City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Michael Selling, Assistant Director of Engineering/City Engineer |
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Prepared by: |
Kyzen Nicolas, Associate Engineer; Somporn Boonsalat, Deputy Director of Engineering |
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Date: |
April 21, 2026 |
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Subject: |
Award a Progressive Design-Build Agreement for Services for the Wastewater Quality Control Facility Ultraviolet Disinfection System Rehabilitation Project (CIP No. 25004) and Ammonia Sidestream Treatment Project (CIP No. 25005) |
Recommendation:
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Adopt a resolution determining C. Overaa & Company (Overaa) to be the most responsible, responsive, and qualified Progressive Design-Build (PDB) firm for the Wastewater Quality Control Facility Ultraviolet Disinfection System Rehabilitation Project (CIP No. 25004) and Ammonia Sidestream Treatment Project (CIP No. 25005) (collectively Project); awarding the PDB Agreement for Services to Overaa for an amount not-to-exceed $2,397,730 and authorizing up to $20,000,000 in PDB Agreement amendments for the Project; approving Amendment No. 2 to Agreement C2024-120 for Professional Services with Carollo Engineers, Incorporated for an amount not-to-exceed $300,000 for the Project; approving a Project contingency of $20,000,000; and authorizing the City Manager or designee to take all appropriate actions necessary to carry out the purpose and intent of the resolution.
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Background:
Public Contract Code Chapter 4.7 Section 22185 allows local agencies to utilize PDB contracting for up to 10 public works projects in excess of $5,000,000 for each project.
The advantages to a PDB delivery method are:
• The city continues to participate in the design decision making process
• The contractor is involved early in the design process
• Equipment can be ordered as soon as design packages are approved
• Reduced construction conflicts
• Reduced project delivery timeline
The PDB delivery method is composed of the following phases:
• Pre-Construction Phase, where the PDB firm prepares approximately 75% Plans, Specifications, and Estimates and secures subcontractor bids via a competitive bidding process and provides a Guaranteed Maximum Price to the city.
• Construction Phase, where PDB firm completes the design, procures all materials and equipment, and provides the labor to complete project construction.
On April 1, 2025, the City of Manteca (City) issued a Request for Qualifications for Services for the Project. The deadline to submit questions and/or inquiries was May 1, 2025, and responses to questions/inquiries were published on the City’s website on May 15, 2025.
On May 20, 2025, the City received four Statement of Qualifications from the following firms:
• C. Overaa & Company (Overaa)
• GSE Construction Company, Incorporated (GSE)
• PCL Construction West Coast Incorporated (PCL)
• Shimmick Construction Company, Incorporated (Shimmick)
On October 21, 2025, the City approved the shortlist of three qualified firms:
• Overaa
• PCL
• Shimmick
On October 23, 2025, the City issued a Request for Proposals for the Project to the three shortlisted firms. The deadline to submit questions and/or inquiries was January 8, 2026, and responses to questions/inquiries were published on the City’s website on January 16, 2026.
On January 22, 2026, the City received three proposals and subsequently convened a review committee which determined Overaa to be the most responsible, responsive, qualified firm, and meets the specific goals of the Project. The Pre-Construction Phase services cost in the amount of $2,397,730 is within the Engineer’s estimate.
Relatedly, City staff requested Carollo Engineers, Incorporated (Carollo) to provide an expanded task and fee for engineering support during the Pre-Construction Phase of the Project. City staff has completed cost negotiations with Carollo for an amount not-to-exceed $300,000.
Fiscal Impact:
The Project expense breakdown between CIPs 25004 and 25005 is as follows:
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Description |
Original Contract |
Amendment No. 1 |
Amendment No. 2 |
Total |
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Engineering Support (Carollo) |
$615,322 |
$579,422 |
$300,000 |
$1,494,744 |
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Pre-Construction Phase (Overaa) |
$2,397,730 |
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$2,397,730 |
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Project Budget Contingency |
$20,000,000 |
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$20,000,000 |
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Total |
$23,013,052 |
$579,422 |
$300,000 |
$23,892,474 |
Project funding breakdown between CIPs 25004 and 25005 is as follows:
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Description |
FY26 Amended Budget |
Future Funding in FY27 |
Future Funding in FY28 |
Total |
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CIP 25004 |
$9,789,150 |
$0 |
$7,365,600 |
$17,154,750 |
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CIP 25005 |
$3,600,000 |
$0 |
$13,131,400 |
$16,731,400 |
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Total |
$13,389,150 |
$0 |
$20,497,000 |
$33,886,150 |
There is sufficient funding in the FY26 Capital Improvement Program projects for CIPs 25004 and 25005 in the Sewer Improvement Fund (Fund 650) for the agreement award with Progressive Design-Build (PDB) for Services to Overaa for an amount not-to-exceed $2,397,730 and Amendment No. 2 to agreement (C2024-120) with Carollo Engineers, Incorporated for an amount not-to-exceed $300,000 for this project.
Additionally, a portion of the $20,000,000 project contingency is included in CIP 25004 and 25005 project budgets for fiscal year 2026. The project will continue into FY27, and no additional funding is anticipated in FY27. Any future funding, including the remaining for the project contingency, is dependent upon City Council approval of the Capital Improvement Program through the annual budget process for fiscal year 2028.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Location Map
3. Attachment 3 - PDB Agreement for Services (Overaa)
4. Attachment 4 - Amendment No. 2 to Agreement C2024-120 (Carollo)