For City Council Meeting [August 14, 2018]
TO: Honorable Mayor and City Council
APPROVAL: Ahmad R. Ansari, Interim City Administrator
FROM: Robb R. Steel, Assist. City Administrator/Development Services Director
Title
Request City Council to Approve the Amended and Restated Professional Services Agreement with Interwest Consulting Group and Authorize expenditures in the amount of $285,000 for the 2018/19 Fiscal Year for a total 3-Year authorization of $485,000.
(ACTION)
Body
BACKGROUND:
On May 2, 2016, the City issued a Request for Proposals seeking building inspection, fire plan check, and structural plan check services. On August 9, 2016, the City Council awarded a Professional Service Agreement to Interwest Consulting Group for $50,000 for these services during fiscal year 2016/17.
The City Council has amended the Professional Services Agreement three times:
• On July 25, 2017, the City Council approved the First Amendment to the Professional Service Agreement increasing the contract amount by $50,000 to a total of $100,000 for work through fiscal year 2017/18.
• On December 12, 2017, the City Council approved the Second Amendment to the Professional Service Agreement increasing the contract amount by $80,000 to a total of $130,000 for work during fiscal year 2017/18, and total purchase authorization from July 1, 2016 through June 30, 2018 of $180,000.
• On June 26, 2018, the City Council approved a Third Amendment with Interwest Consulting Group to increase its total contract amount by $20,000 from $180,000 to $200,000 through June 30, 2018.
An Amended and Restated PSA incorporating the original contract, the three subsequent amendments, and the proposed revisions contemplated herein is attached hereto as Exhibit A. The Disclosure Form required under Rialto Municipal Code Section 2.48.145 is attached hereto as Exhibit B.
ANALYSIS/DISCUSSION:
For fiscal year 2017/18, Interwest provided over 1,000 hours of plan check services completing 287 plan check reviews with an average turnaround time of 9 working days; and provided over 1,200 hours of Permit Technician services. Staff expects this workload to increase for FY19.
• Building Inspections. The Building Division does not currently use Inspectors from Interwest to perform daily inspections; however, depending upon workload and the availability of qualified inspectors from Willdan, staff may need to solicit inspection services from Interwest. Interwest charges $90 per hour for inspection services. This report makes does not request budget for inspection services from Interwest; however, staff requests permission to use the budget authority granted herein to call for inspectors if necessary to fulfill Building Division inspection responsibilities. If the City uses budget for that purpose, then staff will return to the City Council to either appropriate additional funding or reallocate funding from the Willdan PSA.
• Plan Check. The Building Division utilizes plan check services from two vendors on a time and material review reimbursement basis: Willdan and Interwest. The projected plan check services for Interwest equal $165,000 (110 hours per month x 12 months x $125 per hour).
• Permit Technician. The Building Division utilizes permitting services from Interwest. The Permit Technician budget allots 10 hours per day (40 hours per week) for 50 weeks at $60 for annualized costs of $120,000.
This is the third and final year for Interwest Consulting Group. The City will seek proposals for FY20. The total requested contract authorization is $285,000 for FY19.
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 and approved the staff report.
FINANCIAL IMPACT:
Operating Budget Impact
The FY19 Budget forecasts building plan check revenue of $950,000 in Account #010-400-4261-7610 and building permit revenue of $1,250,000 for total revenues related to building plan check and permitting of $2,200,000. The proposed services for Willdan and Interwest are $752,500 (for FY19 only) and $285,000 respectively, or approximately 47% of total related revenue. The costs will be paid from General Fund Account No. 010-500-4261-2011.
Capital Budget Impact
There is no capital budget impact.
License
Willdan has a business license for 2018.
RECOMMENDATION:
Staff recommends that the City Council Approve the Fourth Amendment to the Professional Services Agreement with Interwest Consulting Group and Authorize expenditures in the amount of $250,000 for the 2018/19 Fiscal Year for a total 3-Year authorization of $485,000.