DATE: December 18, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: PROFESSIONAL SERVICES AGREEMENTS FOR AS-NEEDED SMALL-TO-MEDIUM DESIGN SERVICES FOR WATER AND SEWER CAPITAL IMPROVEMENT PROGRAM
RECOMMENDATION
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Staff recommends that the City Council approve five Professional Services Agreements with Dudek, Kimley Horn, NV5, Waterworks Engineers and West Coast Civil in a not-to-exceed amount of $250,000 annually per agreement, for a not-to-exceed total contract price of $750,000 per agreement for an initial three year term for each agreement, for a total first year value of $1,250,000, for as-needed small-to-medium design consulting services for water and sewer Capital Improvement Projects; and authorize the City Manager to execute the agreements.
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BACKGROUND AND ANALYSIS
The Water Utilities Department’s Capital Improvement Program (CIP) has a proposed budget of approximately $80 million in anticipated projects in Fiscal Year 2024-25. In Fiscal Year 2025-26 and Fiscal Year 2026-27, the Water Utilities Department’s CIP budget is expected to be $145 million and $170 million, respectively. Major CIP initiatives for the Department include the Downtown Water and Sewer Pipeline Replacement (currently in phase two of five phases); Lower Recycled Water Expansion); decommissioning of the La Salina Wastewater Treatment Plant, along with construction of the Buccaneer Lift Station and Oceanside Mesa Garrison Lift Station and associated force mains.
The small-to-medium design services are specifically intended to cover projects with a design cost of under $100,000, that can be designed quickly for a project to be advertised for bid and construction. This flexibility enables the City to promptly access engineering expertise in response to unforeseen events, facilitate the development of repair or replacement designs, and initiate planning for future capital improvement projects. By leveraging these services, the City can effectively control costs and streamline the assessment of unexpected circumstances, ensuring resource allocation, and timely improvements to utility infrastructure.
On July 31, 2024, the Water Utilities Department solicited requests for qualifications (RFQs) for various as-needed water and sewer specialty engineering consulting types. The solicitation was posted on BidNet Direct, the City’s electronic bidding platform. On September 4, 2024, twelve proposals for as-needed small-to-medium design services were received.
After a review of proposals, staff is recommending the award of five (5) contracts for small-to-medium design services. For most non-urgent projects, a letter scope and fee will be solicited, and a task order will be issued to the firm that can best meet the City’s needs in a timely and economical manner.
FISCAL IMPACT
The total contract value for each contract will be $750,000 over a three-year term, or $250,000 per contract per year.
For each contract, a blanket purchase order will be created in a not-to-exceed amount of $250,000 annually. Charges will be based on task orders, which will be specific to CIP Project Accounts.
Water Sales and Water Meter Charges are the funding sources for the water projects. Sewer Service and Sewer Flow Fees are the funding sources for the sewer projects.
COMMISSION OR COMMITTEE REPORT
The Utilities Commission approved staff’s recommendation at its regularly scheduled meeting on November 12, 2024.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: John McKelvey, Principal Management Analyst
Approved by: Lindsay Leahy, Water Utilities Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Dudek Agreement
3. Kimley Horn Agreement
4. NV5 Agreement
5. Waterworks Engineers Agreement
6. West Coast Civil Agreement