For City Council Meeting [December 12, 2017]
TO: Honorable Mayor and City Council
APPROVAL: Michael Story, City Administrator
FROM: Robb R. Steel, Assistant CA/Development Services Director
Title
Request City Council to Approve a Third Amendment to the Professional Services Agreement with Willdan Engineering, Inc., Reducing the Contract Amount from $530,620 to $450,620; and Approve a Second Amendment to the Professional Services Agreement with Interwest Consulting Group, Increasing the Contract Amount from $50,000 to $130,000, to Reallocate Costs for Building Services from Willdan Engineering Inc. to Interwest Consulting Group for Fiscal Year 2017/18.
(ACTION)
Body
BACKGROUND:
On August 9, 2016, the City Council approved a Professional Services Agreement (PSA) with Willdan Engineering, Inc. (Willdan) in the amount of $333,050 for permit technician, building inspections, fire plan check and structural plan check services; and approved a PSA with Interwest Consulting Group (Interwest) for $50,000 for as needed fire plan check and structural plan check services for the 2016/2017 fiscal year.
On July 25, 2017, the City Council approved an increase to purchase order 2017-0740 for Willdan in the amount of $21,000 to close out fiscal year 2016/17; and approved a second amendment to the PSA with Willdan for $530,620, and a first amendment to the PSA with Interwest for $50,000 for the 2017/18 fiscal year.
ANALYSIS/DISCUSSION:
Over the last several years, the Development Services Department has utilized Willdan for building inspections, counter assistance, fire plan check and structural plan check services as needed to support the consistent growth in new development within the City. At the start of FY16/17, staff elected to contract with two consulting firms to increase services for as needed building inspections, plan check and counter services. The City Council awarded Willdan a contract amount representing 75% of the Building Division’s contract services budget for building inspections, plan check and counter services; Interwest was awarded the remaining 25% for plan check services. Interwest has provided excellent service and has proven to be a necessary addition for providing optimal service and redundancies.
Staff requests to expand the services received and amend the current contract with Interwest to include as needed plan check, building inspections and permit counter assistance. The proposed amendments include:
• Willdan. A Third Amendment to the PSA to include permit technician, building inspections, fire plan check and structural plan check services reducing the contract amount to $450,620 for FY 2017/18. The current permit technician used by Development Services switched employment to Interwest, which necessitates this adjustment to the Willdan contract and the Interwest contract.
• Interwest. A Second Amendment to the PSA to include permit technician, building inspections, fire plan check and structural plan check services increasing the contract amount to $130,000 for FY 2017/18.
ENVIRONMENTAL IMPACT:
Section 15262 of the California Environmental Quality Act (CEQA) Guidelines states that “a project involving only feasibility or planning studies for possible future actions which the City has not approved, adopted, or funded does not require preparation of an Environmental Impact Report or Negative Declaration…” The consultant will need to consider environmental factors in the design work, but the City will comply with CEQA prior to the preparation of construction drawings for the project.
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
For FY17/18, the City Council approved a total budget of $580,620 for Building Division contract services. Staff requests to reallocate budget between purchase orders as follows:
Decrease Willdan Purchase Order 2018-0586 by $80,000, and re-allocate the $80,000 to Interwest Purchase Order 2018-0585. There is no budget impact, simply a reallocation of authorized budget between vendors.
LICENSING
Interwest Consultant Group applied for a business license and paid a Business License tax at the Professional Service rate in the amount of $104 prior to execution of the Professional Service Agreement and Purchase Order.
Willdan Engineering applied for a business license and paid a Business License tax at the Professional Service rate in the amount of $379 prior to execution of the Professional Service Agreement and Purchase Order.
RECOMMENDATION:
Staff recommends that City Council Approve a Third Amendment to the Professional Services Agreement with Willdan Engineering, Inc., Reducing the Contract Amount to $450,620 (Exhibit A); and Approve a Second Amendment to the Professional Services Agreement with Interwest Consulting Group, Increasing the Contract Amount to $130,000 (Exhibit B) for FY17/18.