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Staff Report
City Council
Item No. 3.E
Meeting Date: March 23, 2022
From: John Corella, Director of Engineering/Public Works Title: Minor Amendments to Consulting Agreement with HR Green for On Call Capital Projects Program Management Consulting Services and Electronic Plan Check Services
City Council
RECOMMENDATION:
Approve Minor Amendments to the Professional Services Agreement with HR Green, Inc. to provide On-Call Engineering Program Management Consulting Services for Capital Projects and Electronic Plan Check Services; and, authorize the City Manager to execute the Agreement.
BACKGROUND:
On February 9, 2022, the City Council unanimously approved an Agreement with HR Green, Inc. (HR Green) to provide Capital Improvement Program (CIP) Management Support and On Call Electronic Plan Checking Services for the Engineering Department. The Staff Report from this meeting is attached for reference.
After the above cited meeting, the Agreement was sent to HR Green to execute. HR Green, in its final corporate review for execution, found that there were some minor changes required to the body of the Agreement and to how the insurance requirements were written in order for HR Green to execute and commence the services to be rendered.
DISCUSSION:
The changes required by HR Green were reviewed by the City Attorney and it was determined the changes to the Agreement’s contractual language were not substantive and could be considered standard language on similar agreements for similar services.
The insurance requirements were reviewed by the City’s Risk Manager, and it was determined that the insurance requirement changes are acceptable as there are variations on how the insurance coverage is written depending on the insurance carrier for the services provided.
The proposed modifications to the Agreement are as follows:
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SECTION 9. STANDARD OF PERFORMANCE; FAMILIARITY WITH WORK. Service Provider represents and warrants that it has the qualifications, knowledge, skill experience and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent and professional manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing at the same time and in the same or similar locality. Service Provider shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all Services. In meeting its obligations under this Agreement, Service Provider shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing services similar to the Services required of Service Provider under this Agreement. In addition to the general standards of performance set forth this section, additional specific standards of performance and performance criteria may be set forth in Exhibit “A” “Scope of Work” that shall also be applicable to Service Provider’s work under this Agreement. Where there is a conflict between a general and a specific standard of performance or performance criteria, the specific standard or criteria shall prevail over the general.
The proposed modifications to the City’s insurance requirements are as follows:
EXHIBIT “C”
INSURANCE
__X___ Workers’ Compensation Insurance: Workers’ Compensation insurance that includes a minimum of one million dollars ($1,000,000) of employers’ liability coverage.
Service Provider shall provide an endorsement that the insurer waives the right of subrogation against the City and its respective elected officials, officers, employees, agents and representatives. In the event a claim under the provisions of the California Workers’ Compensation Act is filed against City by a bona fide employee of Service Provider participating under this Agreement, Service Provider is to defend and indemnify the City from such claim.
X Professional Liability Insurance: Professional liability insurance appropriate to the Service Provider’s profession in an amount not less than one million dollars $1,000,000 per occurrence claim. This coverage may be written on a “claims made” basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of or related to Services performed under this Agreement. The insurance must be maintained for at least three (3) consecutive years following the completion of Service Provider’s services or the termination of this Agreement. During this additional three (3) year period, Service Provider shall annually and upon request of the City submit written evidence of this continuous coverage.
A redline of the Agreement showing these changes is attached as reference. Staff is requesting that the City Council approve the minor amendments to the Professional Services Agreement with HR Green, Inc. to provide On Call Engineering Program Management Consulting Services for Capital Projects and Electronic Plan Check Services; and authorize the City Manager to re-execute the Agreement.
FISCAL IMPACT:
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The financial impact related to this Agreement has not changed since City Council’s original approval on February 9, 2022.
A recap of the approval was as follows:
•A Consulting Services Agreement was authorized for a period of one (1) year in the not to exceed amount of $200,000, of which $150,000 for On Call CIP Program Management Services and $50,000 for Electronic Plan and Study Review Services.
•The General Fund Engineering Professional and Technical Services account, 100-156-8601, for FY 2021-22 has available funding for the $67,000 portion of the Agreement that may be incurred during the remainder of this fiscal year. This will not require a budget amendment.
•The General Fund Engineering Professional and Technical Services account, 100-156-8601, for FY 2022-23 may require up to $133,000 of the Agreement to be incurred through the end of the term of the Agreement. If the Engineering department is able to maintain budgeted staffing levels, there may be a need for a budget adjustment. If so, a request will be submitted to City Council for approval.
ATTACHMENTS:
Staff Report Printout-3095-1003-A43899
Agreement for Services - HR Green, Inc (redline)
HR Green Pacific Proposal - Cathedral City, CA - On-Call CIP Program Management Agreement for Services - HR Green, Inc. final for March 23, 2022 w_Insurance