Agenda Item Wording:
title
Water Reclamation Facility laboratory HVAC and boiler replacement design services - Approve a professional services agreement with Lawrence Engineering Group for the Water Reclamation Facility laboratory HVAC and boiler replacement design services in the amount of $160,000, and appropriate an additional $52,000 from the Wastewater Fund.
body
Agenda Date: 09/21/2026
Prepared by:
Rehana Lustyan, Senior Project Manager | rehana.lustyan@visalia.gov | 559-713-4176
Ben Litwack, Public Works Manager | ben.litwack@visalia.gov | (559) 713-4671
Department Recommendation:
Staff recommends that the City Council to approve a professional services agreement with Lawrence Engineering Group (LEG) for design, assessment, and construction administration services for the Water Reclamation Facility (WRF) laboratory HVAC and boiler replacement project in the fixed amount of $160,000, and appropriate an additional $52,000 from the Wastewater Fund (431), and authorize the City Manager to execute the agreement and any related documents on behalf of the City.
Summary:
The Water Reclamation Facility (WRF) Laboratory requires replacement of aging HVAC and boiler systems, including assessment of mechanical, electrical, structural, and controls components. The City issued RFP No. 25-26-14 to retain a consultant to evaluate existing conditions, design replacement systems, prepare construction documents, provide bid support, and perform construction administration. Lawrence Engineering Group (LEG) was selected as the top-ranked consultant. Staff has completed scope clarification and fee negotiations, and the final fixed fee of $160,000 reflects all required design phases, temporary HVAC coordination, structural and electrical modifications, Pelican EMS integration, reimbursables, and construction administration. Staff recommends award of the contract so project design can begin.
Background Discussion:
The WRF Laboratory’s existing HVAC and boiler systems consist of early-to-mid 2000s McQuay and Evapco equipment, including the WHZ045AW27-ER10 chiller, ICT454 cooling tower, and RDS-series air handling units. All of these components have exceeded the standard 20-year ASHRAE service life expectancy and have reached the end of their useful life, requiring replacement to maintain critical environmental control conditions needed for laboratory operations. To initiate this work, the City issued RFP No. 25-26-14 seeking a qualified engineering consultant to provide a comprehensive assessment and full design package as part of CP0581. This project is structured to fund both the design and construction phases of the HVAC and boiler replacement project; however, the current allocation is not sufficient to fully fund the design phase, and a future appropriation will be required for construction to be awarded.
Following proposal evaluation, Lawrence Engineering Group (LEG) was identified as the most qualified firm. Staff entered fee and scope negotiations with LEG to ensure alignment with City expectations and clarify responsibilities across mechanical, electrical, structural, plumbing, and controls disciplines.
Negotiations successfully resolved all technical and contractual items, including electrical and structural scope boundaries, temporary HVAC and shutdown sequencing, reimbursables, mileage rates, consultant labor breakdowns, controls integration, construction administration responsibilities, and updated exclusions. All negotiated items are incorporated into the September 4, 2026 Exhibit A and fee letter.
The final fee is $160,000, consisting of:
• Assessment Phase: $31,000
• Design and Construction Administration: $129,000
All subconsultant allocations, design phase breakdowns, and reimbursable provisions are clearly included in LEG’s finalized Exhibit A from Attachment 3. Lawrence Engineering Group Revised Fees, Rates, Scope (dated September 4, 2026). The scope of LEG’s contract covers the design phase, including bid support and construction oversight during the construction phase; however, the construction phase itself will be separately bid and will require additional funding once design is complete.
Approval of this agreement will allow the consultant to begin the assessment phase and commence detailed design work that will address operational reliability, energy efficiency, and long-term facility needs. Staff recommends proceeding with the contract award to ensure the Water Reclamation Facility Laboratory can advance into detailed design without further delay and maintain continuity of critical facility operations. Upon completion of the design phase, the City intends to move forward promptly into construction, contingent upon future Council appropriation of the remaining funding needed for CP0581.
Fiscal impact including annual maintenance and operating costs:
The fiscal impact is of this contract is $160,000, funded through the Water Reclamation Facility Enterprise Fund. The current CIP budget for CIP No. CP0581 is $124,621.99, resulting in a funding shortfall of $35,378.01. To fully fund the consultant proposal amount, staff recommends that the City Council appropriate $52,000 from Fund 431, which includes the identified shortfall plus a 10% contingency buffer (~$16,000).
This 10% buffer is recommended to provide flexibility in the event of unforeseen conditions or additional investigative needs. LEG’s proposal identifies that further assessment activities, discovery of undocumented existing conditions, or additional design coordination may result in expanded effort depending on actual findings, making the inclusion of a contingency reasonable and appropriate for this phase of work. Because CP0581 also includes the future construction phase, additional appropriations will be required once design is complete and the project moves into bidding and construction. The current appropriation request only addresses the design-phase funding gap and does not cover anticipated construction costs.
The project involves one-time professional services to develop assessment documentation and construction plans. Because this project replaces the existing HVAC and boiler systems with updated, like-for-like equipment, staff does not anticipate an increase in ongoing operating or maintenance costs once construction is complete. Newer equipment may provide efficiency gains and reduced maintenance needs compared to the existing systems.
Prior Council Action:
None.
Alternatives:
1. Do not approve the agreement.
This alternative would delay assessment and design work, prolong the use of aging HVAC and boiler systems, and could create operational risks for the WRF Laboratory.
2. Direct staff to renegotiate with the selected consultant, and if unsuccessful, begin negotiations with the next most qualified proposer.
Multiple qualified firms responded to RFP No. 25‑26‑14, and LEG was determined to be the most qualified proposer. However, this is not recommended as staff feels negotiations with LEG have resulted in a reasonable fee that accurately reflects the work required under the scope of this project.
Recommended Motion (and alternative motions if expected):
recommendation
I move to approve a professional services agreement with Lawrence Engineering Group (LEG) for assessment, design, and construction administration services for the Water Reclamation Facility laboratory HVAC and boiler replacement project in the amount of $160,000, appropriate an additional $52,000 from the Wastewater Fund (431), and authorize the City Manager to execute the agreement and any related documents.
Environmental Assessment Status:
This action is not a project under CEQA and is therefore not subject to environmental review.
California Environmental Quality Act (CEQA) Review:
This professional services agreement is exempt under CEQA Guidelines Section 15378(b)(5), as it involves administrative activities and preparation of design documents that do not commit the City to a physical project. The future construction phase is also expected to be categorically exempt as a like-for-like replacement of existing HVAC and boiler equipment, with no anticipated environmental impacts.
Deadline for Action: 09/21/2026
Attachments:
1. Professional Services Agreement
2. Lawrence Engineering Group Proposal (dated July 16, 2026)
3. Lawrence Engineering Group Revised Fees, Rates, Scope (dated September 4, 2026)
4. RFP No. 25‑26‑14 with Addendum No. 1 and its attachments
5. Consultant Disclosure Form
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Select all that apply.
|
□  Economic Vitality |
□  Organizational Excellence |
□  Fiscal Strength |
■  Infrastructure & Growth |
□  Quality of Life |