Agenda Item Wording:
title
Consultant Contract Amendment & Fund Appropriation - Authorize a contract amendment with Carollo Engineers in the amount of $238,900 to include the Wastewater funds for additional nexus study services, and the transfer and additional appropriation from specified funds.
body
Deadline for Action: 2/18/2025
Submitting Department: Community Development
Contact Name and Phone Number:
Katherine Woodhull-Fuget, Associate Engineer, Katherine.Woodhull-Fuget@visalia.city, (559) 713-4447
Eric Bons, Senior Civil Engineer, Eric.Bons@visalia.city, (559) 713-4350
Chris Crawford, City Engineer, Chris.Crawford@visalia.city, (559) 713-4331
Jason Huckleberry, Engineering & Building Director, Jason.Huckleberry@visalia.city, (559) 713-4495
Department Recommendation:
Staff recommends City Council authorize the following:
1. Sewer Amendment 1 with Carollo Engineers, Inc. in the amount of $238,900 for additional nexus study services
2. Transfer of $150,000 from CP0728 Wastewater Rate Study to CP0015 Sewer Master Plan and Nexus Study
3. Additional appropriation of $24,000 from Fund 231 Wastewater Trunkline, $4,000 from Fund 431 Wastewater Operations, and $91,000 from Fund 232 Treatment Plant Expansion to CP0015 Sewer Master Plan and Nexus Study
Background Discussion:
The City of Visalia entered into a contract with Carollo Engineers, Inc to update the City’s public facility master plans for stormwater and sanitary sewer collection and conduct a nexus study in September 2018. The update to the master plans was solicited through the City’s request for proposal process and the project was awarded to Carollo Engineers, Inc. with a total amount of $605,900.
The contract was split into two phases with separate CIP numbers for tracking purposes. The update to the Stormwater Master Plan (CP9067) had a cost not to exceed $326,700. The update to the Sanitary Sewer Master Plan (CP0015) has a cost not to exceed $279,200.
The update to the Stormwater Master Plan (CP9067) has since had two amendments for $132,543 and $97,070, bringing the storm contract amount to $556,313.
While the preliminary project schedule showed completion of the sewer master plan in September 2019, the Project has been delayed by a number of factors outside the control of the consultant, including City staff turnover and City data availability. Engineering Administration has identified this as a priority project and has a team of City staff focused on the completion of the master plan, nexus study, and the expanded Water Reclamation Facility (WRF) scope of work being requested. Completion of all project components, including the required environmental assessment, is anticipated in August 2026. Dependent upon the final environmental review, sewer master plan adoption may occur in early 2026 as the sewer nexus work continues into summer 2026.
The update to the Sanitary Sewer Master Plan (CP0015) is funded by the Wastewater Trunkline (231) Fund.
Under a separate emergency contract, Carollo developed a Master Plan for the City of Visalia’s Water Reclamation Facility (WRF, also known as the Wastewater Treatment Plant). The Master Plan was approved and adopted by City Council on August 19, 2024. As part of the 2-year Capital Improvement Program for fiscal years 2024/25 and 2025/26, Council approved a nexus study for wastewater rates in fiscal year 2024/25 in the amount of $150,000 funded by the Wastewater Fund 431 (CP0728). The nexus study will evaluate current rates and fees to determine if rate adjustments are necessary to cover ongoing costs of operations and the capital improvements projects identified in the updated master plan.
There are two funds associated with the WRF: the Treatment Plant Expansion (232) Fund and Fund 431 known as both “Wastewater Operations” and “Wastewater Treatment Plant”. Fund 431 is the main wastewater fund and covers operation and maintenance of both the WRF and the sanitary sewer collection system.
Given that Carollo will be conducting a nexus study for the storm and sewer master plans and has already started the nexus study for the sewer master plan, staff recommends adding the WRF funds 232 and 431 to the nexus study scope and combining CIPs CP0015 and CP0728. This will ensure consistency between the different wastewater/sanitary sewer funds. Additionally, given that fund 431 covers the ongoing operation and maintenance of facilities in both the WRF and SS master plans, having the nexus study all done by the same consultant will make sure all elements are accounted for.
The following contract amendments are requested for the WRF and Sewer Nexus Studies:
Task WRF-1 - Fund 232 Treatment Plant Expansion Impact Fees
Using the newly adopted Water Reclamation Facility Master Plan as a starting point, Carollo will calculate Development Impact Fees for the Treatment Plant Expansion (232) Fund in compliance with AB 1600, the California Mitigation Fee Act.
Net Increase: $79,200
Task WRF-2 - Fund 431 Wastewater Operations Rate Study
Using the WRF master plan, sewer master plan, and additional data provided by City staff, Carollo will develop sewer rates for fund 431 in compliance with Proposition 218 requirements. These efforts will include identifying revenue requirements, conducting a cost-of-service analysis, rate design, review of industrial user fees and penalties, community outreach, documentation, and presentation.
Net Increase: $134,700
Task WRF-3 - WRF Project Management
This task will cover project management and administration related to tasks WRF-1 and WRF-2.
Net Increase: $7,900
The total of the WRF Tasks is $221,800.
Task SS-1 - Sewer Nexus Study Additional Work
In addition to the scope outlined in the original Task 10 Nexus Study, the Sewer Impact Fee Nexus Study Approach will need to be updated to meet the requirements of recent California legislation such as AB 602 from 2021. The Nexus Study Report shall include all aspects identified in the California Department of Housing and Community Development Impact Fee Nexus Studies Template. The Sewer Impact Fee Nexus Study, while tied to the Sewer Master Plan, shall function as a standalone document.
This task is to account for the additional effort required beyond the scope outlined in Task 10 of the original contract.
Net Increase: $14,100
Task SS-2 - SS Project Management
This task will cover project management and administration related to task SS-1.
Net Increase: $3,000
The total of the Sewer Tasks is $17,100.
The total of all change order tasks is $238,900.
Engineering staff presented this proposed contract amendment to the Change Order Committee on January 29, 2025. The Change Order Committee is a non-appointed committee of technical staff who are not directly involved with the project under consideration. The Committee reviews the contract change order request for completeness, accuracy, constructability, objectivity, consistency, and overall insight. After reviewing the request and discussing the item, the Committee recommended approval of the amendment of the contract.
Next Steps:
Upon approval of this contract amendment by City Council, Carollo will be able to immediately start on the WRF tasks because the WRF Master Plan has already undergone CEQA review and been adopted by City Council.
Fiscal Impact:
This contract amendment involves three different funds (231, 431, and 232) as shown below.
|
Update to Sanitary Sewer Master Plan and Nexus Study: CP0015 |
Total |
Fund 231 |
Fund 431 |
Fund 232 |
|
Original Budget |
$ 330,000.00 |
$ 330,000.00 |
|
|
|
Appropriated 2018 at Carollo Contract Award |
$ 12,000.00 |
$ 12,000.00 |
|
|
|
Transferred FY 2020 |
$ 8,980.00 |
$ 8,980.00 |
|
|
|
Appropriated 2023 at Dudek Contract Award |
$ 365,000.00 |
$ 365,000.00 |
|
|
|
Recommended Transfer from CP0728 |
$ 150,000.00 |
|
$ 150,000.00 |
|
|
Total Project Funding |
$ 865,980.00 |
$ 715,980.00 |
$ 150,000.00 |
$ 0 |
|
Project Expenditures & Encumbrances |
|
|
|
|
|
City Staff Project Management Up to 23/24 |
$ (74,148.45) |
$ (74,148.45) |
|
|
|
Dudek Environmental Services Contract |
$ (312,452.50) |
$ (312,452.50) |
|
|
|
Carollo Master Plan Contract |
$ (279,200.00) |
$ (279,200.00) |
|
|
|
Carollo Sewer Amendment #1 - Task WRF-1 |
$ (79,200.00) |
|
|
$ (79,200.00) |
|
Carollo Sewer Amendment #1 - Task WRF-2 |
$ (134,700.00) |
|
$(134,700.00) |
|
|
Carollo Sewer Amendment #1 - Task WRF-3 |
$ (7,900.00) |
|
$ (4,975.00) |
$ (2,925.00) |
|
Carollo Sewer Amendment #1 - SS Tasks |
$ (17,100.00) |
$ (17,100.00) |
|
|
|
Anticipated Sewer Master Plan Project Management 24/25 On |
$ (22,000.00) |
$ (22,000.00) |
|
|
|
Anticipated CEQA Project Management 24/25 On |
$ (35,000.00) |
$ (35,000.00) |
|
|
|
Anticipated WRF Project Management (10% WRF Tasks) |
$ (22,180.00) |
|
$ (13,967.50) |
$ (8,212.50) |
|
Total Estimated Project Expenditures |
$ (983,880.95) |
$ (739,900.95) |
$(153,642.50) |
$ (90,337.50) |
|
|
|
|
|
|
|
Anticipated Project Deficit |
$ (117,900.95) |
$ (23,920.95) |
$ (3,642.50) |
$ (90,337.50) |
|
|
|
|
|
|
|
Appropriation Request |
$ 119,000.00 |
$ 24,000.00 |
$ 4,000.00 |
$ 91,000.00 |
Engineering recommends the transfer of $150,000 from CP0728 to CP0015 and the appropriation of $24,000 from Fund 231, $4,000 from Fund 431, and $91,000 from Fund 232 to address the anticipated budget deficit as shown in the table above.
Prior Council Action:
August 19, 2024 - Council approved and adopted the Master Plan for the Water Reclamation Facility.
June 17, 2024 - Council received a report and presentation on the Final Master Plan for the Water Reclamation Facility.
February 20, 2024 - Council received a report and presentation on the Condition Assessment, Facility Plan, and Master Plan Update for the Water Reclamation Facility.
December 18, 2023 - Council authorized contract award to Dudek for the preparation of the Storm and Sewer Master Plan Environmental Impact Reports in the amount of $654,085 and the appropriation of $365,000 from Fund 231, $247,000 from Fund 221, $166,000 from Fund 222, and $3,000 from Fund 481.
April 3, 2023 - Council authorized award of an emergency contract to Carollo Engineers, Inc. in the amount of $515,400 for the Condition Assessment, Facility Plan, and Master Plan Update for the Water Reclamation Facility and the appropriation of $550,000 from Fund 431.
December 19, 2022 - Council received a presentation on the Status of the Storm and Sewer Master Plan Updates and Introduction to the Nexus Study.
December 5, 2022 - Council authorized Carollo Engineers, Inc. Contract Amendment #2 for the Update to the Stormwater Master Plan in the amount of $97,070 and the appropriation of $100,000 from the Storm Sewer Construction Fund (221) to CP9067.
August 16, 2021 - Council authorized Carollo Engineers, Inc. Contract Amendment #1 for the Update to the Stormwater Master Plan in the amount of $132,543 and the appropriation of $140,000 from Storm Sewer Construction Fund (221) to CP9067.
September 4, 2018 - Council authorized the City Manager to execute an agreement for RFP 17-18-29 to Update the City’s Public Facility Master Plans for Storm Water and Sanitary Sewer Collection with Carollo Engineers, Inc. in the amounts of $326,700 (CP9067) and $279,200 (CP0015), authorized the appropriation of $155,285 from Fund 221 to CP9067, and authorized the appropriation of $12,000 from Fund 231 to CP0015.
June 6, 2016 - Work session to review key topics related to the City’s sewer system and storm water master plans and receive Council feedback for incorporation into the scope of work and authorize the advertising of a Request for Proposals (RFP) to update these master plans.
Other: None
Alternatives: Do not approve the proposed change order and keep the Wastewater Rate Study as a separate CIP from the Sewer Master Plan Update and Nexus Study. Procure a consultant to conduct the Wastewater Rate Study through the formal RFP process, delaying the rate study by up to a year.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the following:
1. Sewer Amendment 1 with Carollo Engineers, Inc. in the amount of $238,900 for additional nexus study services
2. Transfer of $150,000 from CP0728 Wastewater Rate Study to CP0015 Sewer Master Plan and Nexus Study
3. Appropriation of $24,000 from Fund 231 Wastewater Trunkline, $4,000 from Fund 431 Wastewater Operations, and $91,000 from Fund 232 Treatment Plant Expansion to CP0015 Sewer Master Plan and Nexus Study
end
Environmental Assessment Status: NEPA Environmental Assessment does not apply to this project.
CEQA Review:
A Notice of Exemption was filed for the Water Reclamation Facility Master Plan on September 6, 2024.
Dudek of Bakersfield, CA is under contract to prepare CEQA documents for the Sanitary Sewer and Storm Master Plans.
Attachments: Carollo Engineers, Inc. Contract Amendment Proposal