REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement with CSG Consultants, Inc. for Design Professional Services for Annual Street Pavement Maintenance and Rehabilitation Projects (2025-2027 Projects)
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Department of Public Works (DPW) oversees the City’s Street Pavement Management Program, which includes annual street pavement maintenance and rehabilitation. Under this program, the pavement conditions of the City’s street network are inspected and streets are prioritized annually to receive preventative maintenance and rehabilitation treatments based upon the funding available. Pavement maintenance and rehabilitation work is bid as part of DPW’s construction contracts on an annual basis. The City’s annual street pavement maintenance and rehabilitation work typically involves slurry seals, patching, and asphalt overlays, including other ancillary work such as ADA curb ramps and traffic striping.
In order to prepare the 2025, 2026, and 2027 annual street pavement maintenance and rehabilitation contracts for public bidding, the City will need to retain a design consultant to provide engineering design services.
DISCUSSION
A formal selection process was utilized to solicit proposals from consultants to provide the necessary design professional services. In March 2024, a competitive Request for Proposals (RFP) was published on the City’s e-procurement platform and was sent to over 40,000 members. The RFP was viewed by 30 members, including consultants, plan rooms, and builder exchanges, among others. Staff also provided direct notifications to consultants who had viewed similar projects in the past.
The RFP required that proposers consider and provide proposals based upon streets published by the City for pavement maintenance and rehabilitation in 2025 as a baseline to evaluate proposals, and that the highest ranked proposer would be considered qualified to provide services for all project years 2025 through 2027, subject to the City’s discretion.
The City received proposals from two firms: CSG Consultants, Inc. and Wilsey Ham, Inc. A proposal review panel consisting of staff from the Design, Field Services, and Streets divisions of DPW evaluated each proposal against the criteria set forth in the RFP, including responsiveness to the RFP, qualifications of the firm, qualifications and availability of key staff, project approach, and project schedule. Based on the panel’s evaluation, staff recommends awarding the agreement to CSG Consultants, Inc. (CSG). CSG submitted the best proposal, demonstrated a strong project understanding, and provided an approach that would maximize efficiency of the design services. CSG also has a track record of successfully performing similar services for various public agencies including prior projects for the City of Santa Clara.
The proposed agreement (Attachment 1) includes a negotiated scope of services and fees based upon the understanding of the work to be performed for annual pavement maintenance and rehabilitation in 2025. The scope of services generally includes project management, preliminary engineering and evaluation, agency permitting, construction documents, bidding support, construction support, and project close-out. The agreement includes an initial term to provide engineering design services in support of the 2025 annual street pavement maintenance and rehabilitation project, with the right to exercise two additional extension options after the initial term to provide services for the 2026 and 2027 annual street pavement maintenance and rehabilitation projects. The streets anticipated to be maintained in 2025 are included as Attachment 2, and the streets to be maintained in subsequent years 2026 and 2027 will be determined in the future as part of the regular updates to the City’s Street Pavement Management Program each year based on estimated funding.
Staff recommends entering into the Agreement for Design Professional Services with CSG Consultants, Inc. for Annual Street Pavement Maintenance and Rehabilitation Projects (2025, 2026, and 2027 Projects). Approval of this agreement will provide design professional services necessary to develop the design and construction documents to implement annual street pavement maintenance and rehabilitation projects. The agreement includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
This action is for design professional services and the action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act ("CEQA") Guidelines section 15378 as the action being considered does not commit the City to undertake the projects and future discretionary approvals are required by the City to approve the projects for construction. Environmental review in accordance with CEQA will occur as part of the design and approval process for any project subject of the design professional services of this agreement.
FISCAL IMPACT
The initial term of the proposed agreement to address the 2025 annual street pavement maintenance and rehabilitation project is for a total not-to-exceed amount of $805,373. This amount includes $732,157 for basic services, and $73,216 for additional services.
The fees for design services required for future 2026 and 2027 annual street pavement maintenance and rehabilitation projects are subject to City approval as extension options and will depend on the final streets for implementation in those years. The agreement requires that the consultant provide a project-specific cost proposal for each extension option based upon the streets provided by the City for the City’s consideration prior to exercising the option. Staff recommends a budget allowance for the extension options under the design services agreement of up to approximately $3,095,000 for each year 2026 and 2027 to align with anticipated increased pavement budgets and street pavement maintenance forecasted for those future years. The recommendations of this report include authorizing the City Manager to execute extension options within a total not-to-exceed budget authority limit of $7,000,000, inclusive of the initial term and all extension options, as needed to provide the design services required to implement the annual street pavement maintenance and rehabilitation projects in 2025, 2026, and 2027.
Funds for the initial term of the agreement are available in the FY 2023/24 Capital Improvement Program budget in the Annual Street Maintenance and Rehabilitation Program project in the Streets and Highways Capital Fund. Funding for the extension options are subject to availability of future budget appropriations in the fiscal year in which each is authorized.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the 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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve and authorize the City Manager to execute an agreement with CSG Consultants, Inc. for Design Professional Services for the Annual Street Pavement Maintenance and Rehabilitation Projects (2025-2027 Projects) for an initial term ending December 31, 2027 in the amount not-to-exceed $805,373 for services required for annual street pavement maintenance and rehabilitation projects to be constructed in 2025, in a final form approved by the City Attorney;
2. Approve and authorize the City Manager to execute up to two extension options to extend the term and increase the compensation amount of the agreement to provide services for future 2026 and 2027 annual street pavement maintenance and rehabilitation construction contracts, up to a maximum term limit ending December 31, 2029 and up to a total maximum not-to-exceed compensation limit in the amount of $7,000,000, inclusive of the initial term and all extension options, if exercised, subject to budget appropriations;
3. Approve and authorize the City Manager to amend the agreement to add, remove, or modify services and compensation amounts, including adjusting services and compensation amounts between the initial term and extension options or other actions as necessary to provide design services for 2025, 2026, and 2027 annual street pavement maintenance and rehabilitation projects, subject to the maximum term and compensation limits, budget appropriations, and approval as to form by the City Attorney; and
4. Authorize the City Manager to make minor modifications, including time extensions, to the agreement, if needed.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreement
2. 2025 Project Street List