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  Agenda Item   21.    
City Council Meeting
Meeting Date: 07/16/2019  
FROM: Bill Gallardo

Subject:
Professional Services Agreements for Annual As-Needed Construction Management and Inspection Services for Various Capital Improvement and Private Development Projects
RECOMMENDATION
  1. Approve Professional Service Agreements between City of Brea and LAE Associates, Inc., Onward Engineering, Willdan Engineering, Interwest Consulting Group, Inc., and KOA Corporation for Construction Management and Inspections Services in the annual amount not-to-exceed $300,000 for a period of 1 (one) year plus optional three 1-year extensions, and
  2. Authorize City Manager to approve extensions
BACKGROUND/DISCUSSION
The City of Brea has a seven year Capital Improvement Program (CIP) that includes rehabilitation of arterial highways, residential streets and alley ways, replacement of undersized and deteriorated sewer and water lines, installation of traffic  enhancements, and rehabilitation of City-owned facilities.  The CIP also includes the largest Public Works project ever undertaken by the City, which is the State Route 57/Lambert Interchange Project.  Within the next 4 years, the average annual CIP budget is approximately $16 million.

As mentioned at the April 16, 2019 City Council Study Session, Public Works Engineering uses as-needed professional services contracts to efficiently and effectively deliver CIP projects.  Within the next 4 years, staff estimates that approximately $1,500,000 per year of construction management and inspection services will be needed in order to deliver the projects in the CIP.

Since the existing Professional Service Agreements (PSA’s) with a number of engineering firms to provide construction management and inspection services expired on April 1, 2019, staff issued a Request for Proposals (RFP) for these services.  The intent of the RFP was to select five firms that can provide these services on various CIP projects over the next four years.  The City administers several construction projects simultaneously, thus, it would be prudent to maintain a multiple number of on-call contracts that would be qualified and available to provide these services.  On May 16, 2019, proposals were received from the following nine (9) firms:

1. Anderson-Penna Partners, Inc.
2. Willdan Engineering
3. Ghirardelli Associates
4. Griffin Structures
5. Interwest Consulting Group, Inc.
6. KOA Corporation
7. LAE Associates, Inc.
8. Onward Engineering
9. SA Associates

The proposals were reviewed and evaluated based on the firms’ relevant experience, qualifications of proposed project team members, scope of services provided, experience in federally funded projects and cost effectiveness.

Based on the above criteria, LAE Associates, Inc., Onward Engineering, Willdan Engineering, Interwest Consulting Group, Inc., and KOA Corporation were selected as the top five firms (not necessarily ranked in order).  All five firms have extensive experience with the requested services working for state and local agencies.  They have successfully completed their projects on schedule and within budget. 

Their hourly rates may be increased based on various factors, such as Consumer Price Index for the Los Angeles/Orange County/Sacramento area, but generally not more than five percent per year.  Any proposed increases to their overall annual amount will not go in effect without City Council approval. 

Staff is recommending that the City Council approve PSAs with LAE Associates, Inc., Onward Engineering, Willdan Engineering, Interwest Consulting Group, Inc., and KOA Corporation in the amount not-to-exceed $300,000 per firm, per term year to provide construction management and inspection services for various CIP projects in the City.  Each agreement shall include a provision that the City has the option to extend the agreement under the same terms and conditions for a maximum of three 1-year terms. 

The inspection costs for private development and third-party construction in City right-of-way are paid through the Development Service (DS or CD) accounts that are established by private entities, such as developers and utility companies.  Since these are pass-through costs, the inspections costs for the private projects are not part of the not-to-exceed amounts in these agreements.
COMMISSION/COMMITTEE RECOMMENDATION
The Finance Committee reviewed staff’s recommendation at their July 9, 2019 meeting and recommended to proceed. However, Finance Committee raised several concerns regarding the selection of Griffin Structures based on their role in the City's parking structure project.  After further consideration, staff has decided to replace Griffin Structures with KOA Corporation since their proposal ratings were comparable and KOA's recent performance on the 57/Lambert project was exceptional.  
FISCAL IMPACT/SUMMARY
For FY 2019-2020, all costs related to construction management and inspection services are included in the approved budget for these projects.  Similarly, for future projects, costs related to construction management and inspection will be included in the proposed budget for City Council consideration.  Staff is estimating that these costs will not exceed $300,000 per term year for each firm.

Funding for these projects will come from Gas Tax, Measure M, Proposition 42, Community Development Block Grant, Urban Run-off, Water, Sewer, Capital/Mitigation Improvements, Impact Fees, and Federal and State Grants.  There will be no impact to the General Fund. 
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by:  Michael Ho, P.E., Deputy Director of Public Works / City Engineer
Concurrence:  Tony Olmos, P.E., Director of Public Works
 
Attachments
RFP
Addendum 01 CM & Inspection RFP 2019
Proposals
PSA - Onward
PSA - LAE
PSA - Interwest
PSA - Willdan

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