COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: August 4, 2026
SUBJECT: Adoption of Resolutions Awarding Five Professional Services Agreements for On -Call Construction Management and Inspection Services
Description:
The City Council will consider adopting Resolutions approving the award of On -Call Construction Management and Inspection Services to Cannon Corporation; Filippin Engineering, Inc.; Vanir Construction Management, Inc.; Wallace Group; and Water Systems Consulting, Inc.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
1. Adopt a Resolution awarding a Professional Services Agreement to Cannon Corporation for On -Call Construction Management and Inspection Services with an aggregate not-to-exceed fee of $1,000,000 per fiscal years 2026-27 and 2027- 28 (July 1 through June 30), and a total aggregate not -to-exceed amount of $2,000,000 for the full term of the Agreement; and
2. Adopt a Resolution awarding a Professional Services Agreement to Filippin Engineering, Inc. for On -Call Construction Management and Inspection Services with an aggregate not -to-exceed fee of $1,000,000 per fiscal years 2026-27 and 2027-28 (July 1 through June 30), and a total aggregate not-to-exceed amount of $2,000,000 for the full term of the Agreement; and
3. Adopt a Resolution awarding a Professional Services Agreement to Vanir Construction Management, Inc. for On -Call Construction Management and Inspection Services with an aggregate not -to-exceed fee of $1,000,000 per fiscal years 2026-27 and 2027-28 (July 1 through June 30), and a total aggregate not - to-exceed amount of $2,000,000 for the full term of the Agreement; and
4. Adopt a Resolution awarding a Professional Services Agreement to Wallace Group for On-Call Construction Management and Inspection Services with an aggregate not-to-exceed fee of $1,000,000 per fiscal years 2026-27 and 2027 -28 (July 1 through June 30), and a total aggregate not -to-exceed amount of $2,000,000 for the full term of the Agreement; and
2 5. Adopt a Resolution awarding a Professional Servi ces Agreement to Water Systems Consulting, Inc. for On -Call Construction Management and Inspection Services with an aggregate not-to-exceed fee of $1,000,000 per fiscal years 2026- 27 and 2027 -28 (July 1 through June 30), and a total aggregate not -to-exceed amount of $2,000,000 for the full term of the Agreement; and
6. Authorize City Manager, or designee, to execute agreements.
BACKGROUND:
The City owns, operates, and maintains municipal infrastructure, structures, and facilities throughout the City. The City has active and pending projects that require technical assistance from firms able to provide Construction Management and Inspection Services.
While the City employs Civil Engineers on staff, these buildings and facilities require professional engineering beyond the capabilities of the existing staff and fall outside the normal workloads; therefore, necessitating the hiring of outside consultants for these services. Having on-call consultants that can provide these services will allow the City to deliver projects in a timely manner.
DISCUSSION:
On May 26, 2026, a Request for Proposal (RFP) was issued and advertised through the City’s e-Procurement Portal, PlanetBids. A total of eleven proposals were received on June 15, 2026.
Selection of the best-qualified firms was made in accordance with the City’s Purchasing Guidelines. A selection committee, consisting of Engineering Division staff, independently evaluated and ranked the proposals. After deliberations, the top ranked firms chosen are as follows:
Firm and Location
Cannon Corporation, San Luis Obispo, CA
Filippin Engineering, Inc., San Luis Obispo, CA
Vanir Construction Management, Inc., Fresno, CA
Wallace Group, San Luis Obispo, CA
Water Systems Consulting, Inc., San Luis Obispo, CA
The proposed Professional Services Agreements will be effective for Fiscal Years 2026- 27 and 2027-28. The agreements will be administered by the Public Works Department and may also be utilized by other City departments for approved and funded projects requiring Construction Management and Inspection services.
Individual project task orders will be issued based on the firm’s expertise, workload capacity, services to be performed, schedule requirements, and hourly rates submitted in their proposal. All task orders will b e issued based on an agreed -upon, written scope of work, implementation schedule, and maximum fee arrangement negotiated on a project- by-project basis.
3 Alternative(s)
City Council could decide to not award these Construction Management and Inspection Services Agreements and direct staff to issue Requests for Proposals for each project individually. However, this alternative is not recommended as there is a significant backlog of funded projects for which outside Construction Management and Inspection Services are required to augment City staff. Further, having pre -approved, on-call, as- needed firms readily available will allow for more efficient and timely delivery of projects as multiple projects can be designed concurrently.
Fiscal Considerations
Fees for On-Call Construction Management and Inspection Services will be based on a project-by-project basis and directly charged to individual project budgets. Each project is separately approved and budgeted by the City Council. The City is under no obligation to expend any funds under these Professional Services Agreements.
Impact on the Community
The community will benefit by the City being able to supplement City staff when needed to deliver projects to the community in a timely manner resulting in a higher quality of life for residents and visitors to the community.
ATTACHMENT(S)
A. Resolution - Cannon Corporation
B. Resolution - Filippin Engineering, Inc.
C. Resolution - Vanir Construction Management, Inc.
D. Resolution - Wallace Group
E. Resolution - Water Systems Consulting, Inc.
F. Agreement - Cannon Corporation
G. Agreement - Filippin Engineering, Inc.
H. Agreement - Vanir Construction Management, Inc.
I. Agreement - Wallace Group
J. Agreement - Water Systems Consulting, Inc.