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Placentia City Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE MARCH 19, 2024
SUBJECT: AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH
FOUNTAINHEAD CONSULTING CORPORATION, FOR ON-CALL
CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR THE FY 2022-2023 STREET REHABILITATION PROJECT, CITY PROJECT NO. 1301 FISCAL
IMPACT: EXPENSE: $ 27,700 AMENDMENT NO. 1 TO THE PROFESSIONAL
SERVICES AGREEMENT
FUNDING
SOURCE: $ 27,700 FY 2023-24 CIP BUDGET (799800-6740 J/L 791301-6740) SUMMARY:
On February 4, 2021, Staff solicited proposals from qualified firms to create a bench list of professional consultants to provide on-call construction management and inspection services for the City's Capital Improvement Program (CIP). The top four (4) ranked firms which possessed the experience and expertise to deliver these services on a wide variety of construction projects were identified to form the bench list from which the City assigned projects to provide construction management and inspection services for. The City Council approved a contract to each of the top four ranked consultant firms to serve on an on-call basis and with a contract not -to -exceed amount of $250,000, the cost of which would be charged to individual project budgets. The purpose of having multiple firms on the bench list was to ensure efficient delivery of multiple capital improvement projects many of which may run concurrently. The use of on-call services is one of the best practices that municipalities employ in the delivery of CIP projects.
The City currently maintains an on-call professional services agreement with Fountainhead Corporation, for a not -to -exceed amount of $250,000. Fountainhead has provided construction management and inspection services on two (2) capital projects however delays in completing those projects increased the number of hours needed from Fountainhead to continue providing these services through completion of the project. Since the contract is based on time and materials if project schedules are extended additional working hours are typically required from construction management and inspection teams to ensure contractors fully comply with the project plans and specifications. Staff is recommending that the City Council approve the proposed Amendment No. 1 increasing the not -to -exceed contract amount by $27,700 to provide necessary inspection hours for the FY 2022-2023 Street Rehabilitation Project which is still under construction. Once
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March 19, 2024
City Council Agenda
March 19, 2024
this project is completed this scope will conclude the services provided by Fountainhead to the City and the agreement will be allowed to expire. Sufficient funds have been budgeted within the Fiscal Year (FY) 2023-24 Capital Improvement Program Budget to continue paying for these services.
RECOMMENDATION:
It is recommended that City Council take the following actions:
1. Approve Amendment No. 1 to Professional Services Agreement with Fountainhead Consulting Corporation for an additional $27,700 to continue providing inspection services for the FY 2022-2023 Street Rehabilitation Project for a cumulative contract not -to -exceed amount of $277,700; and
2. Authorize the City Administrator to approve contract amendments up to 10% of the cumulative contract amount, or $27,770; and
3. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
There is no specific Strategic Plan Goal or Objective associated with this Council action.
DISCUSSION:
The City plans and budgets for capital projects on an annual basis within its CIP Budget. The budget allocates funds for not only the construction of each project but also for soft costs such as professional engineering design services and construction management (CM) and inspection services.
Construction Inspection services are an important component to the capital project delivery process. During the construction phase, the on-call inspector will oversee the contractor's day-to- day operations and provide daily construction inspection services to ensure the project is built according to the approved plans and provides quality control over the contractor's work.
On May 18, 2021, the City Council approved an on-call professional services agreement with Fountainhead Corporation (formerly PPM Group), along with several other firms to create a bench list to provide on-call professional services. Fountainhead Corporation was selected from this list to provide construction management and inspection services for two different CIP projects, the Parque Del Arroyo Verde Renovation Project and the FY 2022-23 Street Rehabilitation Project based upon their qualifications and experience on similar projects.
Their proposal for construction management and inspection services for the Parque Del Arroyo Verde Renovation Project was approved as part of the construction contract award on May 2, 2023, in the amount of $152,940. An additional proposal was requested for an increase in
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March 19, 2024
inspection hours since their original proposal did not account for inspection for the entire contract's duration. That utilized an additional $31,900 from the contingency available, bringing the total amount to $184,840. Based upon their maximum contract amount, that only left a remaining balance of $65,160 for services needed for the street resurfacing project noted above.
Subsequently, Fountainhead's proposal for inspection services for the FY 2022-23 Street Rehabilitation Project which is currently under construction was approved by the City Council on November 5, 2023, in the amount of $92,860. However, this left a contract shortfall of $27,700 needed to continue providing inspection services on this project. Therefore, Staff is proposing Amendment No. 1 to the agreement, which will provide the additional contractual spending authority needed for Fountainhead Corporation to continue providing inspection services through completion of the FY 2022-23 Street Rehabilitation Project.
FISCAL IMPACT:
The recommended actions will approve Amendment No. 1 to the Professional Services Agreement with Fountain head, thereby increasing the contract amount by $27,700. The costs for these services have been budgeted within the FY 2023-24 Capital Improvement Program. As such, sufficient funds exist for the recommended actions.
Prepared by:
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Chris Tanio, P.E. J- nifEampman
Deputy Director of Public Works/City Engineer D'irecti r of Finance Reviewed and approved:
Reviewed and appr
ved: Reviewed and approved:
Luis Estevez Damien R—Ar�u a
Deputy City Administrator City Administrator
Attachment:
Amendment No. 1 to Professional Services Agreement with Fountainhead Consulting Corporation