DATE: June 3, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: APPROVAL OF AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT FOR AS-NEEDED CAPITAL IMPROVEMENT PROJECT MANAGEMENT SERVICES
RECOMMENDATION
title
Staff recommends that City Council approve Amendment No. 1 to the Professional Services Agreement with KRD Management Consulting, in an amount not-to-exceed $1,029,600, for a total contract amount of $1,129,600, for capital improvement project management services; and authorize the City Manager to execute the amendment.
body
BACKGROUND AND ANALYSIS
The Water Utilities Department Capital Improvement Program (CIP) has a proposed budget of just over $484 million in proposed projects in the next five years. These improvements reflect the City’s long-term commitment to addressing aging infrastructure, expanding capacity, and increasing the reliability of the local water supply through water, waste water and water reuse projects. To maintain progress on this substantial workload, the department has utilized consultant support to supplement internal staffing for project management roles.
On February 6, 2026, the City released an RFP for Project Manager services. On March 3, 2026, four proposals were received. After reviewing the proposals staff recommended, and the City Manager administratively awarded a Professional Services Agreement to KRD Management Consulting. KRD has demonstrated the necessary skills, judgement and experience to provide the services needed. Because several large projects are entering construction phase shortly, issuing a Professional Services Agreement administratively allowed for minimum disruption and provided continuity in project management until Council can award a longer-term contract.
A mix of internal staff and external consultant support will continue to be necessary due to the volume and complexity of the Utilities’ CIP Program. This approach reflects the City’s intent to optimize project delivery through the most effective mix of internal and external resources. The department remains committed to ensuring timely, cost-effective, and high-quality execution of its capital improvement initiatives.
FISCAL IMPACT
The total of Amendment No. 1 is not to exceed the cost of $1,029,600, over a three-year term, from July 1, 2026 - June 30, 2029. The encumbrance will be established in the accounts outlined in Table 1 below and moved to project accounts as task-orders and projects are assigned, while staying in contractual limits. There are sufficient funds in each account for FY 2026-27 to fund this request.
Table 1
|
Account Number |
Project |
2026-27 |
Proposed Budget |
2027-28 |
2028-29 |
|
750010712.5306 |
Water Capital |
$ 27,850 |
$ 150,000 |
$ 22,600 |
$ 21,600 |
|
800010722.5306 |
Sewer Capital |
27,850 |
150,000 |
22,600 |
21,600 |
|
908158419712.5305.10600 |
Wells Expansion Brine Minimization Project |
65,000 |
268,825 |
73,000 |
50,000 |
|
908175822715.5305.10220 |
PWO Phase 3 Feasibility study |
30,000 |
274,329 |
15,000 |
15,000 |
|
909122900722.5305.10600 |
OBLS Relocation |
7,500 |
16,741 |
- |
- |
|
909149117722.5305.10400 |
BVLS Replacement-Design |
50,000 |
120,000 |
25,000 |
- |
|
909149117722.5305.10600 |
BVLS Replacement-Construction |
- |
- |
25,000 |
75,000 |
|
909157319722.5305.10600 |
OMG FM |
45,000 |
727,406 |
45,000 |
45,000 |
|
909163920722.5305.10600 |
OMG Lift Station |
45,000 |
211,349 |
45,000 |
45,000 |
|
909164020722.5305.10600 |
Mission Ave Force Main |
45,000 |
231,785 |
45,000 |
45,000 |
|
909548800722.5305.10600 |
Land Outfall |
- |
- |
25,000 |
25,000 |
|
Totals: |
$ 343,200 |
$ 2,150,435 |
$ 343,200 |
$ 343,200 |
Water Sales and Water Meter Charges in the Fixed Asset Replacement Fund (712) are the funding sources for water projects. Recycled and Pure Water projects are partially funded by developer fees (fund 715). Sewer Flow and Sewer Service Charges in the Fixed Asset Replacement Fund (722) are the funding sources for sewer projects.
COMMISSION OR COMMITTEE REPORT
The Utilities Commission approved Staff’s recommendation at its regularly scheduled meeting on May 19, 2026.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
end
Prepared by: John McKelvey, Principal Management Analyst
Reviewed by: Frederick Mayo, Water Utilities Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Amendment 1