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  Agenda Item   14.    
City Council Meeting
Meeting Date: 09/19/2023  
FROM: Bill Gallardo

Professional Services Agreements for Annual As-Needed Construction Management and Inspection Services for Various Capital Improvement Program and Private Development Projects
  1. Approve Professional Service Agreements between the City of Brea and Ardurra Group, Inc.; Interwest Consulting Group; LG2WB Engineers, Inc. dba Linscott, Law & Greenspan, Engineers; Southstar Engineering & Consulting, Inc.; and Willdan Engineering for Construction Management and Inspection Services in the annual amount not-to-exceed $300,000 for two (2) years, plus three (3) optional 1-year extensions, and
  2. Authorize the City Manager to approve extensions.
The City of Brea has a seven-year Capital Improvement Program (CIP) that includes various projects ranging from rehabilitation of arterial highways, residential streets, and alleyways; replacement of undersized and deteriorated sewer and water lines; installation of traffic enhancements; and rehabilitation of City-owned facilities.  Public Works Engineering uses as-needed professional services contracts to efficiently and effectively deliver these projects.  The average annual CIP construction budget is approximately $17 million within the next five years.  Staff estimates that approximately $1,500,000 per year of Construction Management and Inspection (CM&I) services will be needed to deliver the projects in the CIP.  For reference, the average construction management and inspection cost for the last as-needed CM&I contracts averaged approximately $850,000 over the past contract period. The increase to the CM&I is in line with the increase in cost for services due to inflation.   

Since the existing Professional Service Agreements (PSAs) with several engineering firms to provide CM&I expired on July 16, 2023, staff issued a Request for Proposals (RFP) for these services.  The RFP intended to select five qualified firms to provide CM&I on various CIP projects over the next five years.  On July 24, 2023, proposals were received from the following sixteen (16) firms:
  1. Advanced Applied Engineering, Inc. dba Infrastructure Engineers
  2. Anser Advisory Management, LLC dba Anser Advisory
  3. Ardurra Group, Inc.
  4. Dudek
  5. EC & AM Associates dba GK & Associates
  6. Interwest Consulting Group
  7. JMDiaz, Inc.
  8. KOA Corporation
  9. LG2WB Engineers, Inc. dba Linscott, Law & Greenspan, Engineers
  10. PMCS Group, Inc.
  11. SA Associates
  12. Southstar Engineering & Consulting, Inc.
  13. TELACU Construction Management, Inc.
  14. TKE Engineering, Inc.
  15. Transtech Engineers, Inc.
  16. Willdan Engineering
The proposals were reviewed and evaluated based on the firms' qualifications; the proposed team and organization; the provided work plan; understanding of the requirements and objectives; and the overall quality of the proposal. 
Based on this criteria and having provided more complete and detailed proposal packages than the other consultants noted, Ardurra Group, Inc., Interwest Consulting Group, Linscott, Law & Greenspan, Engineers, Southstar Engineering & Consulting, Inc., and Willdan Engineering were selected as the top five firms (not necessarily ranked in order).  All five firms have extensive experience with the requested services working for state and local agencies and have demonstrated to have completed projects on schedule and within budget. Some consultants not selected for these services objected to the City’s standard contract agreement terms and did not fully demonstrate and understand the requested scope of services for the RFP.

Staff is recommending the City Council approve PSAs with Ardurra Group, Inc., Interwest Consulting Group, Linscott, Law & Greenspan, Engineers, Southstar Engineering & Consulting, Inc., and Willdan Engineering in the amount not to exceed $300,000 per firm, per term year, to provide Construction Management and Inspection Services for various CIP projects in the City.  Each agreement shall include a provision that the City has the option to extend the agreement under the same terms and conditions for a maximum of three (3) 1-year terms. In negotiating with the firms, the proposed contracts include fee rates that are locked-in for the 5-year duration. Any overall annual contract amount or rate schedule increase will require future City Council approval. This may occur if market conditions continue to push increases in costs for services and the firms request an increase through City staff.   

The costs for private development, utility companies, and third-party construction in City right-of-way are paid through the cost center accounts established by private entities, such as developers and utility companies.  Since these are pass-through costs, the costs for the private projects are not part of the not-to-exceed amounts in these agreements.
Ardurra Group, Inc., Interwest Consulting Group, Linscott, Law & Greenspan, Engineers, and Willdan have all provided services to the City either as part of a previous as-needed contract or through separate agreements.  Each consultant has historically demonstrated advanced knowledge and skills in budgeting, construction management, contract/change order negotiations, oral and written communication, and engineering design.  Southstar Engineering & Consulting, Inc. has provided professional engineering services for over 16 years in southern and central California and provided a proposal meeting the intent of the RFP.  In addition, staff performed a detailed reference review on this consultant and received favorable reviews from the City of Bellflower, the County of San Bernardino, and the County of Riverside Transportation Department.  Each of these five consultants has provided similar construction management and inspection services to other local agencies, are well known throughout the industry, and have demonstrated that they have provided exceptional service based on the reference checks performed by staff.  Based on the qualifications, experience, proposal completeness, and favorable reviews of each consultant, City staff recommends that City Council consider approving the professional service agreements for each consultant.  
The Finance Committee reviewed staff's recommendation at their September 12, 2023, meeting and recommended for City Council approval. 
For FY 2013-2025, all CM&I costs are included in the approved CIP budget for these projects.  Similarly, these costs will be included in the proposed budget for City Council consideration for future projects.  These projects will be funded by CBED, FARP, Gas Tax, RMRA, Park, Measure M, Urban Runoff, Water, Sewer, Golf, Impact Fees, Capital/Mitigation, and State Grant Funds.  There will be no impact on the General Fund. 
William Gallardo, City Manager
Prepared by:  Ryan Chapman, PE, Assistant City Engineer
Concurrence:  Michael Ho, PE, Public Works Director
Attachment A - CM & Inspection RFP & Addenda
Attachment B - Proposals
Attachment C - PSA (Ardurra)
Attachment D - PSA (Interwest)
Attachment E - PSA (LLG)
Attachment F - PSA (Southstar)
Attachment G - PSA (Willdan)

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