Item #04
Date:
To:
From:
Subject:
January 16, 2024
Mayor and City Council
Jim Schaad, City Manager
Approval of a Contract for On-Call Engineering Services with MHM Inc.
Rationale for Recommendation:
Pass a Motion to 1) award a three-year contract to MHM Inc. an engineering and surveying firm located in Marysville, CA for on-call engineering consulting services and 2) authorize the City Manager to execute a service contract with MHM Inc. in an amount not to exceed $800,000 over the three-year term, with the ability to extend the contract for two additional one-year periods for a total contract period of five years.
Background:
The City has contracted with MHM Inc., a consulting firm to provide “on call” professional engineering services related to roads, sewer utilities, parks and facilities since 2017. The previous contract term was for three years and allowed for two, one-year extensions, for a total contract period of five years.
Federal/State grant requirements require that services such as these be publicly advertised and competitively solicited every 5 years. In order to remain compliant with future grant opportunities, staff prepared a request for qualifications (RFQ) to solicit competitive proposals from qualified firms. The RFQ was developed using Caltrans Local Assistance Procedures Manual (LAPM) guidelines. The RFQ was made available for proposers on September 12th 2023 and was advertised for a forty-five day period with proposals due on October 27th 2023.
In response to the Request for Qualifications, the City received a single proposal from a qualified engineering consultant - MHM Inc. On December 20th 2023 an evaluation panel was convened consisting of two City Staff and three public works professionals from Yuba City, Yuba County and Sutter County.
The panel reviewed MHM’s proposal and interviewed the proposer based on criteria set forth in the RFQ.
Discussion & Analysis:
The panel determined that MHM’s proposal was responsive and collectively scored the firm’s proposal with above average/excellent overall ratings. Staff have reviewed MHM’s cost proposal and rates represent an increase of 3% from their previous rates, with a proposed 3% increase each year for the three-year term. Staff have compared MHM’s submitted rates to firms that provide similar services and found MHM rates to be competitive (typically lower).
MHM Inc. is based in Marysville and has been long standing local provider of professional services for the City of Marysville and other agencies in the Yuba-Sutter region. MHM’s proposal came with excellent references. They have successfully completed many projects for the City and other local agencies. The Item #04
firm has extensive technical experience in public works, project management, street construction and reconstruction, sewer and storm utilities design, flood control and land surveying. They maintain the required licensing and insurance to perform the required services in the State of California.
Though only one proposal was received staff determined that MHM is qualified to provide the required services and their cost proposal rates are competitive. Based on the duration of the advertisement, as well as the availability of the RFQ, staff believes it is in the best interest of the City to the award of this contract and re-advertisement of the RFQ would result in additional costs, a delay in various improvement projects, and likely a similar number of submitted proposals.
Legal Review:
Approved as to form by City Attorney.
Fiscal Analysis:
All work to be performed under the proposed contracts will be programmed and appropriated in the fiscal year budget in which the work is performed. Since this will be a multi-year contract, future work will be included in future budgets. No work will be performed in excess of budgeted authority.
Alignment with City Council Goal(s):
Approval of this agreement furthers the City’s Goal #3: Improve Infrastructure Attachments:
1) RFQ
2) MHM Proposal
3) Draft agreement
4) Cost Proposal
5) Rate Comparison