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APPROVE FINDINGS AND AWARD AN ENGINEERING SERVICES CONTRACT TO CAROLLO ENGINEERS, INC FOR THE DESIGN OF THE NORTHEAST RESERVOIR AND PUMP STATION PROJECT (UH24006)
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 which support and justify an exception to the competitive bidding process.
2. Award a Professional Services Agreement in the amount of $2,150,467 to Carollo Engineers, Inc. of Sacramento, CA, for the design of the Northeast Reservoir and Pump Station Project, UH24006 (Exhibit 1 to the Resolution).
3. Authorize the City Manager to execute the Professional Services Agreement.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this Resolution.
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Summary
The 2021 Water Master Plan Update recommends the construction of a new water storage facility to address storage capacity demands and allow for future development in Northeast Stockton.
On March 26, 2024, MUD staff advertised a Request for Proposals (RFP) for design services for the Northeast Reservoir and Pump Station, Project UH24006. On May 16, 2024, one proposal was received. The Selection Committee evaluated the proposal from Carollo Engineers, Inc based on qualifications and experience, understanding of the work, project approach, project delivery, and project costs. The Selection Committee deemed the proposal responsive and regular in all respects.
It is recommended that the City Council approve findings pursuant to Stockton Municipal Code Section 3.68.070 to support and justify an exception to the competitive bidding process and award the Professional Services Agreement (PSA) to Carollo Engineers, Inc of Sacramento, CA, in the amount of $2,150,467, for the design of the Northeast Reservoir and Pump Station, Project UH24006.
DISCUSSION
Background
The most recent Water Master Plan, adopted by the City Council in January 2021, recommends additional water storage capacity of up to four (4) million gallons (MG) in Northeast Stockton. The Northeast Reservoir and Pump Station project will provide increased storage to service the northeast Stockton area. The project is planned to accommodate increased water demands associated with future development.
The City of Stockton Municipal Utilities Department (MUD) currently owns a vacant site on the north portion of the La Morada Detention Basin No. 2, located at the southeast corner of Morada Lane and Union Pacific Railroad. MUD plans to develop the site with a storage reservoir facility with 4 MG in water storage capacity and pump station capability of 12 million gallons per day.
In January 2024, Siegfried Engineering prepared and submitted a feasibility memo and a geotechnical report for the La Morada Basin site. Field investigations included a topographic survey and a geotechnical subsurface investigation to determine the viability of the site for the proposed water tank improvements.
Present Situation
On March 26, 2024, MUD advertised the RFP for the Northeast Reservoir and Pump Station Project in the Stockton Record and on the City Bid Flash webpage.
A non-mandatory pre-proposal meeting was held on April 8, 2024, with five (5) engineering firms in attendance. The original RFP due date of April 25, 2024, was extended to May 16, 2024, as requested by potential proponents.
On May 16, 2024, one proposal was received from Carollo Engineers, Inc. A selection committee comprised of MUD Engineering staff evaluated the proposal based on the firm qualifications and experience, understanding of the work, project approach, quality and clarity of the proposal, project delivery, and costs. The proposal submitted by Carollo is responsive and regular in all respects. Carollo Engineers, Inc. was found to be a qualified firm to perform design services for the project.
While several firms expressed interest during the pre-proposal meeting, ultimately only one firm submitted a proposal. A survey of the interested firms found that many faced workload challenges that affected their ability to prepare a proposal.
Staff negotiated a fee not-to-exceed $2,150,467 for professional engineering services, including a design report, construction plans, specifications and estimates), permitting, and environmental and engineering support during bidding and construction.
Staff recommend that the City Council approve a resolution to award a Professional Engineering Services Contract to Carollo Engineers, Inc, in the amount of $2,150,467, for the design of the Northeast Reservoir and Pump Station Project. It is anticipated that the design will be completed by spring 2026. Once the design is completed, staff will return to the City Council for the construction contract.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, the City Council may approve findings which support and justify an exception to the competitive bidding process. The following findings support and justify an exception:
1. The City does not have sufficient staff capabilities and expertise to design the project for bidding and construction.
2. The use of the RFP process is appropriate for this Professional Engineering Services Contract because it relies on the evaluation of professional qualifications and performance as the basis for the selection of a vendor.
3. The RFP process selects a vendor that will provide the highest quality professional service, which is in the public interest.
This contract for professional engineering design services is not subject to Local Employment requirements.
FINANCIAL SUMMARY
There are sufficient funds in FY 2024-25 to cover current year expenditures. Additional funding will be requested during the FY 2025-26 Capital Improvement Plan (CIP) budgeting process. The funds are budgeted in the Water CIP Project UH24006 account.
There is no impact to the General Fund, or any other unrestricted funds, from this action.