For City Council Meeting [June 27, 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) Authorize Issuance of a Purchase Order in the amount of $561,600 to Onward Engineering for “On-Call” Construction Inspection Services for Fiscal Year 2023/2024; and (2) Authorize the City Manager to Execute all Related Documents.
(ACTION)
Body
BACKGROUND
An important function of the Engineering Services Department is to perform inspection services related to permitted work within the public right-of-way and City-approved private land development projects. The Engineering Services Department is responsible for ensuring the construction of public improvements is performed in accordance with City standards and in compliance with City-approved plans.
On April 12, 2022, the City of Rialto entered into an agreement with Onward Engineering for “On-Call” Construction Management and Inspection services. The term of the agreement was for three (3) years with two (2) additional (1) year extensions. A copy of the Professional Services Agreement (PSA) for Onward Engineering is included as Attachment 1.
In Fiscal Year 2022/2023, an initial Purchase Order of $100,000 was issued to Onward Engineering for construction inspection services. On September 13, 2022, the City Council approved an increase to the existing PO with Onward Engineering in the amount of $378,465 for the remainder of the fiscal year.
ANALYSIS/DISCUSSION
The Engineering Services 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 its ample resources and expertise in construction inspections. Table 1 below lists some of the development projects, but not all.
TABLE 1 - Land Development Projects
Based on the increase in projects, staff recommends authorizing a Purchase Order with Onward Engineering for construction inspection services in the amount of $561,600 for Fiscal Year 2023/2024.
The proposed purchase order is pursuant to the "On-Call" professional services agreement with Onward Engineering. The terms of this agreement 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.
A copy of the proposal and disclosure statement is included as Attachment 2 and 3, 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 and supports this staff report.
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. 010-400-7262-7652. The projected revenue for the upcoming fiscal year 2023/2024 is $900,000.
The purchase order in the amount of $561,600 to Onward Engineering for inspection services will be funded from the General Fund-Engineering Services Account No. 010-500-7262-2011. The purchase order operates on a “pass-through” basis; 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 paid the business license application, business license tax, and fees upon issuance of the initial on-call contract.
RECOMMENDATION
Request City Council to:
1) Authorize issuance of a Purchase Order in the amount of $561,600 to Onward Engineering for “On-Call” Construction Inspection Services for Fiscal Year 2023/2024; and
2) Authorize the City Manager to Execute all Documents.