REPORT TO THE CITY COUNCIL
FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager
Interim Director - Capital Projects Department
BY: francisco V. magos II, PE, Assistant Director
Capital Projects Department, Utilities and On-Site Project Management Division
ROBERT DIAZ, Project Manager
Capital Projects Department, Utilities and On-Site Project Management Division
SUBJECT
Title
Approve the Fourth Amendment to the Consultant Services Agreement with Carollo Engineers, Inc. of Fresno, California, to increase the total contract by an amount not to exceed $637,228, for a revised total contract amount not to exceed $3,801,877, with a remaining contingency amount not to exceed $374,000, all of which to be paid on a time and materials basis, and to extend the term of the agreement to December 31, 2027, for the Downtown Area Water and Wastewater Infrastructure Improvements Study. (Council District 3)
Body
RECOMMENDATION
Staff recommends City Council approve the Fourth Amendment to the Consultant Services Agreement with Carollo Engineers, Inc. (Consultant), to increase the total contract by an amount not to exceed $637,228, for a revised total contract amount not to exceed to $3,801,877, with a remaining contingency amount not to exceed $374,000, all of which to be paid on a time and materials basis, to expand the Consultant’s scope of services, and to extend the term of the Agreement to December 31, 2027, for the for the Downtown Area Water and Wastewater Infrastructure Improvements Study (Project); and authorize the Capital Projects Interim Director or designee to sign and execute the Fourth Amendment on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
On May 31, 2023, the City entered into an agreement with the Consultant for professional engineering services to conduct a study to evaluate relocation options and capacity improvements to water and wastewater infrastructure in the downtown area. Since the award of this contract, the City was the recipient of $250 million commitment from the State of California for the Downtown Public Infrastructure Improvements Projects, of which approximately $23 million was identified for water and wastewater improvements in the downtown area and is currently under construction. Another $43.7 million from the California Department of Housing and Community Development Infill Infrastructure Grant - Catalytic (IIGC) was awarded, of which approximately $31.1 million is for water and wastewater infrastructure improvements, also in the downtown area. Subsequent amendments to the original professional engineering services agreement included additional scopes of work for design and construction support services for the improvement projects. The Department of Public Utilities (DPU) reevaluated the scope of work related to the IIGC improvements and incorporated additional water and wastewater improvements to better serve the goals of downtown development. The new scope of work includes additional water and wastewater pipeline removal and replacement and includes wastewater pipeline and junction structure rehabilitation.
Staff now recommends approval of the Fourth Amendment to the Consultant Services Agreement with Carollo Engineers, Inc. to expand the scope of services to include additional design and construction support services for an expanded IIGC scope of work for water and wastewater improvements. The Fourth Amendment will also extend the term of the Agreement to allow time for completion of the additional services. The Fourth Amendment to the Consultant Services Agreement will be funded utilizing IIGC funds adopted if the Fiscal Year (FY) 2025 budget.
BACKGROUND
The downtown area has some of the oldest water and wastewater infrastructure in the City, which has reached the end of its service life. Recognizing the uniqueness of zero lot line construction in the downtown area, the City entered into a Consultant Services Agreement with Carollo Engineers, Inc. dated May 31, 2023, in an amount not to exceed $736,873, with a contingency amount not to exceed $74,000, paid on a time and materials basis, to conduct a study to evaluate relocation options and capacity improvements to water and wastewater infrastructure in the downtown area. Inclusive of this evaluation is the review of system capacities to ensure the renewal infrastructure meets current design standards. The resulting documents will guide the design and phasing of renewal capital improvement projects, as well as assist in establishing conditions of approval for infrastructure improvements needed for future development projects.
Since the award of this contract, the City was the recipient of $250 million commitment from the State of California for the Downtown Public Infrastructure Improvements Projects, of which approximately $23 million was identified for water and wastewater improvements in the downtown area and is currently under construction. Another $43.7 million from the IIGC grant was awarded, of which approximately $31.1 million is for water and wastewater infrastructure improvements, also in the downtown area. The First Amendment to the Consultant Services Agreement, dated November 27, 2023, increased the Consultant’s compensation by an amount not to exceed $2,000,406, and increased the contingency by an amount not to exceed $300,000, for a revised total contract amount not to exceed $2,737,279 and a revised contingency amount not to exceed $374,000, all of which to be paid on a time and materials basis. The First Amendment included services to expedite professional design efforts and award a construction contract for the original Project area within FY2024. A construction contract was subsequently awarded to Floyd Johnston Construction Co. Inc. following a competitive bidding process which identified them as the lowest responsive and responsible bidder in the amount of $18,784,925.50 for the Base Bid plus all three (3) Add Alternates for the Project.
The Second Amendment to the Consultant Services Agreement, dated April 17, 2024, was approved to recognize the new labor rates in Carollo Engineers, Inc. 2024 Fee Schedule.
The Third Amendment to the Consultant Services Agreement, dated August 15, 2024, was approved in conjunction with the adoption of the 6th Amendment to the Annual Appropriation Resolution No. 2024-122, which appropriated $3,495,800 to fully fund construction contingency, construction management by City staff, and construction support services by the design Consultant. This amendment specifically increased the Consultant Services Agreement with Carollo Engineers, Inc. by an amount not to exceed $427,370, bringing the total contract to an amount not to exceed $3,164,649, with a remaining contingency amount not to exceed $374,000, all of which to be paid on a time and materials basis.
DPU reevaluated the scope of work related to the IIGC improvements and incorporated additional water and wastewater improvements to better serve the goals of downtown development. The new scope of work includes additional water and wastewater pipeline removal and replacement and includes wastewater pipeline and junction structure rehabilitation. Staff now recommends City Council approve the Fourth Amendment to the Consultant Services Agreement with Carollo Engineers, Inc. of Fresno, California, increasing compensation by an amount not to exceed $637,228, increasing the total contract to an amount not to exceed $3,801,877, with a remaining contingency amount not to exceed $374,00, all of which to be paid on a time and materials basis, to revise the scope of work to include design and construction support services for the expanded Project area, and to extend the term of the Agreement to December 31, 2027, and authorize the Capital Projects Interim Director or designee to sign and execute the Fourth Amendment on behalf of the City. The Fourth Amendment to the Consultant Services Agreement will be funded utilizing IIGC funds adopted in the FY25 Budget.
The City Attorney’s Office has reviewed and approved the Fourth Amendment to the Agreement as to form.
ENVIRONMENTAL FINDINGS
By the definition of the California Environmental Quality Act (CEQA) Guidelines Section 15378, the amendment of this Consultant Services Agreement for design services does not qualify as a “project” for the purposes of CEQA.
LOCAL PREFERENCE
Local preference does not apply to this action because this is an amendment to an existing consultant services agreement.
FISCAL IMPACT
The Downtown Area Water and Wastewater Infrastructure Improvements Study is located in Council District 3 and will have no impact to the General Fund. The Fourth Amendment to the Agreement will be funded utilizing IIGC grant funds adopted in the FY 2025 Budget.
Attachments:
Fourth Amendment to Agreement
Third Amendment to Agreement
Second Amendment to Agreement
First Amendment to Agreement
Original Consultant Services Agreement
Vicinity Map
Location Map