Title
Staff Report for a 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. for $789,036 for Design and Permitting Services for a New Treatment Wetland at the Water Pollution Control Plant; to Authorize the City Manager to Negotiate Contract Amendments up to 20% (or $157,807); and to Appropriate $501,917 from the Water Pollution Control Plant Enterprise Fund Balance Reserve for the Project in Fiscal Year 2019-20
Staffreport
SUMMARY AND RECOMMENDATIONS
This is for the design and permitting phase of a project to construct a new multi-benefit treatment wetland at the Water Pollution Control Plant (WPCP).
Staff recommends City Council adopt a Resolution to approve and authorize the City Manager to execute a Consulting Services Agreement with Terraphase Engineering, Inc. for the Treatment Wetland Design Project for $789,036 and authorize the City Manager to negotiate contract amendments up to 20% (or $157,807). Staff also requests City Council adopt a Resolution appropriating $501,917 from the WPCP enterprise fund balance reserve for 2019-20.
BACKGROUND
In April 2018, the San Francisco Bay Restoration Authority (SFBRA) awarded a $538,926 Measure AA grant to the City to plan, design and permit a multi-benefit Treatment Wetland. This Treatment Wetland project is intended to remove nitrogen, phosphorus and other contaminants from a portion of the WPCP discharge water.
In addition, this project will include enhancement of wetland habitat along the San Francisco Bay Trail for educational opportunities, and demonstration of cost-effective contaminant removal/sea level rise adaptation strategies via green infrastructure. The project involves a community-based, multi-landowner planning effort to develop a larger-scale restoration and shoreline resiliency vision along a heavily urbanized shoreline site.
Analysis
In May 2019, the City opened a formal Request for Proposals process and received three proposals. City staff used a standardized rating system to rank the proposals for both quality and price. Staff then conducted interviews with the top two ranked teams and contacted references for both of those teams. Terraphase Engineering, Inc. was the top-ranked proposal, had excellent references and the lowest price, at $789,036.
This contract requires additional appropriation for several reasons. First, the scope of the grant from SFBRA was only for planning and design to 60% completion. This contract includes design to the 100% stage as well as construction support. City staff will seek additional grant funding to cover these costs, with the knowledge that Terraphase will only invoice the City for work completed. The project also requires additional consulting support to seek grant funding and to coordinate with regulatory agencies. In addition, the contract contains $103,640 in optional services. Whether these are needed depends on what tests and studies are required by the regulatory agencies. Finally, the appropriation contains sufficient funds for 20% in contract amendments.
Previous Actions
• At the October 15, 2018 City Council Meeting, Council adopted resolution 2018-130 to accept $538,926 in Measure AA grant funding from the San Francisco Bay Restoration Authority.
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.
o 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 EH-4.3 Interagency Coordination. Coordinate water quality planning, regulation, and monitoring with other public agencies that are involved in water resource management. Establish partnerships and task forces with these agencies and with nearby cities as needed to develop programs addressing issues that cross jurisdictional lines.
Fiscal Impacts
The estimated cost of design and permitting of the Treatment Wetland through construction is $1,040,843. This includes $94,000 for permitting and grant funding consulting, $789,036 for design, engineering and permitting, and a $157,807 contingency.
Construction costs will be estimated as part of the engineering and design contract.
Budget Authority
• City Council appropriated $538,926 at the October 15, 2018 City Council meeting when accepting the grant award from the San Francisco Bay Restoration Authority
• Staff recommends an additional $501,917 appropriation from the Water Pollution Control Plant fund to the operating budget account #593-52-276-5120 to fund the project through the design phase.
Attachments
• Overview of the Treatment Wetland Project
• Request for Proposals No. 57818
Attachment to Related Legislative File
• Consulting Services Agreement with Terraphase Engineering, Inc.
PREPARED BY: Justin Jenson, Water Pollution Control Plant Manager
Hayes Morehouse, Water Pollution Control Plant Administrative Analyst II