DATE: September 11, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: AMENDMENT 2 TO THE PROFESSIONAL SERVICES AGREEMENT WITH UTILIQUEST, LLC FOR UNDERGROUND FACILITY MARKING AND LOCATING SERVICES FOR FIBER PROJECTS AND AMENDMENT 3 TO THE PROFESSIONAL SERVICES AGREEMENT WITH ANSER ADVISORY MANAGEMENT, LLC FOR FIBER MANAGEMENT, PERMITTING, PLAN REVIEW, AND INSPECTION SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 2 to the Professional Services Agreement (PSA) with UtiliQuest, LLC, ("UtiliQuest"), in the amount of $700,000 for a total compensation not to exceed $850,000, for underground facility marking and locating services for telecom fiber projects; approve Amendment 3 to the PSA with Anser Advisory Management, LLC, ("Anser"), in the amount of $2,348,500 for a total compensation not to exceed $3,857,100, for fiber management, permitting, plan review, and inspection services; appropriate $3,048,500, and authorize the City Manager to execute the amendments upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
On May 4, 2022, the City entered into a Right-of-Way Encroachment Agreement with SiFi Networks Oceanside LLC ("SiFi") to install a Citywide fiber optic network system in the City's public rights-of-way. The agreement includes provisions for an accelerated permitting process that includes the costs of hiring a temporary permitting technician, plan reviewer, and inspector at SiFi’s expense.
Ubiquity Inc. ("Ubiquity"), a public utility, has also applied for fiber optic work within the City's public rights-of-way under an accelerated permitting and construction schedule. The City Engineer has determined this work would require additional consultant review per the City's Excavation and Encroachment Policy.
On April 14, 2023, the City Manager approved a sole-source PSA with Anser Advisory Management, LLC, in the amount of $45,000, for fiber management, permitting, plan review, and inspection services for the proposed SiFi and Ubiquity fiber optic projects ("fiber optic projects").
On August 9, 2023, the City Council approved Amendment 1 to the PSA with Anser Advisory Management, LLC, in the amount of $913,600, for fiber management, permitting, plan review, and inspection services for the proposed fiber optic projects.
On November 1, 2023, the City Manager approved a sole-source PSA with UtiliQuest, LLC, in the amount of $50,000, for underground facility locating and marking services for City of Oceanside underground facilities for the proposed fiber optic projects.
On June 5, 2024, the City Council approved Amendment 1 to the PSA with UtiliQuest, LLC, in the amount of $100,000, for underground facility locating and marking services for City of Oceanside underground facilities for the proposed fiber optic projects and Amendment 2 to the PSA with Anser Advisory Management, LLC, in the amount of $550,000, for fiber management, permitting, plan review, and inspection services for the proposed fiber optic projects.
As the fiber optic projects continue to grow due to the expedited project deployment schedules of SiFi and Ubiquity, additional permitting, inspection, facilities mark-out, and management are required. As noted below, the costs associated with these services are borne by the utility companies and not the City.
Because the proposed fiber optic projects are occurring within a large span of the City's rights-of-way, additional contract personnel have been required to manage the heavy volume of plan submittals, plan reviews, mark-out tickets, and inspections. As such, staff recommends approval of $700,000 for Utiliquest to provide underground facility locating and marking services, and approval of $2,348,500 for Anser to provide permitting, plan review, and inspection services.
Utilizing consultant services allows the City to meet accelerated permitting and construction schedules associated with the proposed fiber optic projects, and allows the City to more easily adjust its staffing levels for other department needs while avoiding the need for additional fully-burdened staff positions.
Construction is anticipated to continue for another two to three years for both the SiFi and Ubiquity fiber optic projects.
FISCAL IMPACT
All contract and in-house costs associated with the accelerated review and construction of these fiber optic projects are being reimbursed by SiFi and Ubiquity. The proposed SiFi and Ubiquity projects are each required to post deposits into a developer deposit account to cover all costs for providing additional staffing and services. All expenses associated with these Amendments shall be covered by the deposit accounts, and shall be replenished as needed. Staff is requesting revenue and expenditure budget increases of $3,048,500 appropriated to accounts 425423101.4426.0027 and 425423101.5306.0002.
|
Description |
Amendment Amount |
Request to Appropriate FY 24-25 |
Expenditure Account |
Funding Source Revenue Account |
|
Utiliquest Amendment 2 |
$700,000 |
$700,000 |
Land Development 425423101.5306.0002 |
Land Development 425423101. 4426.0027 |
|
Anser Amendment 3 |
$2,348,500 |
$2,348,500 |
Land Development 425423101.5306.0002 |
Land Development 425423101. 4426.0027 |
|
Total |
$3,048,500 |
$3,048,500 |
|
|
COMMISSION OR COMMITTEE REPORT
Does not apply.
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: Andrew Bartleet, Associate Engineer
Reviewed by: Darlene Nicandro, Development Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Utiliquest Amendment
3. Anser Amendment