Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Supplemental Agreement with HDR Engineering, Inc. for Professional Engineering Services for the Infrastructure Asset Management Planning Project
Summary
COUNCIL GOAL: Operational Excellence
(2B: Balance available resources to accommodate the growth and maintenance needs of the city)
MEETING DATE: December 1, 2020
DEPARTMENT: Development Services / Engineering
CONTACT: Nick Ataie, PE, Engineering CIP Manager
Julia Hunt, PE, Interim Director of Public Works
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution.
ITEM SUMMARY:
• This Resolution authorizes the City Manager to execute a supplemental agreement with HDR Engineering, Inc. to provide additional professional engineering services for the Infrastructure Asset Management Planning Project (CO2009) for an increase in the contract amount from $99,980 to $162,480 and authorizing all necessary supplemental agreements under said contract up to an aggregate contract amount, inclusive of any additional supplemental agreements, not to exceed $170,000.
BACKGROUND INFORMATION:
• Asset management is the process of managing a local government’s capital assets cost effectively. It involves analyzing the lifecycle of each asset and developing information on maintenance, service levels, and new asset needs.
• Due to the significant and growing inventory of major infrastructure assets operated and maintained by the city, the ability to utilize data as a primary means for decisions related to future capital investments is critical to ensuring high service levels and identifying long-term financial needs.
• HDR Engineering, Inc. is currently under contract with the City for development of a baseline infrastructure risk prioritization framework to support asset management which utilizes available data for major city infrastructure assets (water mains, wastewater mains, street pavement, and storm drainage) and risk/decision logic to identify and prioritize future capital improvement projects focused on infrastructure renewal (e.g. street pavement improvements and utility main improvements).
• The original contract with HDR Engineering, Inc. approved by City Council on January 7, 2020 included assumptions that minimal customization of these risk/decision framework models would be required. It was anticipated that a future phase of services would develop fully customized infrastructure asset risk/decision framework models.
• Based on a significant amount of input from public works and engineering staff, it was determined that additional customization of these risk/decision framework models by HDR Engineering, Inc. under their current contact would provide additional value in the use of them for identifying and prioritizing future capital improvement projects focused on infrastructure renewal.
• HDR Engineering, Inc. submitted a proposal in the amount $62,500.00 for these additional services which has been reviewed by the Engineering Department.
• The FY2021 - FY2025 Capital Improvements Program and adopted FY2021 budget included additional funding for the Infrastructure Asset Management Planning Project (Project CO2009) anticipating the need for these additional services.
• With approval of this supplemental agreement, HDR Engineering, Inc. will provide city-customized risk and decision framework models for use in better prioritizing infrastructure needs and further clarifying competing needs between different infrastructure types (e.g. streets vs. utilities) related to future funding of infrastructure renew projects in the Capital Improvements Program.
• In addition, the Public Works Department will utilize the decision models to more effectively track necessary data indicative of infrastructure condition in order to provide the most effective recommendations for future capital projects.
• It is expected that upon execution of this additional services agreement with HDR Engineering, Inc. that remaining services will be completed and utilized in the development of future Capital Improvements Program (CIP) budget needs and project priorities related to renewal of aging infrastructure throughout the city.
• Future refinement and expansion of initiatives related to infrastructure asset management are anticipated at a later date upon city integration of a new work order management system.
FINANCIAL SUMMARY:
• This Resolution authorizes a supplemental agreement with HDR Engineering, Inc. for an increase in the contract amount by $62,500.00, from $99,980.00 to a total aggregate contract amount of $162,480.00.
• Staff is requesting approval of a contract not to exceed (NTE) amount, inclusive of any additional supplemental agreements, of $170,000 in the event minor additional professional services are required during the remainder of the project.
• Funding for this supplemental agreement is included in the Capital Improvements Program (CO2009).
• With the approval of this item, $30,000.00 will remain in CO2009.
BOARD OR COMMISSION RECOMMENDATION:
• N/A