Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a Consulting Services Agreement with Terraphase Engineering, Inc. For Design Engineering Services for a Treatment Wetland at the City of San Leandro Water Pollution Control Plant, for a Not-to-Exceed Amount of $357,150
Staffreport
COUNCIL PRIORITY
• Infrastructure
SUMMARY
In October 2019, Terraphase Engineering was selected through a competitive process as design consultant for the Treatment Wetland Project at the Water Pollution Control Plant (WPCP). The 2019 agreement with Terraphase has been amended four times since it was approved; the current total not to exceed amount of the contract is $1,581,464. Staff requests a new agreement with Terraphase to complete the final design through bidding of the project for construction.
RECOMMENDATIONS
Staff recommend City Council adopt a Resolution to approve and authorize the City Manager to execute a Consulting Services Agreement (CSA) with Terraphase Engineering, Inc. for design services for the Treatment Wetland project for a not-to-exceed amount of $357,150.
BACKGROUND
Since 2017, the City has been working to convert an unused treatment basin at the WPCP into a Treatment Wetland. The purpose of the Treatment Wetland project is to treat a portion of the WPCP discharge water to remove nitrogen and other contaminants. In addition, the project will include enhancement of wetland habitat along the San Francisco Bay Trail and serve as a demonstration of cost-effective nature-based solutions for contaminant removal.
The WPCP Treatment Wetland Project will utilize an existing, out of service treatment pond, to be completed in two phases. The first phase, completed in early 2026, placed soil stockpiled from the 2014 WPCP upgrade project into the basin and mixed it with cement to stabilize the base layer of the pond. Additional fill soil was imported to bring the level of the pond up to its final design height. Terraphase provided both design and construction management services to complete Phase 1.
During the second phase, a liner, a terraced slope with wood chips and additional treatment equipment will be installed. The entire area will then be planted with native plants.
In October 2019, Terraphase Engineering was selected through a competitive process to support the design phase of the project. Four amendments to the original contract included additional design tasks deemed necessary to complete design and construction management for Phase 1. After completion of Phase 1, it became clear that the project would require additional design effort for successful completion.
Because the agreement with Terraphase originated in 2019, it contains outdated billing rates, contract language and a complex scope. Therefore, staff recommend that Terraphase complete the scope in the first agreement, with some modifications for expediency, and then initiate a new agreement that covers the completion of the design and bidding of the project.
Analysis
With all amendments, the 2019 agreement with Terraphase totaled $1,581,464. The original agreement with Terraphase Engineering, initiated on October 15, 2019, covered design and permit consulting for the Treatment Wetland project. This is a unique project and it was not possible to foresee all the design challenges from the outset. The agreement has been amended four times:
• July 2020 to add evaluation of the soil stockpile
• August 2022 to add additional scope for native seed collection and refinements to the treatment process
• September 2024 to add additional scope for a pilot test of the soil mixing process, which included payment to a subcontractor
• July 2025 to add construction management for Phase 1 and some additional design work for Phase II.
Terraphase and staff identified 22 tasks that are required to develop the documents necessary to request bids for the construction of the project. For expediency, staff requested that Terraphase proceed with the first six of these tasks with reallocated budget in the existing agreement. Tasks 7 through 22 are included as scope in the proposed new agreement.
Throughout this process, Terraphase has remained flexible and committed to the successful completion of the project.
Upon Council approval, this new agreement combined with the previous agreement will bring the total approved funds for Terraphase’s contract to $1,938,614 for this project. The new agreement includes additional scope that staff requested to ensure project success, including facilities to return water from the system if necessary and increased control functions of the treatment system.
Previous Actions
October 15, 2018 - Reso. No. 2018-30; Resolution of the City of San Leandro City Council to Accept Grant Funds of $538,926 from the San Francisco Bay Restoration Authority for San Leandro's Treatment Wetland for Pollution Reduction, Habitat Enhancement, and Shoreline Resiliency Project (Project No. RA-007)
October 17, 2019 - Reso. No. 2019-160; Resolution of the City of San Leandro City Council to Approve and Authorize the City Manager to Execute a Consulting Services Agreement with Terraphase Engineering, Inc., in the amount not to exceed $789,036 for Design and Permitting Services of a New Treatment Wetland at the Water Pollution Control Plant; Authorize the City Manager to Execute Contract Amendments Up to 20% (or $157,807) and an Appropriation of the Water Pollution Control Plant Enterprise Fund Balance in the Amount of $501,917 for Fiscal Year 2019-20
April 4, 2024 - Reso. No. 2024-029; Resolution to Adopt a Mitigated Negative Declaration (MND) for the San Leandro Water Pollution Control Plant Treatment Wetland and Shoreline Resilience Project in Accordance with the Requirements of the California Environmental Quality Act (CEQA)
July 15, 2024 - Reso. No. 2024-089; Resolution to Authorize the City Manager to Accept a Grant for $3,734,489 from the San Francisco Bay Restoration Authority for San Leandro’s Treatment Wetland for Pollution Reduction, Habitat Enhancement, and Shoreline Resiliency.
July 15, 2024 - Reso. No. 2024-091; Resolution to Authorize the City Manager to Accept a Grant for $2,975,303 from the United States Environmental Protection Agency for Pollution Reduction, Habitat Enhancement, and Shoreline Resiliency
September 3, 2024 - Reso. No. 2024-109; Resolution to Authorize the City Manager to Execute Amendment No. 3 to the Consulting Services Agreement with Terraphase Engineering, Inc for Environmental Design Services for a Treatment Wetland, Increasing the Not-to-Exceed amount by $266,624 for a Total Contract Amount of $1,177,863
July 7, 2025 - Reso. No. 2025-080; Resolution to Approve and Authorize the City Manager to Execute Amendment No. 4 to the Consulting Services Agreement with Terraphase Engineering Inc. for Construction Engineering and Construction Management Services for a Treatment Wetland, Increasing the Not-to-Exceed Amount by $403,601 for a New Total Not-to-Exceed Amount of Compensation of $1,581,464.
Applicable General Plan Policies
• Policy EH-1.8 Sea Level Rise. Consider the effects of projected sea level rise in the design and planning of all development, recreational improvements, and infrastructure along the San Leandro shoreline.
• Action EH-1.8. A: Adaptation Plans. Develop long-term adaptation plans which minimize the potential for coastal flooding on public and private properties near the San Leandro shoreline. Periodically evaluate the risk to homes, businesses, parks, and other features and take steps to protect or fortify these areas to reduce damage potential.
• Policy CSF-6.4 Wastewater Collection and Treatment. Maintain efficient, environmentally sound, and cost-effective wastewater collection and treatment services in San Leandro.
Environmental Review
Pursuant to the California Environmental Quality Act (CEQA), the City of San Leandro prepared the “San Leandro Water Pollution Control Plant Treatment Wetland and Shoreline Resilience Project Initial Study/Mitigated Negative Declaration” (MND). The City Council adopted the Final MND on April 2, 2024.
Financial Impacts
This amendment will be funded as follows:
WPCP CIP Projects
PRJ-000063 Treatment Wetlands - Nonmatching EPA Funds: $357,150
This Council action will not impact fund balance because there are funds available in the FY 2027 budgets.
ATTACHMENTS
Attachment A: Resolution for Terraphase Treatment Wetland Agreement
Attachment B: CSA Scope of Services
Attachment C: CSA Compensation Schedule
PREPARED BY: Hayes Morehouse, Water Pollution Control Manager