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  Agenda Item   24.    
City Council Meeting
Meeting Date: 02/05/2019  
FROM: Bill Gallardo

Subject:
Professional Services Agreement with Interwest Consulting Group (Interwest) in the Amount Not-To-Exceed $150,000 for Engineering Project Management Services
RECOMMENDATION
Approve an agreement with Interwest Consulting Group in the annual amount not-to-exceed $150,000 for two (2) years plus three (3) one-year extensions pending City Council approval.
BACKGROUND/DISCUSSION
The City of Brea has a seven year Capital Improvement Program (CIP) that includes rehabilitation of arterial highways, residential streets and alley ways, replacement of undersized and deteriorated sewer and water lines, installation of traffic signals and other traffic safety enhancements, and rehabilitation of City-owned facilities.  The CIP also includes the largest Public Works project ever undertaken by the City, which is the State Route 57/Lambert Interchange Project.
 
In order to complete these projects, Project Management (PM) is required from project initiation to construction completion.  PM requires advanced knowledge and skills in budgeting, design engineering, construction management, contract/change order negotiations, and oral and written communication.  In Brea, the Principal Civil Engineer is the primary position responsible for overseeing the CIP and PM functions within the Engineering Division of the Public Works Department. 
 
In 2017, the City’s Assistant City Engineer retired.  This position was then downgraded to a Principal Civil Engineer position.  After an unsuccessful recruitment for Principal Civil Engineer, staff decided to hold the position vacant while developing internal staff to grow into the position.  Since then, Brea’s former City Engineer, Steve Kooyman, offered to work for the City as a contractor to help manage CIP projects, including the 57/Lambert project.  As City Engineer, Steve was instrumental in securing full funding for the 57/Lambert Project and for coordinating the final design.  There are still many remaining tasks to complete as this large project moves into the construction phase.  Steve would be a tremendous resource in completing this project and getting many more off the ground.
 
In order to explore this opportunity, staff solicited the services of Interwest Consulting Group (Interwest), who now employs Steve Kooyman.  Interwest offers a wide range of services covering planning, engineering and project management services for public agencies.  These services cover all phases of project development from conceptual design through construction.  Aside from Steve, Interwest has other highly qualified staff that have worked with many public agencies.

Staff intends to use Interwest for staff augmentation for project management of CIP's.  Interwest’s proposed hourly rates are within industry standards and meet the City’s needs.  Staff desires to enter into an agreement for a period of two (2) years with the option to extend for an additional three (3) one-year extensions.  The total fee per consultant for all assignments to be authorized during a single year would be limited to a not-to-exceed fee of $150,000.

This contract with this engineering firm is a sole source given the unique opportunity to have former City Engineer, Steve Kooyman, help deliver some important CIP projects for the City.  Mr. Kooyman's qualifications and productivity are exceptional.  He has over 25 years of experience and can hit the ground running given his familiarity with the City’s processes, standards, codes and expectations.  Steve’s hourly rate is proposed $150.

This contract agreement is on an as-needed basis.  The City is in no way locked in with the length of the contract.  The City has no obligation to continue using Interwest's services and may elect to terminate the contract at any time, especially if Steve were to separate from the firm.
COMMISSION/COMMITTEE RECOMMENDATION
The Finance Committee reviewed staff's recommendation at their January 29, 2019 meeting and recommended changes to the term of the contract.  Changes have been made in the staff report.
FISCAL IMPACT/SUMMARY
Since the consultant fees are paid from corresponding CIP project accounts and/or Cost Center accounts, an appropriation of funds for these consultant contracts is not required.  There will be no General Fund impact.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by:  Michael Ho, P.E., Deputy Director of Public Works/City Engineer
Concurrence:  Tony Olmos, P.E., Public Works Director
Attachments
Interwest PSA
Interwest Proposal

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