For City Council Meeting [July 12, 2016]
TO: Honorable Mayor and City Council
APPROVAL: Michael E. Story, City Administrator
FROM: Robb R. Steel Assistant to the CA/Development Services Director
Title
Request City Council to Approve a Fifth Amendment to a Professional Services Agreement with Willdan Engineering, Inc. for Fiscal Year 2016-17 for Building Inspections, Fire Plan Check and Structural Plan Check Services and extend the Contract Agreement from July 1, 2016 to August 31, 2016.
Body
BACKGROUND:
On Tuesday, December 10, 2013, the City Council approved a Professional Services Agreement (PSA) with Willdan Engineering, Inc. (Willdan) for building inspection, fire plan check and structural plan check services in an amount not-to-exceed $64,000 for the remainder of fiscal year 2013-14. The City Council authorized the City Administrator to extend the term for two additional one-year terms, for a total contract term of three years. Staff was directed to appropriate budget each fiscal year prior to granting the extensions. In January 2014, Willdan commenced services for the Building Division for building inspections and structural plan checks.
On April 8, 2014, the City Council approved the First Amendment to the PSA to increase both inspection and plan check services and to provide building management staff due to the resignation of the Building and Code Enforcement Superintendent (Superintendent). The total additional cost was $178,330, increasing Willdan’s budget for fiscal year 2013-14 to $242,330.
On June 24, 2014, the City Council approved the Second Amendment to the PSA for inspection and plan check services and to provide building management staff for six months until the City hired a Building/Code Enforcement Manager for fiscal year 2014-15. The total budget was $467,000.
On November 25, 2014, the City Council approved the Third Amendment to the PSA to increase funding for building management staff for an additional three months until the hiring of a Building/Code Enforcement Manager. The additional cost was $19,500 (paid from Building/Code Enforcement Manager salary savings), increasing the budget for Willdan’s services to $486,000 for fiscal year 2014-15.
On June 23, 2015, the City Council approved the Fourth Amendment to the PSA to increase the Contract Amount by $391,520 for a total Contract Amount of $1,120,350 over a 2.5 year term through June 30, 2016. The PSA with Willdan expired on July 1, 2016. The PSA is attached hereto as Exhibit A.
ANALYSIS/DISCUSSION:
The City prepared Request for Proposal #16-101 soliciting proposals for building inspection, fire plan check, and structural plan check services. On May 2, 2016, the City released the RFP and received 7 proposals by the deadline of May 26, 2016. Staff evaluated the 7 Consultant Proposals, interviewed the most qualified respondents, and will recommend selection of a consultant(s) by August 31, 2016.
To allow for the selection process and potential transition, Staff requests that the City Council extend the current PSA with Willdan until August 31, 2016. As of May 31, 2016, a total of $113,510 of previously approved budget remains available. On average, Willdan’s services cost approximately $30,000 per month. For the months of June, July, and August, staff expects expenditures of $90,000, leaving a balance of $23,510. Staff will request budget for the new contract(s) when presented to the City Council for consideration in July or August.
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:
The City of Rialto General Plan establishes various guiding principles, goals, and objectives through which the City looks to improve the community and protect the quality of life for our residents. Guiding principle No. 1 states that Rialto is a family first community and essential services and amenities must meet the needs and desires of our families. Approval of the proposed PSA is consistent with the guiding principle to provide essential services to the community.
LEGAL REVIEW:
The City Attorney has reviewed and approved the staff report and Fifth Amendment to the PSA.
FINANCIAL IMPACT:
For FY16, the Building Division forecasts building permit revenue of $870,000 and building plan check revenue of $770,000 for total Building Division related revenues of $1,640,000. These funds are used to offset the cost of staff and contract management of the Building Division. Surpluses accrue to the benefit of the General Fund.
The maximum amount payable for Willdan's services will remain $391,520. This request does not request additional budget authority. The funds will be paid from General Fund Account No. 010-500-4261-2011. The FY16 budget allocated $420,000 to this account.
RECOMMENDATION:
Staff recommends that City Council approve a Fifth Amendment to a Professional Services Agreement with Willdan Engineering, Inc. for Building Inspection, Fire Plan Check and Structural Plan Check Services and extending the term of the PSA until August 31, 2016.