1 STAFF REPORT
DATE: August 12, 2025
TO: Justin Hess, City Manager
FROM: Mandip Samra, General Manager, Burbank Water and Power VIA: Richard Wilson, Assistant General Manager, Water Systems BY: Asif S heikh, Manager Water Engineering & Planning Bassil Nahhas, Principal Civil Engineer
SUBJECT: Adoption of a Resolution Approving a Professional Services Agreement with Pacific Advanced Civil Engineering, Inc. for Phase 1 Design Services for the Seismic Retrofit of Water Pipelines Project
RECOMMENDATION
Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING A
PROFESSIONAL SERVICES AGREEMENT WITH PACIFIC ADVANCED CIVIL ENGINEERING, INC. FOR PHASE 1 DESIGN SERVICES FOR THE SEISMIC RETROFIT OF WATER PIPELINES PROJECT (Attachment 1).
BACKGROUND
The City of Burbank (City), through Burbank Water and Power (BWP), was awarded a $16.1 million grant from the Federal Emergency Management Agency (FEMA) with the California Office of Emergency Services (CalOES) serving as the “Prime Recipient” and the City of Burbank as the designated “Sub-Recipient” under the Hazard Mitigation Grant Program (HMGP). The grant will support the seismic retrofit of 34 pipeline segments—approximately 30,000 feet of water mains—that traverse the Verdugo Fault. The project is divided in two phases:
• Phase 1 – Design
o Federal Share: $1,201,410
o City Match: $133,490
• Phase 2 – Construction
o Federal Share: $12,050,550
o City Match: $1,338,950
WATER AND
POWER
2 Initial planning and data collection began in 2021. A complete grant application, including a Benefit-Cost Analysis (BCA), was submitted in May 2022, and formal grant approval was received in December 2023.
BWP is
sued a Request for Proposals (RFP) in January 2024. Only one proposal was received, which the California Governor’s Office of Emergency Services ( CalOES) determined did not meet federal procurement standards. A second RFP issued in April 2024 resulted in five proposals. By July 2024, Pacific Advanced Civil Engineering, Inc. (PACE) was determined to be the highest -ranked firm based on qualifications and proposal strength. However, PACE’s preliminary cost estimates indicated that full replacement of all 34 segments would exceed the available grant budget.
To addr
ess the funding gap, BWP consulted with CalOES in August 2024. Both parties agreed that a reduced project scope could retain FEMA eligibility , provided that the revised scope maintained a Benefit-Cost Ratio (BCR) above 1.0 and remained within the approved budget. CalOES formally approved this approach in September 2024, allowing BWP to proceed with a refined project strategy. A Purchase Order (PO) was issued in December 2024 to PACE to perform a Value Engineering Study to prioritize pipeline segments based on hydraulic modeling, system vulnerability, and operational risk.
PAC
E completed the Value Engineering study in April 2025 and recommended a revised scope targeting the seven highest -risk pipeline segments, totaling approximately 6,000 feet. This revised approach preserves the BCR above 1.0 and aligns with FEMA’s grant conditions.
DISCUSSION
Given that the current FEMA grant deadline is October 31, 2025, and Phase 1 (design phase) for the revised scope (based upon the recommendation of the Value Engineering study) is expected to require approximately one year, BWP submitted a formal Time Extension Request to CalOES on May 20, 2025, seeking to extend the deadline to January 31, 2027. In response to CalOES’s follow-up, BWP revised and resubmitted the necessary supporting documentation on June 6, 2025. During a meeting with CalOES on June 3, 2025, BWP was informed of two key points:
1. FEM
A’s review process for time extension requests may take three to six months; and
2. The Hazard Mitigation Grant Program that funds this project is scheduled to expire on January 31, 2027.
The Bur
bank Municipal Code (BMC) requires City Council (Council) approval for professional services agreements above $100,000, unless an exception applies (BMC § 2-2-102.C). Originally, the City’s anticipated cost share for this project was $133,490. To 3 proactively manage the project schedule and mitigate the risk of delay, BWP is requesting Council’s approval for the funding and execution of the PSA and approval to issue a PO to PACE Engineering in advance of FEMA’s final determination on the requested time extension. This forward-looking strategy , developed in coordination with both the City Attorney’s Office and the City’s Purchasing Division, will enable the consultant to mobilize immediately upon notice to proceed, but provide conditions to terminate the agreement if FEMA does not extend or fund this project. Should FEMA ultimately deny the extension, both the PSA and PO will be canceled without any f inancial obligation to the City. Staff anticipates the FEMA decision within six months after the request for extension, which is December 2025.
Whil
e the revised project scope reduces the total length of pipe to be replaced from approximately 30,000 feet to 6,000 feet, this reduction does not materially compromise the seismic resiliency of the water distribution system. The seven prioritized pipel ine segments represent the highest-risk areas based on hydraulic modeling, vulnerability to fault rupture, and criticality to overall system operations. To further enhance system reliability and isolate risk, resilient valves will be installed at both ends of all 34 pipeline segments. This strategic valve placement ensures that all the damaged segments can be quickly isolated without widespread service disruption , preserving system functionality and limiting downstream impacts during a seismic event.
Due to
the reduced scope of work, t he proposed PSA (Attachment 2) is lower than the initial estimates, in the amount of $1,007,447, and includes engineering services for the development of a final design package suitable for bidding. The City’s share for Phase 1 (design) is 10% of the $1,007,447, which is equivalent to $100,744.70.
ENVIRONMENTAL REVIEW
Design-related activities under Phase 1 are exempt from environmental review pursuant to § 15306 of the California Environmental Quality Act Guidelines (14 CCR § 15306), as no physical construction or environmental disturbance will occur during this phase.
FISCAL IMPACT
Funding for this PSA was allocated in the Fiscal Year 2025- 26 Capital Improvement Project (CIP) Budget and is available in the Water Engineering Cost Center PS51D, Project No. 24926.
CONCLUSION
Execution of the PSA with PACE is a critical next step to ensure the timely delivery of the Seismic Retrofit of Water Pipelines Project. The proposed contract structure protects the City’s interests while enabling BWP to meet FEMA deadlines and preserve access to federal funding.
4 Staff recommends that Council adopt the attached resolution, authorizing the General Manager of BWP to execute a PSA with PACE in the amount of $1,007,447.
ATTACHMENTS
Attachment 1 – Resolution
Attachment 2 – Professional Services Agreement by and Between the City of Burbank and Pacific Advanced Civil Engineering, Inc.