Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a Consulting Services Agreement with Nichols Consulting Engineers, CHTD in the amount of $137,395 to develop a Pavement Cut Impact Fee Study; and to Authorize the City Manager to Negotiate and Approve Agreement Amendments up to 10% (or $13,739) of the Original Contract Amount
Staffreport
COUNCIL PRIORITY
• Quality of Life
• Infrastructure
SUMMARY
Under the Agreement, Nichols Consulting Engineers will conduct studies evaluating the long-term structural and functional damage caused to roadway pavement by utility cuts and will develop a defensible, data-driven fee methodology to recover costs associated with the resultant reduction in pavement service life. Approval of this agreement authorizes completion of the study only and does not establish, approve, or implement any new fees at this time.
RECOMMENDATIONS
Staff recommend the following actions:
• Approve and authorize the City Manager to execute a Consulting Services Agreement with Nichols Consulting Engineers, CHTD, for $137,395 to prepare a Pavement Cut Impact Fee Study
• Authorize the City Manager to negotiate and approve agreement amendments up to 10% (or $13,739) of the original contract amount
BACKGROUND
Roadway pavement cuts within the public right-of-way are frequently performed by utility providers to provide access to their underground infrastructure and facilities to maintain essential services. Although these cuts are often unavoidable, extensive research and industry practice have demonstrated that pavement cuts accelerate roadway deterioration, reduce pavement service life, and increase long-term maintenance and rehabilitation costs that the City then ends up shouldering.
The City of San Leandro currently requires utility providers to restore the pavement following pavement cuts; however, restoration alone does not fully mitigate the long-term structural and functional damage caused by these cuts, particularly on newly rehabilitated streets or higher-volume roadways. Many California jurisdictions have adopted pavement cut or pavement impact fees to equitably recover the incremental costs associated with this damage and to ensure that utility-related impacts do not disproportionately burden local pavement maintenance budgets.
To establish a defensible, data-driven pavement cut impact fee that complies with applicable state and local requirements, the City proposes to engage Nichols Consulting Engineers, CHTD (dba NCE), a firm with extensive experience conducting similar studies for California cities and counties.
Analysis
Numerous California agencies, including the Cities of Davis, Anaheim, Pacifica, Riverside, Monterey Park, South San Francisco, and Santa Barbara County have utilized the services of NCE to complete pavement cut or pavement impact fee studies. Several of these agencies have successfully implemented NCE-developed fee programs.
NCE’s proposed approach combines historical pavement performance data from the City’s StreetSaver® pavement management system with targeted field evaluations to quantify both functional and structural pavement damage attributable to utility cuts. This dual-method approach reflects current best practices and is supported by peer-reviewed research published by NCE staff in national transportation engineering journals.
Based on NCE’s peer-reviewed research and published methodologies, proven track record of successful implementation by other local agencies, and demonstrated experience conducting pavement cut impact fee studies, staff recommend waiving a formal competitive procurement for professional services and approving a contract with NCE based on their specialized qualifications in accordance with the City’s Purchasing Policy.
In anticipation of possible uncertainties that may arise during the pavement cut impact study, such as limitations in data availability or quality, and variations in pavement conditions identified through the analysis, additional technical refinements based on staff and stakeholders’ review may be necessary. To minimize project delays, ensure the study methodology remains accurate, transparent, and legally defensible, and allow for limited scope adjustments as needed to deliver a high-quality product, staff request authorization to negotiate and approve agreement amendments in an amount not to exceed 10% (or $13,739) of the original agreement amount.
Previous Actions
• Council Adopted Capital Improvement Program 10 Year Plan Fiscal Years 2026 - 2035 which includes the Pavement Cut Impact Fee Development.
Applicable General Plan Policies
• Policy T-1.3 Mitigation of Development Impacts. Require developers to address the impacts that their projects will have on the City’s transportation system. A variety of mitigation measures, including impact fees, street improvements, traffic signal and Intelligent Transportation Systems (ITS) improvements, transportation demand management (TDM) measures, and improvement of non-automobile transportation modes, should be considered.
• Policy T-2.1 Complete Streets Serving All Users and Modes. Create and maintain "complete” streets that provide safe, comfortable, and convenient travel through a comprehensive, integrated transportation network that serves all users.
• Policy T-5.3 Maintenance. Regularly maintain City streets and traffic control devices to ensure that streets operate safely and efficiently. The City will strive for an overall Pavement Condition Index of 76, which is the lower limit of industry best practices.
Legal Analysis
The consultant has agreed to the terms of the contract.
Financial Impacts
Sufficient funds are included in the FY 2026 General Fund budget for development of the Pavement Cut Impact Fee:
• General Fund, Account 210-28-109: $170,000
This Council action will not impact fund balance because there are funds available in the FY 2026 adopted budget.
ATTACHMENTS
A: Draft Resolution
B: CSA Scope of Work
C: CSA Compensation Schedule
PREPARED BY: Anna Vickroy, Associate Engineer, Public Works Department