CITY COUNCIL STAFF REPORT
May 6, 2025 {{section.number}}c
AUTHORIZE TASK ORDERS IN THE AMOUNTS NOT TO EXCEED OF $150,000 WITH MICHAEL BAKER INTERNATIONAL, INC. FOR DESIGN SERVICES AND $40,000 WITH ARDURRA GROUP, INC. FOR PROJECT MANAGEMENT SERVICES FOR THE WASTEWATER MAIN PRIORITY PROJECT FY 2023-24
RECOMMENDATION:
1. Authorize the City Manager execute task orders not to exceed in the amounts of $150,000 with Michael Baker International, Inc. for design services and $40,000 with Ardurra Group, Inc. for project management services for the Wastewater Main Priority Project FY 2023- 24 in a form approved by the City Attorney.
2. Authorize the City Manager be able to execute additional task orders/amendments with consultants in a form approved by the City Attorney to complete the proposed EPA grant project along with any additional projects identified by staff, all within the project budget.
3. Authorize the City Manager to execute and amend the proposed EPA grant.
BACKGROUND:
On June 6, 2023, the City Council adopted the Fiscal Year 2023-24 Capital Improvement Program. As part of the adoption, the Wastewater Main Priority FY23-24 project was included and appropriated $2,300,000 for the inspection and assessment of existing wastewater mains and manholes across the City, and for the design and repair/replacement of mains and manholes identified as needing rehabilitation. The project proposed to CCTV (video) approximately 50 "hot spot" wastewater mains mostly located in the "Village" along with proactively videoing the Country Club and the Cays. The purpose of including the Country Club and Cays was to align wastewater projects with resurfacing projects (overlays) so as not to dig up streets that had been paved or to combine both projects similar to what is occurring on Second Street (wastewater main replacement and overlay).
In March of 2023, the City received notice that it had been conditionally awarded $3 million in U.S.
Environmental Protection Agency (EPA) funds through the Congressionally Directed Spending and Community Project Funding in the fiscal year 2023 Consolidated Appropriations Act. The funds were originally sought for the Parker Pump Station Renovation project but the City did not receive notice of the award until after the project was in construction, making compliance with federal procurement and environmental requirements unachievable. The City discussed options with regional EPA staff and determined that the best use of the funds were other eligible wastewater and storm drain infrastructure improvements in the Parker Pump Station Sewer Basin.
While the $3 million award is included in the 2023 federal budget and earmarked for Coronado, the City must still apply for the funding and comply with all federal requirements including but not limited to certifications and disclosures, procurement, environmental review and construction management. Prior to completing the grant application, the City must obtain National Environmental Policy Act (NEPA) clearance. Due to a procurement waiver established by the EPA in 2024, any contract, procured in compliance with local and state laws issued prior to March 9, 2024, may be eligible for retroactive reimbursement. Thus, it is anticipated that the funds will cover a portion of design and construction costs. As part of the grant application and subsequent agreement, the City is required to provide a 20% match or a $600,000 cost share, for the project.
The City anticipates receiving the EPA grant award by December of 2025. Ardurra Group, Inc., one of the City's Consultant Project Manager's will manage the grant application process and the project and MBI will provide design and environmental review. Because of the aforementioned procurement waiver, a portion of the CCTV assessment and MBI design costs will be reimbursable under the grant.
ANALYSIS:
Within the City Manager’s purchasing authority, staff issued Task Order 23-MBI-004-A to Michael Baker International, Inc. (MBI), one of the City's on-call engineering design consultants, for a notto-exceed amount of $98,373 that was utilized for sewer pipeline and manhole inspection services. The inspection and assessment services focused on assessing and inspecting the mains and manholes at 50 locations identified by staff located mostly in the Village, along with all the mains and manholes in the Country Club area and Coronado Cays.
In order to proceed with the design work in preparation for construction and meet the EPA grant requirement deadlines, staff recommends the City Council authorize the City Manager execute task orders not to exceed in the amounts of $150,000 with Michael Baker International, Inc. for design services and $40,000 with Ardurra Group, Inc. for project management services. In addition, staff recommends the City Council authorize the City Manager be able to execute additional task orders/amendments with consultants in a form approved by the City Attorney to complete the proposed EPA grant project along with any additional projects identified by staff, all within the project budget.
City staff intends to have Ardurra Group, Inc. provide project management services with MBI conducting the design work which includes preparation of the wastewater improvement plans, design specifications and cost estimates, assistance during the bidding and award stage, construction support, and as-builts.
FISCAL IMPACT:
This project (Account 61071000-98987-24000) is included in the City’s adopted Capital Improvement Program with an initial allocation of $230,000 for design and $2,070,000 for construction, for a total budget of $2,300,000. The project to date has encumbered $98,373.
Contingent upon the EPA grant award of $3,000,000 and a required 20% match of $600,000 (to be drawn from the $2,300,000), a total of $3,600,000 would be allocated for improvements in the Parker Pump Station Basin area.
Removing the encumbered funds and matching funds for the EPA grant leaves a balance of $1,601,627 for design and construction for additional areas identified in the project description.
ALTERNATIVE:
The Council could elect to direct city staff to go through a Request for Qualifications process to select a design consultant or the Council could choose to not authorize the City Manager to execute the task orders at this time.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
Categorically Exempt per California Environmental Quality Act (CEQA) Guideline; Class 1, Existing Facilities.
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
None.
Submitted By: Public Services and Engineering Department / Leon Firsht