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Item 5 - CONSIDERATION OF APPROVAL OF THIRD AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH TRANSTECH FOR CITY ENGINEERING SERVICESAGENDA ITEM NO.5 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: August 16, 2022 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF APPROVAL OF THIRD AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH TRANSTECH FOR CITY ENGINEERING SERVICES RECOMMENDATION: It is recommended that the City Council authorize the City Manager to negotiate and execute the Third Amendment to the Professional Services Agreement with Transtech Engineers, Inc. for engineering services. BACKGROUND: On August 20, 2019, the City Council approved a Professional Services Agreement (Agreement) with Transtech for City Engineering Services, Traffic Engineering, and General Engineering Services. The Agreement was for a term of two (2) years with three (3), one (1) year extensions available and a maximum annual compensation of $800,000. On February 4, 2020, the City and Transtech entered into the First Amendment to the Agreement, which separated the Engineering and Capital Improvement Projects (CIP) budgets. It established an annual limit of $700,000 for Engineering Services and $1,000,000 for CIP compensation. The Second Amendment was entered into September 2, 2021, extending the term of the Agreement until September 5, 2022. DISCUSSION: Transtech has provided the City of West Covina's City Engineering Services since September 6, 2019. Since that date, the division has experienced an influx in the number of engineering plan -checks, inspections, and permit issuances. The City has increased the number of permits processed over the past few years. In Fiscal Year (FY) 2020-21, 471 engineering permits were processed; for FY 2021-22, the City anticipates processing over 882 engineering permits. In addition to the permits, the increase of Transtech services consists of additional traffic analysis studies requested, the hiring of an interim Public Works Director, and miscellaneous engineering services (engineering services not covered by permit fees). In doing so, Transtech's compensation limit of $700,000 will not be sufficient to cover the Engineering services rendered to the City. Transtech is paid according to the fee schedule (set hourly rates) included in the Agreement (Exhibit B of the Agreement is Attachment No. 2). As most of the expenditures are offset by revenue, the proposed third Amendment would remove the compensation limit for engineering services, so it will not impede the City's ability to have Transtech continue to process engineering permits and conduct traffic safety analyses. The Third Amendment will also remove the CIP compensation limit of $1,000,000. The CIP budgeted projects increased from FY 21-22 ($37 Million) to FY 22-23 ($94 Million) by over $56 Million. As the City has increased the CIP budget, the CIP services required of Transtech has increased. Transtech is paid in accordance to the fee schedule. The cost of their services varies between 18% - 27% of the CIP project budget and is funded by the project funding source. Lastly, as the term of the Agreement expires September 5, 2022, the Third Amendment will extend the term until September 2023. LEGAL REVIEW: The City Attorney's Office has reviewed the amendment and approved it as to form. OPTIONS: The City Council has the following options: 1. Approve staff's recommendation; or 2. Provide alternative direction. Prepared by: Gerardo Rojas, Economic Development Project Coordinator Fiscal Impact FISCAL IMPACT: With the removal of the compensation limits to Engineering Services and CIP, Transtech will continue to be paid accordance with the fee schedule. Engineering and CIP services are paid from various funds based on the service and location. These include but are not limited to the General Fund (No. 110), Proposition C (No. 122), Gasoline Tax (No. 124), Sewer Maintenance (No. 189), and Maintenance Districts. The table below includes the primary accounts charged for engineering services and the estimated costs for FY2021-22.This does not include CIP services which are charged to the various projects. Account No. Account Name FY2021-22 Budget* FY2021-22 Estimate Estimated Balance 110.71.4130.6110 Professional Services $600,000 $588,100 $11,900 122.71.4132.613 Iservice Contracts $506,000 $427,200 $78,800 124.71.4131.611 1professionai Services $77,400 $77,300 $100 189.71.4189.6130 =lService Contracts $123,700 $79,200 $44,500 *Pending approval of Preliminary End of Year Budget Amendment. Attachments Attachment No. 1 - Third Amendment to Professional Services Agreement Attachment No. 2 - Exhibit B to the Professional Services Agreement with Transtech CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability ATTACHMENT NO. 1 THIRD AMENDMENT TO CITY OF WEST COVINA PROFESSIONAL SERVICES AGREEMENT WITH TRANSTECH ENGINEERS, INC. FOR CITY ENGINEER SERVICES, TRAFFIC ENGINEER SERVICES AND ON -CALL GENERAL ENGINEERING SERVICES THIS THIRD AMENDMENT ("Amendment") is made and entered into as of August 16, 2022 ("Effective Date") by and between the CITY OF WEST COVINA, a municipal corporation ("City'), and TRANSTECH ENGINEERS, INC., a California corporation ("Consultant"). WHEREAS, City and Consultant entered into a Professional Services Agreement dated September 6, 2019 for Consultant to provide City Engineer services, Traffic Engineer services and on -call general engineering services ("Original Agreement"); and WHEREAS, City and Consultant amended the Original Agreement to clarify Consultant's compensation for engineering services and for preparing and completing capital improvement projects through the First Amendment to the Original Agreement, dated February 4. 2020: and WHEREAS, Section 4.1 of the Original Agreement provides for an initial term of two (2) years, ending September 6, 2021, with the option for City and Consultant to extend the term for up to three (3) additional one (1) year periods; and WHEREAS, City and Consultant extended the term of the Original Agreement through September 5, 2022 through the Second Amendment to the Original Agreement, dated September 2, 2021; and WHEREAS, City and Consultant now desire to extend the term for one (1) year, through September 5, 2023; and WHEREAS, City and Consultant further desire to amend Section 2.1 of the Original Agreement as set forth herein. NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Section 2.1 of the Original Agreement shall be amended to read as follows: 2.1. Compensation. Consultant shall be paid in accordance with the fee schedule set forth in Exhibit B (the "Fee Schedule"). 2. The term of the Original Agreement shall be extended through September 5, 2023. 3. All terms not defined herein shall have the same meaning and use as set forth in the Original Agreement. 4. All other terms, conditions, and provisions of the Original Agreement shall remain Transtech Engineers, Inc. Engineering Services Third Amendment in full force and effect. IN WITNESS WHEREOF, City and Consultant have executed this Amendment as of the date set forth above. CITY OF WEST COVINA CONSULTANT David Carmany City Manager ATTEST: Lisa Sherrick Assistant City Clerk APPROVED AS TO FORM: Thomas P. Duarte City Attorney APPROVED AS TO INSURANCE: Helen Tran Human Resources and Risk Management Director Ali Cayir President Sybil Cayir Secretary Transtech Engineers, Inc. Engineering Services Third Amendment ATTACHMENT NO. 2 Exhibit B Fee Schedule Below is Transtech's current Standard SCHEDULE OF HOURLY RATES for all staff classifications. Please note, Rates are average and negotiable, and final rates are negotiated based on final scope, staff positions. TRANSTECH ENGINEERS, INC. SCHEDULE OF HOURLY RATES Effective through June 30, 2020 ENGINEERING Field Technician $67 Engineering Technician $82 Assistant CAD Drafter $97 Senior CAD Drafter $118 Associate Designer $123 Senior Designer $133 Design Project Manager $164 Assistant Engineer $103 Staff Engineer $128 Associate Civil Engineer $128 Senior Civil Engineer $164 Traffic Analyst Technician $82 Associate Traffic Analyst $97 Senior Traffic Analyst $133 Professional Transportation Planner $154 Traffic Engineer Technician $82 Associate Traffic Engineer $128 Traffic Engineer $144 Senior Traffic Engineer $164 Project Manager $154 Senior Project Manager $164 Deputy City Engineer $144 Senior City Engineer $164 Principal Engineer $185 CONSTRUCTION Labor Compliance Analyst $123 Funds Coordinator $123 Utility Coordinator $138 Office Engineer $113 Construction Inspector $118 Senior Construction Inspector $133 Construction Manager $164 Resident Engineer $164 Public Works Inspector $118 Senior Public Works Inspector $133 Supervising PW Inspector • Survey Analyst $138 $118 Senior Survey Analyst $123 2 Man Survey Crew $287 Survey & Mapping Specialist $164 Licensed Land Surveyor • Funds Analyst $179 $103 Senior Funds Analyst $123 Graphic & Rendering Designer $113 Grant Writer $123 Funds & Grant Project Manager $154 BUILDING & SAFETY Permit Technician $62 Building Inspector $87 Senior Building Inspector $97 Plans Examiner/Checker $123 Plan Check Engineer $133 CASp Plan Checker $144 Deputy Building Official $133 Building Official Community Development Technician $144 $62 Planning Technician $62 Assistant Planner $97 Associate Planner $113 Senior Planner $123 Planning Manager $138 Deputy Director $174 Director Administrative/Clerical $185 $62 Project Accountant $77 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. 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