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23-0620_INTERWEST CONSULTING GROUP_E11_Agenda ReportCity of San Juan Capistrano Agenda Report TO: Honorable Mayor and Members of the City Council FROM: Benjamin Siegel, City Manager SUBMITTED BY: Thomas Toman, Public Works Director PREPARED BY: Jill Thomas, Senior Management Analyst DATE: June 20, 2023 SUBJECT: Amendment No. 1 to the Professional Services Agreement for Traffic Engineering and Professional Engineering Services (Interwest Consulting Group, Inc.) RECOMMENDATION: 1.Approve and authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement with Interwest Consulting Group, Inc. for traffic engineering and professional engineering services for an additional two-year term beginning July 1, 2023, and ending June 30, 2025; and, 2.Waive the formal bidding process pursuant to Municipal Code Section 3-4.306(e)(3). EXECUTIVE SUMMARY: The current agreement for traffic engineering and professional engineering services with Interwest Consulting Group, Inc. expires on June 30, 2023 (Attachment 1). The original term of the agreement was for a two-year period that expires on June 30, 2023. Interwest has offered to continue services to the City for an additional two-year term with a rate increase equivalent to the Consumer Price Index (CPI) of 6.25% (Attachment 2). It is recommended that the City Council authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement with Interwest for a two-year term 6/20/2023 E11 City Council Agenda Report June 20, 2023 Page 2 of 3 beginning July 1, 2023, and ending June 30, 2025, (Attachment 3) and waive the formal bidding process pursuant to Municipal Code Section 3-4.306(e)(3). Interwest has provided exceptional service to the City for the past seven years. They have been very responsive to the City’s needs and provide quality work on a consistent basis, often under constrained timelines and in emergency situations. Their institutional knowledge of the City saves countless hours of staff time for the varied traffic operations and capital improvement projects requiring these services. Interwest has offered to enter into a contract amendment which would extend the contract for a term for two additional years with a CPI increase in the first year of the extended contract only; rates are shown on Exhibit A of Attachment 3. A formal RFP/RFQ process would likely result in higher fees and a reduction in the level of service currently provided to the community. Consequently, it is recommended that a contract amendment be approved without a formal RFP/RFQ process under the exceptions provided for in Municipal Code Section 3- 4.306(e)(3), which allows for an exception where the process is deemed not to be the most cost-effective approach. FISCAL IMPACT: The City spends approximately $200,000 annually for professional traffic and engineering services based on a time and materials basis. The proposed Amendment No. 1 includes an increase of 6.25% over current pricing. There is sufficient funding in the proposed Fiscal Year 2023-2024 Operating and Capital Improvement Budgets to cover these operations. Additionally, there would be no increase in rates for the second year of the term extension, Fiscal Year 2024-2025. ENVIRONMENTAL IMPACT: Not applicable. CITY COUNCIL REVIEW: On June 15, 2021, the City Council approved and authorized the City Manager to execute a Professional Services Agreement with Interwest Consulting Group, Inc. to perform traffic engineering and professional engineering services for a two-year term beginning July 1, 2021, and ending June 30, 2023, for an annual amount not-to-exceed the amount of available funding in the annual operations and capital improvement budgets. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: This item does not require commission, committee, or board review. City Council Agenda Report June 20, 2023 Page 3 of 3 NOTIFICATION: Interwest Consulting Group, Inc. ATTACHMENT(S): Attachment 1: Professional Services Agreement – Interwest Consulting Group, Inc. Attachment 2: Interwest Extension Request Letter Attachment 3: Proposed Amendment No. 1 ATTACHMENT 1 -- Page 1 of 15 ATTACHMENT 1 -- Page 2 of 15 ATTACHMENT 1 -- Page 3 of 15 ATTACHMENT 1 -- Page 4 of 15 ATTACHMENT 1 -- Page 5 of 15 ATTACHMENT 1 -- Page 6 of 15 ATTACHMENT 1 -- Page 7 of 15 ATTACHMENT 1 -- Page 8 of 15 ATTACHMENT 1 -- Page 9 of 15 ATTACHMENT 1 -- Page 10 of 15 ATTACHMENT 1 -- Page 11 of 15 ATTACHMENT 1 -- Page 12 of 15 ATTACHMENT 1 -- Page 13 of 15 ATTACHMENT 1 -- Page 14 of 15 ATTACHMENT 1 -- Page 15 of 15 1 Jenner, Suite 160, Irvine, CA 92618 626.224.2055 June 6, 2023 Thomas Toman , Public Works Director Public Works Department 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Re: On-Call Services for Traffic Engineering and Professional Engineering Services Dear Mr. Toman, We are pleased to present this letter proposal to the City of San Juan Capistrano (City) to continue providing On-Call Services for Traffic Engineering and Professional Engineerin g Services (On-Call Services). The original Agreement was entered into on July 1, 2021, by and between Interwest Consulting Group (Interwest) and the City with a term to June 30, 2023. City and Interwest now mutually desire to extend the term of the Agreement another two years to June 30, 2025, for the On-Call Services. EXHIBIT A – SCHEDULE OF CHARGES/PAYMENTS As part of this Agreement term extension, Interwest desires to amend Exhibit A – Schedule of Charges/Payments with the attached Exhibit-A. Furthermore, we appreciate the opportunity to continue serving the City of San Juan Capistrano. Please contact George Alvarez at 714.615.0883 or galvarez@interwstgrp.co m should you have any questions. If you find our proposal acceptable, please provide a signed notice -to-proceed letter. Sincerely, Paul Meschino President Interwest Consulting Group ATTACHMENT 2 -- Page 1 of 2 T H OUG H TF UL SOLUTIONS . T HRI VING C O M MUN I TI E S . City of San Juan Capistrano // Public Works Department On—Call Services for Traffic Engineering and Professional Engineering Services SCHEDULE OF CHARGES/PAYMENTS Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Consultant will inform City regarding any ou t-of-scope work being performed by Consultant. The rates are effective July 1, 2023, through June 30, 2025. Position Hourly Rate Professional/Traffic Engineer $170 Senior Engineer $140 Associate Engineer $125 Assistant Engineer $105 CAD Drafter/Designer $85 Engineer -in-Training $95 Administrative Assistant $85 Construction Manager $125/1 35* Assistant Construction Manager $120/130* Senior Public Works Observer $125/$1 35* Public Works Observer III $120/$1 3 0* Public Works Observer II $115/$125* Public Works Observer I $110/$120* *Hourly Rate will be charged based on the prevailing rate as determined by Department of Industrial Relations for Public Works Projects pursuant to CA Labor Coe requirements. ATTACHMENT 2 -- Page 2 of 2 AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND INTERWEST CONSULTING GROUP, INC. 1.Parties and Date. This Amendment No. 1 to the Professional Services Agreement is made and entered into as of this 6th day of June 2023, by and between the City of San Juan Capistrano, a municipal organization organized under the laws of the State of California with its principal place of business at 30448 Rancho Viejo Road, San Juan Capistrano, California 92675 (“City”) and Interwest Consulting Group, Inc., a California company, with its principal place of business at 1 Jenner, Suite 160, Irvine, CA 92618 (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties.” 2.Recitals. 2.1 Contractor. The City and Contractor have entered into an agreement entitled “PROFESSIONAL SERVICES AGREEMENT” dated July 1, 2021 (“Agreement”) for the purpose of retaining the services of Contractor to provide traffic engineering and professional engineering services. 2.2 Amendment Purpose. The City and Contractor desire to amend the Agreement to extend the Professional Services Agreement for traffic engineering and professional engineering services at the pricing shown on Exhibit A for an additional two- year term beginning July 1, 2023 and ending June 30, 2025. All other terms and conditions will remain the same as noted in the Agreement. 2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section 3 of the Agreement. ATTACHMENT 3 - Page 1 of 4 3. Terms. 3.1 Renewal Term. The term of the Agreement is hereby extended for one (1), two (2) year renewal commencing July 1, 2023 to June 30, 2025, i.e., the First Renewal Term unless earlier terminated as provided herein. 3.2 Renewal Term Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Amendment during the First Renewal Term at the rates set forth in Exhibit “A” (attached hereto and incorporated herein by reference). 3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1. 3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 1. 3.5 Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. [Signatures on Next Page] ATTACHMENT 3 - Page 2 of 4 SIGNATURE PAGE FOR AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND INTERWEST CONSULTING GROUP, INC. CITY OF SAN JUAN CAPISTRANO Approved By: Benjamin Siegel City Manager Date Attested By: Maria Morris, City Clerk Approved As To Form: City Attorney INTERWEST CONSULTING GROUP, INC. Signature Name Title Date ATTACHMENT 3 - Page 3 of 4 T H O U G H T F U L S O L U T I O N S . T H R I V I N G O M M U N I T I E S . SCHEDULE OF CHARGES/PAYMENTS Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Consultant will inform City regarding any ou t-of-scope work being performed by Consultant. The rates are effective July 1, 2023, through June 30, 2025. Position Hourly Rate Professional/Traffic Engineer $170 Senior Engineer $140 Associate Engineer $125 Assistant Engineer $105 CAD Drafter/Designer $85 Engineer -in-Training $95 Administrative Assistant $85 Construction Manager $125/1 35* Assistant Construction Manager $120/130* Senior Public Works Observer $125/$1 35* Public Works Observer III $120/$1 3 0* Public Works Observer II $115/$125* Public Works Observer I $110/$120* *Hourly Rate will be charged based on the prevailing rate as determined by Department of Industrial Relations for Public Works Projects pursuant to CA Labor Coe requirements. ATTACHMENT 3 - Page 4 of 4 EXHIBIT A AMENDMENT NO. 1 -- INTERWEST CONSULTING GROUP, INC.