Date: April 1, 2015 Citv Council Staff Report CONSENT CALENDAR Subject: From: Initiated by: APPROVAL OF PROFESSIONAL SERVICES AGREEMENTS WITH DUDEK & ASSOCIATES, INC.; INTERWEST CONSULTING GROUP, INC.; MWH CONSTRUCTORS, INC., WEST YOST ASSOCIATES, AND WILLDAN ENGINEERING FOR ON-CALL PUBLIC WORKS CAPITAL PROJECT CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES, AND FOR ON-CALL BUILDING INSPECTION SERVICES David H. Ready, City Manager Office of the City Manager SUMMARY Approval of this item will allow the City to enter into multi-year on-call agreements with Dudek & Associates, lnterwest Consulting Group, MWH Constructors, Inc., West Yost Associates, and Willdan Engineering to provide the City with professional first class asneeded construction management and inspection ("Owner's Rep") services associated with a variety of future Public Works capital projects, as-needed inspection services of various improvements related to private land development projects, and as-needed building inspection services for a variety of future residential and commercial projects. These services will be used to supplement, and not replace, existing staffing levels in preparation for the increase in construction of both public and private projects throughout the City in the next several years. RECOMMENDATION: 1) Approve Agreement No. with Dudek & Associates, Inc., for on-call Public Works capital project construction management and inspection services for an initial term through June 30, 2018, subject to two additional one year extensions approved at the discretion of the City Manager; and 2) Approve Agreement No. with lnterwest Consulting Group, Inc., for on-call Public Works capital project construction management and inspection services, and on-call building inspection services for an initial term through June 30, 2018, subject to two additional one year extensions approved at the discretion of the City Manager; and }\L- ITEM NO.~--'---
April 1, 2015 - Page 2 3) Approve Agreement No. with MWH Constructors, Inc., for on-call wastewater engineering, construction management and inspection services for an initial term through June 30, 2018, subject to two additional one year extensions approved at the discretion of the City Manager; and 4) Approve Agreement No. with Willdan Engineering for on-call Public Works capital project construction management and inspection services, and on-call building inspection services for an initial term through June 30, 2018, subject to two additional one year extensions approved at the discretion of the City Manager; and 5) Approve Agreement No. with West Yost Associates for on-call wastewater engineering, construction management and inspection services for an initial term through June 30, 2018, subject to two additional one year extensions approved at the discretion of the City Manager; and 6) Authorize the City Manager to approve individual Task Orders and issue Purchase Orders for amounts in excess of $25,000 for assigned on-call public works and/or building inspection services paid exclusively with developer "passthrough" fees received from construction permits or building permits pursuant to the terms of the Agreements; and 8) Authorize the City Manager to execute all necessary documents. STAFF ANALYSIS: The City currently performs public works inspections with City staff, however, in anticipation of the number of Public Works capital projects to deliver in the next several years, and as a result of increased development occurring within the City, staff recommends that the City have available, at its request, contractual on-call public works inspection services to provide necessary "turn-key" construction management services for various Public Works capital projects, as well as independent construction inspection of on-site and off-site improvements associated with private land development projects within the City. Having these on-call contracts allows the City to expand and contract with the need for these additional services, in lieu of adding full time City employees. Additionally, the City anticipates commencing with construction on several priority projects at the City's Wastewater Treatment Plant, as well as future sewer collection system and other wastewater engineering projects in the near future. Given these, and other wastewater projects anticipated in the next 5 years, staff recommends utilizing the professional services of wastewater engineering firms that specialize in program management and owner's representative services on these unique Public Works capital projects. 02
April 1, 2015- Page 3 Finally, staff recommends the use of contractual on-call building inspection services as a tool to minimize response time and improve customer service; these additional contract building inspectors will be used to supplement existing staff on as needed basis. In particular, with the redevelopment of the Desert Fashion Plaza underway, it will be important to have one or more building inspectors available full-time to maintain inspections as the pace of construction increases for the new 155 room Kimpton Hotel, the new 135 room Marriott AC Hotel, and associated commercial retail buildings. It is important to disclose that these on-call contracts will be used to supplement, and not replace, existing City employees. This project requires the services of a professional firm to perform the required construction engineering, construction management and inspection services. Staff prepared a Request for Proposals (RFP) to solicit these on-call services, and on December 30, 2014, the RFP was published and made available to firms through the City's Division of Procurement and Contracting, and by the February 3, 2015, deadline, proposals from the following 15 firms were received: Carollo Engineers; Riverside, CA Dudek & Associates; Palm Desert, CA Falcon Engineering; Corona, CA FCG; Irvine, CA Hill International; Ontario, CA lnterwest Consulting Group; Palm Springs, CA KOA Corporation; San Bernardino, CA MNS Engineering; Los Angeles, CA MWH Constructors, Inc.; Pasadena, CA PSOMAS; Riverside, CA Southstar Engineering; Riverside, CA Syrusa Engineering; La Habra, CA TKE Engineering; Riverside, CA West Yost Associates; Irvine, CA Willdan Engineering; San Bernardino, CA Following review of the proposals by a Selection Committee comprised of the Director of Building & Code Enforcement, the Assistant Director of Public Works/Assistant City Engineer, and the Senior Public Works Inspector, a final list of the top 5 ranked firms was identified, as follows: Dudek & Associates; Palm Desert, CA lnterwest Consulting Group; Palm Springs, CA MWH Constructors, Inc.; Pasadena, CA West Yost Associates; Irvine, CA 03
April 1, 2015- Page 4 Willdan Engineering; San Bernardino, CA Staff has prepared and recommends that the City Council approve Professional Services Agreements with each of these firms to provide the requested services for the City. The important points for City Council consideration related to these Agreements include: Contract Sum: Section 2.1 "Maximum Contract Amount" reflects the on-call nature of the Agreement, in that there is no defined cost other than the consultant's schedule of hourly rates and fees identified in Exhibit "D" of the agreements. This fact is reflected in Section 2.1 of the Agreement, which states: City and Consultant hereby acknowledge and agree that the scope of services required by this Agreement will vary dependent upon the number, type, and extent of the services or work the Consultant shall provide; and no guarantee of the extent or the type of services required of Consultant under the terms of this Agreement is made by the City. The annual level of services required by this Agreement is unknown, and may significantly increase or decrease from year to year. In acknowledgement of the fact that the number and type of projects requiring the Consultant's services has not been identified for this contract, City and Consultant hereby acknowledge and agree that a specific "Maximum Contract Sum" shall be imposed on each separate project that the City may assign Consultant as provided in Section 1.8 and in this Section 2.1. Each such separate project shall be identified as a Task Order or a Purchase Order authorized by the City Engineer or the City Manager as provided in this Section 2.1. For the services rendered pursuant to this Agreement, the Consultant shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "D" and incorporated herein by this reference. It is expressly agreed that the maximum contract amount of this Agreement is undefined, and is subject to the number and type of projects requiring the Consultant's services throughout the duration of the term of this Agreement, if any. Consultant shall be entitled to compensation in accordance with separate City authorized "Task Orders" (Purchase Orders) with corresponding Not-to Exceed payment amounts established pursuant to the Consultant's Schedule of Hourly Billing Rates as shown on Exhibit "0". Consultant's compensation shall be limited to the amount identified on each separate, individually authorized Task Order corresponding to a project requiring the services of the Consultant. To further improve administrative efficiencies in providing on-call public works inspections or building inspections for private development projects over the next several years, staff is recommending that the City Council authorize the City Manager to administratively approve individual Task Orders for on-call inspection services on private land development projects for amounts over $25,000 on the premise that any 04
April 1, 2015- Page 5 Task Order assignment under the on-call agreements will be approved specifically for private land development projects where the cost of the services is paid exclusively with developer "pass-through" fees received from construction permits. This recommendation is also reflected in Section 2.1 of the proposed agreements, and states: By approval of this Agreement, the City Council authorizes the City Manager to approve Task Orders (Purchase Orders) for any amount in excess of $25,000 sufficient to cover the cost of required on-call public works inspections (pursuant to Schedule "D') necessary for and associated specifically with private land development projects insofar as the cost of the services authorized by any such Task Order (Purchase Order) pursuant to this Agreement is paid exclusively with developer "pass-through" fees received from construction permits. Local Business Preference Compliance Section 7.09.030 of the Palm Springs Municipal Code, "Local Business Preference Program," requires consultants to use good faith efforts to solicit applications for employment and proposals for sub-consultants for work associated with the proposed contract from local residents and firms as opportunities occur and hire qualified local residents and firms whenever feasible. Two of the selected firms (lnterwest Consulting Group and Dudek & Associates) are considered a local business, having offices located in Palm Springs and Palm Desert. Willdan Engineering has committed to opening a satellite office in Palm Springs if awarded a contract for these services. ENVIRONMENTAL IMPACT: The requested City Council action is not a "Project" as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), 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. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. FISCAL IMPACT: The proposed agreement provides services to the City as an on-call agreement, and has no specific contract sum. The scope of services required by these agreements will vary dependent upon the number and type of projects assigned to the various firms. The annual level of on-call services required by these agreements is unknown, and may significantly increase or decrease from year to year. 05
April 1, 2015 - Page 6 Expenditures for individual "Task Orders" approved for specific assignments associated with capital projects will be encumbered from funding previously budgeted and appropriated for that capital project. For on-call building inspection services that may be requested, implementation of the on-call agreements will be on a pass-through basis, whereby the City will collect building permit fees from a developer sufficient to cover the inspection fees to be paid to the consultant. If on-call public works inspection services are requested from these firms, implementation of the agreement will also be on a pass-through basis, whereby the City will collect construction permit fees from a developer sufficient to cover the inspection fees to be paid to the consultant. Upon receipt of payment from a developer, construction inspection revenues will be recognized in the General Fund Revenue Account No. 001-32203, which will offset the expenditure for inspection services to be paid from the General Fund Account No. 001-4171-43200. SUBMITTED: Prepared by: ~~ Marcus L. Fuller, MPA, P.E., P.L.S. Assistant City Manager/City Engineer Approved by:,~~~- David H. Ready,~ City Manager Attachments: 1. Agreements (5) 06
THE AGREEMENTS ARE ON FILE IN THE OFFICE OF THE CITY CLERK 07