Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a Consulting Services Agreement with Lee & Ro, Inc. in the Amount of $143,902 for Bidding and Construction Support Services in Support of Davis Street Manhole Replacement, Project No. 2018.6000; to Authorize the City Manager to Negotiate and Approve Individual Contract Amendments Up to 10% (or $14,390) of the Original Contract Amount; and to Authorize the City Manager to Negotiate and Approve Contract Amendments up to a Cumulative Value not to Exceed 25% (or $35,976) of the Original Contract Amount
Staffreport
COUNCIL PRIORITY
• Public Safety
• Infrastructure
SUMMARY
This Consulting Services Agreement (CSA) authorizes Lee & Ro, Inc. to provide design consulting services for the bidding and construction phases of the Davis Street Manhole Replacement Project, as well as additional design services that may be requested by the City. The Project will replace critical sanitary sewer manholes in Davis Street that are essential components of the City’s wastewater collection system, conveying influent flows to the City’s Wastewater Pollution Control Plant headworks for treatment prior to discharge.
RECOMMENDATIONS
Staff recommend the following actions:
• Award a Consulting Services Agreement in the Amount of $143,902 to Lee & Ro, Inc., for the subject project;
• Authorize the City Manager or her Designee to Negotiate and Approve Individual Contract Amendments Up to 10% (or $14,390) of the Original Contract Amount; and
• Authorize the City Manager or her Designee to Negotiate and Approve Cumulative Contract Amendments up to 25% (or $35,976) of the Original Contract Amount.
BACKGROUND
The Wastewater Pollution Control Plant (WPCP), located at the end of Davis Street, plays a crucial role in processing two-thirds of the total wastewater in the City of San Leandro. Sanitary sewer manholes located in Davis Street adjacent to the Plant complex convey wastewater flows to the WPCP headworks, where the wastewater undergoes treatment through various processes and facilities within the plant.
In 2011, the City successfully completed the WPCP Rehabilitation Project, a comprehensive initiative that upgraded the facility to meet current regulatory requirements. During the project, deficiencies in the manholes in Davis Street as well as the Secondary Effluent Pipeline (SE Line), which conveys treated wastewater from the WPCP, were identified. Addressing these deficiencies was deferred, all in accordance with regulatory compliance schedules.
In April 2020, City Council approved a Consulting Services Agreement (CSA) with Lee & Ro, Inc. (Lee & Ro) for the design of the Secondary Effluent Line Replacement and Davis Street Manhole Replacement Project to address the deferred improvements.
During initial design development, the need to coordinate with partner agencies that own and operate utilities within the project vicinity led to dividing the Project into two phases. Phase 1 focused on the design and construction of the SE Line and was completed in 2023.
Phase 2 focuses on the replacement of the Davis Street manholes and includes the realignment of two sewer pipelines, both a 30-inch and a 33-inch diameter pipe, that connect the manholes to the plant. These pipelines are essential components of the City’s wastewater collection system, conveying influent flows to the plant headworks for treatment prior to discharge.
Analysis
The Davis Street Manhole Rehabilitation Project has experienced significant delays due to disruptions associated with the COVID-19 pandemic, high staff turnover, and coordination challenges with partner agencies that own facilities within the project limits. These factors resulted in multiple contract extensions and changes in project managers during the design phase, increasing costs for both the City and the consultant.
The project was originally scoped as a manhole rehabilitation effort. However, detailed investigations during the initial design phase determined that the Davis Street manholes in front of the City’s WPCP had deteriorated beyond feasible rehabilitation and required full replacement. The resulting change in scope, combined with the need for additional coordination with partner agencies regarding nearby utilities further extended the design phase.
The design of the project is now nearly complete. To advance the project to construction, staff recommend that the City Council authorize a Consultant Services Agreement (CSA) with Lee & Ro for bidding and construction support services as well as additional design services that may be requested by the City. The consultant’s extensive knowledge of the Project and involvement throughout the design phase will position the firm to effectively support the project through construction. Failure to authorize the proposed contract could result in further delays and increase the risk of failure of the deteriorated manholes and associated infrastructure.
A contingency is also recommended for this CSA due to potential construction challenges in unstable Bay soils and the constrained space due to existing utilities around the project site. Providing adequate contingency will allow the City to timely address unforeseen conditions and minimize the risk of additional delays and costs.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure
Previous Actions
• On April 20, 2020, by Resolution No. 2020-035, the City Council approved a consulting services agreement with Lee & Ro for the design of the Secondary Effluent Line Replacement and Davis Street Manhole Replacement project. The agreement also granted the authority for amendments, with a maximum limit of 15% of the original agreement amount.
• On March 4, 2024, by Resolution No. 2024-018, the City Council approved an amendment cap increase from 15% to 40% for the previous agreement with Lee & Ro for the design of the Secondary Effluent Line Replacement and Davis Street Manhole Replacement project.
Applicable General Plan Policies
• Policy CSF-6.8 Maintenance:
Ensure that sufficient funding is provided for the ongoing maintenance of City-owned facilities, including streets, streetlights, traffic signals, landscaping, street trees, storm drains, public buildings, and other infrastructure.
Environmental Review
This project is categorically exempt from the California Environmental Quality Act (CEQA) per Section 15301(c) of the CEQA guidelines. The Notice of Exemption was filed with the Alameda County Recorder on March 23, 2021.
Summary of Public Outreach Efforts
Local utility stakeholders have continually been informed of the project’s progress, and the City was notified of their coordination policies during the design phase.
EBMUD has completed the relocation of its pipeline from the north side to the south side of Davis Street prior to the construction of this project to avoid conflict with the City’s planned construction activities.
Financial Impacts
The estimated project cost is shown below:
Original design contract $361,998
Existing CSA Amendments 1 & 2 $21,946
Bidding and Constr. Support Cont. (New) $143,902
Bid & Constr. Support Cont. Contingency(New) $35,976
SE Line Construction - completed $872,068
Manhole Construction (estimate) $1,699,930
Manhole Construction Contingency. (est.) $254,989
Staff costs - Design, Insp.& Constr. Admin $287,250
Total Project Costs $3,678,059
Budget Authority
The projects are funded as follows:
Account No. Reso & Source Amount
593-52-261-5240 WPCP Enterprise Fund $2,412,776.67
593-52-267-5240 WPCP Enterprise Fund $630,000
593-52-267-5240 Res. No. 2022-015 $784,454
Sub Total $3,827,230.67
This Council action will not impact fund balance because there are sufficient funds available in the adopted capital budget for this project.
ATTACHMENTS
A: Resolution
B: Lee & Ro Proposed Scope of Services and Compensation Schedule
PREPARED BY: Bennett Sanderson, Assistant Engineer, Public Works - Engineering Division