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Agenda Item 19.

City Council Meeting

Meeting Date:	02/15/2022
FROM:	Bill Gallardo

Subject:

Extension of Professional Services Agreement with lnterwest Consulting Group, Inc.

RECOMMENDATION

Approve one-year extension of Professional Services Agreement with lnterwest Consulting Group, Inc. in the amount not-to-exceed $150,000 per year.

BACKGROUND/DISCUSSION

On February 5, 2019, the City Council awarded a Professional Services Agreement (PSA) to lnterwest Consulting Group for project management services to oversee Capital Improvement Projects (CIP). The agreement is for a period of two (2) years with the option to extend for an additional three (3) one-year extensions with City Council approval. The total fee for all assignments to be authorized during a single year would be limited to a not-to-exceed fee of $150,000.

City staff solicited lnterwest Consulting Group (lnterwest) that employs Steve Kooyman. Steve Kooyman's applicable skills include advanced knowledge and skills in budgeting, design engineering, construction management, contract/change order negotiations, and oral and written communication. Additionally, he offers familiarity with the City's processes, standards, codes and expectations as a former City Engineer. Since the time of the contract start date, Mr. Kooyman has been an exceptional project manager. Aside from Steve Kooyman, lnterwest has other highly qualified staff that have worked with many public agencies.

Steve Kooyman has been a tremendous resource while performing the management of the SR-57/Lambert Interchange Project, as well as many other (CIP) projects currently underway. Some of the projects he is managing include 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. Steve Kooyman's services continue to be required to facilitate the pace and quantity of existing CIP projects in various stages of completion.

lnterwest's current hourly rates are within industry standards and meet the City's needs. Staff desires to extend the Professional Services Agreement with lnterwest Consulting Group. The total fee for all assignments to be authorized during a single year would be limited to a not-to-exceed fee of $150,000. For the past three consecutive years, lnterwest's hourly rate for services provided by Mr. Kooyman has been $150.

Per the agreement, Interwest is now requesting, for the first time, a Consumer Price Index (CPI) increase of 11.1%. The 11.1% is calculated from 2019 to now. Applying the CPI increase yields a new hourly rate of $167.00. Staff is amenable to this rate increase per the PSA provisions. See Exhibit A - Revised Fee Rates.

This contract agreement is on an as-needed basis. The City may elect to terminate the contract at any time.

COMMISSION/COMMITTEE RECOMMENDATION

The Finance Committee reviewed staff’s recommendation at their Februrary 8, 2021 meeting and recommended to proceed.

FISCAL IMPACT/SUMMARY

There will be no impact to the General Fund. Consultant fees are paid from corresponding CIP project accounts and/or Cost Center accounts.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Ryan Chapman, P.E., Principal Engineer
Concurrence: Michael Ho, P.E., Acting Public Works Director

Attachments
Amendment No. 2
Exhibit A