City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 12, 2023 FROM: PUBLIC WORKS DEPARTMENT WARDS: ALL
SUBJECT: APPROVE ASSIGNMENT AND ASSUMPTION AGREEMENT FOR REQUEST FOR PROPOSAL NO. 2211, WITH FOUNTAINHEAD CONSULTING CORPORATION, FORMERLY PPM GROUP, INC., OF FONTANA, CALIFORNIA FOR LABOR COMPLIANCE AUDITING SERVICES, IN THE AMOUNT OF $150,000 FOR A TERM FROM JANUARY 1, 2023 TO DECEMBER 31, 2025, WITH TWO OPTIONAL ONE-YEAR EXTENSIONS IN THE AMOUNT OF $50,000 PER YEAR.
ISSUE:
Approve the Assignment and Assumption Agreement for Request for Proposal No. 2211 with Fountainhead Consulting Corporation, formerly PPM Group, Inc. of Fontana, California for Labor Compliance Auditing Services, in the amount of $150,000, for a term effective January 1, 2023 to December 31, 2025, with two optional one-year extensions in the amount of $50,000 per year.
RECOMMENDATIONS:
That the City Council:
Approve the Assignment and Assumption Agreement for Request for Proposal No. 2211 for Labor Compliance Auditing Services to Fountainhead Consulting Corporation, formerly PPM Group, Inc., in the amount of $150,000, for a term effective January 1, 2023, to December 31, 2025; Authorize the City Manager, or designee, to execute the Assignment and Assumption Agreement with Fountainhead Consulting Corporation, including making minor and non-substantive changes; and Authorize the City Manager, or designee, to execute two optional one-year extensions in the amount of $50,000 per year.
BACKGROUND:
To comply with funding requirements from State and Federal agencies, the Public Works Department has historically contracted with an outside firm to provide a qualified Labor Compliance Officer (Officer). This Officer audits certified payroll reports for Public Works Capital Improvement Projects (CIPs) and provides experience, knowledge, and expertise in the various reporting requirements.
DISCUSSION:
On August 30, 2022, the City received ten proposals in response to a Request for Proposals (RFP) No. 2211. PPM Group, Inc. was selected as the most qualified proposer by a selection committee consisting of representatives from the Public Works Department, evaluated the proposals based on the criteria set forth in RFP No. 2211, namely the Labor Compliance Officer’s qualifications, pricing, and professional references. PPM Group, Inc. had the overall highest score and was selected to provide the required services.
On December 20, 2022, the City Council approved the award of the Professional Consultant Services Agreement for Labor Compliance Auditing Services to PPM Group, Inc.
On July 26, 2023, the City of Riverside received a letter from PPM Group, Inc. notifying the City that the corporation had been acquired by Fountainhead Consulting Corporation. Due to the change in ownership, an Assignment and Assumption Agreement is necessary to reassign PPM Group, Inc.’s rights and obligations under the Professional Consultant Services Agreement for Labor Compliance Auditing Services to Fountainhead Consulting Corporation.
Costs and total budget for Labor Compliance Auditing Services will not be impacted by the Assignment and Assumption Agreement.
Purchasing Resolution 23914 Section 1104 “Change Orders” states that “Modifications to a Purchase Order shall be made only by Change Order. Subject to availability of funds, Change Orders may be utilized for purposes of… (6) any other change approved by the Manager.
The Purchasing Manager concurs that the recommended action to approve the agreement complies with Purchasing Resolution 23914.
STRATEGIC PLAN ALIGNMENT:
This item contributes to the Envision Riverside 2025 City Council Strategic Priority 6 – Infrastructure, Mobility, and Connectivity and Goal No. 6.2 – Maintain, protect, and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
Furthermore, this project aligns with each of the five Cross-Cutting Threads:
Community Trust – The Labor Compliance Officer instills community trust by ensuring that the contractors performing CIPs on the City’s behalf are compliant with all Local, State, and Federal regulations for Public Works projects.
Equity – The Labor Compliance Officer verifies that all workers employed by the contractors performing work on the City’s CIPs are to be paid fairly and in a timely manner per requirements set forth by the State of California Department of Industrial Relations.
Fiscal Responsibility – This RFP was publicly advertised, and the contract was awarded to the most qualified consultant.
Innovation – This RFP was advertised on PlanetBids, which is an internet-based platform that allows for a wider exposure to potential consultants compared to the conventional local newspaper advertisement.
Sustainability & Resiliency – The Labor Compliance Officer ensures that the City and its contractors follow the Local, State, and Federal regulations to avoid unnecessary and time-consuming audits, which may lead to stop work processes, hence affecting efficiency and the ability to complete CIPs.
FISCAL IMPACT:
The fiscal impact of this action of $150,000 was originally approved by the City Council on December 20, 2022. Each project will be billed on an as-needed basis, and the City will be charged based on actual expenses incurred for time and materials. Funding for this item is budgeted and available in each project requiring the consultant’s services.
Prepared by: Danny Cwiak, Contract Administrator
Gilbert Hernandez, Public Works Director
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachment: Assignment and Assumption Agreement with Fountainhead Consulting Corporation Fountainhead Consulting Corporation Assignment & Assumption Agreement ● Page 3