That the City Council:
A. Approve and authorize the City Manager to execute a contract with Z&K Consultants, Inc., for Project Management Consultant Services for the Coyote Creek and Imperial Channel Repair Project; and,

B. Authorize staff to issue a purchase order to Z&K Consultants, Inc. for Project Management Consultant Services for the Coyote Creek and Imperial Channel Repair Project, in an amount not to exceed $144,000.

On August 21, 2023, the City Council approved Funding Agreement No. 4600015471 ("Funding Agreement") with the State of California Department of Water Resources to receive $8,500,000 in State grant funding to repair the damaged private underground storm channel at the Coyote Village Homeowners Association ("HOA"), located at 901 - 997 West Imperial Highway in La Habra. Additionally, the City Council also approved an agreement with the HOA, as sub-grantee, authorizing the City to apply State grant funding to pay for authorized contractors selected by the HOA to design, construct and oversee repairs to the private channel owned by the HOA. 

Since the execution of said agreements, the HOA, with assistance from the City, retained a Construction Management Consultant who will be providing quality control, construction management and inspection for the Coyote Creek and Imperial Channel Repair Project ("Project"). Additionally, the HOA is in the process of awarding a contract to Mike Bubalo Construction Co. Inc., the design-build firm responsible for designing and constructing the necessary permanent repairs to the private channel. The Project is anticipated to start in August 2024.

Although this Project will be the responsibility of the HOA to undertake, the City will have the responsibility of ensuring the work is being done in accordance with the Project plans and specifications being developed by the design-build firm, adhere to provisions stipulated in the Funding Agreement, and to allocate State grant funds directly to pay all approved contractors, including subcontractors and consultants participating in the Project. Due to the current City capital project workload, the complexity of this Project, and the time that will be required to properly monitor the Project's progress, staff determined that there was a need for consulting assistance with these efforts. To help ensure that the Project proceeded without undue delays, staff requested a proposal from Z&K Consultants, Inc. ("Z&K") to provide Project Management Consultant services to the City for the Project. Z&K submitted a comprehensive proposal with an experienced Project Manager, including a detailed work plan so that the City could remain in compliance with the Funding Agreement and properly support the project through completion. The proposed Project Manager has over 32 years of experience in project management and has worked on over twenty storm drain projects during this time. Not only is the Project Manager a licensed civil engineer, but also holds several other certifications, including Chief Building Official (CBO), plans examiner, and inspector, which would be very beneficial for the Project, should there be a need for these types of services. 

If approved by Council, Z&K will act as the City's representative and will provide general oversight of the design-build contract. Their core responsibilities include: ensuring strict adherence to the provisions required by the Funding Agreement, providing contract administration, ensuring the Project plans and specifications are developed in accordance with applicable provisions of the law, ensure proper communication and coordination between all parties involved, preparation and submission of reports to the State, invoice management, and other technical reviews as deemed necessary for the Project.  

Z&K has extensive work experience with similar projects, and is the firm currently providing construction management, inspection, and material testing for the Vista Grande Park Improvements Project. Their performance on that project has exceeded staff's expectations thus far. Staff is requesting that the City Council waive the competitive bidding policy pursuant to Municipal Code Section 4.20.080 "Exceptions to Bidding Requirements" for the purchase of certain professional services allowing the procurement of services for which professional policies prohibit competitive bidding, such as, but not limited to architectural services, consultant services, legal services, and engineering services, thus allowing staff to negotiate for the provision of such services. Staff recommends that the City Council approve and authorize the City Manager to execute an agreement with Z&K for Project Management Consultant services for the Coyote Creek and Imperial Channel Repair Project and authorize staff to issue a purchase order in the amount of $144,000.

The award of this contract will not impact the City's General Fund. The proposed Project Management Consultant Services will be funded using a portion of the $8.5 million in State grant funds secured for this project.