DATE: November 4, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: APPROVAL OF AMENDMENT 3 WITH BDS ENGINEERING FOR AS-NEEDED CIP PROJECT MANAGEMENT SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 3 to the Professional Services Agreement with BDS Engineering (Formerly Force 77 Engineering and Consulting) in an amount not-to-exceed $700,000 for the two-year term, for a total amount not-to-exceed $1,324,000; and authorize the City Manager to execute the amendment.
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BACKGROUND AND ANALYSIS
The budget for the Water Utilities Department’s Capital Improvement Program (CIP) contains just under $485 million in proposed projects in the next five years. To effectively manage these projects, City staff is supplemented with additional contract staff to bring these projects to completion in a timely manner.
On January 25, 2023, Council approved a Professional Services Agreement (PSA) with Force 77 Engineering for as-needed CIP project management service for a two-year term, in an amount not-to-exceed $624,000. On June 5, 2025, Amendment 1 was approved administratively, to extend the contract until June 30, 2027. On April 16, 2026, Amendment 2 was approved administratively to add two project managers to the Agreement. Staff is now requesting approval of Amendment 3, to add funds and extend the agreement until June 30, 2029.
After the approval of Amendment 2, Force 77 acquired BDS Engineering, and assumed the BDS Engineering name for ongoing operations. BDS Engineering is assuming this agreement and will perform as-needed CIP Project Management services utilizing the same staff as Force 77.
FISCAL IMPACT
Amendment 3 will be a not-to-exceed $700,000 with an end date of June 30, 2029. The amounts to be encumbered are outlined in Table 1 below. As projects are completed and new projects are assigned, staff may make changes to the allocations, staying within the total approved contract limits. The Water Master Holding Account is place holder for future projects and fiscal year allocations.
Table 1
|
Project Name |
Account |
Amount to Encumber |
Available Budget |
|
Weese Filtration Plant Improvement |
908125400712.5305.10600 |
$ 5,000 |
$ 32,359 |
|
Desalter Plant Major Upgrades - Sodium Hypochlorite Tank Replacement |
908125600712.5305.10600 |
5,000 |
184,988 |
|
Pure Water Oceanside Phase 2 |
908142318715.5305.10600 |
10,000 |
742,990 |
|
Mission Ave WTR Replacement-Flood Channel |
908198625712.5305.10400 |
10,000 |
119,650 |
|
SLR Tenant Improvements |
909178922722.5305.10400 |
15,000 |
259,632 |
|
Mission Ave Sewer Replacement-Flood Channel |
909197525722.5305.10400 |
15,000 |
153,888 |
|
Harbor Area Sewer Replacement Ph 1 |
909197625722.5305.10600 |
5,000 |
57,439 |
|
Harbor Area Sewer Replacement Ph 2 |
909197725722.5305.10400 |
10,000 |
164,562 |
|
Land Outfall Replacement-Part D NCTD Crossing |
909197825722.5305.10400 |
15,000 |
776,681 |
|
Land Outfall Replacement-Part C1 & C2 Garrison St & Oceanside Blvd |
909197925722.5305.10400 |
30,000 |
100,000 |
|
Buccaneer Force Main |
909202925722.5305.10600 |
20,000 |
168,743 |
|
Storage Bldg at MBGPF (formerly Pump Station Upgrades) |
908754526722.5305.10400 |
15,000 |
70,780 |
|
2 Meters for Pure Water (formerly Pure Water Oceanside Ph II) |
908142326715.5305.10600 |
10,000 |
497,711 |
|
Loma Alta Sewer Ph 2 Replacement (formerly Pipeline Rehab Program) |
909145926722.5305.10600 |
30,000 |
127,385 |
|
Leonard and Weitzel Sewer Upsize (formerly Sewer Pipeline Capacity Upgrades) |
909137726722.5305.10600 |
20,000 |
85,370 |
|
Water Master Account |
900206625712.5305 |
485,000 |
- |
|
TOTAL |
|
$ 700,000 |
$ 3,542,178 |
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 will receive an update on this Amendment at their regularly scheduled meeting on November 17, 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. Amendment 3 to PSA
2. Exhibit A
3. Acquisition