For City Council Meeting [August 14, 2018]
TO: Honorable Mayor and City Council
APPROVAL: Ahmad R. Ansari, Interim City Administrator
FROM: Robb R. Steel, Assistant CA/Development Services Director
Title
Request City Council to Approve Amended and Restated Professional Services Agreement between the City of Rialto and Willdan Engineering Inc. and Authorize expenditures of $846,000 for services provided through the 2018/19 fiscal year for a total 3-Year authorization of $2,001,770.
(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 Willdan Engineering Inc. for $333,050 to perform these services.
The City Council amended the Professional Services Agreement four times:
• On May 9, 2017, the City Council approved the First Amendment to the Professional Service Agreement increasing the contract amount by $176,100 to a total of $509,150 for work through fiscal year 2016/17.
• On July 25, 2017, the City Council approved the Second Amendment to the Professional Service Agreement increasing the contract amount by $530,620 to a total of $1,060,770 for work through fiscal year 2017/18. The Second Amendment included $21,000 for work performed during FY 2016/17 and $530,620 for work performed in fiscal 2017/18. The total contract authorization was $1,060,770 after the Second Amendment.
• On December 12, 2017, the City Council approved the Third Amendment to the Professional Service Agreement decreasing the contract amount by $80,000 to a total of $980,770 for work through fiscal year 2017/18 (the City then reallocated these costs to Interwest Consulting Group).
• On May 8, 2018, the City Council approved the Fourth Amendment to the Professional Services Agreement to increase the contract amount by $175,000 to a total of $1,155,770 through the remainder of Fiscal Year 2017/18.
An Amended and Restated PSA incorporating the original PSA, the four 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, Willdan provided over 1,640 hours of plan check services completing 923 plancheck reviews with an average turnaround time of 9 working days, and provided over 3,070 hours of building inspection services. Staff expects this workload to increase for FY19.
• Building Inspections. The Building Division now utilizes 2-3 Inspectors from Willdan to perform daily inspections, complementing the 2 City inspectors. The complement of Willdan Inspectors average 110 hours per week for 50 weeks (5,500 hours) at the rate of $85 per hour, equal to $467,500 for the fiscal year.
• 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 Willdan equal $165,000 (110 hours per month x 12 months x $125 per hour).
• Permit Technician. The Building Division utilizes permit technician services from Willdan. 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 Willdan Engineering. The City will seek new proposals for FY20. The total requested contract authorization is $752,500 for FY19. In addition, staff requests $93,500 to compensate for services performed during FY18 for a combined request of $846,000. The total contract authorization from July 1, 2016 through June 30, 2019 would increase to $2,001,770 encompassing all prior approvals and the current request.
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 reviewed and approved the staff report.
FINANCIAL IMPACT:
Operating Budget Impact
The FY19 Budget forecasts building plancheck revenue of $950,000 in Account #010-400-4261-7610 and building permit revenue of $1,250,000 for total revenues related to building plancheck 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 for FY19. The costs will be paid from General Fund Account No. 010-500-4261-2011.
Capital Budget Impact
There is no capital budget impact.
Business License
Willdan has a business license for 2018.
RECOMMENDATION:
Staff recommends that City Council Approve Amended and Restated Professional Services Agreement with Willdan Engineering Inc. and Authorize expenditures of $846,000 for services provided through the 2018/19 fiscal year for a total 3-Year authorization of $2,001,770.