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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