TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
Jeff Fijalka, Principal Civil Engineer
SUBJECT:Title
Consideration of Resolutions Approving Amendment No. 4 to the Professional Services Agreement with Ardurra Group, Inc. for $321,800 and Amendment No. 4 to the Professional Services Agreement with Z&K Consultants, Inc. for $708,384 for Project Management Consulting Services to Support the Delivery of Capital Improvement Projects (Unbudgeted) (Public Works Director Lee).
A) ADOPT RESOLUTION NOS. 25-0017 AND 25-0018
B) AUTHORIZE
Body
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RECOMMENDATION:
Staff recommends that the City Council approve Amendment No. 4 to the Professional Services Agreement with Ardurra Group, Inc. for $321,800 and Amendment No. 4 to the Professional Services Agreement with Z&K Consultants Inc. for $708,384 for on-call project management services in the Engineering Division of the Public Works Department for total not to exceed amounts of $661,010 and $965,393, respectively.
FISCAL IMPLICATIONS:
The original contract with Ardurra Group, Inc. was executed on June 1, 2022, for $49,920. Amendment No. 1 increased the total by $289,290. Amendments Nos. 2 and 3 extended the contract term. Amendment No. 4 will add $321,800, bringing the total not to exceed amount to $661,010. City Council approval is needed for Amendment No. 4, as the amount exceeds the City Manager’s awarding authority.
The original contract with Z&K Consultants, Inc. was executed on June 1, 2022, for $49,926. Amendment Nos. 2 and 3 increased the contract total by $207,083. Amendment No. 4 will add $708,384, bringing the total not to exceed amount to $965,393. City Council approval of Amendment No. 4 is required as it exceeds the City Manager's awarding authority.
Public Works anticipates combined expenditures for both proposed amendments in Fiscal Year (FY) 2024-2025 to be approximately $600,000 with the remaining portion of the increase to be expensed in FY 2025-2026. There is sufficient funding available in FY 2024-2025 through anticipated savings within Public Works’ contract services accounts within the General Fund. Additionally, approximately 30 percent of these expenditures are eligible for reimbursement through State and local grants for the various Capital Improvement Program (CIP) projects. Funding for expenditures in FY 2025-2026 will be included as part of the City's annual budget process. There are no additional fiscal implications at this time.
BACKGROUND:
The Engineering Division of the Public Works Department is responsible for advancing and delivering the Capital Improvement Plan projects. On June 4, 2024, the City Council approved the 5-Year CIP Plan, including several new projects that are included in the City Council’s Work Plan and align with community needs. In total, this plan includes approximately $177 million of funding for 94 projects. Many of these projects have both regulatory and grant funding deadlines associated with them. As such, it’s imperative for the City to continue making progress on these projects to avoid regulatory action and/or loss of grant funding. Furthermore, when unanticipated staff vacancies occur in the Engineering Division, the department strives to temporarily bring on consultant project managers to assist staff with delivering priority projects.
In late 2021, the Public Works Department issued a Request for Proposals (RFP) for Project Management On-Call Services for Various CIP Projects. The solicitation resulted in five on-call project management contracts being awarded. Z&K Consultants Inc. (Z&K) and Ardurra Group, Inc. (Ardurra) were two of these five firms, and their contracts were executed in June 2022.
In August 2022, Task Order Solicitation No. 2022-01 was issued to all five consultant firms on the City’s CIP Project Management Services On-Call List (On-Call List). The task order was for the retainage of a California Registered Civil Engineer on a full-time basis for project management services due to staffing vacancies in the Engineering Division and the need to continue progress on important CIP projects. Ardurra offered the best-qualified personnel fitting the City’s needs.
On November 1, 2022, City Council approved Amendment No. 1 to the Ardurra agreement, increasing the total compensation to $339,210. Amendment Nos. 2 and 3 were executed by the City Manager to extend the contract term to June 30, 2024 and June 30, 2025, respectively.
In May 2024, Task Order Solicitation No. 2024-04 was issued to all five consultant firms on the On-Call List. The task order was for project management services due to additional staffing vacancies in the Engineering Division and the need to continue progress on critical water and stormwater CIP projects. Z&K offered the best-qualified personnel fitting the City’s needs.
In August 2024, Task Order Solicitation No. 2024-06 was issued to all five consultant firms on the On-Call List. The task order was for project management services due to additional staffing vacancies in the Engineering Division and the need to continue progress on transportation CIP projects. Z&K offered the best-qualified personnel fitting the City’s needs.
The City Manager executed amendment No. 1 to the Z&K agreement on October 28, 2023 to extend the term of the agreement from December 31, 2023 to December 31, 2025. Amendment No. 2 to the Z&K agreement was executed by the City Manager on August 31, 2024, increasing the total compensation to $182,120. Amendment No. 3 to the Z&K agreement is pending at the time that this report was published and was anticipated to be executed by the City Manager in January 2025, increasing the total compensation to $257,009.
The Engineering Division is currently recruiting to fill two vacancies: one Senior Civil Engineer and one Associate Engineer. Once these positions are filled, the workload of the division will be evaluated, and projects will be considered for reassignment from the consultants to staff as appropriate.
DISCUSSION:
Two Senior Civil Engineer positions in the Engineering Division were vacated between spring and summer 2024, requiring re-assignment of project management responsibilities for over 20 in-progress capital improvement projects to other staff and consultants. The emergency demolition and temporary replacement of the Lot 3 Parking Structure further constrained resources in the Engineering Division by diverting the full-time efforts of one project manager to that project. Maintaining momentum of all active projects in the face of these staffing changes is crucial to meeting project delivery commitments and completing the City Council-approved Public Works Department Work Plan.
The approval of Amendment No. 4 to the Ardurra agreement in the amount of $321,800 will allow the temporary consultant project manager to continue functioning in a critical role through June 30, 2025. This consultant project manager is focused primarily on facilities improvement projects to ensure the security of City staff and to provide the resources and environment to deliver vital services to the community. These facilities include City Hall, the Police/Fire Facility, and the Public Works Yard. Additionally, this resource is ensuring the continued rollout of the Citywide Wayfinding Program and improving bicycle safety citywide.
The approval of Amendment No. 4 to the Z&K agreement in the amount of $708,384 will allow the temporary consultant project managers to continue to provide essential project management services through December 2025. Z&K project managers have already assisted with the management and close-out of the Cycle 2 Water Infrastructure Improvements Project and the Cycle 3 Community Development Block Grant (CDBG) Americans with Disabilities Act (ADA) Curb Ramp Project. With the proposed budget increase, Z&K will continue to support the Total Maximum Daily Load (TMDL) Trash Treatment Project, which is currently under construction, as well as the 28th Street Stormwater Infiltration Project, which is planned to start construction during summer 2025. Additionally, consultant project managers from Z&K will continue to oversee the feasibility and design phases of the Peck Avenue Stormwater Improvements Project and the Cycle 3 Storm Drain Repairs Project. The combined amount of grant funding received from various state and local agencies for these water- and stormwater-focused projects exceeds $32,000,000.
In addition, Z&K is currently supporting the Engineering Division by providing a project manager focused solely on transportation projects. This project manager has already taken the lead on the Manhattan Beach Blvd Eastbound Left-Turn Improvement at Aviation Boulevard Project, the Manhattan Beach Advanced Transportation System (MBATS) Project, the Manhattan Beach Boulevard at Pacific Ave Improvements Project, the Highway Safety Improvements Program (HSIP) Cycle 11 Crosswalk Improvements Project, and the Manhattan Beach Boulevard and Sepulveda Boulevard Intersection Improvements Project. To date, these projects have been awarded over $21,000,000 in time-sensitive grant funding from various agencies.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this action.
ENVIRONMENTAL REVIEW:
The City Council’s consideration of amendments to the Professional Services Agreements with Z&K Consultants Inc. and Ardurra Group, Inc. has been determined to be exempt from CEQA pursuant to State CEQA Guidelines Section 15061(b)(3), the common sense exemption (formerly the “general rule”) that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question can have a significant effect on the environment, the activity is not subject to CEQA, as is the case with this item. Note that future projects managed via the amended contract would be independently subject to CEQA review.
LEGAL REVIEW:
The City Attorney has approved the agreements as to form. No additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 25-0017
2. Resolution No. 25-0018
3. Amendment No. 4 - Ardurra Group, Inc.
4. Amendment No. 4 - Z&K Consultants Inc.
5. Agreement and Amendment Nos. 1-3 - Ardurra Group, Inc.
6. Agreement and Amendment Nos. 1-3 - Z&K Consultants Inc.