tchanoglous said this at a council meeting, and this is exactly his area of expertise.

  31. “BTW, did you ever get the water leak on your property fixed? I hope you aren’t still using three times the City-wide average for water.”
    Good to know that some are above cheap shots . ;>)/