Title
Recommendation to Authorize the City Manager to Execute a Five-Year Agreement with Nute Engineering for Engineering Design Services for Cyclic Sewer Rehabilitation Project, Phase 23 Easements, in a Total Amount Not to Exceed $1,222,988, including Contingency.
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities). (Public Works 0602)
Body
To: Honorable Mayor and Members of the City Council
From: Gerry Beaudin, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) issued a Request for Proposal (RFP) on March 25, 2026, for engineering design services for the Cyclic Sewer Rehabilitation Project Phase 23 Easements. The initial work to be designed is Project Year 12 of the 20-Year Rehabilitation Program, included in the City’s 2015 Sewer Master Plan (SMP). Because the scope of services for this sewer design work is within easements located on private property, it requires more design work than standard sewer design. Staff recommends City Council award the Agreement to Nute Engineering for a total five-year amount of $1,222,988.
BACKGROUND
The City operates the local sanitary sewer collection system comprised of sewer pipes, pump stations, and other facilities. Some of this aging infrastructure has reached its life expectancy and requires rehabilitation. In 2009, the United States Environmental Protection Agency (EPA) filed a complaint against the East Bay Municipal Utility District (EBMUD), owner and operator of the regional wastewater treatment facilities and a separate suit against each of the municipal entities that operate sewer collection systems discharging to the EBMUD system, including the City. The primary objective of EPA’s action suits was to force an aggressive program to reduce the volume of wet weather flow to the regional treatment plant and overflows in the local system, both having environmental and human health impacts. The lawsuits were combined and settled with the terms of the settlement codified in Final Consent Decree for Case Nos. C09-00186 and 09-05684.
In accordance with requirements of the Consent Decree, the Public Works Department is replacing approximately 2.6 miles of aging sewer pipes to limit public health impacts associated with sanitary sewer overflows and to improve reliability of service.
The work to be designed is for Project Year 12 of the 20-Year Rehabilitation Program included in the City’s 2015 Sewer Master Plan. The SMP utilized information collected through maintenance, inspection, and monitoring activities to assess system condition and capacity. The results were used to identify and prioritize sewer system capital improvement needs in a 20-Year Rehabilitation Program structured to maintain compliance with the Consent Decree and be consistent with the City’s sewer rate structure.
Completion of this work is required for compliance under the Final Consent Decree for Consolidated Case Nos. C09-00186-RS and C09-05684-RS, which require the City to rehabilitate no less than 2.6 miles of sewer main and associated lower laterals and manholes per year, based on a cumulative total. This work is also consistent with and furthers the objectives of the City’s 2018 Sewer System Management Plan and adopted Capital Improvement Program.
DISCUSSION
Although most of the City’s sewer system is located within existing public roadways, a significant portion of sewer mains is in backyard easements, which require additional design effort and are much more impactful on residents during rehabilitation. Sewers identified for rehabilitation within backyard easements were aggregated to create a project rehabilitating approximately 1.0 mile of sewer main for the RFP in Fiscal Year (FY) 2026-27. Additional projects within backyard easements of similar sizes will be scoped for future years. Separate projects will continue for sewer replacements within streets to meet the City’s annual rehabilitation requirement of 2.6 miles per year.
To solicit the maximum number of proposals, the RFP was provided to the Public Works consultants' listing. In addition, notices were placed on the City's web page and published in the Alameda Journal on Friday, March 27, 2026. On April 15, 2026, five firms submitted proposals. The following firms submitted acceptable proposals:
|
Firm |
Location |
|
Nute Engineering |
San Rafael, CA |
|
DCCM Infrastructure, Inc. |
Santa Rosa, CA |
|
Schaaf and Wheeler |
San Francisco.CA |
|
Sanbell |
Concord, CA |
|
SRT Consultant |
San Francisco, CA |
Selection was based on the completeness and quality of the proposal response, the firm's ability to understand and articulate the project, the City's needs, the project plan, timeline, qualifications, references, past projects, and cost. As this work includes sub-consultants for geotechnical investigation and survey work, the sub-consultants' qualifications were also considered.
After reviewing the proposals, staff recommends awarding the Agreement to Nute Engineering for a total five-year expenditure not to exceed $1,222,988, including a 10% contingency. The consultant is not guaranteed any contingency, and its use will be at the sole discretion of the Public Works Director for work not originally anticipated in the RFP. The RFP also informed the successful bidder that they shall pay not less than the prevailing per diem wage rate as determined by the State and Federal Governments. A copy of the contract is attached as Exhibit 1. The contract term is five years, and design work beyond the first year is subject to mutual agreement and satisfactory performance across all aspects of the contract. The contract assumes a 3% annual increase in the Consumer Price Index (CPI) to account for inflation, to establish the five-year not-to-exceed amount of $1,222,988. The annual increase in labor rates will be the current CPI or 3%, whichever is less.
ALTERNATIVES
• Award Agreement as presented;
• Direct staff to adjust the amount of work in the Agreement;
• Do not award the Agreement and provide a different direction to staff.
FINANCIAL IMPACT
The funds for this project are budgeted in the Public Works Department’s account for Capital Improvement Program (Project No. C21000), for sewer rehabilitation with monies allocated from the Sewer Enterprise Fund (Fund 501). There is no impact to the General Fund.
|
|
Contract |
Contingency |
Total |
|
Year 1 - FY 2026-27 |
$209,414 |
$20,941 |
$230,355 |
|
Year 2 - FY 2027-28 |
$215,696 |
$21,570 |
$237,266 |
|
Year 3 - FY 2029-30 |
$222,167 |
$22,217 |
$244,384 |
|
Year 4 - FY 2030-31 |
$228,832 |
$22,883 |
$251,716 |
|
Year 5 - FY 2032-33 |
$235,697 |
$23,570 |
$259,267 |
|
Total |
$1,111,807 |
$111,181 |
$1,222,988 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code. The selection of a design consultant for sewer easement rehabilitation aligns with the Strategic Plan Project TIE21, which involves rehabilitating 8 miles of sewer lines. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities).
CLIMATE IMPACTS
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager to execute a Five-Year Agreement with Nute Engineering for Engineering Design Services for the Cyclic Sewer Rehabilitation Project, Phase 23 Easements, in a total amount not-to-exceed $1,222,988, including contingency. (Public Works 0602)
Respectfully submitted,
Erin Smith, Public Works Director
By,
Scott Wikstrom, City Engineer
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibit:
1. Agreement