REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Sean Crumby, Director of Public Works
PREPARED BY: Keegan Olds, Contract Administrator
Subject:
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Approve and authorize execution of four (4) Professional Services Contracts for On-Call Construction Management and Engineering Services with Ardurra Group, Inc., Berg & Associates, Inc., Dudek, and Psomas
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Statement of Issue:
The Public Works Department requires professional construction management, inspection, labor compliance, and engineering services on an on-call or as-needed basis to support staff on the construction of state and federally-funded capital improvement projects, which are identified in the annual Capital Improvement Program (CIP). As such, Public Works advertised a Request for Proposals (RFP), based on federal procurement requirements, for these services and recommends awarding four on-call construction management and engineering services contracts.
Financial Impact:
The City’s adopted Fiscal Year (FY) 2022/23 CIP Budget totals $59.7 million for approved projects citywide. Each approved CIP project has a budget containing sufficient funding for design, environmental, engineering, construction, project management, and other required costs.
As such, no additional funding is required by this action. The four (4) recommended construction management contracts, totaling $5.6 million, will be funded within each project’s individual CIP budget, on an as-needed basis. Additionally, construction management and inspection services provided under these contracts will be reimbursable through State and Federal funding.
Recommended Action:
recommendation
A) Approve and authorize the Mayor and City Clerk to execute a $1,400,000 “Professional Services Contract Between the City of Huntington Beach and Ardurra Group, Inc. for On-Call Construction Management and Engineering Services;” and,
B) Approve and authorize the Mayor and City Clerk to execute a $1,400,000 “Professional Services Contract Between the City of Huntington Beach and Berg & Associates, Inc. for On-Call Construction Management and Engineering Services;” and,
C) Approve and authorize the Mayor and City Clerk to execute a $1,400,000 “Professional Services Contract Between the City of Huntington Beach and Dudek for On-Call Construction Management and Engineering Services;” and,
D) Approve and authorize the Mayor and City Clerk to execute a $1,400,000 “Professional Services Contract Between the City of Huntington Beach and Psomas for On-Call Construction Management and Engineering Services.”
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Alternative Action(s):
Do not approve the professional services contracts. However, please note that staffing levels and specific expertise are limited and necessitate additional outside support to complete budgeted CIPs. The impacts of not having approved and active on-call contacts that are readily available include:
• Each project would be required to advertise individual Requests for Proposals to procure support, which would require additional time and staff hours to complete.
• When projects have funding that originate from specialized sources (most commonly Federal and State sources), there may be additional procurement requirements placed onto the City tied to those specialized sources.
Procuring individual contracts for each capital project and complying with federal/state requirements for every individual project will add staff hours, cost, and time to deliver projects.
Analysis:
In order to have the ability to obtain reimbursement on federally funded projects, consultants must be procured using the federal process, which differs from the City normal procurement process and involves Caltrans approval. Therefore, on February 7th, 2022 the City advertised a federalized Request for Qualifications (RFQ) for On-Call Engineering Services featuring 5 sub-categories: Construction Management and Inspection, Material Testing and Inspection, Architectural Engineering, Civil Engineering, and Environmental Engineering. Proposals were requested and submitted in compliance with Chapter 3.03 of the Huntington Beach Municipal Code. Seventeen (17) proposals were received for the Construction Management and Inspection sub-category. In accordance with qualifications-based selected procurement, per the Federal “Brooks Act,” State SB 419, and the City of Huntington Beach Municipal Code Section 3.03 “Professional Services,” the Public Works Department established a review board. Proposals were then evaluated and ranked by the review board. The top four (4) firms were selected in the Construction Management category to increase opportunity for competitive proposals for future projects from qualified on-call consultants.
The four (4) contracts recommended in this Request for Council Action (RCA) are for support staff for the construction of a wide variety of State and Federally-funded capital improvement projects.
These services have historically been utilized to supplement City staff to meet annual CIP goals, as an extension of staff and/or to provide required expertise for unique projects. It is anticipated that these services will be required based on past years. Each project is evaluated on a case by case basis to determine if these as-needed contract services are necessary.
The City’s FY 2022/23 CIP totals $59.7 million in new projects. Typical design and construction support cost from the use of consultants on a CIP project can vary between ten to twenty percent (10 -20%) of total costs for a CIP project. Therefore, it is practical to conservatively assume minimum annual construction consultant costs would be around $9 million to the City for total CIP projects or approximately $27 million over the next three (3) years.
Professional construction management and inspection services are typically required for most CIP projects, including streets and transportation, water, sewer, stormwater, parks and beaches, and facility improvement projects. Therefore, these consultants were selected to meet projected State and Federally-funded project workload over the next three years with a total contract limit of $1.4 million. The proposed contract amounts are a not-to-exceed amount for a three-year term, with no guarantee of work. Funding for any and all of these contract services is only through City Council authorization in the budget approval process.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Professional Services Contract between the City of Huntington beach and Ardurra Group, Inc. for On-Call Construction Management and Engineering Services
2. Professional Services Contract between the City of Huntington beach and Berg & Associates, Inc. for On-Call Construction Management and Engineering Services
3. Professional Services Contract between the City of Huntington beach and Dudek for On-Call Construction Management and Engineering Services
4. Professional Services Contract between the City of Huntington beach and Psomas for On-Call Construction Management and Engineering Services
5. Professional Services Award Analysis
6. Professional Services Contract Presentation