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Staff Report
City Council
Item No. 6.D
Meeting Date: March 22, 2023
From: John Corella, Director of Engineering/Public Works Title: Consulting Agreement with HR Green for Land Development Engineering Support
City Council
RECOMMENDATION:
To approve a Professional Services Agreement with HR Green, Inc. to provide Land Development Engineering Support Consulting Services and Electronic Plan Check Services for the amount of $64,000 and $30,000, respectively for not to exceed total of $94,000; and, authorize the City Manager to execute the Agreement.
BACKGROUND:
Cathedral City is still experiencing growth with new developments continually being submitted to the Development Services Department. These Projects are in the queue and moving through the planning stages. Once again, this year’s development expansion provides increased opportunities for the City.
Even though these new development projects are submitted through the City’s Development Services Department, the City’s Engineering Division is significantly involved in the pre-submittal process, submittal process, the entitlement process (Planning Commission); and after entitlement, the actual plan preparation, process, permitting process and construction process. Evidence of these efforts are seen on the projects that have been constructed and issued certificates of occupancy.
At this time, the Engineering Division’s support for development is being managed and performed by the Director of Engineering/Public Works (Director) and contracted plan checkers. Recognizing that development is critical to the City, and that it does take significant hourly resources to manage and process the Engineering Division’s portion of the process, in September 2022, the City Council approved a full time Land Development Engineer into the Budget moving forward from that date.
DISCUSSION:
Since that approval date, there have been significant resources provided by the Human Resources Division to recruit for the Land Development Engineer position. A successful
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candidate with the right qualifications has not emerged to date.
Engineering Staff has reviewed the current Development Services queue and what will be necessary to complete the current workload, as well as the volume of anticipated development projects projected to be submitted. It has been determined that, even if the Land Development Engineer position is filled within the next few months, there will a training period to get this new employee up to speed. This still leaves a significant gap to effectively manage and process the development projects that are either pre or post entitlement.
Proactively, Engineering reached out to HR Green, Inc. (HR Green) to see if they have a person(s) with the skill set that could provide engineering development support. HR Green responded they do have an Assistant Engineer (EIT) available for this service and can be available working minimally onsite and majority electronically offsite for up to 8 hours each week. This person is providing assistance to another local City at this time with minimal supervision.
Additionally, Staff asked HR Green if Tim Jonasson, PE was also available for up to 4 hours a week to provide additional support on development engineering as well. (As a reminder, Mr. Jonasson assisted the Engineering Division with CIP Management support prior to the hiring our new City Engineer and stayed on a few months to assist in the transition. That contract recently expired).
Providing more background on HR Green, HR Green specializes in supporting municipalities in situations we are experiencing, which is expansion with limited resources to adequately address the required needs. This development engineering support will be provided mainly through their Palm Desert office. HR Green’s consultant supporting the Assistant Engineer is Tim Jonasson, PE, who once was the tenured Director of Engineering/Public Works for the City of La Quinta. With HR Green, Mr.
Jonasson as a Principal Engineer, has worked with other cities in Southern California to support similar situations we are experiencing.
HR Green’s experienced personnel will allow the Director to be able to begin moving the Engineering Division’s development workload back into a more predicable process in the interim period prior to hiring a full time Land Development Engineer. This assistance will allow the Director to work with the developers and their respective consultants at a management level and pass this work to HR Green, including development of a workable conditions of approval template.
HR Green is proposed to work with the Director one (1) day a week (12 consulting hours comprised of 8 hours for the Associate and 4 hours for the Principal, respectively with work to occur minimally onsite and a majority offsite. This may increase and/or decrease depending on certain milestones in various development projects being completed and others being initiated. The estimate for these services is $64,000 and will be paid at the hourly rates in the proposal.
Please note that Staff has asked for more available consulting hours from HR Green, in which HR Green stated they currently are not able to provide for the level of personnel Cathedral City Page 3 of 4 Printed on 3/22/2023
needed for this service. Engineering, in lieu of having a full time Land Development Engineer on Staff, will continue to seek additional consulting services for this specialty.
In addition to the above, Staff is again asking HR Green to provide plan check services.
Currently, all the developer submitted plans and studies are outsourced to plan check firms supporting City Staff. Staff is requesting HR Green be added to the list of available consultants and bolster our existing contracted development plan check services.
The estimate for these services is $30,000 and will be paid according to the services provided. Note: The newly adopted fee structure includes internal or external plan and study review services collected in advance of the post entitlement development process.
HR Green has submitted a proposal, which has been reviewed and is in line with current support services provided by similar consultants. Staff is recommending a Consulting Services Agreement be authorized for a period of six (6) months not to exceed $94,000, comprised of $64,000 for Engineering Development Support Services and $30,000 for Electronic Plan and Study Review Services. The Agreement will also provide for a six (6) month extension, at an additional cost of $94,000). Once a land development engineer is hired to the Cathedral City staff, there will be a six (6) month training/transition period in the amount of $94,000.
FISCAL IMPACT:
The FY 2022/2023 has available salary and benefit funding for the estimated $30,000 portion of the Agreement amount will be incurred during the remainder of this fiscal year. It is proposed this cost be funded from the salary savings from the unfilled Land Development Engineer position. Since the City will not incur staff labor costs, there will not be a budget adjustment for these contracted services.
For FY 2023/2024, to fund the engineering development support services in the pre- entitlement phase, HR Green’s services, directly related to a development project, will be reimbursed directly by the developer from the Development Services Department’s application deposit. This is consistent with how outside services are currently paid for in this pre-entitlement phase. As a result, there will not be a budget adjustment.
After entitlement (the post entitlement process), the 2021 adopted plan check fees provide funding for these services. As cited in the past, when these fees are collected, they are recognized as revenue in the General Fund. The past FY 2022/2023 budget did not account for paying for these services out of the General Fund Engineering Professional and Technical Services account fund, 100-156-8601. (Note: These post entitlement services are now accounted for in the upcoming proposed FY 2023/2024 and 2024/2025 funding for these services in the General Fund Engineering Professional and Technical Services account, 100-156-8601.)
Once the land development engineer is hired (planned for FY 2023/2024), a budget adjustment in the amount of $94,000 will be required for the training/transition period.
ATTACHMENTS:
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Cathedral City CA - On-call Land Development Engineering and Plan Check Support Services_FINAL_3-13-23
Agreement for Services - HR Green Inc - Land Development Services March 22 2023