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Home My WebLink AboutE-14 Staff Report - First Amendment to PSA - Transtech Engineers Inc.CONSENT ITEM E-14 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MATT MARQUEZ ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR DATE: MAY 18, 2020 SUBJECT: FIRST AMENDMENT TO PROFESSIONAL SERVICE AGREEMENT BETWEEN THE CITY OF AZUSA AND TRANSTECH ENGINEERS INC., TO PROVIDE CONTRACT PLAN REVIEW AND INSPECTION SERVICES SUMMARY: On June 3, 2019, the City Council approved a Professional Service Agreement with Transtech Engineers Inc. to provide plan review and inspection services in an amount not to exceed $90,000 per contract fiscal year. Since then, due to a unique circumstance, the funds have been utilized. The recommended actions in this report would approve the First Amendment to the Professional Services Agreement with Transtech Engineers Inc. RECOMMENDATION(S): Staff recommends the City Council take the following actions: 1)Approve the first amendment to the Professional Services Agreement with Transtech Engineers Inc. to provide plan review and inspection services; and 2)Authorize the City Manager to execute an amendment, in a form acceptable to the City Attorney, on behalf of the City. DISCUSSION: On June 3, 2019, the City Council approved a Professional Service Agreement with Transtech Engineers Inc. to provide plan review and inspection services for a term of (2) two years and a compensation of $90,000 per contract fiscal year. Although Staff anticipated the compensation to be sufficient per fiscal year, Staff also anticipated hiring an additional building inspector (Building Inspector II). As stated, the City’s agreement with Transtech is for plan review and inspection services. Transtech coordinates the intake of building plan checks and conducts a review process that ensures an efficient service delivery. Generally, costs for plan review services are covered by project applicants, and the volume of this work APPROVED CITY COUNCIL 5/18/2020 Approve First Amendment to PSA with Transtech Engineers Inc. May 18, 2020 Page 2 has not significantly increased. The bulk of expenditures related to this agreement have come from a vacancy in the Building Inspector series, specifically the Building Inspector II. Due to the departure of the City’s former Building Inspector II in late June 2019, and the difficulty finding a qualified replacement, the City has had to rely on unanticipated expanded assistance from Transtech for contracted inspection services to fill the void. Beside the City’s Building Official, there are two other inspector positions in the City’s Building Inspector job series (Building Inspector I and Building Inspector II). Staff initially envisioned using Transtech to supplement City employed inspectors and on an as needed basis. However, consulting services were needed in a more robust manner due to the difficulty in finding a qualified Building Inspector II. Consulting firms are also facing the same problem, as they either currently have overly qualified, or under qualified inspectors, not a large talent pool at the Inspector II level. Staff is requesting authorization to increase the compensation for FY19-20 as outlined in the Fiscal Impact section of this report and requesting the compensation for FY 20-21 be increased by $100,000 from $90,000 to a total fiscal year contract amount of $190,000. This amount will not be needed until FY20-21. Staff will request the funds through the FY20-21 budget approval process. FISCAL IMPACT: The fiscal impact for FY19-20 associated with the recommended actions is $95,604. The proposed agreement amendment amount of $95,604 was included in FY19-20 approved budget under 10-35-620- 000-6435. The increase in contract fiscal amount for FY20-21 of $100,000 will be requested through the FY20-21 budget approval process. Prepared by: Reviewed and Approved: Carina Campos Matt Marquez Economic Development Specialist Economic and Community Development Director Reviewed and Approved: Sergio Gonzalez City Manager Attachment: 1) First Amendment to the Professional Service Agreement with Transtech Engineers Inc. 45635.01000\31368292.1 - 1 - CITY OF AZUSA FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR PLAN CHECK AND INSPECTION SERVICES 1. PARTIES AND DATE. This First Amendment to the Professional Services Agreement for Plan Check and Inspection Services (“First Amendment”) is entered into on the ____ day of ________, 20___, by and between the City of Azusa (hereinafter referred to as the “City”) and Transtech Engineers Inc. (hereinafter referred to as the “Consultant”). City and Consultant are sometimes collectively referred to herein as the “Parties.” 2. RECITALS. 2.1 Agreement. The Parties entered into that certain Agreement for Plan Check and Inspection Services dated July 1, 2019 (“Agreement”) for a term of two years. 2.2 First Amendment. The Parties now desire to amend the Agreement in order to increase the total compensation for contract Fiscal Year 2019-2020 in an amount not-to-exceed $185,604; and increase the total compensation for contract Fiscal Year 2020-2021 in amount not- to-exceed $190,000. 3. TERMS. 3.1 Compensation. The total compensation for the Services provided pursuant to this First Amendment shall not exceed One Hundred Eighty Five Thousand Six Hundred Four Dollars ($185,604) for contract Fiscal Year 2019-2020 and shall not exceed One Hundred Ninety Thousand Dollars ($190,000) for contract Fiscal Year 2020-2021without written approval of the City Manager. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this First Amendment at the rates set forth in Exhibit “A” attached hereto. 3.2 Remaining Provisions of Agreement. Except as otherwise specifically set forth in this First Amendment, the remaining provisions of the Agreement shall remain in full force and effect. [SIGNATURES ON THE NEXT PAGE] Attachment 1 45635.01000\31368292.1 - 2 - IN WITNESS WHEREOF, the parties have executed this First Amendment to Agreement on this ____ day of __________, 20__. CITY OF AZUSA TRANSTECH ENGINEERS INC. By: Sergio Gonzales City Manager By: Dennis Tarango CBO, Principal Building Official ATTEST: By: Jeffrey Lawrence Cornejo, Jr. City Clerk By: Ayla Jefferson CBO, Principal Building Official APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney 45635.01000\31368292. 1 A-1 EXHIBIT “A” TO FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT FOR PLAN CHECK AND INSPECTION SERVICES COMPENSATION EXHIBIT “C” COMPENSATION Schedule of Rates and Hourly Fees Transtech will mail an invoice at the beginning of every month for services rendered during the previous month. Compensation can be based on hourly rates or on a percentage fee basis. The hourly fee schedule for proposed work is listed below. In addition, we have included proposed percentage fees: Services Based on Hourly Rates Description Rates For Certified Plans Examiner: $115 per hour Plans Examiner/Checker $130 per hour Plan Check Engineer……………………………………………………………... $140 per hour CASp Plan Checker…………………………………. ………………………….. $85 per hour Building Inspector …….. $55 per hour w/City vehicle; $65 per hour w/Transtech vehicle + mileage reimbursement………………………………………………………………... $85 per hour Geotechnical Review …………………………..…………………………………. Services Based on a Proportion of the City's Fees Description Rates Building Plan Review Services .................................... 59% of the City's Collected Plan Review Fees Structural, Plumbing, Mechanical, Electrical Plan Review Services 30% of the City's Collected Plan Review Fees. All hourly rates include overhead costs including, but not limited to, salaries, benefits, Workers Compensation Insurance, office expenses, etc. Should the scope of work change or circumstances develop which necessitate special handling, we will notify the City prior to proceeding. Annual adjustments may be made by mutual agreement based upon current CPI. Overtime, weekend and holiday time inspections will be billed at 1.5 times the hourly rates listed above. Annual adjustments may be made by mutual agreement based upon current CPI. EXHIBIT A to the First Amendment to the PSA with Transtech Engineers Inc.