City of Rialto
Legislation Text
File #: 26-0297, Version: 1, Agenda #: TAB2
For City Council Meeting May 12, 2026
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Yazdan Emrani, P.E., Director of Public Works
Request City Council to: (1) Approve a First Amendment to the Professional Services Agreement with Fountainhead Consulting Corporation for the Provision of Interim Capital Improvement Project Engineering Manager Services in the Amount of $200,000, Bringing the Total Contract Cost to a Not- to-Exceed Amount of $295,000; and (2) Authorize the City Manager or Their Designee to Execute All Related Documents.
(ACTION)
RECOMMENDED
Staff recommends that the City Council:
1) Approve a first amendment to the professional services agreement with Fountainhead Consulting Corporation (Fountainhead) for the provision of interim Capital Improvement Project (CIP) engineering manager services in the amount of $200,000, bringing the total contract cost to a not-to-exceed amount of $295,000; and 2) Authorize the City Manager or their designee to execute all related documents.
BACKGROUND
The Public Works Department has the responsibility for managing and delivering the CIP projects in the City, and the CIP Engineering Manager plays an integral role in ensuring that projects keep moving forward in an efficient manner. In early November 2025, the City’sfull-time CIP Engineering Manager left the City of Rialto, necessitating the engagement of a consultant to provide these services until a new full-time staff member could be hired. Due to the urgent need to maintain progress on CIP project management and delivery, the initial agreement was executed in the amount of $95,000 under the authority of the City Manager. City Council approval is now required to execute a First Amendment to the agreement. The current agreement term is set to expire on December 16, 2026.
ANALYSIS/DISCUSSION
In November 2025, the City’s CIP Engineering Manager resigned. To maintain continuity in the delivery of CIP projects, the City engaged a consultant to serve as Interim CIP Engineering Manager while initiating a recruitment process to fill the position.
The Public Works Department solicited proposals from its on-call consultant list for these services.
Fountainhead and TKE Engineering submitted proposals. After evaluation, Fountainhead was determined to provide the most qualified candidate, who was already supporting several City CIP City of Rialto Printed on 5/7/2026Page 1 of 3
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1 File #: 26-0297, Version: 1, Agenda #: TAB2
determined to provide the most qualified candidate, who was already supporting several City CIP projects and possessed a strong familiarity with the City’sprocesses and protocols. Based on this experience and the candidate’s background in both contract and construction management, staff determined that a sole-source agreement with Fountainhead was in the City’s best interest.
The current Public Works labor market remains highly competitive, particularly for recruiting technical staff, such as civil engineers and project managers with CIP experience. The City has conducted recruitment efforts, and applications are currently under review for preliminary interviews. Due to the foregoing, as well as the extended timeframe required to recruit and onboard a qualified CIP Manager, staff recommends the proposed course of action. These market conditions have made it increasingly challenging to attract candidates with the necessary experience and expertise in a timely manner, and the recommendation reflects a practical approach to maintaining continuity and progress on critical projects. Recruitment will remain open on a continuous basis until a qualified candidate is selected.
Accordingly, staff recommends that the City Council authorize the First Amendment to the Professional Services Agreement with Fountainhead in an additional amount of $200,000, for a total not-to-exceed amount of $295,000. The proposed First Amendment is provided as Attachment 1, and Fountainhead’s updated Disclosure Statement is included asAttachment 2.
ENVIRONMENTAL IMPACT
This request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA) Guidelines. A “Project”means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Pursuant to Section 15378(b)(5), a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 2 of the General Plan:
“First impressions matter. The quality and standards of our streetscapes and public spaces will reflect the high quality of development we require.”
This action is also consistent with Guiding Principle 3 of the General Plan:
“OurCity Government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.” LEGAL REVIEW:
The City Attorney’s Office has reviewed the First Amendment and approved it as to form.
FINANCIAL IMPACT:
Operating Budget Impact
The additional cost of services provided by Fountainhead Consulting Corporation is a not-to-exceed amount of $200,000, for a total contract amount of $295,000. Sufficient funding is available in the General Fund, Account 10107265-52011, for the remainder of the fiscal year and in the proposed City of Rialto Printed on 5/7/2026Page 2 of 3
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2 File #: 26-0297, Version: 1, Agenda #: TAB2
budget for the next fiscal year.
Capital Budget Impact:
This action has no impact on the Capital Budget.
Licensing
Prior to the execution of the First Amendment, the vendor shall pay an updated Business License tax as well as Administration and State Fees.
City of Rialto Printed on 5/7/2026Page 3 of 3
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FIRST AMENDMENT TO THE
SERVICES AGREEMENT
BETWEEN THE CITY OF RIALTO
AND
FOUNTAINHEAD CONSULTING CORPORATION
1. PARTIES AND DATE.
This First Amendment to the Services Agreement ( “First Amendment”) is made and entered into this 12th of May 2026, by and between the City of Rialto (“City”) and Fountainhead Consulting Corporation, a California S Corporation, (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this First Amendment.
2. RECITALS.
2.1 Agreement. City and Consultant entered into that certain Services Agreement dated December 16th, 2025, (“Agreement”), whereby Consultant agreed to provide services to the City related to providing interim Capital Improvement Project (CIP) manager services (“Project”).
2.2 Amendment. City and Consultant desire to amend the Agreement by this First Amendment to extend the term of the Agreement, and to increase the total amount of compensation for the Agreement.
3. TERMS.
3.1 Payment Terms. Consultant shall be compensated for the additional services included in this First Amendment in an amount not to exceed Two Hundred Thousand Dollars and Zero Cents ($200,000.00). The total compensation, including reimbursement for actual expenses, the City will pay Consultant pursuant to the Agreement as amended by the First Amendment shall not exceed Two Hundred Ninety-Five Thousand Dollars and Zero Cents ($295,000.00).
3.2 Time for Performance. The time to complete the additional services included in the First Amendment shall begin immediately upon execution of the First Amendment. The Term of this Agreement shall be extended through June 30, 2027.
3.3 Continuing Effect of Agreement. Except as amended by this First Amendment, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this First Amendment, whenever the term “ Agreement” appears in the Agreement, it shall mean the Agreement as amended by this First Amendment.
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3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this First Amendment.
3.5 Counterparts. This First Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
3.6 Conflict of Interest . Pursuant to Rialto Municipal Code section 2.48.145, Consultant represents that it has disclosed whether it or its officers or employees is related to any officer or employee of the City by blood or marriage within the third degree which would subject such officer or employee to the prohibition of California Government Sections 87100 et. seq., Fair Political Practices Commission Regulation Section 18702, or Government Code Section 1090. To this end, by approving this Agreement, Consultant attests under penalty of perjury, personally and on behalf of Consultant , as well its officers, representatives, that it/they have no relationship, as described above, or financial interests, as such term is defined in California Government Section 87100 et. seq., Fair Political Practices Commission Regulation Section 18702, or Government Code Section 1090, with any City of Rialto elected or appointed official or employee, except as specifically disclosed to the City in writing.
3.7 Corporate Authority. The persons executing this First Amendment on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this First Amendment on behalf of said party, (iii) by so executing this First Amendment, such party is formally bound to the provisions of this First Amendment and (iv) the entering into this First Amendment does not violate any provision of any other agreement to which said party is bound.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties hereto have executed and entered into this Agreement on the date first written above.
CITY: CONSULTANT:
CITY OF RIALTO, a municipal
corporation
FOUNTAINHEAD CONSULTING
CORPORATION, a California
corporation
By: By:
Tanya Williams, City Manager Signature
ATTEST: Ivan Benavidez
Name
By:
Barbara A. McGee, City Clerk Principal
Title
APPROVED AS TO FORM:
By:
Burke, Williams & Sorensen, LLP Signature
By: Cheryl Blecker
Eric S. Vail, City Attorney Name
Corporate Secretary
Title
**Two signatures are required if a
corporation**
6 CITY OF RIALTO
DISCLOSURES REQUIRED BY PERSONS OR ENTITIES
CONTRACTING WITH THE CITY OF RIALTO*
Pursuant to City of Rialto Municipal Code Section 2.48.510, all persons or business entities supplying any goods or services to the city, or seeking a loan or grant awarded by the city, whether through an application or proposal, shall disclose in such application or proposal whether any city officer, employee, or consultant may have a financial or non-financial interest in the person or business entity, or in any member, employee, owner, or officer of the business entity. • A financial interest shall mean any interest that is prohibited under state law, including California Government Code Sections 1090 and 87100, and California Code of Regulation Section 18700 et seq.
• A non-financial interest shall mean any interest that is prohibited by City of Rialto Municipal Code Section 2.48.450.
For the purpose of helping the City understand whether City personnel might have a conflict of interest in you or your organization, please disclose below whether you or any of your members, employees, paid or unpaid officers, paid or unpaid directors, or owners are (or are related to) a City elected or appointed official, a City officer, or a City employee or consultant.
Name of Your Organization’s
Affected Member, Employee,
Paid or Unpaid Officer, Paid or
Unpaid Director, or Owner
Name of City Elected or
Appointed Official, City
Officer, a City Employee or
Consultant
Relationship Between the
Two
By submitting this [application/proposal], or supplying any goods or services to the City, the [applicant/vendor/contractor/consultant] hereby attests under penalty of perjury, personally and/or on behalf of the entity [submitting this application/proposal or supplying any goods or services to the City] that no City of Rialto elected or appointed official, employee or consultant has a financial or non-financial interest, as such terms are defined in California Government Code Sections 1090 and 87100 and in City of Rialto Code of Ordinances Section
2.48.145, in the [applicant/vendor/contractor/consultant], except as specifically disclosed herein.
Date:
Name of Person/Entity:
Title:
Signature:
Revised - July 2025
None N/A N/A
Cheryl Blecker
Corporate Secretary
December 15, 2025
7 2.48.450 Employee conflict of interest.
(1) No covered person shall participate in the making of a grant or contract by the city in which the covered person has a conflicting interest.
(2) For purposes of this section, the following definitions shall apply:
(a) A “covered person” includes any person who holds an elected or appointed City office, a City officer, a City employee, and any person who is a consultant to the City. (b) A “conflicting interest” includes, but is not limited to, those decisions where:
(i) A covered person holds or has held within the previous twelve months a position with a potential grant or contract recipient;
(ii) A close relative of a covered person holds or has held within the previous twelve months a position with a grant or contract recipient;
(iii)A close relative of the spouse or domestic partner of a covered person holds or has held within the previous twelve months a position with a grant or contract recipient. (c) “Position” includes the status of a member, employee, owner, paid or unpaid officer of, paid or unpaid leadership position in, or had an ownership interest in, a grant or contract recipient. (d) A “close relative” includes a spouse, parent, grandparent, child, grandchild, aunt, uncle, or cousin. (e) “Participate in the making of a grant or contract” includes participation in: drafting a solicitation or contract; negotiating, voting on, approving, or executing a grant or contract; disc ussion of same with any city officer or employee; or attempts in any way to influence the making of a grant or contract. (3) This prohibition shall not apply to a contract let by written competitive bid where the contract will be awarded to the person or entity who submits the lowest responsible and responsive bid. (4) Except for the Mayor or a member of the City Council, a covered person may request a waiver of any potential conflict of interest in writing from the City Manager. Any request for such a waiver must include full disclosure of the potential conflict of interest and a statement detailing any mitigating factors. The request and the City Manager’s response shall be provided to the City Council prior to any vote to approve the contract or grant, or if City Council approval is not required, at least five days before the contract or grant is approved. The request and the City Manager’s response shall be considered a public record. (5) The prohibitions in this section are in addition to any applicable federal or s tate conflict of interest laws, including but not limited to Government Code section 1090, and Government Code section 87100 et seq. 8 (6) Any person who violates this section is subject to the following:
(a) Public censure;
(b) If the conflict of interest was i n the making of a contract, a prohibition from participation in the making of a contract by the city for a period of time up to twelve (12) months from the date of the imposition of the discipline;
(c) If the conflict of interest was in the making of a gra nt, a prohibition from participation in the making of a grant by the city for a period of time of up to twenty-four (24) months from the date of the imposition of the discipline;
(d) An administrative fine pursuant to Chapter 1.10 of this code. (7) The discipline specified herein may be imposed:
(a) By the City Manager in the case of any employee or consultant who violates this section. (b) By the City Council in the case of any person who holds an elected or appointed City office, or any City officer who violates this section.
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