DATE: August 5, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: APPROVAL OF PROFESSIONAL SERVICES AGREEMENTS FOR ON-CALL CONSTRUCTION MANAGEMENT & INSPECTION AND SPECIAL INSPECTION SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve Professional Services Agreements with Reilly CM, Albert A Webb Associates, and Z&K Consultants, each in the amount of $200,000 per fiscal year, and not to exceed $600,000 for the three-year term, for on-call Construction Management and Inspection Services, and with Ninyo & Moore and Atlas Technical Consultants (CA) Inc. for $100,000 per fiscal year, not to exceed $300,000 for the three-year term, for Special Inspection and Testing Services, for a combined not-to-exceed total of $2,400,000 across all five agreements over the three-year term; and authorize the City Manager to execute the agreements.
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BACKGROUND AND ANALYSIS
The Water Utilities Department Capital Improvement Program (CIP) has an approved budget of just under $485 million in proposed projects in the next five years. While the Department’s largest projects for Construction Management and Inspection services (CM&I) are delivered through a formal advertisement and bid process, that process is generally reserved for projects with construction costs over $1 million given the time and cost associated with a full request for proposal. A share of the CIP consists of small-to-medium sized projects that are ready for construction and do not require that level of procurement effort.
On-call CM&I services allow the Department to move these smaller projects into construction efficiently. Awarding on-call agreements to multiple firms, each capped at $200,000 per fiscal year, ensures the Department is not overcommitted to one firm or one project and can distribute work based on availability, workload, and project needs. Depending on staff workload, special inspection needs, and the pace of development activity, the Department uses on-call inspectors to provide additional flexibility, including covering night time inspections and rotating more intensive work schedules that would be difficult to sustain with City staff alone.
On February 24, 2026, the City released an RFP for Construction Management and Inspection and Special Inspection and Testing services. On March 24, 2026, 15 proposals were received from interested firms. After reviewing the proposals, experience and proposed fees, staff recommend that Council award PSAs for on-call Construction Management and Inspection to Reilly CM, Albert A Webb Associates, and Z&K Consulting, and Special Inspection and Testing to Ninyo & Moore and Atlas Technical Consultants (CA) Inc., who, in their judgment, were qualified to provide the services needed, and requested a fair rate of compensation.
A mix of internal staff and external consultant support will likely continue to be necessary due to the volume and complexity of the Department’s 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 amount of each Professional Services Agreement for Construction Management and Inspection will be $200,000 per fiscal year, not-to-exceed $600,000, over a 3-year term, from July 1, 2026-June 30, 2029. The total amount of each Special Inspection and Testing PSA will be $100,000 per fiscal year, not to exceed $300,000. All encumbrances will be held in a water or sewer holding CIP account (900206625712.5305 and 900206625722.5305, respectively) and allocated to specific projects as task-orders are assigned, staying within the contractual limits. The holding accounts were established by the Financial Services Department to allow for the full encumbrance of as-needed contract amounts without impacting projects until a task order is released. The combined not-to-exceed total for all five agreements is $2,400,000 over the three-year term.
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 their regularly scheduled meeting on July 21, 2026.
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
Reviewed by: Frederick Mayo, Water Utilities Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. PSA - Reilly CM
2. PSA - Albert A. Webb Associates
3. PSA - Z&K Consultants
4. PSA - Atlas Technical Services
5. PSA - Ninyo & Moore