CITY OF ELK GROVE CITY COUNCIL STAFF REPORT

CITY OF ELK GROVE CITY COUNCIL STAFF REPORT AGENDA ITEM NO. 10.2 AGENDA TITLE: Consider a resolution authorizing the City Manager to execute two professional services contracts with Willdan Engineering to perform professional engineering services for the Public Works Department MEETING DATE: April 27, 2016 PREPARED BY DEPARTMENT HEAD: Bob Murdoch, Public Works Director/ City Engineer RECOMMENDED ACTION: Staff recommends the City Council adopt a resolution authorizing the City Manager to execute two professional services contracts with Willdan Engineering for provision of professional engineering services for the City of Elk Grove s Public Works Department. BACKGROUND INFORMATION: Since 2010, the City of Elk Grove has contracted with Willdan Engineering (Willdan) for nearly all of its public works services Prior to 2010, these services were provided by Interwest Consulting Group. The current contract with Willdan includes Public Works capital projects, operations and maintenance, and Development Services. This contract will expire on November 8, 2016. Some existing task orders will be governed by the previous contract until they are transferred over by November 7, 2016 prior to expiration of the previous contract. On September 24, 2015 the City Council provided input on a Request for Qualifications (RFQ) for the portion of the expiring Willdan contract for Public Works. The City s Development Services Department will be starting the process to select a consultant in the near future for the remaining development engineering services that Willdan currently provides. 1

Elk Grove City Council April 27, 2016 Page 2 of 4 Because of issues related to compliance with federal and state requirements, the contracted work needed to be segregated into two contracts. The first contract would cover projects that use federal and state funds. The second contract would cover projects that use local funding, as well as operations and maintenance services. The RFQ was released on October 21, 2015, and the solicitation has been conducted in accordance with State and Federal regulations for Architectural and Engineering Services. These regulations require that proposers must be ranked based on qualifications only. Once the most qualified firm is identified, then negotiations on costs commence. If an agreement cannot be reached with the highest ranked firm, then negotiations commence with the second ranked firm. This process continues until an agreement can be reached with a proposer. On November 16, 2015, the City received proposals from two firms: Interwest Consulting Group and Willdan Engineering. The proposals were reviewed by the Public Works Division Managers, the Public Works Director at that time, and the Assistant City Manager. All reviewers ranked Willdan as the most qualified proposer on both contracts. Accordingly, negotiations with Willdan were initiated, and staff believes that acceptable terms have been negotiated and recommends that the City Council approve the award of both contracts to Willdan Engineering. As required by federal regulations, Caltrans has reviewed the contract covering State and Federal funded capital projects, and provided their approval on March 25, 2016 to execute the contract. KEY TERMS OF THE CONTRACT: The following provisions are similar to the existing contract: The base term for both contracts is for a three-year period with the ability to extend an additional two years. Federally funded on-call contracts are not permitted to go beyond a five-year period, so the term of both contracts has been made the same. Willdan will be the single prime contractor responsible for all subcontracted work, including routine maintenance services such as the maintenance of street and drainage facilities. Routine maintenance services will be solicited competitively by Willdan under the new contract; however, existing services will continue under the existing contact until new services are procured. 2

Elk Grove City Council April 27, 2016 Page 3 of 4 Numerous existing task orders will be closed out before the termination of the existing contract on November 7, 2016. Administrative staff are being provided at no direct cost to the City. For each workstation used at the City, Willdan will pay the City $17,000 per year as rent. All work will be executed through the task order process, as is done now. The following are the more notable terms that are different than the existing contract: The markup applied by Willdan to subcontractor work has been reduced from 3.5% in the current contract to 1.75% on locally funded work, and reduced to 0% on state and federally funded work. Willdan will assist in digital archiving of existing Department documents without additional cost to the City. This includes additional administrative staff at no direct cost to the City. The existing contract did not have a compensation limit. The new contracts are fiscally constrained. The state and federally funded work is limited to $3.15 million over the term of the contract. Locally funded work is limited to $14 million annually unless the Public Works Director provides written approval, provided that such additional approvals do not exceed approved budgeted amounts. This authority is requested to allow the department the flexibility needed to address the City s needs in accordance with approved budget authority. The Public Works Director will have approval authority over hourly rate adjustments over the life of the contract. The contract will have provisions to allow other consultants to perform work under separate contracts for the City without penalty (Willdan will not have exclusive rights to the work). RECOMMENDATION Staff recommends that Council adopt the resolution authorizing the City Manager to execute both professional service contracts (one for State and Federal funded work and the other one for all other Public Works services). 3

Elk Grove City Council April 27, 2016 Page 4 of 4 If Council believes the negotiated contracts are not acceptable, staff requests that Council specify terms that would be acceptable and allow Willdan to determine if they would be willing to accept such terms. According to the Federal and State requirements, it is only when Willdan is unwilling to accept the terms of the negotiations that they will be eliminated and negotiations can begin with the next most qualified firm, Interwest Consulting Group. FISCAL IMPACT: All work to be performed under the proposed contract is programmed and appropriated in the current fiscal year budget. Since this will be a multiyear contract, future work will be included in future budgets. No work will be performed in excess of budgeted authority. ATTACHMENTS: 1. Resolution a. Exhibit A Contract #1 (Federal and State Funded Work) b. Exhibit B, Contract #2 (All other Public Works Services) 4

ATTACHMENT 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK GROVE AUTHORIZING THE CITY MANAGER TO EXECUTE TWO PROFESSIONAL SERVICES CONTRACTS WITH WILLDAN ENGINEERING (ONE CONTRACT FOR STATE AND FEDERAL FUNDED WORK AND THE OTHER CONTRACT FOR ALL OTHER WORK) TO PROVIDE SERVICES TO THE CITY OF ELK GROVE DEPARTMENT OF PUBLIC WORKS WHEREAS, the City of Elk Grove utilizes consultants to perform most of the services within the Department of Public Works; and WHEREAS, the existing professional services contracts for Public Works services will expire on November 8, 2016; and WHEREAS, a continuation of public works services is vital to the protection of public safety where a lapse of having a contract for these services is unacceptable; and WHEREAS, the City has followed Federal and State regulations as well as the City s purchasing ordinance requirements by issuing a Request for Qualifications to solicit these services (one contract for State and Federal funded work and the other contact for all other work) and received statements of qualifications on November 16, 2015; and WHEREAS, Willdan Engineering was determined to be the most qualified firm and staff has negotiated fair and reasonable contract terms that are acceptable to Willdan Engineering. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk Grove hereby authorizes the City Manager to execute two professional services contract with Willdan Engineering to perform the Department of Public Works services. PASSED AND ADOPTED by the City Council of the City of Elk Grove this 27 th day of April 2016. GARY DAVIS, MAYOR of the CITY OF ELK GROVE ATTEST: APPROVED AS TO FORM: JASON LINDGREN, CITY CLERK JONATHAN P. HOBBS, CITY ATTORNEY 5

6 EXHIBIT A

40 EXHIBIT B