City of Hesperia
STAFF REPORT
DATE: August 2, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
David Burkett, Project Construction Manager
SUBJECT: Award Professional Services Agreements – “On-Call” Engineering Services for Roadway Projects Funded by the CDBG Program
RECOMMENDED ACTION
It is recommended that the City Council approve the award of a Professional Services Agreement (PSA) to three professional engineering design firms to provide On-Call Engineering Services for roadway improvement projects funded by the City’s annual Community Development Block Grant (CDBG) allocation for an initial term of three (3) years as follows:
Psomas $350,000
Angenious Engineering Services $350,000
Onward Engineering $350,000
BACKGROUND
The City’s annual Capital Improvement Program (CIP) Budget includes the construction of roadway improvement projects that are funded one hundred percent (100%) by the U.S.
Department of Housing and Urban Development (HUD) through its CDBG Program. The proposed roadway improvements normally require the preparation of environmental documents, design surveying, geo technical investigations, preparation of plans and specifications, and construction engineering services. Due to the extensive documentation effort and onerous regulatory burdens placed on projects that receive CDBG funding, staff solicited for these services separate from the engineering services required for all other projects, which are funded with local dollars.
Soliciting for professional contract services is a lengthy process of roughly 3 to 4 months. Rather than preparing a Request for Proposal (RFP) and going through the RFP review process for each individual project, it is more efficient and cost-effective to have consultants “on-call” and available when such services are needed. Further, this method shortens the duration needed prior to start of design or construction of a project. HUD stipulates that CDBG Program funds received by the City must be spent in a timely manner (within one year). Having engineering consultants’ on-call shortens the project completion t ime by 3 to 4 months , which is critical to meet the timeliness requirement. The on-call process has been utilized by the City in the past and has been proven to provide timelier project implementation as well as reduce contract administration time and costs. Every roadway improvement project identified in the CIP that is funded by CDBG Program funds will require professional engineering services throughout the duration of the various phases of the project from preliminary engineering through construction completion.
Attachment 1
Staff Report to the Mayor and Council Members
Award Professional Services Agreements – “On-Call” Engineering Services For Roadway Projects Funded by the CDBG Program
August 2, 2022
ISSUES/ANALYSIS
The Public Contract Code requires contracts for professional engineering services to be awarded based on qualifications of a firm. Staff solicited professional on-call engineering services by issuing a Request for Qualifications (RFQ ) through a formal process utilizing Public | Purchase, the City’s online site . A total of seven Proposals were received and reviewed by a selection committee. The Proposals were evaluated based on certain criter ia such as past experience, technical expertise and approach to the scope of work . The firms were ranked by the selection committee as follows:
Firm Name Average Score
Psomas 92
Angenious Engineering 91
Onward Engineering 91
Michael Baker International 89
Huitt-Zollars 89
David Evans & Associates 87
IMEG Corporation 84
Typical engineering design costs on roadway improvement projects range from 10 % to 18% of the estimated project construction cost. Provision of environmental services, geotechnical services and other construction engineering services will typically add another 12% to the total costs. Smaller projects trend towards the higher end of the scale. For example, the City’s annual CDBG roadway improvement project typically costs between $750,000 and $1.0 million. The engineering costs for such a typical project would probably r ange from $ 225,000 to $ 300,000.
Staff estimates that the professional engineering costs for each individual project over the next three years will be a maximum of $300,000.
Therefore, staff recommends agreement amounts of $300,000 each for Psomas, Angenious Engineering Services, Inc., and Onward Engineering for the initial three-year period. Awarding the three contracts will not require the City to utilize the entire contract amount, actual expenditures will be based on cost proposals submitted by each consultant for each individual project for a Lump Sum, not-to-exceed amount.
FISCAL IMPACT
Funding for various projects is budgeted each year in the Adopted CIP Budget. Projects budgeted each fiscal year will include adequate appropriation authority for the engineering services needed on a project.
ALTERNATIVE(S)
1. Do not award the PSAs and direct staff to utilize the RFP process for each individual project.
ATTACHMENT(S)
None