Resolution 2022-075 authorizing the City Administrator to execute a Professional Services Agreement with 4Leaf, Inc. for Project Management Services, for a not-to exceed fee of $197,780, for delivery of four Capital Improvement Projects

Adopt Resolution 2022-075 authorizing the City Administrator to execute a Professional Services Agreement with 4Leaf, Inc. for Project Management Services, for a not-to exceed fee of $197,780, for delivery of four Capital Improvement Projects.

 At the May 3, 2002 meeting, the City Council approved the carry-over of 12 Fiscal Year (FY) 2021/22-funded Capital Improvement Projects, including the 2019/20 Citywide Annual Paving Project and the Police Building Renovation Project, into FY 2021/22. At the June 7, 2022 meeting, Council adopted Resolution 2022-048 approving 25 new FY 2022/23 Capital Improvement Projects, including the Additional Scope for the Police Building Renovation Project, Resilience Infrastructure Pilot Project, and the Electrical Panel Upgrade Design Project.

The prior staff report and presentation regarding the Capital Improvement Program (CIP) included a discussion of the approach to implementation with the goal of eliminating the backlog of prior projects and advancing new projects as quickly as possible. Part of that implementation strategy was to hire an in-house Project Manager; however, we have not been successful to date. Another strategy was to hire consultants to provide Project Management (PM) services. PM Services vary widely, covering management of third-party design consultant professionals, performing planning and engineering services directly, managing the public bidding and construction phases, and similar work.

Consultant Selection Process

In April 2022, requests for Statements of Qualifications (SOQs) were advertised, from San Jose to Sacramento to San Luis Obispo, seeking qualifications from consultants covering 14 professional service areas, including Project Management services. In May 2022, seven SOQs were received for PM services and independently evaluated by a Selection Committee consisting of the Public Works Director and Public Works Superintendent. These SOQs were reviewed in consideration of all carry-over and new Capital Improvement Projects, with the following rankings:

Project Awards to 4Leaf, Inc.

We are recommending award of PM Services to 4Leaf for the following four projects:

• Project 1: FY 2019/20 Citywide Annual Paving Project - Bidding and Construction
•  Project 2: Police Building Renovation – Additional Scope - Design
•  Project 3: Resilience Infrastructure Pilot Project - Planning and Design
•  Project 4: Electrical Panel Upgrades for City Hall, Public Works, Vista Lobos, and Sunset Center - Design

4Leaf proposed a part-time Project Manager to oversee the remaining design of the Police Building Renovation Project by the Project Architect, as well as to manage the planning and design phases of the infrastructure resilience and electrical panel upgrades projects. 4Leaf also proposed a Resident Engineer to manage construction of the annual paving project. The Project Manager and Resident Engineer are well qualified to oversee these projects.

Scope of Services 

For the FY 2019/20 Citywide Annual Paving Project, 4Leaf will complete and advertise the bid package, conduct the pre-construction and progress meetings, coordinate public outreach, track and administer construction progress, and conduct project closeout activities upon completion of the work. To minimize cost, construction inspection will be performed by the Public Works Superintendent.

The PD Renovation Project has experienced several major iterations over the past five years. In June 2020 at the start of the Pandemic, Council rejected bids for the prior project and unfunded the project for two years. In March 2022, Council re-appropriated $2.0M to fund the base project, and in June 2022, Council approved an additional $1.3M for the project to address additional functional scope, including a new EOC and community room, locker room modernization, interview room, and EV charging capability. The additional scope may require code upgrades, such as building--wide fire suppression, electrical, seismic, and/or ADA compliance upgrades, that must be evaluated and incorporated into the project if required by the building codes.

Because of the significant unknowns of the project at this time, 4Leaf will assist with determining the full scope of the project with the Architect to re-define the project scope and fee estimate, managing the design phase development and approval process, and with reviewing the final design phase and specifications. The Resilience Infrastructure Pilot Project for the PD/Public Works Complex and Vista Lobos (Project 3) will be bundled with this project.  

All Capital Improvement Projects and PM services will be charged to CIP Account Number 301-311-00-43008.

4Leaf’s PM fee was negotiated at $197,780, and includes a 10% contingency for additional work upon written authorization by the City. Their proposed hourly rates for the Project Manager and Resident Engineer have been discounted for these projects. This fee represents approximately 4.5% of the total budget for these projects as follows:

PD Renovation with Additional Scope                     $3,300,000

Citywide Paving Project                                                935,629 (less fees for design engineer)

Resilience Infrastructure Pilot Project Design                85,000

Electrical Panel Upgrade Design                                   75,000

            Total Project Budget                                 $4,395,629

Staff anticipates that an Amendment to this Agreement will be submitted to the City Council once the scope of the PD Renovation Project is further defined.

The budgets adopted for some of these projects may already be low compared to today’s rapidly-escalating costs for inflation, construction labor, materials, transportation, and supply chain demand. Some of these projects could be scaled back to fit the available budget, while additional funds may be requested for others at the time that construction contracts for such projects are awarded.

At the May 3, 2002 meeting, the City Council approved the carry-over of 12 FY 2021/22-funded Capital Improvement Projects, including the 2019/20 Citywide Annual Paving Project and the Police Building Renovation Project. 

 At the June 7, 2022 meeting, Council adopted Resolution 2022-048 approving 25 new FY 2022/23 Capital Improvement Projects, including the Additional Scope for the Police Building Renovation Project, Resilience Infrastructure Pilot Project, and the Electrical Panel Upgrade Design Project.