DATE: March 3, 2025
TO: President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, District Manager
Marlene Subhashini, Assistant District Manager
FROM: Andrew Brozyna, Public Works Director
Laura Galli, Engineering Manager
Francine Magno, Senior Civil Engineer
Claire McWilliams, Assistant Engineer
DEPARTMENT: Public Works
SUBJECT: AGREEMENT WITH KAYUGA SOLUTION, INC. (KAYUGA) IN THE AMOUNT OF $243,320 FOR PROFESSIONAL
ENGINEERING SERVICES FOR THE WATER MAIN CONDITION
ASSESSMENT PROJECT (CIP 405-723)
RECOMMENDATION
It is recommended that the Board of Directors of the Estero Municipal Improvement District adopt the attached resolution authorizing:
1. The President to execute an agreement with Kayuga Solution, Inc. (Kayuga) in the amount of $243,320 for professional engineering services for the Water Main Condition Assessment Project (CIP 405-723);
2. The establishment of a project contingency in the amount of $6,000 with authorization given to the District Manager to execute contract amendments up to the contingency amount; and
3. Finding the project exempt from CEQA under Section 15301(B) – Existing Facilities.
EXECUTIVE SUMMARY
The Water Main Condition Assessment Project (CIP 405-723) will assess the current condition of the District’s water main and provide guidance for future improvements. In October 2024, a Request for Proposal (RFP) was issued and proposals solicited from various engineering consulting firms. On November 20, 2024, Kayuga submitted the sole proposal for the Water Main Condition Assessment (CIP 405-723). Members from both the Public Works engineering and maintenance divisions provided review and input on the proposal. The proposed fees in the amount of $243,320 have been negotiated and determined reasonable based on the scope of services.
The scope of services includes documentation collection and review, research and recommendation of various inspections/technologies, performance of inspections that will best inform the existing condition of the water main, and preparation of final report with prioritized recommendations for improvements and construction cost estimates for incorporation into the Capital Improvement Program (CIP).
Funding in the amount of $250,000 is available in the approved budget for CIP 405- 723. With the execution of the agreement, staff will authorize work to begin on the condition assessment. Funding is being requested in the FY 25-26 budget, to fund additional inspections if more investigation is necessary.
BACKGROUND
The District’s 24-inch cement mortar lined and coated steel transmission main was constructed in 1962 and is the District’s sole means of conveying water. It connects to the sole source of water supply which is the San Francisco Public Utilities Commission’s (SFPUC) turnout on Crystal Springs Road in San Mateo and runs through the City of San Mateo before reaching Foster City. A condition assessment of the 24-inch transmission main was performed by Corrpro Companies, Inc. in 2005.
Various inspections, which included internal and external surveys, were performed on the District’s main. At the time, the findings of the study indicated that the pipelines were in very good condition and that there was no evidence of either internal or external corrosion of the pipelines and that the coatings were intact and adequate cathodic protection is in place. In the 2020 Water Distribution System Master Plan prepared by HydroScience, it was recommended that the water transmission main be re-assessed within the next 5 years. The District’s 5-year CIP program included funding to address a follow-up water main condition assessment in FY 25-26.
On April 7, 2024, the District’s 24-inch water main experienced a break along E. Third Avenue, north of Foster City Boulevard near Anchor Road. Emergency work was performed to fix the break, and it was repaired within 48 hours. This event highlighted the vulnerability of the water conveyance system in the event of an extended emergency. Due to the critical function of this main, staff reprioritized this project by moving it up by one year in the five-year CIP, from FY25-26 to FY24-25. Staff drafted a scope of services for the new Water Main Condition Assessment to investigate and address additional vulnerabilities.
At the District Board meeting on October 21, 2024, the District Board adopted EMID Resolution No. 3782, approving the scope of work for the Water Main Condition Assessment (CIP 405-723) and authorizing staff to issue the RFP for professional engineering services.
ANALYSIS
The RFP was distributed to various consulting firms and was posted on the Foster City website and on LinkedIn. Staff reached out to over ten (10) firms to drive interest in the project. Despite broad outreach to qualified consultants, only one (1) proposal was submitted for consideration. Feedback solicited after the proposal deadline indicated several factors contributing to this outcome:
1. The scope is highly technical and specialized. As a result, a limited number of firms possess the required expertise and experience to conduct such assessments. This led to a reduced pool of potential qualified consultants.
2. Based on feedback from firms that opted out of proposing, many firms are currently experiencing a high demand for other services, leading to competing priorities for firms that would normally bid on this type of work.
3. Many firms additionally indicated they do not dedicate teams to this type of work and would likely subcontract most of the scope out, resulting in less work for the lead firm.
The only proposal received by Kayuga was reviewed by an evaluation committee consisting of five staff members from both the engineering and maintenance divisions within the Public Works Department. Additional review and analyses were performed by Public Works management staff, including several discussions with Kayuga to refine the project scope. Kayuga has demonstrated that they are uniquely qualified to perform the work required for this project. Their proposal is comprehensive and meets the requirements outlined in the RFP. Staff recommend proceeding with Kayuga for the following reasons:
1. Kayuga possesses the technical knowledge, experience, and resources required for this project. Their past successes in similar assessments indicate they can deliver quality results for the District, as demonstrated through various references.
2. The negotiated proposal provides a reasonable cost estimate based on a thorough understanding of the project scope. Multiple meetings with the consultant prior to award have yielded a dialed-in cost proposal for the scope.
3. Due to the specialized nature of the work and feedback from other firms that did not submit, there is a high likelihood that re-issuing the RFP will yield similarly low level of interest and potentially delay the start of this work.
4. Due to the critical nature of this project, awarding the contract to Kayuga now will help the District evaluate the water main’s condition in a timeline that allows for future improvements to be budgeted for the next fiscal year.
The scope of services for this agreement includes two phases of work for a not-to-exceed amount of $243,320. Of that amount, $167,000 is set aside for Task C, as explained below. Phase I includes research and review of existing data followed by research and recommendation of various inspections/technologies. Phase II includes pipeline testing and results, finalized in a report with recommendations for prioritized improvement projects with engineer’s cost estimates. The full scope of work is included in Attachment 2, Exhibit A.
Phase I
•Task A: Review Existing Data
•Task B: Research and Recommend Testing Methods
Phase II
•Task C: Pipeline Testing and Investigation
•Task D: Report Results and Prioritize Projects
Task C Pipeline Testing and Investigation Services
After the consultant provides a testing plan, staff will authorize the use of the funds in Task C for testing and investigation services. Disbursement of funds is contingent upon staff review and approval of testing methodology, cost, and approach. Upon completion of the initial testing phase, the consultant will evaluate the results. Based on the findings, the consultant will recommend and perform focused testing as needed.
If more information is required to assess the transmission main, a contract amendment will be brought to the District Board, along with an update on the early condition results and the scope of any further testing necessary in summer 2025. Funding for focused testing is recommended as part of the FY 25/26 budget, pending District Board approval.
Staff anticipate that the comprehensive assessment and findings will be completed by October 2025.
CEQA
Categorically Exempt pursuant to CEQA Guidelines Section 15301(b) – Existing Facilities.
FISCAL IMPACT
The proposed fees in the amount of $243,320 have been negotiated and determined reasonable based on the scope of services. A project contingency in the amount of $6,000 or approximately 2.5% of the contract amount is recommended to pay for additional services resulting from unforeseen circumstances. Funding in the amount of $250,000 is currently available in the approved budget, from the following sources: the Water CIP Fund ($150,000) and revenues from Water Connection Fees ($100,000).
Funding for focused testing, if needed, will be recommended as part of the FY 25/26 budget process.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Infrastructure and Facilities
ATTACHMENTS:
Attachment 1 – Resolution
Attachment 2 – Agreement