REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Interim Director Department of Public Utilities BY: JESUS A. GONZALEZ, PE, Public Utilities Manager Department of Public Utilities - Utilities Planning & Engineering PATRICIA DIEP, Supervising Engineering Technician Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Approve a consultant services agreement with Michael K. Nunley & Associates, Inc., for the design, bidding and construction support of the Southwest Recycled Water System Storage Tank and Booster Pump Station project for an amount not to exceed $618,316, inclusive of a $56,000 contingency (Citywide & Fresno County) ..Body RECOMMENDATIONS Staff recommends that City Council approve a consultant services agreement (Agreement) with Michael K. Nunley & Associates, Inc. (MKN), for an amount not to exceed $618,316, inclusive of a $56,000 contingency, for the design, bidding and construction support of the Southwest Recycled Water System Storage Tank and Booster Pump Station project (Project); and authorize the Director of Public Utilities, or designee, to sign the agreement on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The existing Southwest Recycled Water System (System) is experiencing reduced pressures as the result of a growing number of new user connections. The deficiencies may be corrected with the addition of a water storage tank and booster pump station (Improvements) to improve System delivery reliability and pressures. The Improvements will be constructed on property previously acquired for the property. The Department of Public Utilities (DPU) requires consultant services to design the Improvements and support the Project in its bidding and construction phases. BACKGROUND DPU in its on-going efforts to expand its water resources portfolio, commissioned the preparation of a Recycled Water Master Plan (Plan) which was ultimately adopted in 2010. The Plan serves as a basis to support the decision making process in the identification and selection of projects for expansion of the citywide recycled water system in efforts to offset potable water demands. To date, approximate 21.8 miles of the recycled water system identified by the Plan have been constructed in the southwest area of the City. Through outreach efforts to make the community aware of the availability of recycled water, demands have increased resulting in the need of the Project to ensure System delivery reliability. The Improvements to be designed under the Agreement will ensure adequate quantities and system pressures for continued reliable service and allow for future connections for those wishing to make use of the resource. In accordance with Fresno Municipal Code Chapter 4, Article 1, and Administrative Order 6-19 (AO 6-19), DPU conducted a competitive process for selecting a consultant to provide the desired professional services for the Project. On September 29, 2021, a Request for Qualifications (RFQ) was published in the Business Journal and posted on the City's Planet Bids website. Two Statements of Qualifications (SOQs) were received by the deadline of November 19, 2021. A selection committee, consisting of representatives from DPU, evaluated the SOQs and ranked the consultants. As allowed for in AO 6-19, the RFQ was structured for the prospective consultants to provide detailed information regarding experience of their teams and project approach. Upon review of the qualifications for meeting the various criteria and analysis of the proposed fee, MKN was selected as the consultant providing the best value based on the totality of the evaluation. A standardized agreement has been used, without modification, in accordance with Administrative Order 4-4. MKN's Certificates of Insurance have been approved by the City's Risk Management Division. Upon approval by the City Council, the agreement will be executed by the Director of Public Utilities, or his designee. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this agreement is not a "project" as defined by CEQA. LOCAL PREFERENCE Local preference was not implemented as both consultants that submitted proposals are local businesses pursuant to Fresno Municipal Code Section 4-109(b). FISCAL IMPACT This Project is located in Fresno County though the project provides citywide benefit. There is no impact to the General Fund. Funding for the services is included in the Wastewater Management Division's five year Capital Improvement Program budget within the Sewer Enterprise Fund 40501. Attachments: Attachment 1 - Consultant Service Agreement Attachment 2 - Project Location Map