DATE: June 18, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: PROFESSIONAL SERVICES AGREEMENT WITH HOCH CONSULTING FOR PROJECT MANAGEMENT SERVICES
RECOMMENDATION
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Staff recommends that City Council approve a Professional Services Agreement with Hoch Consulting, in the amount of $400,000, for project management services; and authorize the City Manager, or designee, to execute the agreement.
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BACKGROUND AND ANALYSIS
The Water Utilities Department’s Capital Improvement Program (CIP) has a budget of approximately $80 million in Fiscal Year 2024-25. In Fiscal Year 2025-26 and Fiscal Year 2026-27, the CIP budget is projected to increase to $79 million and $125 million, respectively. These capital 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, sewer, and water reuse projects.
To effectively manage this growing workload, the Department has supplemented internal staffing with consultant support for project management roles. Since 2019, Hoch Consulting has provided these services under contract. At this time, the Department is recommending a limited extension of Hoch’s contract to facilitate the strategic transition of certain project responsibilities to internal staff and/or other project management consultants. This transition is part of a broader effort to align project management resources with evolving workload demands and ensure continuity on active projects, while the Department completes a reassessment of long-term support needs.
On February 24, 2024, the City released a Request for Proposals (RFP) for project management services, and Hoch Consulting submitted a proposal, along with three other firms: Arma Group, Altiora Consulting, and MCFA. Upon review, staff determined that the other proposers either lacked the specific knowledge of the City’s systems, projects, and requirements or were located out of state and could not provide on-site project support without incurring additional travel costs.
Hoch Consulting is recommended for award due to its established experience with City projects and its ability to provide immediate continuity of service. Staff reviewed Hoch’s proposal and determined that the firm is qualified to meet the Department’s current needs and has proposed fair and reasonable compensation.
This proposed agreement will provide continuity on one or two remaining high-priority assignments while the Department gradually transitions Hoch Consulting’s involvement off other projects. This approach allows time to onboard additional support; either through new consultant contracts currently under evaluation or, where feasible, by recruiting qualified candidates for permanent City staff positions.
While consultant support will continue to play a role, particularly for specialized or large-scale efforts, this transition reflects the Department’s intent to strengthen and optimize project delivery by achieving the right balance of internal and external resources. The Department remains focused on delivering its capital improvement projects in a timely, cost-effective, and high-quality manner that supports the City’s long-term infrastructure goals.
FISCAL IMPACT
The total amount of the Professional Services Agreement will be $400,000, to be split between projects listed below in Table 1. As project priorities change, staff may adjust the projects assigned to Hoch, staying within the contractual maximum.
Table 1
|
Account Number |
Project |
Budget FY 25-26 |
Allocation FY 25-26 |
|
908142318715.5305.10600 |
Pure Water Oceanside, Ph 2 |
$ 482,500 |
$ 15,000 |
|
909149017722.5305.10600 |
Food Waste to Energy |
90,416 |
15,000 |
|
909125500722.5305.10600 |
SLR Major Upgrades Ph 1 |
150,000 |
50,000 |
|
909137500722.5305.10400 |
Buccaneer LS Transition |
300,000 |
35,000 |
|
909953000722.5305.10400 |
Sewer Lift Stations (Pilgrim Creek LS) |
1,086,500 |
15,000 |
|
909153418722.5305.10600 |
Mission Siphon Relief |
1,559,749 |
65,000 |
|
750010712.5306 |
Water Capital Projects |
150,000 |
100,000 |
|
800010722.5306 |
Sewer Capital Projects |
150,000 |
100,000 |
|
908754600712.5305.10400 |
Reservoir Structural Rehab |
75,000 |
5,000 |
|
Totals: |
|
|
$400,000 |
Water Sales and Water Meter Charges in the Fixed Asset Replacement Fund are the funding sources for water projects. The Pure Water Project is partially funded by developer fees. Sewer Flow and Sewer Service Charges in the Fixed Asset Replacement Fund are the funding source for sewer projects.
COMMISSION OR COMMITTEE REPORT
The Utilities Commission approved Staff’s recommendation at its regularly scheduled meeting on May 20, 2025.
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: Michael Gossman, Assistant City Manager
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Professional Services Agreement