City of Corona
Staff Report
400 S. Vicentia Ave.
Corona, CA 92882
File #: 22-0301
REQUEST FOR CITY COUNCIL ACTION
DATE: 04/20/2022
TO: Honorable Mayor and City Council Members
FROM: Planning & Development Department
SUBJECT:
Fourth Amendment to the Professional Services Agreement with Wallace & Associates Consulting, LLC to increase the amount of the existing Agreement by $510,000 for Construction Inspection Services.
EXECUTIVE SUMMARY:
Wallace & Associates Consulting, LLC currently provides consulting services to the City for on-call inspection services for a variety of capital improvement projects, development, and utility projects.
The Planning and Development and Public Works Departments have used Wallace & Associates Consulting, LLC regularly to support staff in performing construction inspections. Due to the volume of construction projects performed over the past few years and the number of inspections required with that work, the City has reached the cost limit approved by the agreement. The proposed Amendment includes an increase of $510,000 to the existing purchase order. The existing Agreement term expires on June 30, 2023. Wallace & Associates Consulting, LLC formerly known as Wallace & Associates Consulting, Inc. was recently acquired by Anser Advisory Management, LLC on October 4, 2021, and will be doing business as Wallace & Associates Consulting, LLC.
RECOMMENDED ACTION:
That the City Council:
a. Approve the Fourth Amendment to the Professional Services Agreement with Wallace & Associates Consulting, LLC to increase the amount from $1,375,000 to $1,885,0000, which is an increase of $510,000 for Fiscal Year 2022 and 2023.
b. Authorize the City Manager, or their designee, to execute the Fourth Amendment to the Professional Services Agreement with Wallace and Associates, LLC for a total contract amount of $1,885,000 for Fiscal Year 2022 and 2023.
c. Authorize the City Manager, or their designee to issue Change Order No. 4 to Purchase Order City of Corona Page 1 of 3 Printed on 4/13/2022
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File #: 22-0301
c. Authorize the City Manager, or their designee to issue Change Order No. 4 to Purchase Order B220147 to Wallace and Associates Consulting, LLC for $510,000. d. Authorize the City Manager or their designee, to approve amendments necessary for the execution of the work, in accordance with the Corona Municipal code Section 3.08.070(I), up to $113,500 or 10% of the amended contract amount specific to construction inspection services.
BACKGROUND & HISTORY:
The City Council at its meeting on April 12, 2017, awarded Wallace & Associates Consulting, LLC (Wallace & Associates) a Professional Services Agreement (PSA) in the amount of $1,250,000 to provide on-call engineering and professional consulting services to the City. The City issued an initial Request for Proposal (RFP) in 2017 to solicit on-call professional engineering services that would provide as-needed support to the City to perform plan check, project management, construction management, and inspection services. In addition to Wallace & Associates, the City awarded agreements to 24 other firms and created a list of authorized consultants that could be used by the City based on available resources.
Wallace & Associates has been regularly used by the Planning and Development and Public Works Departments to provide supplemental staffing for field inspections. Wallace & Associates has available staffing resources and a proven track record for conducting specialized inspections related to capital improvement projects, sewer, domestic water, and reclaimed water. Wallace & Associates provides a variety of services that could not be performed or completed by other vendors. The inspectors ensure that all work conforms to the project construction documents, City Codes, and Ordinances including APWA (American Public Works Association), Greenbook Standards (Standard Public Works Specifications), AWWA (American Water Works Association) Standards, City Public Works Standards, State and Federal Building Codes related to site accessibility as well as Title 24 and ADA (Americans with Disabilities Act) requirements, and the Caltrans’ Local Programs Manual.
ANALYSIS:
The City’s agreement with Wallace & Associates covers three disciplines: Project Management in the amount of $500,000, Construction Management in the amount of $250,000 and Construction Inspections in the amount of $500,000 for a total contract amount of $1,250,000 annually.
Additionally, the agreement allowed an increase of up to 25% of the contract amount. Wallace & Associates executed a single contract with the City covering all three disciplines. A third amendment to the agreement was processed on March 11, 2021, to increase the contract amount by $125,000 or 25% for inspection services for a total cost limit of $625,000. The cost increase in inspection services increased the total contract amount to $1,375,000.
The City’s use of this firm has continued to increase because of the firm’s available resources to perform construction inspections and work experience in this field. In today’s labor market, finding a firm that can be responsive to the City’s needs with a high level of competency is difficult. Wallace & Associates has been able to keep up with the City requests for services, even in this difficult time.
Since this firm is used by more than one City department, the City has reached the current spending limit allowed by the agreement for inspection services. The proposed fourth amendment would increase the amount of Wallace & Associates Professional Services Agreement from $1,375,000 to City of Corona Page 2 of 3 Printed on 4/13/2022
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File #: 22-0301
increase the amount of Wallace & Associates Professional Services Agreement from $1,375,000 to $1,885,000, which is an increase of $510,000 for construction inspection services. The Fourth Amendment would cover Fiscal Year 2022 and 2023.
FINANCIAL IMPACT:
Funding for the recommended action is included in the Fiscal Year 2022 Planning and Development Department Operating Budget.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action is simply to approve a professional services agreement for inspection services, and there is no possibility that approving this Amendment will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: CINDY WARD, EXECUTIVE ASSISTANT
REVIEWED BY: JOANNE COLETTA, PLANNING & DEVELOPMENT DIRECTOR Attachments:
1. Exhibit 1 - Fourth Amendment to the Professional Services Contract Agreement City of Corona Page 3 of 3 Printed on 4/13/2022
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