REPORT TO COUNCIL
SUBJECT
Title
Action Authorizing the City Manager to Negotiate and Execute an Agreement for Design Professional Services with CSG Consultants, Inc. for the Corporation Yard Pavement Project (CIP 2432)
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City’s approved Capital Improvement Program (CIP) is a carefully balanced program that reflects the City Council priorities and supports ongoing strategic investments in the City’s infrastructure and facilities. Capital projects are prioritized based on several factors, including the condition of existing infrastructure, capacity needs, alignment with City goals, and the availability of funding.
The Adopted CIP includes the Corporation Yard Pavement Project (CIP 2432) for pavement repair and maintenance at the Utilities Corporation Yard (Yard). The purpose of the project is to increase the durability of the Yard’s pavement and may include removal and replacement of distressed areas, application of asphalt seal coat systems, and/or full pavement replacement. The Yard is a shared facility used by multiple departments, including Silicon Valley Power (SVP), Public Works, Water & Sewer Utilities, and Finance (Warehouse). As the primary user of the facility, SVP is managing the full Yard Pavement Project for all affected departments.
On May 23, 2023 (RTC#23-472), the City Council approved an agreement with CSG Consultants, Inc. (CSG) to provide design professional services for pavement maintenance and rehabilitation projects citywide. CSG was selected through a competitive Request for Proposals (RFP) process conducted by the Department of Public Works (DPW).
DISCUSSION
SVP recommends entering into a new agreement with CSG for design professional services specific to the Yard Pavement Project. This new agreement leverages the previously completed solicitation conducted by Public Works, which resulted in CSG’s selection. The scope of work for the Yard Pavement Project is consistent with the scope of the original RFP, which included services across multiple City locations.
The proposed agreement includes project management, data collection, civil engineering design, preparation of construction documents, support for public works bidding and construction, and project close-out. Three design options are under consideration: slurry seal with digouts, mill and fill with digouts, and complete replacement. These options vary in cost, allowing the City to select the most suitable option based on the initial engineering assessment.
The proposed agreement with CSG includes a maximum compensation not-to-exceed $380,000. This amount includes a contingency of $59,382. Compensation will be based on time and materials, except for subconsultant services which are at fixed price. The actual compensation amount could be lower depending on the results of the preliminary engineering evaluation and the design option selected by the City. The agreement includes prevailing wage requirements.
Approval of the recommendations would authorize SVP to enter into a separate agreement with CSG for design services specific to the Yard Pavement Project to proceed with design services that will address pavement failures and improve pavement conditions at the Yard.
ENVIRONMENTAL REVIEW
The actions being considered do not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulation in that it can be seen with certainty that there is no possibility that the proposed actions may have a significant effect on the environment as the proposed actions only approve design, project management, and other services and do not authorize Corporation Yard Pavement Project or any other construction, repair, or improvement project.
FISCAL IMPACT
The proposed agreement includes a maximum compensation not-to-exceed $380,000 for design services. The Yard Pavement Project (Project 2432) in the Electric Utility Capital Fund is budgeted at $1.3 million in the FY 2025/26 Adopted Capital Budget, which is sufficient to cover the design services and a portion of anticipated construction costs. Additional budget appropriations will likely be required for the construction of the project. Any required actions, including cost sharing with other departments using the space will be brought forward to the City Council for approval of the project and associated budget after design.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the City Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to negotiate and execute an agreement with CSG Consultants, Inc. (Agreement) for Design Professional Services for the Corporation Yard Pavement Project (CIP 2432) for an initial term ending December 31, 2026, and a maximum compensation not to exceed $380,000, subject to the review and approval as to form by the City Attorney and
2. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to (a) add or delete services consistent with their scope of services, (b) adjust future rates based on market conditions, (c) exercise up to two options to extend the term of the agreement through December 31, 2028, and (d) make de minimis revisions, subject to budget appropriations and the review and approval as to form by the City Attorney.
Staff
Reviewed by: Nico Procos, Director of Silicon Valley Power
Approved by: Jovan Grogan, City Manager