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HomeMy WebLinkAboutE-11 Staff Report - Third Amendment to PSA - Transtech Engineers Inc.CONSENT ITEM E-11 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MATT MARQUEZ ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR DATE: DECEMBER 13, 2021 SUBJECT: THIRD 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 and an increase in plan check submittals beyond what was originally anticipated. Also, on May 17, 2021, Transtech’s agreement was extended for one (1) additional year. The recommended actions in this report would approve a Third Amendment to the Professional Services Agreement with Transtech Engineers Inc. increasing the total contract amount and a budget amendment. RECOMMENDATION(S): Staff recommends the City Council take the following actions: 1)Approve the third amendment to the Professional Services Agreement with Transtech Engineers Inc. to increase the total contract amount to $450,000 to provide plan review and inspection services; and 2) Approve a budget amendment in the amount of $200,000 for fiscal year 2021/2022 for plan review and inspection services; and 3)Authorize the City Manager to execute an amendment, in a form acceptable to the City Attorney on behalf of the City. APPROVED CITY COUNCIL 12/13/2021 Third Amendment to PSA with Transtech Engineers Inc. December 13, 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. Transtech is also responsible for coordinating the intake of building plan checks and conducting a review process that ensures an efficient service delivery. Staff continues to utilize Transtech’s services and is satisfied with their level of service to city staff and project applicants. In anticipation of additional work, staff is requesting an increase to the contract amount by roughly $300,000 annually to a not to exceed amount of $450,000 annually for additional plan check review services. Transtech’s fees to the City are calculated based on a percentage of the plan check valuation. This fee is then included in the cost to the project applicant which the City collects. In essence the plan check cost to the City is passed to the project applicant with no bottom line fiscal impact to the City. The increase in the plan check budget is in anticipation of the estimated level of service required from Transtech based on Staff’s estimate of future plan checks. The Building Division’s plan check budget will be utilized to pay for Transtech services but will be offset by the revenues received from plan check fees resulting in no fiscal impact to the City. If plan check fees received exceeded the amount budgeted, the amount paid to our consultant should also exceeded the originally budgeted amount. This does not mean the City lost or 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. Therefore, for this reason staff is requesting an amendment to Transtech’s agreement that would increase the contract amount by $300,000 annually to a not to exceed amount of $450,000 per year for additional plan check review services. Staff anticipates that this will significantly reduce the possibility (or ideally eliminate) the need to come back to Council and request additional amendments related to plan check review services for the current fiscal year. The recommended actions approve a third amendment to Transtech’s agreement increasing the total contract amount to $450,000 and a budget amendment increase of $200,000 for plan check services. FISCAL IMPACT: There should be no fiscal impact to the General Funds. The expenses are anticipated to be offset by the plan check revenues. The FY2021-22 Adopted Budget included $250,000 for the plan check fee under account 1035620000-6435, and upon Council approval, staff will increase the budget by $200,000 from $250,000 to $450,000. Third Amendment to PSA with Transtech Engineers Inc. December 13, 2021 Page 3 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) Third Amendment to the Professional Service Agreement with Transtech Engineers Inc. 45635.01000\31368292.1 -1 - CITY OF AZUSA THIRD AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR PLAN CHECK AND INSPECTION SERVICES 1.PARTIES AND DATE. This Third Amendment to the Professional Services Agreement for Plan Check and Inspection Services (“Third 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 amended 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 an amount not-to-exceed $190,000. 2.3 Second Amendment The Parties amended 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 extended the term of the agreement for a period of one year. 2.4 Third Amendment The Parties now desire to amend the Agreement in order to increase total compensation for contract fiscal year 2021-2022 in an amount not-to-exceed $450,000. 3.TERMS. 3.1 Compensation. The total compensation for the Services provided pursuant to this Third Amendment shall not exceed Four Hundred Fifty Thousand Dollars ($450,000) without written approval of the City Manager. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Third 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 Third Amendment, the remaining provisions of the Agreement shall remain in full force and effect. 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: Allen Cayir, President ATTEST: By: Jeffrey Lawrence Cornejo, Jr. City Clerk By: Sybil Cayir, Secretary APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney EXHIBIT “A” TO THIRD AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT FOR PLAN CHECK AND INSPECTION SERVICES COMPENSATION Field Technician $68 Labor Compliance Analyst $125 Permit Technician $63 Engineering Technician $84 Funds Coordinator $125 Building Inspector $89 Assistant CAD Drafter $99 Utility Coordinator $141 Senior Building Inspector $99 Senior CAD Drafter $120 Office Engineer $115 Plans Examiner/Checker $120 Associate Designer $125 Construction Inspector $120 Plan Check Engineer $136 Senior Designer $136 Senior Construction Inspector $136 CASp Plan Checker $146 Design Project Manager $167 Construction Manager $167 Deputy Building Official $136 Assistant Engineer $104 Resident Engineer $167 Building Official $146 Staff Engineer $131 Associate Civil Engineer $131 Public Works Inspector $120 Community Development Technician $63 Senior Civil Engineer $167 Senior Public Works Inspector $136 Planning Technician $63 Traffic Analyst Technician $84 Supervising PW Inspector $141 Assistant Planner $99 Associate Traffic Analyst $99 Associate Planner $115 Senior Traffic Analyst $136 Survey Analyst $120 Senior Planner $125 Professional Transportation Planner $157 Senior Survey Analyst $125 Planning Manager $141 Traffic Engineer Technician $84 2 Man Survey Crew $292 Deputy Director $178 Associate Traffic Engineer $131 Survey & Mapping Specialist $167 Director $188 Traffic Engineer $146 Licensed Land Surveyor $183 Senior Traffic Engineer $167 Administrative/Clerical $63 Project Manager $157 Funds Analyst $104 Project Accountant $78 Senior Project Manager $167 Senior Funds Analyst $125 Office Help $45 Deputy City Engineer $146 Graphic & Rendering Designer $115 Senior City Engineer $167 Grant Writer $125 CPI-U FEBRUARY 1.00% Principal Engineer $188 Funds & Grant Project Manager $157 All fees are increased each year July 1st automatically by the percentage change Los Angeles-Long Beach-Anaheim California Consumer Price Index-All Urban Consumers (“CPI-U”) for the preceding twelve-month period as calculated for February by the U.S. Department of Labor Bureau of Labor Statistics and published by the United States Bureau of Labor Statistic. Hourly rates are all inclusive and include, but are not limited to, all Consultant profit and overhead including non-billable administrative staff. Consultant will be required to pay for the cost of all training, equipment, or materials required by their own staff. Consultant shall not charge the City for any staff time to attend training/events provided by the City. TRANSTECH ENGINEERS, INC. SCHEDULE OF HOURLY RATES Effective through June 30, 2022 City of Azusa ENGINEERING CONSTRUCTION MANAGEMENT BUILDING & SAFETY PUBLIC WORKS INSPECTION PLANNING SURVEY AND MAPPING ADMINISTRATIVE STAFF FUNDING & GRANT WRITING Exhibit C of the executed agreement dated July 1, 2019 Services Based on a Proportion of the City's Fees Percentage of the Plan Check Fees Collected by the City: 59% of plan check fees per City fee schedule. For any other services requested by the City the above Standard Fee Rates shall apply.