HomeMy WebLinkAbout2024-03-12; City Council; ; Amendment No. 2 to the Professional Services Agreement with Willdan Engineering Inc. for Building and Safety ServicesCA Review ___AF___
Meeting Date:
To:
From:
Staff Contact:
Subject:
Districts:
March 12, 2024
Mayor and City Council
Scott Chadwick, City Manager
Mike Strong, Assistant Director of Community Development
mike.strong@carlsbadca.gov, 442-339-2721
Amendment No. 2 to the Professional Services Agreement with
Willdan Engineering Inc. for Building and Safety Services
All
Recommended Action
Adopt a resolution approving Amendment No. 2 to the professional services agreement with
Willdan Engineering Inc. to increase the total not-to-exceed compensation amount to $140,000
in years one and two of the contract to provide continued temporary staffing and building and
safety services.
Executive Summary
The city awarded a three-year contract to Willdan Engineering Inc. on April 17, 2023, to provide
as-needed professional building and safety services such as building permit plan check reviews,
building inspection functions and front counter customer services. Over the past year, there
have been unexpected staff vacancies in these areas. To maintain building permit review and
processing timelines for its customers during this period, the department used the Willdan
contract to the extent that the allocated contract funding for the first year of the contract has
been nearly exhausted.
Staff are asking the City Council to increase the total maximum not-to-exceed compensation
amount in the first year of the contract from $100,000 to $140,000, and in the second year of
the contract from $40,000 to $140,000. The maximum compensation amount in the third year
would remain at $40,000.
These contracted services will only be used as needed, and only until staff vacancies are filled.
Salary savings from the staff vacancies will be used to cover the contract costs, so no additional
appropriation of funds is being requested.
The request is being brought to the City Council because the procurement of professional
services that cost the city more than $100,000 per agreement year requires the City Council’s
approval under Carlsbad Municipal Code Section 3.28.060(D)(5).
March 12, 2024 Item #3 Page 1 of 9
Explanation & Analysis
The Community Development Department’s Building Division is responsible for processing and
reviewing building permit applications for new development, additions, tenant improvements,
and remodels, as well as conducting building inspections to ensure new development is built
consistent with approved plans and in compliance with state and local building codes. The
division maintains targeted turnaround times to ensure the timely review of plans and conducts
inspections to avoid unnecessary delays in the construction process. For example, the
turnaround times for most plan check reviews is within 10 working days, and the division tries
to conduct building inspections within 24-hours from the time they are requested, at least 80%
of the time1.
To ensure timely service delivery, the city awarded a three-year contract to Willdan on April 17,
2023, for temporary staffing services to the Building Division. Under this contract, Wildan
employees provide professional building and safety services such as building permit plan check
review, building inspection functions and front counter customer services.
Most recently, Wildan has assisted the Building Division by providing temporary staffing
services for technician and clerical work, digital permit processing and plan checking and
building official services. Billing under the contract is based on the actual hours worked to meet
the demand. The original compensation amount of the contract was not to exceed $40,000 per
contract year.
Because of unanticipated vacancies in the Building Division, staff needed to augment the
payable compensation amount in the first of the contract. The City Manager, acting under the
authority of Carlsbad Municipal Code Section 3.28.060(D)(4), amended the contract on May 25,
2023, and increased the compensation amount in year one of the contract by $60,000, from
$40,000 to $100,000 (Amendment No. 1).
The amended contract with Willdan has a maximum not-to-exceed compensation amount of
$100,000 in year one, $40,000 in year two, and $40,000 in year three. However, temporary
staffing needs have continued to exceed what staff anticipated in the amended contract.
Accordingly, the maximum compensation for year one of the contract term has nearly been
expended, with about two months remaining in year one of the contract.
Staff are requesting a $40,000 increase in the total fee paid in year one of the contract and a
$100,000 increase in year two of the contract. This recommendation would increase the total
maximum not-to-exceed compensation amount to $140,000 in years one and two of the
contract. The proposed maximum compensation amounts were calculated based on the
average monthly compensation over the course of the past year. As noted above, salary savings
from the staff vacancies will be used to cover contract costs, so no additional appropriation of
funds is being requested.
The city’s Purchasing Officer has determined that the solicitation of bids for the goods, services,
and/or professional services would be impractical, unavailing, impossible or not in the best
interest of the city, consistent with Carlsbad Municipal Code Section 3.28.110 (N). Willdan
Engineering Inc. has been providing services since April 17, 2023, and is currently engaged
1 The 80% target is used to account for temporary reductions in staffing levels due to unavoidable and unforeseen
circumstances, such as staff training, vacations and sick leave.
March 12, 2024 Item #3 Page 2 of 9
through April 17, 2026. To provide continuity of public service and the flexibility to use Willdan
temporary staffing to fill in for future vacancies, staff are recommending an amendment to the
current contract’s annual maximum to $140,000 in years one and two of the contract. The
Purchasing Officer’s memo authorizing these exemptions is attached as Exhibit 2.
Fiscal Analysis
The proposed amended contract with Willdan Engineering Inc. (Amendment No. 2)
recommends a maximum not-to-exceed compensation amount of $140,000 in year one,
$140,000 in year two, and $40,000 in year three. The contractor would be paid based on the
actual work it performs. The funding for this amendment comes from savings from employee
vacancies. Any expenditures in future years of the contract will also be covered by employee
vacancy savings. No additional appropriations are needed to fund the costs associated with this
agreement.
Next Steps
Staff will execute the contract amendment and Willdan Engineering Inc. will continue to
provide building and safety temporary staffing services.
Environmental Evaluation
This action does not require environmental review because it does not constitute a project
within the meaning of the California Environmental Quality Act under California Public
Resources Code Section 21065 in that it has no potential to cause either a direct physical
change or a reasonably foreseeable indirect physical change in the environment.
Exhibits
1. City Council resolution
2. City Purchasing Officer’s memorandum
March 12, 2024 Item #3 Page 3 of 9
RESOLUTION NO. 2024-043
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING AMENDMENT NO. 2 TO THE PROFESSIONAL
SERVICES AGREEMENT WITH WILLDAN ENGINEERING INC. TO INCREASE
THE TOTAL NOT-TO-EXCEED COMPENSATION AMOUNT TO $140,000 IN
YEARS ONE AND TWO OF THE CONTRACT TO PROVIDE CONTINUED
TEMPORARY STAFFING AND BUILDING AND SAFETY SERVICES
WHEREAS, the City Council of the City of Carlsbad, California has determined that it is necessary,
desirable and in the public interest to acquire temporary staffing and building and safety services to
maintain targeted customer service levels; and
WHEREAS, on April 17, 2023, the city awarded a three-year contract to Willdan Engineering Ine.
to provide professional temporary staffing services in the Building Division; and
WHEREAS, on May 25, 2023, under the authority of Carlsbad Municipal Code Section
3.28.060(D)(4), the City Manager amended the agreement (Amendment No. 1) and increased the total
maximum not-to-exceed compensation amount by $60,000, from $40,000 to $100,000, in year one of
the contract; and
WHEREAS, funds are not encumbered until services are provided under the agreement; and
WHEREAS, the maximum compensation amount for each year of the contract was based on
workload forecasts and demand for temporary staffing services. The contract has been prematurely
exhausted and will need to be increased to support the Building Division's needs through the end of
the contract period; and
WHEREAS, staff recommend the City Council approve Amendment No. 2 to the Professional
Services Agreement with Willdan Engineering Ine. (Attachment A) to increase the total payable fee in
years one and two of the contra et.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That the City Manager is authorized to execute Amendment No. 2 to the Professional
Services Agreement (Attachment A) with Willdan Engineering Ine. which increases the
total maximum not-to-exceed annual compensation amount to $140,000 in years one
and two of the agreement.
Exhibit 1
March 12, 2024 Item #3 Page 4 of 9
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 12th day of March, 2024, by the foliowing vote, to wit:
AYES:
NAVS:
ABSTAIN:
ABSENT:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE.
NONE.
NONE.
KEITH BLACKBURN, Mayor
-PrSHERRY FREISINGER, City Clerk
(SEAL)
March 12, 2024 Item #3 Page 5 of 9
0A
DocuSign Envelope ID: 72F9E325-DE4E-4429-A755-DCADC7310661
AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF CARLSBAD AND WILLDAN ENGINEERING, INC.
This Amendment No. 2 is entered into and effective as of the \1� day of M4�� 2024,
amending the agreement dated April 17, 2023 (the "Agreement") by and between the City of Carlsbad, California, a municipal corporation ("City"), and Willdan Engineering, Ine., a Corporation
("Contractor") (collectively, the "Parties").
RECITALS
A.On April 17, 2023, the Parties entered into the Agreement for the Contractor to providedtemporary staffing services; and
8.On May 25, 2023, the Parties executed Amendment No. 1 to the Agreement to increasethe not-to-exceed amount to $100,000, in year 1 of the Agreement ("Amendment No. 1 ");
and
C.The Parties now desire to increase the not-to-exceed amount to $140,000 per year in Year
1 and Year 2 of the Agreement; and
D.The Parties have negotiated and agreed to an amended compensation amount.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1.Compensation. The total fee payable for the Services to be performed duringYear 1 and Year 2 of the Agreement will be an amount not to exceed one hundred and forty thousand dollars ($140,000) per Agreement year. The total fee payable for Services to be
performed du ring Year 3 of the Agreement will be an amount not to exceed forty thousand
dollars ($40,000) per Agreement year. No other compensation for the Services will be allowed
except for items covered by subsequent amendments to this Agreement. The City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or Services. lncremental payments, if applicable, should be made as outlined in Exhibit "A" to the
Agreement.
2.All other provisions of the Agreement, as may have been amended from time totime, will remain in full force and effect.
3.All requisite insurance policies to be maintained by Contractor pursuant to theAgreement, as may have been amended from time to time, will include coverage for this Amendment.
4.The individuals executing this Amendment and the instruments referenced in it on
behalf of Contractor each represent and warrant that they have the legal power, right and actual
authority to bind Contractor to the terms and conditions of this Amendment.
City Attorney Approved Version 12/28/2022
Attachment A
March 12, 2024 Item #3 Page 6 of 9
DocuSign Envelope ID: 72F9E325-DE4E-4429-A755-DCADC731D661
CONTRACTOR
By:
By:
v�ss,.�
(sign here)
Vanessa Munoz, President vmunoz@willdan.com
(print name/title)
(sign here)
Kate Nguyen, Secretary
knguyen@willdan.com
(print name/title)
CITY OF CARLSBAD, a municipal corporation of the State of California
By:
Mayor
ATTEST:
City Clerk
lf required by City, proper notarial acknowledgment of execution by Contractor must be attached.
lf a corporation, Agreement must be signed by one corporate officer from each of the following
two groups:
Group A Chairman, President, or
Vice-President
Group B
Secretary, Assistant Secretary, CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
CINDIE K. McMAHON, City Attorney
BY: _lfluf __ -. _fro_sf ____ _
Deputy City Attorney
City Attorney Approved Version 12/28/2022 2
March 12, 2024 Item #3 Page 7 of 9
Administrative Services Department 1635 Faraday Avenue Carlsbad, CA 92008 760-602-2430 t
www.carlsbadca.gov 760-602-8553 f
Memorandum
January 26, 2024
To:Roxanne Muhlmeister, Assistant Finance Director/Purchasing Officer
From:Debbie Porter, Sr. Management Analyst
Re:Request for Exemption to Bidding for Temporary Engineering Staffing Services
from Willdan Engineering, Inc.
The purpose of this memo is to request authorization for an exemption to the bidding process
(CMC 3.28.070) per Purchasing Code 3.28.110 (N) situations where solicitations of bids or
proposals for goods, services and/or professional services would be, in the discretion of the
awarding authority, impractical, unavailing, impossible, or not in the best interests of the city.
This code provides a bidding exemption for professional services when solicitations of bids are
not in the best interests of the city.
The Building Division of the Community Development Department has three Building Technician
positions that examine applications, plans, and specifications for construction or alteration of
dwellings and assist the public at the front counter with processing building plan checks, permits
and development processing. For several months in 2023, all three of these positions were
vacant.
In addition, in Sept. 2023, the Building Official position became vacant and has not yet been filled.
Per Title 18 Building Codes and Regulations of the Carlsbad, California Municipal Code (CCMC),
the Building Official is the only position in the city authorized and directed to enforce certain
provisions of this section of the CCMC.
The city contracted with Willdan Engineering, Inc.on April 17, 2023 to provide temporary staff in
order to perform the work in the Building Department while recruitments are being conducted
to fill the vacant positions and to help transition the duties to new staff as they are hired. The
current service agreement has a 3-year term (expires on April 17, 2026) with a not-to-exceed
annual maximum of $100,000 in year 1 and $40,000 in years 2 and 3.
Based on the number of hours of work per week being performed by two temporary staff at
billing rates of $155 per hour and $75 per hour, we expect to spend $140,000 in Years 1 and 2 of
the contract.
In order to provide continuity of public service and allow for flexibility to use Willdan temporary
staffing to fill in for future vacancies, we are asking to amend the current contract annual
maximum for years 1 and 2 to $140,000.
Exhibit 2
March 12, 2024 Item #3 Page 8 of 9
{'cityof
Carlsbad
Page 2
If we see a trend in year 3 that requires use of these services in excess of $40,000 we will do an
RFP.
Approval for Bidding Exemption
________________________________________ ________________
Roxanne Muhlmeister, Date
Assistant Finance Director/Purchasing Officer
Attachment: Services Agreement with Willdan Engineering, Inc.
CC: Shea Sainz, Senior Contract Administrator
Judy Von Kalinowski, Human Resources Director
Mike Strong, Asst. Director of Community Development
1/29/2024
March 12, 2024 Item #3 Page 9 of 9