HomeMy WebLinkAboutE-7 Staff Report - Second Amendment to PSA - Transtech Engineers Inc.CONSENT ITEM
E-7
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MATT MARQUEZ
ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR
DATE: MAY 17, 2021
SUBJECT: SECOND 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 for a two (2) year period. Subsequently, amendments
to Transtech’s agreement were approved which allocated additional funds for their services due mostly to
a prolonged vacancy of a Building Inspector II position. The recommended actions in this report would
approve a Second Amendment to the Professional Services Agreement with Transtech Engineers Inc.
This amendment would allocate additional funds beyond the originally budgeted amount for inspection
and plan review services, as well as extend Transtech’s agreement for a one (1) year period.
RECOMMENDATION(S):
Staff recommends the City Council take the following actions:
1)Approve the second amendment to the Professional Services Agreement with Transtech Engineers
Inc. to provide plan review and inspection services;
2)Approve budget amendment in the amount of $430,516.19 for fiscal year 2020/2021 for plan
review and inspection services;
3)Approve a one (1) year extension to the Professional Services Agreement with Transtech
Engineers Inc.; and
4)Authorize the City Manager to execute an amendment, in a form acceptable to the City Attorney
on behalf of the City.
APPROVED
CITY COUNCIL
5/17/2021
Second Amendment to PSA with Transtech Engineers Inc.
May 17, 2021
Page 2
DISCUSSION:
The City’s original agreement with Transtech for plan review and inspection services was for a two (2)
year period and $90,000 annually. Subsequently, the budget for their services increased due to a larger
workload and the prolonged recruitment of a Building Inspector II, which is still an open position. As
stated, Transtech also 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, as Transtech’s fee is a percentage of the total fees we collect. However, each year the City
must estimate the amount of plan check fees received and therefore the amount paid to our consultants
who review project plans. If plan check fees received exceed the amount budgeted for, the amount paid
to our consultant will also exceed the originally budgeted amount. This does not mean the City is losing
money, rather it means the City has either received a greater amount of requests for plan review than
originally anticipated, the projects received had higher project valuations than originally anticipated, or a
combination of both. In this case, the proposed amendment is mostly due to the plan check fees associated
with two major projects: 1) One Legacy - $208,192 collected in plan review fees, and 2) The Avenue -
$132,107 collected in plan review fees thus far. In total, the work associated with plan checks have
exceeded the estimated budget amounts and therefore staff is requesting a budget amendment.
Additionally, Transtech’s agreement expires on June 30, 2021, and staff is also requesting a one (1) year
extension be granted.
Staff is requesting authorization to increase Transtech’s services agreement and the FY2020-21 revised
budget to $430,516.19 as outlined in the Fiscal Impact section of this report.
FISCAL IMPACT:
The fiscal impact for FY 20-21 associated with the recommended actions is a decrease of $430,516.19 to
the General Fund balance. Originally $150,000 was budgeted under account number 10-35-620-000-6435
to cover costs associated with plan review and inspection services. Staff is requesting a budget increase
of $430,516.19 in account number 10-35-620-000-6435 to a revised total of $580,000. Upon Council
approval, staff will prepare a FY2020-21 budget amendment and increase the budget by $430,516.19
under 10-35-620-000-6435.
Prepared by: Reviewed and Approved:
Matt Marquez Talika M. Johnson
Economic & Community Development Director Administrative Services Director
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachment:
1) Second Amendment to the Professional Service Agreement with Transtech Engineers Inc.
45635.01000\31368292.1 - 1 -
CITY OF AZUSA
SECOND 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 2020-2021 in an amount not-to-exceed
$430,516.19; and extend said Agreement for a period of one (1) year.
3.TERMS.
3.1 Compensation. The total compensation for the Services provided pursuant to this
First Amendment shall not exceed $430,516.19 for contract Fiscal Year 2020-2021 without 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.
Term. The term of the agreement shall be extended for a period of one (1) year from
June 30, 2021.
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