TO: Board of Supervisors
FROM: Steve Lederer - Director of Public Works
REPORT BY: Liang Chin Su, Assistant Engineer
SUBJECT: Approval of Agreement No. 260391B with MGE Engineering, Inc. for the 555 Wall Road Storm Repair Project, RDS 19-67
RECOMMENDATION
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Approve and authorize Agreement No. 260391B with MGE Engineering, Inc., for a maximum of $491,895 to provide design and engineering services for the 555 Wall Road Storm Repair Project, RDS 19-67; and approve Budget Amendment. (Fiscal Impact: $491,895 Expense; Roads Fund; Budgeted but additional $80,000 Expense needed for the completion of the project; Discretionary)
[4/5 vote required]
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BACKGROUND
Excessive rains saturated a 235-foot-long portion of road near 555 Wall Road causing movement of the road and supporting ground in early 2019. This damage occurred during a declared disaster event and FEMA inspected the site on August 15, 2019. Preliminary evaluation of conditions has identified some form of structural solution such as a soldier pile wall as the most likely repair, however further inspection and investigation was needed to develop a detailed understanding of site conditions and geotechnical information. Through a qualifications-based process, the County selected MGE Engineering, Inc. (MGE) as the most qualified firm for this investigation and design of the project.
On August 18, 2020, the Board of Supervisors approved and signed PSA Agreement No. 210081B for a maximum of $444,234 with MGE and approved a budget amendment for $120,707 to fund the project through the initial submittal to FEMA. On March 16, 2021, the Board approved a budget amendment for an additional $72,732 to complete the preliminary design and engineering phase.
After completion of the 35% Design milestone, the County submitted a Version 1 request to FEMA seeking approval of design and authorization to proceed with final design and construction. FEMA denied the request on the basis that the project constituted an “improvement project” on February 4, 2022. In response, the County-supported by CalOES-submitted an appeal and provided additional supporting documentation on April 1, 2022. On September 18, 2025, FEMA notified CalOES that the appeal had been approved. Since that determination, the project has remained under Environmental and Historic Preservation (EHP) review. As part of this process, the California Department of Fish and Wildlife (CDFW) requested that additional biological surveys be completed before FEMA can issue a signed obligation letter. During the extended appeal and review process, Agreement No. 210081B expired. Accordingly, the County and MGE now wish to enter into a new agreement that also incorporates the additional environmental scope required by FEMA for project approval. The new maximum compensation amount under the proposed Agreement is $491,895, which reflects hourly rate escalations since Agreement No. 210081B. To date, $101,725 has been expended to complete work through the 35% Design milestone. The total compensation for the two Agreements with MGE is $593,620. Approval of this Agreement and the budget amendment in the amount of $80,000 ($64,125 for consulting services and $15,875 for staff project management) will authorize MGE and its subconsultant to complete a three-month long protocol survey and prepare the report for CDFW’s review. Staff will return at a later date to request the funding for Phase Two of the design once FEMA issues the signed obligation letter.
Requested Action:
Approve and authorize Agreement No. 260391B with MGE Engineering, Inc., for a maximum not to exceed contract amount to $491,895 to provide additional engineering services for the 555 Wall Road Storm Repair project and approve a Budget Amendment (4/5 vote required):
a) Increase appropriations for Project S9101 - 555 Wall Road in the Roads Capital Improvement Projects budget (Fund 2040, Sub-Division 2040500) in accounts 52310 - Consulting Services by $64,125 and 52145 - Engineer Services by $15,875 offset by an increase of $80,000 in revenue account 49900 - Intrafund Transfers-In from the Roads Operations budget; and
b) Increase appropriations in the Roads Operations budget (Fund 2040, Sub-Division 2040000) in account 57900 - Intrafund Transfers Out by $80,000, offset by use of its available fund balance.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval is needed to fund the environmental survey required for FEMA’s approval to proceed with the project design |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Staff will return at a later date to fund Phase Two of the design after FEMA approval. |
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Consequences if not approved: |
The survey will not be completed and may jeopardize FEMA funding to repair the road. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.