Title
Adopt a Resolution to Authorize the City Manager to Execute On-Call Consulting Services Agreements for a term of three years with: Carollo Engineers, Inc., HDR, Inc., and Water Works Engineers, LLC for On-Call Wastewater Design Engineering Services in an Amount Not-to-Exceed $3,000,000 each; and Alpha CM, Inc., HDR, Inc and Terraphase Engineering, Inc. for Construction Management Services in an Amount Not-to-Exceed $1,500,000 each; and Pacific Wastewater Optimization for Capital Program Management in an Amount Not-to-Exceed $800,000
Staffreport
COUNCIL PRIORITY
• Infrastructure
SUMMARY
Staff seek City Council approval to execute on-call consulting service agreements with six firms that were selected through a competitive process. The agreements will cover expenses for construction management, design, and engineering services for the City’s wastewater system over a three-year period.
RECOMMENDATIONS
Staff recommend City Council adopt a resolution to approve and authorize the City Manager to execute Consulting Services Agreements for as-needed on-call support with the following firms and not-to-exceed amounts, each over three fiscal years:
Design Engineering Services
• Carollo Engineers, Inc. $3,000,000
• HDR, Inc $3,000,000
• Water Works Engineers LLC $3,000,000
Construction Management
• AlphaCM, Inc. $1,500,000
• HDR, Inc $1,500,000
• Terraphase Engineering, Inc. $1,500,000
Capital Program Management
• Pacific Wastewater Optimization $800,000
At each phase of the wastewater capital improvement program (CIP), staff will solicit proposals from these consultants and create scopes of work with defined fees to ensure the projects stay within authorized budget.
BACKGROUND
In 2024, the City studied the capital improvement needs of the City’s sewer system and Water Pollution Control Plant. The study identified approximately $97 million in necessary projects over a 10-year period, with much of the projects slated for the first five years. The improvements range from large projects with a projected cost over $10,000,000 to smaller projects that cost under $100,000. Regardless of size, the projects require specialized engineering and management. The CIP expenses for this body of work were included in the sewer rate study completed in 2025.
Staff identified the following three areas in which outside resources are needed. Staff seeks Council authorization to execute on-call contracts for these services over the next three years so staff can efficiently complete these projects. Staff will report back to City Council annually on the progress.
• Capital Program Management: Assist City staff with oversight of the City’s Water Pollution Control Plant’s CIP program, including setting scopes for projects, setting scopes and getting quotes for smaller projects, writing task orders for on-call consultants and requests for proposals.
• Construction Management: Larger construction projects may require specialized knowledge or require more time than City staff are able to provide. Smaller projects may need inspection services for which City inspectors are not available or may not have the necessary expertise.
• Engineering and Design: Some CIP projects will require the creation of formal plans and specifications for open bidding of the projects. Having on-call consultants available will enable staff to complete the projects more efficiently. It does not preclude the City from issuing requests for proposals for specific projects as necessary.
Analysis
In late 2025, Staff issued a Request for Qualifications (RFQ) seeking consulting firms for these three areas. Proposals could apply to more than one area, and firms were required to clearly state the areas for which their proposals applies.
Staff evaluated the proposals related to each program area. The City received proposals from eight consulting firms, including three for CIP Program Management Services, three for Construction Management and five for Engineering and Design. Proposals were received from large, midsize, and smaller local firms. The list included firms that have worked with the City recently and others that are new.
Because the City issued a Request for Qualifications, the proposals were evaluated based on the experience of the consultants and the consulting firm. As such, more than one firm can be selected for each of the areas. Based on staff review of their qualifications, these firms were selected:
• Alpha CM, LLC for Construction Management, up to $1,500,000
• Carollo Engineers for Design Engineering Services, up to $3,000,000
• HDR, Inc. for Design Engineering Services, up to $3,000,000
• HDR, Inc. for Construction Management, up to $1,500,000
• Pacific Wastewater Optimization for Capital Program Management, up to $800,000
• Terraphase Engineering for Construction Management, up to $1,500,000
• Water Works Engineers, LLC for Design Engineering Services, up to $3,000,000
As the need arises, staff will issue requests to the firms above to present proposals for specific projects. Staff will then select the most appropriate firm based on those proposals and issue a task order to move forward with work on the project. Staff is requesting authorization for sufficient funds based on the projects envisioned in the CIP Plan, but do not expect to use the full authorization amount for all firms. Authorization of multiple firms is requested to allow Staff to select the best consultant for each project, engage contractors more expediently to proceed with previously approved projects, and provide a bench of consultant availability.
Tasks related to Capital Program Management include the following:
• Serve as primary point of contact for design consultants, contractors or construction managers for specific projects
• Assist City staff with defining project scopes of work
• Conduct preliminary evaluation of project options
• Prepare RFPs for project designers
• Coordinate quotes for projects that fall below the public bid threshold
• Review plans and specifications prepared by designers
• Report to Water Pollution Control Manager or other City staff on the progress of projects at least bi-weekly
• Preparation of task orders for Construction Management or Design Consultants
Tasks related to Construction Management include:
• Serve as City’s representative with construction contractor
• Review plans and specifications for biddability and constructability
• Respond to bid Requests for Information (RFIs)
• Review bid submittals for conformity with bid requirements and qualifications of contractors
• Ensure compliance with the City’s Community Workforce Agreement (CWA)
• Track submittals and RFIs during construction
• Ensure all changes are reflected in as-built plans
• Provide construction inspection services
• Provide recommendations on construction management processes and on documentation templates and requirements
• Coordinate with City management and operations and maintenance staff.
Tasks related to Design Engineering include:
• Development of comprehensive plans and specifications for contractor procurement and construction of the project which may include a combination of civil, mechanical, structural, electrical, and/or instrumentation plans and specifications.
• Detailed and organized documents to minimize contractor requests for information and change orders.
• Clear delineation of contractor responsibilities before, during, and after construction.
• Investigate existing utilities for conflicts with the proposed project and coordinate with utility companies for resolution.
• Plan submittals: Pre-design (general layouts only), 60-percent, 90-perecent, Draft and Final, and/or Bid set, or bridging documents for design-build projects.
• Specification submittals: Pre-design (reference standards only), 90-perecent, Draft and Final, and/or Bid set, or bridging documents for design-build projects.
• Engineer’s construction cost estimate.
• Development of applications for permits or modifications to existing regulatory permits.
• Provide support during contractor procurement. This may include attending pre-bid walks or meetings and responding to questions and preparing addenda.
• Issuance of conformed plans and specifications
• Prepare record drawings
Legal Analysis
The RFQ included the City’s Consulting Services Agreement template for the proposers to review. Some respondents listed exceptions to some of the terms. These will be reviewed and accepted by the City Attorney’s Office before execution of the agreements.
Financial Impacts
There is no General Fund impact from these requests. The CIP budget for the Wastewater Enterprise has sufficient funding over the next three years to cover the cost of the on-call agreements. As tasks are assigned to consultants, expenses will be applied and charged to specific CIP projects. This Council action will not impact fund balance because there are funds available in the adopted FY 2026 budget and included in the 10-year CIP Plan.
ATTACHMENTS
A: Resolution
B-1: CSA Scope of Work for Design Engineering Services
B-2: CSA Scope of Work for Construction Management Services
B-3: CSA Scope of Work for Capital Program Management Services
C: CSA Compensation Schedules for Each Consultant
PREPARED BY: Hayes Morehouse, Water Pollution Control Manager