In April 2022, the City issued requests for Statements of Qualifications (SOQs) for consultants in 14 professional service areas, including Project Management services, covering a wide geographic range from San Jose to Sacramento to San Luis Obispo.

In May 2022, based on the SOQs submitted, an evaluation committee selected 4Leaf, Inc. and Ausonio, Inc. as best-qualified consultants to manage certain Capital Improvement Projects (CIP) and facility renovation-oriented projects.

In August 2022, the City Council adopted Resolution 2022-065, awarding a three-year Professional Services Agreement (PSA) to Ausonio, Inc. to manage nine facility renovation projects, with a fee of $125,000 for FY 2022/23.

In July 2023, the City Council adopted Resolution 2023-073, approving an additional $125,000 fee for Ausonio to manage seven ongoing and additional facility renovation projects in FY 2023/24.

 
In July 2024, the City Council adopted Resolution 2024-052, approving a $125,000 fee to Ausonio to manage five ongoing and additional facility renovation projects in FY 2024/25.

Project Assignments - Ausonio

As of FY 2024/25, the five facility renovation projects assigned to Ausonio are progressing as follows:

1.    Sunset Center Cottage Window Repairs - Substantially complete, in final closeout phase.
2.    City Hall Roof Replacement - Substantially complete, in final closeout phase.
3.    Lincoln & 4th Street Footbridge Assessment - Substantially complete, in final closeout phase.
4.    San Antonio Ave. Pedestrian Trail Repairs - In construction.
5.    Sunset Center Retaining Wall Repairs - 90% design complete; in the Building Permit readiness and contract document phase.

Upon approval of the Resolution (Attachment 1), Amendment No. 3 will provide retroactive compensation to Ausonio for additional work performed on the San Antonio Avenue Pedestrian Trail Repairs and City Hall Roof Replacement projects. Additionally, Ausonio will oversee a condition assessment for the Sunset Center Elevators, a new CIP project for FY 2024/25. Amendment No. 3 is included as Attachment 2.

City's Second Full-Time Project Manager

The City's FY 2024/25 Operating Budget includes hiring a second full-time Project Manager as a cost-saving measure. This should not be seen as a reduction in the level of service provided by Ausonio.

Once the new City Project Manager is hired, the City may take on responsibility for certain projects. However, it is recommended that Ausonio continue to oversee ongoing projects (e.g. Sunset Center Retaining Walls Repair and Sunset Center Elevator Assessment) until their completion. Projects that are in the earlier stages of construction, or not yet started, would be more appropriate for transfer to the City Project Manager. This approach will ensure a smooth transition and minimize disruption during project implementation.

In June 2024, Council adopted Resolution 2024-047, approving the CIP Budget for FY 2024/25 and setting project budgets for Items No. 1-5 listed below. All CIP projects and PM services are charged to CIP Account #301-311-00-43008. PM services for on-call, as-needed projects not associated with specific CIP projects will be charged to the Public Works/Facility Maintenance Services Division Account #101-119-42-42001.

The $15,000 required for the San Antonio Pathway Reconstruction add services is available from the $400,000 CIP Contingency Fund, which currently has a balance of $292,335. This reallocation would reduce the Contingency Fund to $277,335. Both the City Hall Roof Replacement and Sunset Center Elevator Assessment have available budget under their current project allocations.

City Hall and Sunset Center Cottages Cost Savings

The final costs for the City Hall Roof Replacement and Sunset Center Cottage Window Repairs projects came in significantly under budget. Hazardous materials abatement was not required at City Hall, as the hazmat survey revealed no hazardous materials in the roof. Additionally, construction bids for both projects came in lower than anticipated. As a result, the combined final cost for both projects in FY 2024-25 was over $200,000 under budget:

Ausonio Fees

Over the past two fiscal years, Ausonio was authorized not-to-exceed fees of $125,000 per fiscal year, and the fees remained under budget. The proposed fee for Amendment No. 3, totaling $50,000, will continue to be billed on an actual time and materials basis.