DATE: October 24, 2023
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT: Adopt Resolutions Authorizing the City Manager to Execute First Amendments to the Professional Services Agreements with Willdan Engineering and SNG & Associates, Increasing the Agreements by $200,000 Annually for a Total Not-To-Exceed Amount of $350,000 Per Firm, for On-Call Construction Inspections Services for the Existing Term of the Agreements
RECOMMENDATION
That Council adopts resolutions (Attachment II and III) authorizing the City Manager to execute amendments to the Professional Services Agreements (PSAs) with Willdan Engineering and SNG & Associates, increasing the agreements by $200,000 annually for a total not-to-exceed (NTE) amount of $350,000 per firm, for on-call construction inspection services for the existing term of the agreements.
SUMMARY
The Department of Public Works & Utilities routinely uses on-call construction inspectors when in-house staffing levels are inadequate, either due to absences, vacancies, or increased workload. The on-call construction inspection services provide oversight on City-sponsored projects, private developments, and encroachment permits.
BACKGROUND
In October 2021, a Request for Qualifications (RFQ) #2204-091421 was released to obtain proposals for on-call inspection services for three years. In January 2022, Council approved on-call inspection service agreements with three firms, Willdan Engineering, SNG & Associates, and 4Leaf, Inc., in an amount NTE $150,000 annually per firm. All three agreements shall terminate upon completion and acceptance of the work to be provided under the agreement or March 31, 2025.
DISCUSSION
The in-house Construction Inspection Division’s workload supports projects from the Engineering, Transportation, Utilities, Executive Airport, and Environmental Services Divisions, as well as public improvement portions of other City-sponsored projects. In addition, the Inspection Division is responsible for inspection of the public improvements of private development projects, and encroachment purposes. With the currently anticipated workload, it is necessary to continue the supplemental contracted work with on-call construction inspection firms to ensure compliance, meet project deadlines, and provide project oversight.
Staff has contacted the three firms and only two, Willdan Engineering and SNG & Associates, have confirmed their availability for on-call staff. The third firm, 4Leaf, Inc.*, was not able to confirm their availability due to staff shortages.
The following table summarizes the total spent to date for each firm.
Total Spent to Date
Willdan Engineering
$200,430
SNG & Associates
$49,790
4Leaf, Inc.*
$0*
Total
$250,220
It is anticipated that SNG will be utilized for the FY23 Pavement Rehabilitation Project and the Sewer Main Replacement Project until mid-2024 with an estimated cost of $230,000. Willdan will be utilized for the Water Main Replacement Project until mid-2024 with an estimated cost of $220,000.
STRATEGIC ROADMAP
This action will help ensure that the infrastructure projects and City development projects in the Strategic Roadmap are not adversely impacted by construction inspection delays.
ECONOMIC IMPACT
Timely inspection services for City and private development projects would ensure public safety and foster economic activity. Similarly, timely inspection of private development projects, like new housing or commercial properties, allow the contractors to maintain their schedule; once complete, the projects contribute to the City’s economic vitality.
FISCAL IMPACT
Staff recommends increasing the PSA amounts for Willdan Engineering and SNG & Associates from $150,000 to $350,000, annually, per firm for the remainder of the term of the agreement, summarized as follows:
Original
Proposed Amendment No.1
Total
First year (February 22, 2022 to February 21, 2023)
$150,000
$ -
$150,000
Second year (February 22, 2023 to February 21, 2024)
$150,000
$200,000
$350,000
NTE Amount
$500,000
This item will have a neutral impact to the General Fund. These services will only be used on City projects with appropriated budget for construction inspection or where inspection-related expenses will be reimbursed by developers and permit holders. Staff recommends increasing the PSA with Willdan Engineering and SNG & Associates, for a NTE amount of $350,000 for each firm. Staff does not expect to use all allocated funding for each firm each year; rather, the budgeted amount will give staff flexibility when services are required due to an increase in projects and workload. If the workload falls short of the forecast, the budget expenditures would be limited to the actual inspection costs incurred.
SUSTAINABILITY FEATURES
There are no sustainability features associated with this item.
PUBLIC CONTACT
No Public contact has been made related to this amendment.
NEXT STEPS
If Council approves this item, the City Manager will execute Amendment No. 1 to the PSAs with Willdan Engineering and SNG & Associates for on-call construction inspections services.
Prepared by: Michael Wolny, Management Analyst
Kathy Garcia, Deputy Director of Public Works
Recommended by: Alex Ameri, Director of Public Works Approved by:
_______________________________________
Kelly McAdoo, City Manager
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