For City Council Meeting [June 13, 2023]
TO: Honorable Mayor and City Council
APPROVAL: Arron Brown, Acting City Manager
FROM: Tim Sullivan, Director of Maintenance and Facilities
Title
Request City Council to: (1) Approve the Third Amendment to the Professional Services Agreement with Engineering Resources of Southern California for On-Call Plan Check Services; (2) Approve the Third Amendment to the Professional Services Agreement with Willdan Engineering for On-Call Plan Check Services; and (3) Authorize the City Manager to Execute All Documents.
(ACTION)
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BACKGROUND
One of the important functions of the Engineering Services Department is to review various plans and technical studies related to City-approved private land development projects. An owner or developer will engage its own engineering consultant to prepare the required improvement plans for on-site rough grading, precise grading/paving, on-site or off-site storm drainage improvements, public street improvements, traffic signal installation and other associated work. These plans require technical studies (geotechnical/soils, hydrology/hydraulic, traffic, water quality management plans, drainage, grading, etc.), which supplement the improvement plans for the required work, which also require review by the City. The Engineering Services Department coordinates closely with developers to be responsive and facilitate their projects effectively and timely.
On July 28, 2020, the City Council approved an On-call Professional Service Agreement with Engineering Resources of Southern California (ERSC) and Willdan Engineering (Willdan) for On-Call Plan Checking Services. At the time, the annual budget for plan check services was estimated at $300,000 for each firm.
As development activity in the City continues to increase, the volume of plan checks and technical reviews has also increased.
On September 28, 2021, the City Council approved the First Amendment to the Professional Services Agreements with ERSC and Willdan to increase the estimated annual budget for plan check services from $300,000 to $500,000.
On March 8, 2022, the City Council approved the Second Amendment to the Professional Services Agreement with ERSC and Willdan to revise the contract sum to address the fact that there is no contract sum insofar as the services are of an “on-call” nature and subject to change based on the volume of development activity occurring in the City.
ANALYSIS/DISCUSSION:
As development continues, there is a continued need to have plan checking services from ERSC and Willdan. The number of land development projects that receive plan checking services from each consultant continues to increase. ERSC is currently supporting the City with plan checking Services for the following represented projects, but not limited to:
Table 1 - Projects in Plan Check, ERSC
Willdan is currently supporting the City with the Plan Checking Services for the following represented projects, but not limited to:
Table 2 - Projects in Plan Check, Willdan
The assessed fees, as they relate to plan check services, are on a “pass-through” basis, whereby the City will collect plan check fees from a developer sufficient to cover the fees to pay for the services provided by ERSC and Willdan. Upon receipt of payment from a developer, plan check revenues will be recognized in the General Fund-Engineering Services Account, which will offset the expenditure for plan check services to be paid from the General Fund-Engineering Services.
The current Agreements with ERSC and Willdan approved in Fiscal Year 2020/2021 are one (1) year agreements with two (2) optional one (1) year extensions for a maximum of three (3) years. With their contracts expiring June 30, 2023, staff recommends that City Council authorize a one (1) year extension to ERSC and Willdan’s Professional Service Agreements to continue plan checking services and allow for continued uninterrupted services to be provided through June 30, 2024.
In addition, staff will initiate the solicitation process for on-call plan checking service and anticipates awarding in March 2024. Therefore, staff is recommending extending ERSC and Willdan’s PSA for one (1) additional year to close out the remaining work prior to the engagement of these services. The actual level of plan check activity and the contract amount to be paid will correlate directly with plan check fees collected for those services.
Copies of the Amendments and Disclosure Statements for both vendors are included as Attachments 1 through 4.
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 3Ain 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.
Approval of this action also complies with the following City of Rialto General Plan Goals and Policies:
Goal 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure.
Goal 4-1: Provide transportation improvements to reduce traffic congestion associated with regional and local trip increases.
Policy 4-1.1: Establish and maintain standards for a variety of street classifications to serve both local and regional traffic, including Major Arterial Highways, Major Arterials, Secondary Arterials, Collector Streets, and Local Streets.
Policy 4-1.20: Design City streets so that signalized intersections operate at Level of Service (LOS) D or better during the morning and evening peak hours, and require new development to mitigate traffic impacts that degrade LOS below that level. The one exception will be Riverside Avenue south of the Metrolink tracks all the way to the City’s southern border, which can operate at LOS E.
Policy 4-1.21: Design City streets so that unsignalized intersections operate with no vehicular movement having an average delay greater than 120 seconds during the morning and evening peak hours, and require new development to mitigate traffic impacts that increase delay above that level.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report and Third Amendment.
FINANCIAL IMPACT
Operation Budget Impact
Approved agreements with ERSC and Willdan provide services to the City as an “on-call” agreement. The scope of services required by the Agreement varies dependent upon the number and type of development services requiring the Consultant’s plan check services. The annual level of “on-call” plan check services required by these Agreements is unknown and may significantly increase or decrease from year to year.
Execution of the Amendment to these Agreements, as it relates to plan check services, is on a “pass-through” basis, whereby the City will collect plan check fees from a developer sufficient to cover the plan check fees to pay for the services provided by ERSC and Willdan. Upon receipt of payment from a developer, plan check revenues will be recognized in the General Fund-Engineering Services Account No. 010-400-7262-7629/7625, which will offset the expenditure for plan check services to be paid from the General Fund-Engineering Services Account No. 010-500-7262-2011.
The 2023/2024 fiscal year budget identifies $1.8 million as estimated revenue from plan check fees charged to developers, out of which expenditures associated with the proposed Amendment to the Agreement with ERSC and Willdan are paid. Sufficient funds are budgeted and available in the General Fund Account No. 010-500-7262-2011.
Capital Improvement Budget Impact
No impact.
LICENSING
ERSC and Willdan continue to maintain current business licenses with the City.
RECOMMENDATION:
Staff recommends that the City Council:
1) Approve the Third Amendment to the Professional Services Agreement with Engineering Resources of Southern California for On-Call Plan Check Services;
2) Approve the Third Amendment to the Professional Services Agreement with Willdan Engineering for On-Call Plan Check Services; and
3) Authorize the City Manager to Execute All Related Documents.