For City Council Meeting May 12, 2026
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Yazdan Emrani, P.E., Director of Public Works
Title
Request City Council to: (1) Approve a First Amendment to the Professional Services Agreement with Fountainhead Consulting Corporation for the Provision of Interim Capital Improvement Project Engineering Manager Services in the Amount of $200,000, Bringing the Total Contract Cost to a Not-to-Exceed Amount of $295,000; and (2) Authorize the City Manager or Their Designee to Execute All Related Documents.
(ACTION)
Body
RECOMMENDED
Staff recommends that the City Council:
1) Approve a first amendment to the professional services agreement with Fountainhead Consulting Corporation (Fountainhead) for the provision of interim Capital Improvement Project (CIP) engineering manager services in the amount of $200,000, bringing the total contract cost to a not-to-exceed amount of $295,000; and
2) Authorize the City Manager or their designee to execute all related documents.
BACKGROUND
The Public Works Department has the responsibility for managing and delivering the CIP projects in the City, and the CIP Engineering Manager plays an integral role in ensuring that projects keep moving forward in an efficient manner. In early November 2025, the City’s full-time CIP Engineering Manager left the City of Rialto, necessitating the engagement of a consultant to provide these services until a new full-time staff member could be hired. Due to the urgent need to maintain progress on CIP project management and delivery, the initial agreement was executed in the amount of $95,000 under the authority of the City Manager. City Council approval is now required to execute a First Amendment to the agreement. The current agreement term is set to expire on December 16, 2026.
ANALYSIS/DISCUSSION
In November 2025, the City’s CIP Engineering Manager resigned. To maintain continuity in the delivery of CIP projects, the City engaged a consultant to serve as Interim CIP Engineering Manager while initiating a recruitment process to fill the position.
The Public Works Department solicited proposals from its on-call consultant list for these services. Fountainhead and TKE Engineering submitted proposals. After evaluation, Fountainhead was determined to provide the most qualified candidate, who was already supporting several City CIP projects and possessed a strong familiarity with the City’s processes and protocols. Based on this experience and the candidate’s background in both contract and construction management, staff determined that a sole-source agreement with Fountainhead was in the City’s best interest.
The current Public Works labor market remains highly competitive, particularly for recruiting technical staff, such as civil engineers and project managers with CIP experience. The City has conducted recruitment efforts, and applications are currently under review for preliminary interviews. Due to the foregoing, as well as the extended timeframe required to recruit and onboard a qualified CIP Manager, staff recommends the proposed course of action. These market conditions have made it increasingly challenging to attract candidates with the necessary experience and expertise in a timely manner, and the recommendation reflects a practical approach to maintaining continuity and progress on critical projects. Recruitment will remain open on a continuous basis until a qualified candidate is selected.
Accordingly, staff recommends that the City Council authorize the First Amendment to the Professional Services Agreement with Fountainhead in an additional amount of $200,000, for a total not-to-exceed amount of $295,000. The proposed First Amendment is provided as Attachment 1, and Fountainhead’s updated Disclosure Statement is included as Attachment 2.
ENVIRONMENTAL IMPACT
This request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA) Guidelines. A “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Pursuant to Section 15378(b)(5), a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 2 of the General Plan:
“First impressions matter. The quality and standards of our streetscapes and public spaces will reflect the high quality of development we require.”
This action is also consistent with Guiding Principle 3 of the General Plan:
“Our City Government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.”
LEGAL REVIEW:
The City Attorney’s Office has reviewed the First Amendment and approved it as to form.
FINANCIAL IMPACT:
Operating Budget Impact
The additional cost of services provided by Fountainhead Consulting Corporation is a not-to-exceed amount of $200,000, for a total contract amount of $295,000. Sufficient funding is available in the General Fund, Account 10107265-52011, for the remainder of the fiscal year and in the proposed budget for the next fiscal year.
Capital Budget Impact:
This action has no impact on the Capital Budget.
Licensing
Prior to the execution of the First Amendment, the vendor shall pay an updated Business License tax as well as Administration and State Fees.