For City Council Meeting [July 9, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Robb R. Steel, ACA/Development Services Director
Title
Request City Council to Authorize Additional Services in accordance with Section 2.3 of the Professional Service Agreements between the City of Rialto and (1) Willdan Engineering and (2) Interwest Consulting and Authorize a Purchase Order not to exceed $50,000 for each Consultant.
Body
BACKGROUND:
The City issued a Request for Proposals (#19-113) for building plan check, inspection, and permit technician services. Proposals were due on April 11, 2019 and 12 consulting firms submitted.
On March 27, 2019, the Economic Development Committee recommended that staff seek outside participation on the review panel, including representation from the Building Industry Association, a local developer (Roger Hobbs), and a Planning Commissioner. Both the BIA and Roger Hobbs declined to participate in the proposal review process. Planning Commissioner Frank Gonzalez agreed to participate and staff contacted several other Commissioners to round out the panel, but none agreed to accept the responsibilities. Ultimately, four internal staff and one Planning Commissioner formed the review panel.
The five participants rated the 12 proposals and the City scheduled interviews with the top proposers for the week of July 18. After oral presentations, staff expects to make a recommendation to the Economic Development Committee on July 25 and to the City Council on August 13 with contract(s) commencing or about September 1, 2019. The August 13 City Council report will reconcile all outstanding obligations of the City with the current providers.
ANALYSIS/DISCUSSION:
Until the City Council approves new contract(s), staff requests authorization to continue services with the current providers (Willdan and Interwest) by exercising the Additional Services provision in Section 2.3 of each consultant’s Professional Services Agreement.
2.3 Additional Services. City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Work or make changes by altering, adding to, or deducting from such Work. No such extra work may be undertaken unless a written order is first given by the City to the Consultant, incorporating therein any adjustment in (i) the Maximum Contract Amount, as defined below, and/or (ii) the time to perform this Agreement, which adjustments are subject to the written approval of the Consultant. Any increase in compensation of up to ten percent (10%) of the Maximum Contract Amount or $15,000, whichever is less, may be approved by the City Administrator/Executive Director, or his designee, as may be needed to perform any extra work. Any greater increases, occurring either separately or cumulatively, must be approved by the City’s Board. It is expressly understood by Consultant that the provisions of this section shall not apply to the services specifically set forth in the Scope of Work or reasonably contemplated therein, regardless of whether the time or materials required to complete any work or service identified in the Scope of Work exceeds any time or material amounts or estimates provided therein.
No claim for an adjustment in the contract amount or time for performance shall be valid unless the procedures established in this Section are followed.
Under Section 2.3, the City Council may approve an increase in the compensation or the schedule of performance. To provide adequate services until the City completes the selection process, staff requests authorization to extend the time of performance for both consultants until August 31, 2019. Staff also requests additional Purchase Order authorization of $50,000 for each consultant. If the City Council approves this action, staff will issue the written order required under Section 2.3.
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:
The City of Rialto General Plan establishes various guiding principles, goals, and objectives through which the City looks to improve the community and protect the quality of life for our residents. Guiding principle No. 1 states that Rialto is a family first community and essential services and amenities must meet the needs and desires of our families. Approval of the proposed PSA is consistent with the guiding principle to provide essential services to the community.
LEGAL REVIEW:
The City Attorney has reviewed and approved this staff report.
FINANCIAL IMPACT:
Operating Budget Impact:
The adopted FY20 Budget established a contract services budget within the Building Division of $1,000,000. The City averages $60,000 per month for Willdan services (inspection and plan checking services) and $20,000 for Interwest (plan check and permit technician services). Funds are available and budgeted in Account No. 010-500-4261-2011 for the cost of additional services rendered through August 31, 2019. Staff also requests purchase order authorization of $50,000 for each consultant for the extended period.
RECOMMENDATION:
Staff recommends that the City Council Authorize Additional Services in accordance with Section 2.3 of the Professional Service Agreements between the City of Rialto and (1) Willdan Engineering and (2) Interwest Consulting and Authorize a Purchase Order not to exceed $50,000 for each Consultant.