DATE: January 21, 2025
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director Kevin Merrill, City Engineer
SUBJECT: CLARIFICATION TO PROFESSIONAL SERVICES AGREEMENTS FOR
ON-CALL ENGINEERING DESIGN SERVICES WITH HR GREEN
PACIFIC, INC., KREUZER CONSULTING GROUP, AND PSOMAS
CEQA: Not a Project
Recommendation: Approve
SUMMARY
On November 1, 2022, t he City Council approved a request from the Development Services Department to execute Professional Services Agreements with three engineering firms, to provide on- call engineering design services for projects approved through the City Budget or Capital Improvement Program. Having access to on- call engineering services at an agreed- upon rate expedites projects and keeps costs lower overall. Although the process is operational and working as expected, a clarification is requested to provide a specific authorization for the City Manager to approve any work up to a limit of $300,000, plus the typical 10% contingency, for contracts awarded through this on-call process. Therefore, it is recommended that the City Council establish a policy that allows contracts awarded through the on- call process administratively up to the amount of $ 300,000, plus a 10% contingency per project , relative to the existing agreements with selected consultants HR Green Pacific, Inc. (“HR Green”), Kreuzer Consulting Group (“KCG”), and Psomas.
BACKGROUND
Projects in the City’s Capital Improvement Program (“CIP”) frequently require detailed engineering design. In the past, the Development Services Department produced engineering drawings and specifications in-house, or sent out requests-for-proposals for design services and entered into Professional Service Agreements (“PSAs”), on a project- by-project basis. Over time, this approach was sufficient to keep pace with the number of CIP projects ; however, it was determined that having a pre- approved list of on- call consultants would provide a more efficient, cost-effective, and business-friendly approach to consultant services. By having pre- approved and qualified engineering firms under
Clarification to On-Call Engineering Design Services
January 21, 2025
contract, the City is able to quickly select a competent consultant and expedite project design. This is the same approach the City uses for environmental consultants for California Environmental Quality Act (“CEQA”) work, and for assistance with architectural design services.
On November 1, 2022, a Staff Report was presented to the City Council to approve on - call engineering services with HR Green, KCG, and Psomas (see Attachment No. 1). The item was approved, and the process has been in place since then. Professional Services Agreements have been executed with the three chosen firms for a period of three years, with the option of two additional years, ending in 2027.
When the services of an on- call consultant are required, the firm best suited to provide the services, based on their qualifications for a particular project and their ability to meet the project schedule, will be asked to submit a proposal for the work. More than one firm may be requested to provide a propos al on a given project , depending on the type and magnitude of the project. Staff will review the proposal(s) to make sure the scope of work and schedule are acceptable, and the cost for services is in line with the hourly rates submitted and reasonable for Engineering design costs.
DISCUSSION
The purpose of this Staff Report is to add clarity to the overall cost of design services that can be approved through this methodology . Specifically, the City Manager ’s ability to administratively enter into a project agreement. Traditionally, the City Manager can only sign for projects with a value up to $30,000 without specific City Council authorization.
Since the on-call agreements were established in 2022, it was not clear whether the City Manager had the ability to approve any project using these services, or if additional City Council authority is required. To date, staff has not returned to City Council and the services have been approved at the staff level. It is recommended that more formal parameters be established to avoid confusion by the staff, City Council, auditors, and the public. The request is to establish a limit of $300,000 for any design services utilizing these on-call agreements.
As a requirement to utilize this process, a project must already be approved by the City Council through the operating budget , Capital Improvement Program (“CIP”), and/or through grants that the City Council has accepted. An example of this is the current Colorado Boulevard Complete Streets Project. This project was originally included in the CIP in the amount of $3.85 million, which included the acceptance of a grant for $3 million from Congresswoman Judy Chu, and $850,000 in local Transportation Funds from Measure M ($300,000) and Measure R ($550,000). Given that design costs are typically expected to be 10% of a project’s overall costs, design for the project was originally estimated at $385,000. However, through the on- call process, design services were proposed by one of the selected consultants at approximately $275,000, a significant savings.
Clarification to On-Call Engineering Design Services
January 21, 2025
In analyzing this process, it is recommended that the City Council set a “ not-to-exceed” amount per contract , for utilization of the on -call process . With design costs rising substantially, this will ensure that larger projects are returned to the City Council for specific review. It is recommended that a total cost per project of $300,000 be established as this not-to-exceed amount, including the typical 10% project contingency (a maximum total of $330,000). This “cap” should be established for existing projects, such as the Colorado Complete Streets Project, as well as all future projects utilizing this process.
Most CIP projects do not exceed $3 million; thus, this amount should be suitable for the majority of design efforts.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), a s it can be seen with certainty that it will have no impact on the environment.
FISCAL IMPACT
There will be no direct fiscal impact by approving this recommendation. All work through this proposal will be for projects that have already been approved by the City Council through the operating budget and Capital Improvement Program. Any costs incurred will be paid within the proposed budget of the approved project, up to the total maximum per project amount of $330,000.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and authorize the City Manager to administratively approve work orders of up to $300,000, plus a 10% contingency, for projects utilizing the On-Call Engineering Design Services process with HR Green Pacific, Inc., Kreuzer Consulting Group, and Psomas, for the term of the current contracts.
Attachment No. 1: November 1, 2022, Staff Report Approving On- Call Engineering Services
DAT
E: November 1, 2022
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director Phil Wray, Deputy Development Services Director/City Engineer By: Johnathan Doojphibulpol, Associate Civil Engineer
SUBJECT: PROFESSIONAL SERVICES AGREEMENTS FOR ON-CALL
ENGINEERING SERVICES WITH HR GREEN PACIFIC, INC., KREUZER
CONSULTING GROUP, AND PSOMAS
Recommendation: Approve
SUMMARY
The Development Services Department is requesting authorization to execut e
Professional Services Agreem ents with HR Green Pacific, Inc. (“HR Green”), Kreuzer Consulting Group (“KCG”) and Psomas for engineer ing design services for projects in the City’s Capital Improvement Program (“CIP”). Having access to on-call engineering services at an agreed-upon rate expedites projects and keeps costs lower overall. It is recommended that the City Council authoriz e and direct the City Manager to execute on-call Professional Services Ag reements with all three firms for a term of three years, with the option to extend the agreements for tw o additional years, to end on June 30, 2027.
BACKGROUND
Projects in the City’s Capital Improvement Program (“CIP ”) frequently requ ire detailed
engineering design. In the past, the Devel opment Services Department has designed engineering drawings in-house or sent out requests-for-proposals for design services and entered into Professional Service Agr eements (“PSAs”) on a project-by-project basis. Over time, this approach was sufficient to keep pace with the number of CIP projects. However, when evaluating the curr ent and near future capital project needs, along with overall workloads and responsibilities, it was determined that a more efficient way to assign work and administer projects is needed to keep pace with the number and size of expected future projects.
Attachment No. 1
Agreement for On-Call Engineering Design Services
November 1, 2022
There are four projects currently budgeted in the CIP in need of engineering design as follows:
x First Avenue and Second Avenue Pavement Rehabilitation - Between Huntington Drive and Duarte Road
x Downtown Parking Lot Improvements Conceptual Design Alternatives x Colorado Street/Boulevard Comp lete Streets Conceptual Design x Baldwin Avenue Street scape Improvements
While these are the largest projects in t he CIP in need of design services, there are other technical analyses that will be needed to keep projects on track in the years ahead. As a result, on-call engi neering services would be usef ul to provide City staff with a more efficient, advantageous, and busines s-friendly approach to consultant services. By having pre-approved and qualif ied engineering firms under contract, the City will be able to quickly select a consult ant and expedite project design. This is the same approach the City uses for environmental consultants for California Environmental Quality (“CEQA”) work, and assistance with architectural design services.
DISCUSSION
In July 2022, a request-for-proposal (“RFP ”) was prepared, noticed in the newspaper, posted on the City’s website, and sent to eight qualified en gineering consulting firms. A total of 10 proposals were received, but tw o firms’ proposals were disqualified because they were received after the submission de adline. Proposals were received from the following firms:
FIRM LOCATION
Civiltec Engineering, Inc. Monrovia, CA
HR Green Pacific, Inc. Corona, CA
IDS Group, Inc. Irvine, CA
IMEG Corp. Pasadena, CA
Kimley Horn and Associates, Inc. Los Angeles, CA
Kreuzer Consulting Group Seal Beach, CA
Psomas Los Angeles, CA
RKA Consulting Group Walnut, CA
General Technologies & Solutions (Disqualified) Los Angeles, CA KOA (Disqualified) Monterey Park, CA
The eight qualifying proposals were evaluat ed according to the rating criteria of responsiveness to the RFP, depth of ex perience relative to Arcadia’s needs, Agreement for On-Call Engineering Design Services
November 1, 2022
qualifications, composition, skills and experience of the team, ability to perform the work in a timely manner, and hourly rates. Subs equent to the initial submittals, design work samples were requested of each firm and re viewed for presentation, quality, and attention to detail. As a result, Kreuzer Consulting Group (“KCG”), Psomas, and HR Green Pacific, Inc. (“HR Green”), were selected as the top three candidates.
KCG was selected because of their quality proposal, an experienced team that has worked together on past Arcadia projects, and their high-quality work. KCG has successfully designed several projects for t he City of Arcadia incl uding the Westbound Huntington Drive Sidewalk and Curb Ramp improvements, Citywide Bike Lanes, and Live Oak Avenue Rehabilitation Improvements. They are a small firm of 12 employees that provide excellent servic es at competitive prices, and they are currently providing on-call engineering services to the Cities of Anaheim, Irvine, Brea, Long Beach, and others.
Psomas was selected because of their qualit y proposal, their vast history of major project work similar to Arcadia’s request, a broad spectrum of expertise within the firm, and their team’s strength and experience. Psomas is a well-known and respected firm that has been in business for over 70 years with multiple o ffices in Southern California and approximately 200 employees. Their pr oposal emphasizes de livering quality services, completing projects on time and wi thin budget, and maintaining ideal client and contractor relationships. Psomas currently provides on-call engin eering services to the Cities of Pasadena, West Hollywood, Beverly Hills, and others, and the County of Los Angeles. They also currently provide on- call Environmental Consulting Services to the City of Arcadia.
HR Green was selected because of their quality pr oposal, their history of project work similar to Arcadia’s request, their team’s experience, and their history of similar services to neighboring San Gabriel Valley cities. They are a large national firm, but a medium sized firm in Southern California, with about 60 employees. With an office in Corona, HR Green exclusively serves public agencies in California and specializes in multi- faceted engineering and design services. HR Green currently provides on-call engineering services to the Cities of Glendora, Claremont, Pomona, Diamond Bar, and Rancho Cucamonga.
Although other proposing firms are certainly capable, these three firms were the highest rated in the categories mentioned above, and t heir work examples were exceptional.
The other firms either focused on other engineering concentrations like utilities, facilities, and structures, or they didn’t hav e the depth of relevant experience that the top three proposals demonstrated.
Cost was evaluated as part of all proposals as it is the City’s directive to always receive quality pricing along with quality work pr oduct. All the firms reviewed had pricing proposals that are competitive, fair, and within the range of what is expected for these Agreement for On-Call Engineering Design Services
November 1, 2022
services. The top three firms bring different strengths and capabilities to the City to fulfill the City’s different design needs. Ps omas and HR Green have comparable and competitive hourly rates. KCG’s hourly rates are lower due to lower overhead costs, but their small workforce limits the size and comp lexity of projects they can reasonably perform in a timely manner. Sinc e the firms were not bidding on specific projects, there is no final cost to use for comparison. All three firms will enter into Professional Services Agreements (“PSAs”) for a three- year term, renewable for two additional years. Their hourly rates, shown in the at tached PSAs will be fixed for the entire five- year period.
When the services of an on-call consultant are required, t he firm best suited to provide the services based on their qualifications for a particular project and their ability to meet the project schedule will be asked to submit a proposal for the work. More than one firm may be requested to propose on a given proj ect depending on the type and magnitude of the project. Staff will re view the proposal(s) to make sure the scope of work and schedule are acceptable, and the cost for se rvices is in line with the hourly rates submitted and at a reasonable scale for Engi neering design costs. Proposals selected for these services in this manner will be administratively approved, and a purchase order prepared without any further PSAs needed at that ti me. The proposals will not require subsequent City Council approval if the project was already approved by the City Council through the operating budget, Capital Improvement Program, and/or through grants that the Council has accepted. This will streamline the development process and keep inflationary costs down during the term of the PSAs.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the Calif ornia Environmental Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
All work through this proposal will be for proj ects that have already been approved by the City Council through the operating bud get and Capital Improvement Program. Any costs incurred will be paid within the proposed budget of the approved project.
RECOMMENDATION
It is recommended that the City Council determine th at this action does not constitute a project and is therefore ex empt under the California En vironmental Quality Act (“CEQA”); and authorize and direct the City Manager to execut e Professional Services Agreements for On-Call Engi neering Design Services with HR Green Pacific Inc., Kreuzer Consulting Group, and Psomas, for a term of three years with the option to extend an additional two years, to end in 2027.
Agreement for On-Call Engineering Design Services
November 1, 2022
Attachment No. 1: Proposed Professional Services Agreement (HR Green) Attachment No. 2: Proposed Professional Services Agreement (Kreuzer Consulting Group)
Attachment No. 3: Proposed Professional Services Agreement (Psomas)