For City Council Meeting [July 12, 2016]
TO: Honorable Mayor and City Council
APPROVAL: Michael E. Story, City Administrator
FROM: Robert G. Eisenbeisz, P.E., Public Works Director/City Engineer
Title
Request City Council to Authorize the Issuance of a Purchase Order in the amount of $400,000 to Wallace and Associates, Consulting, Inc. for the Second Year of a Three Year Professional Services Agreement for “On-Call” Public Works Construction Management and Inspection Services in Fiscal Year 2016/2017.
(ACTION)
Body
BACKGROUND:
One of the important functions of the Public Works Department is to perform construction management and inspections related to City-approved private land development projects, and the City’s capital improvement projects. For private land development projects, subsequent to the entitlement process, 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. The City Engineer has the legal responsibility to review and approve these improvement plans, and to ensure that construction of the on-site and off-site improvements meets City standards, and is completed in compliance with the City-approved plans. For capital improvement projects, sufficient available support is necessary for construction management, inspection, and related services.
On March 10, 2015, the City Council authorized the release of Request for Proposals No. 15-055 for “On-Call” inspection services associates with private land Development Projects. Requests for Proposals No. 15-055 was advertised on Thursday March 12, 2015 and Proposals were received on Monday, April 13, 2015 (Attachment 1).
On September 27, 2015, the City Council approved the Professional Services Agreement (PSA) with Wallace and Associates Consulting Inc. (Wallace) for “On-Call” Public Works Construction Management and Inspection Services related to Private Land Development Projects (Attachment 2).
ANALYSIS/DISCUSSION:
In the 2015/2016 fiscal year, Wallace provided on-call construction management and inspection services for approximately 10 different land development projects. Staff is satisfied with the “on-call” services provided by Wallace through the 2015/2016 fiscal year, and recommends the services continue for the 2016/2017 fiscal year pursuant to the terms of the PSA.
Development activities have continued to pick up from previous years as a sign of continued economic growth in the City. Wallace has provided oversight and inspection services for the on-site and off-site construction related to the following projects:
• PPD 2283- The I-210 Logistics Center II Development (a 757,503 square foot distribution warehouse located on Baseline Road between Maple Avenue and Linden Avenue)
• PPD 2413- A 15 Unit Subdivision located on the west side of Cedar Avenue approximately 600 feet south of Summit Avenue.
• PPD 2315- A four unit single family housing development located along the west side of Acacia Avenue approximately 500 feet south of Merrill Avenue.
• PPD 2335- A 630,200 square foot warehouse building Development located at the northwest corner of Alder Avenue and Casmalia Street.
• PPD 2396- A 65,359 square foot industrial building located along the east side of Cactus Avenue approximately 950 feet North of Santa Ana Avenue.
• PPD 2371- The development of a compressed natural gas fueling station located along Lilac Avenue south of Rialto Avenue.
• PPD 2368- Development of a 9,485 square foot five (5) unit apartment building on 0.32 acre of land located on the west side of Orange Avenue approximately 200 feet south of Third Street.
Total fees collected for permit issuance and inspection services in FY 2015-16 is $212,811.85 and the total amount expended for these services is $185,550.00. The remaining amount ($27,261.85) recovers administrative and overhead costs related to the application review and permit issuance process, inspection coordination/scheduling, and other related activities performed by City staff.
Staff anticipates that the numerous development projects undergoing plan check services in the current year will continue to construction within the next fiscal year. The first year of the “on-call” agreement expired on June 30, 2016. Staff requests that the City Council authorize issuance of a purchase order to Wallace and Associates Consulting, Inc. in the amount of $400,000 for the 2016/2017 fiscal year for the second year of the initial three-year term of the “on-call” agreement for construction management and inspection services. This amount is consistent with the amount recommended in the 2016/2017 fiscal year budget, reflecting an increase in development activity requiring associated inspection services.
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:
Subject to the City Council’s final adoption of the 2016/2017 fiscal year budget, funds have been budgeted and will be available in the General Fund Engineering Development, Account No. 010-500-7262-2011 in the amount of $800,000. Funding for the requested Purchase Orders with Wallace and Associates is for $400,000.
Implementation of the “on-call” agreement is on a “pass-through” basis, whereby the City collects inspection fees from a developer sufficient to cover the plan check fees paid to Wallace and Associates. Upon receipt of payment from a developer, inspection fees for public improvement or off-site developer improvements will be recognized in General Fund- Engineering Services Account No. 010-400-7262-7613, and for on-site improvement inspections in General Fund- Engineering Services Account No. 010-400-7262-7652. These revenues will offset the expenditure for inspection services to be paid from the General Fund- Engineering Services Account No. 010-500-7262-2011.
RECOMMENDATION:
Staff recommends that the City Council, authorize the issuance of a Purchase Order in the amount of $400,000 to Wallace and Associates, Consulting Inc. for the second year of the three year Professional Services Agreement for “On-Call” Public Works Construction Management and Inspection Services in Fiscal Year 2016/2017.