For City Council Meeting [November 27, 2018]
TO: Honorable Mayor and City Council
APPROVAL: Ahmad R. Ansari, Interim City Administrator
FROM: Robert G. Eisenbeisz, P.E., Public Works Director/City Engineer
Title
Request City Council to Authorize a “Month-to-Month” Amendment to the Professional Services Agreement with Wallace and Associates and Authorize the Issuance of a Purchase Order in the amount of $388,000 for “On-Call” Public Works Construction Management and Inspection Services for the First 8 Months of Fiscal Year 2018/2019.
(ACTION)
Body
BACKGROUND:
An important function of the Public Works Department is to perform construction management and inspection related to permitted work within the public right-of-way, City-approved private land development projects, and Capital Improvement Program (CIP) projects. The City Engineer has the responsibility to ensure that construction of public improvements meets City standards, in compliance with City-approved plans related to permitted work in the public right-of-way, public improvements for private land development and capital projects.
ANALYSIS/DISCUSSION:
The City of Rialto entered into an agreement with Wallace and Associates (Wallace) for “On-Call” Construction Management and Inspection services on October 27, 2015. The term of the agreement was for three (3) years. The three (3) year term of the contract expired on October 26, 2018. A copy of the PSA is included as Attachment 1.
At the time of contract expiration, Wallace was providing construction management and inspection services for a number of Capital Improvement and Land Development projects. A halt in receiving services for the ongoing construction activities would result in significant impact to new Development and ongoing Capital projects. Table 1 is a list of capital projects and Table 2 is a list of land development projects for which Wallace is currently providing services.
Table 2
Construction Inspector Recruitment
The City has advertised recruitment for the position of construction inspector, with the first round of interviews held on November 21, 2018. The primary duties of the construction inspector will initially consist of encroachment permit inspection for work in the public right-of-way. The City anticipates hiring the new staff member as soon as early January but no later than mid-February (dependent on the background process) allowing a transition process from consultant to the City employee. In addition, the City has started the recruitment for a Senior Construction Inspector position that will assume more of the ongoing inspection duties currently provided by outside consultants.
Request for Proposals - “On-call” Inspections for CIP and Development projects
City staff is preparing a Request for Proposals (RFP) for on-call professional services related to Construction Management, Inspection, and Testing services and anticipates having advertising the RFP by late November of 2018. The scope of services will consist of Construction Management, Inspection, and Testing Services in support of various CIP and Land Development projects and the tentative schedule for award of the related Professional Services Agreement is as follows:
Notice requesting Proposals posted and issued Monday, November 26, 2018
Deadline for receipt of questions Monday, December 10, 2018, 3:00 P.M.
Deadline for receipt of proposals Monday, December 17, 2018, 3:00 P.M.
Contract awarded by City Council Tuesday, February 26, 2018
Staff has prepared an amendment to the PSA with Wallace & Associates to extend the agreement term on a month-to-month basis through March 1, 2019. A copy of the proposed amendment to the PSA with Wallace & Associates is included as Attachment 2.
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 and Amendment to the PSA.
FINANCIAL IMPACT:
Operating Budget Impact - Development
With ongoing development activity, the City requires Wallace to perform inspection services for private development projects. Staff estimates total costs for these services to be approximately $388,000 for the first 8 months of FY 2018/2019, consisting of $172,628 for services already provided and an estimated $215,372 for services that will be provided through March 1, 2018. The City is actively recruiting for a full time construction inspector and anticipates transitioning from consultant staff to City staff; however, staff anticipates that there will likely be a continuing need for Consultant services considering the current pace of development. Funds are budgeted and available in General Fund Account No. 010-500-7262-2011 for the requested Purchase Orders with Wallace.
Implementation of the “on-call” agreement for development permits is on a “pass-through” basis, whereby the City collects inspection fees sufficient to cover the inspection fees paid to the consultant. Upon receipt of payment from an applicant, inspection fees for inspection are recognized in General Fund- Engineering Services Account No. 010-400-7262-7613/7614/7652. These revenues will offset the expenditure for inspection services to be paid from the General Fund- Engineering Services Account No. 010-500-7262-2011.
Capital Budget Impact
The costs for the proposed services related to the capital projects identified in Table 1 are charged to each individual capital project account.
Licensing
Prior to execution of the Professional Service Agreement and associated Purchase Orders, the vendor shall submit a business license application and pay a Business License tax at the Professional Service rate of $388.
RECOMMENDATION:
Staff recommends that the City Council:
• Approve a Month-to-Month Amendment to the Professional Services Agreement with Wallace and Associates for the first 8 months of Fiscal Year 2018/2019.
• Authorize the Issuance of a Purchase Order in the amount of $388,000 for “On-Call” Public Works Construction Management and Inspection services.