For City Council Meeting May 13, 2025
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Tim Sullivan, Assistant City Manager
Title
Request City Council to: (1) Authorize Issuance of a Contract Change Order in the Amount of $291,200.00 to Onward Engineering for “On-Call” Construction Inspection Services for Fiscal Year 2025/2026; (2) Authorize Issuance of a Contract Change Order in the Amount of $323,865.60 to SPECS Engineering Group for “On-Call” Construction Inspection Services for Fiscal Year 2025/2026; and, (3) Authorize the City Manager to Execute all Related Documents.
(ACTION)
Body
RECOMMENDATION
Staff Recommends that the City Council:
1) Authorize Issuance of a Contract Change Order in the amount of $291,200.00 to Onward Engineering for “On-Call” Construction Inspection Services for Fiscal Year 2025/2026;
2) Authorize Issuance of a Contract Change Order in the amount of $323,865.60 to SPECS Engineering Group for “On-Call” Construction Inspection Services for Fiscal Year 2025/2026; and,
3) Authorize the City Manager to Execute all Related Documents.
BACKGROUND
An important function of the Public Works Department is to perform inspection services related to work that is permitted within the public right-of-way and City-approved private land development projects. The Public Works Department is responsible for ensuring that the construction of public improvements is carried out in accordance with City standards and in compliance with City-approved plans. Inspection Services has been vital to ensure the orderly construction of private developments and public infrastructure associated with new and existing developments. These improvements include, but are not limited to, grading, public streets, traffic signals, traffic signing and striping, sewer lines, water lines, and storm drains. Infrastructure improvements are needed to protect the health, safety, and general welfare of the citizens, visitors, and the business community of Rialto. Most of the required improvements are a result of mitigation of impacts created by new residential, commercial, or industrial development occurring within the City. As such, the Land Development Section is the focal point of review, administration, permitting, inspection, and construction of such public infrastructure improvements.
ANALYSIS/DISCUSSION
On February 11, 2025, the City of Rialto entered into an agreement with Onward Engineering and SPEC Engineering Group for “On-Call” Construction Management and Inspection services. The term of the agreement was four (4) years with two (2) additional (1) year extensions.
The Public Works Department currently has three (3) Construction Inspectors. The City of Rialto is experiencing a steady rise in development projects being submitted each month. To meet the growing demand, the City has been relying on On-Call support due to their ample resources and expertise in construction inspections. Table 1 below lists some of the development projects, but not all.
Table 1 - Land Development Projects
|
PPD NO. |
LOCATION |
PROJECT |
|
|
|
|
|
PPD 2018-0036 |
2531 S. RIVERSIDE AVE/SANTA ANA AVE |
BEYOND FOODS |
|
PPD 2018-0094 |
BONNIE VIEW AND WILLOW |
THE DEPOT |
|
PPD 2019-0043 |
19839 SANTA ANA AVE |
SC FUELS RIALTO |
|
PPD 2020-0005 |
9561 CEDAR AVE |
CEDAR VILLAS |
|
PPD 2020-0011 |
249 FORTUNA WAY |
ANGELES BLOCK |
|
PPD 2020-0012 |
NWC VALLEY BLVD/WILLOW AVE |
BIRTCHER LOGISTICS INDUSTRIAL |
|
PPD 2020-0014 |
PEPPER AVE SOUTH OF 210 FWY |
PEPPER AVENUE INDUSTRIAL |
|
PPD 2020-0026 |
10624 LILAC AVE |
LILAC AVENUE LOGISTICS BUILDING |
|
PPD 2020-0035 |
221 EAST SANTA ANA AVE |
ECOLOGY AUTO PARTS |
|
PPD 2021-0004 |
SOUTHEAST CORNER RENAISSANCE PKWY/ALDER AVE |
RENAISSANCE TRAVEL CENTER |
|
PPD 2021-0010 |
ACACIA AVE (RANDALL - MERRILL) |
ALLEGRO |
|
PPD 2021-0011 |
771 S. SYCAMORE AVENUE |
SEASONS AT ACACIA |
|
PPD 2021-0013 |
SWC ALDER AVE/SIERRA LAKES |
PILOT TRAVEL CENTER |
|
PPD 2021-0019 |
1110 WEST BASELINE |
BASELINE - FITZGERALD WAREHOUSE |
|
PPD 2021-0025 |
1944 N. ALDER |
BEYOND FOODS |
|
PPD 2021-0026 |
SPRUCE AVE S/O RIALTO AVE |
STREAM RIALTO SOUTH INDUSTRIAL |
|
PPD 2021-0028 |
880 S. QUINCE AVE |
SINGLE FAMILY RESIDENCE |
|
PPD 2021-0036 |
1230 W DURST DR |
DURST INDUSTRIAL BUILDING |
|
PPD 2021-0043 |
550 E. FOOTHIL BLVD |
KINGSLEY LUXURY APARTMENTS |
|
PPD 2021-0055 |
NORTHWEST CORNER LOCUST AVE/LOWELL AVE |
THRIFTY INDUSTRIAL |
|
PPD 2021-0059 |
1550 RIVERSIDE AVE |
RIALTO PHASE II SHOPPING CENTER |
|
PPD 2021-0063 |
NWC RENAISSANCE PKWY/LOCUST AVE |
LOVETT INDUSTRIAL |
|
PPD 2022-0001 |
NEC RILATO AVE/LILAC AVE |
AIREF RIALTO COMMERCE CENTER |
|
PPD 2022-0005 |
CASMALIA AVE EAST OF ALDER AVE |
JACKSON FUEL EXPANSION |
|
PPD 2022-0012 |
841 FOOTHILL BLVD |
BEST WESTERN HOTEL |
|
PPD 2022-0044 |
FITZGERALD AVE WEST OF AYALA DR |
LORD CONSTRUCTORS |
|
PPD 2022-0070 |
2776 S. LILAC AVE |
SFG TRUCK STORAGE |
|
PPD 2022-0071 |
2688 S. LILACE AVE |
RIVERPORT EMPIRE INDUSTRIAL |
|
PPD 2023-0006 |
SANTA ANA AVE EAST OF RIVERSIDE AVE |
CROWN HOLDINGS INDUSTRIAL |
|
PPD 2023-0010 |
NORTHWEST CORNER AYALA DR/RENAISSANCE PKWY |
SHIKI SUSHI RESTAURANT |
|
PPD 2023-0024 |
1916 N. RIVERSIDE AVE |
RIALTO EXPRESS CAR WASH |
|
PPD 2023-0025 |
SOUTHWEST CORNER RIVERSIDE AVE/SANTA ANA AVE |
TERAWATT TRUCK CHARGING STATION |
|
Table 1 - Land Development Projects (continued) |
|
PPD NO. |
LOCATION |
PROJECT |
|
TR 20092 |
HIGHLAND AVE AND RIVER RANCH PKWY |
LENNAR HOMES |
|
TR 20205 |
HIGHLAND AVE AND OAKDALE AVE |
LENNAR HOMES |
|
TR 20206 |
HIGHLAND AVE AND RIVER RANCH PKWY |
LENNAR HOMES |
|
TR 20208 |
HIGHLAND AVE AND RIVER RANCH PKWY |
LENNAR HOMES |
|
TR 20209 |
HIGHLAND AVE AND RIVER RANCH PKWY |
LENNAR HOMES |
Due to the on-going and anticipated projects, staff recommends authorizing a contract change order with Onward Engineering for $291,200.00 and with SPECS Engineering Group for $323,865.60 for construction inspection services for Fiscal Year 2025/2026.
The proposed contract change orders are pursuant to the "On-Call" professional services agreements with Onward Engineering and SPECS Engineering Group. The terms of these agreements do not specify a particular contract amount, as it operates on a "pass-through" basis. This means that the City will collect inspection fees from the developer to offset the cost of services rendered by Onward and SPECS.
Copies of the proposal and disclosure statements are included as Attachment 1,2, 3 and 4, respectively.
ENVIRONMENTAL IMPACT
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), 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. According to Section 15378(b), a Project does not include: (5) 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 3A in 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 has reviewed the staff report with attachments and approves as to form.
FINANCIAL IMPACT
Operating Budget Impact
Upon receipt of payment from a developer, inspection revenues will be recognized in the General Fund-Engineering Services Account No. 10107262-47652. The projected revenue for the upcoming fiscal year 2025/2026 is $650,000.00.
The contract change orders with Onward Engineering for $291,200.00 and with SPECS Engineering Group for $323,865.60 for construction inspection services during Fiscal Year 2025/2026 will be funded from the General Fund - Engineering Services Account No. 10107262-52011. These contract change orders will operate on a "pass-through" basis, and the expenses will be offset by the projected revenues.
Capital Improvement Budget Impact
There is no impact to the Capital Improvement Budget.
Licensing
Onward Engineering and SPECS Engineering Group paid the business license application, business license tax, and fees upon issuance of the initial on-call contract.