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  Agenda Item   19.    
City Council Meeting
Meeting Date: 03/07/2023  
FROM: Bill Gallardo

Extension of Professional Services Agreement with Interwest Consulting Group, Inc.
Approve one-year extension of Professional Services Agreement with Interwest Consulting Group, Inc. in the amount not-to-exceed $150,000 per year.
On February 5, 2019, the City Council awarded a Professional Services Agreement (PSA) to Interwest Consulting Group for project management services to oversee Capital Improvement Program (CIP) projects. The agreement was for 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 authorized during a single year would be limited to a not-to-exceed price of $150,000.

City staff solicited lnterwest Consulting Group, Inc. (lnterwest), which 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 contract start date, Mr. Kooyman has been an exceptional project manager. Aside from Steve Kooyman, lnterwest has other highly qualified staff working with many public agencies.

Steve Kooyman has been a tremendous resource while managing the SR-57/Lambert Interchange Project and many other (CIP) projects currently underway. Some of the projects he manages include the rehabilitation of arterial highways, residential streets, and alleyways, the replacement of undersized and deteriorated sewer and water lines, installing traffic signals and other traffic safety enhancements, and rehabilitating 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 authorized during a single year would be limited to a not-to-exceed price of $150,000. 

Interwest's hourly rate for services provided by Mr. Kooyman during the previous extension period was $167 per hour. Per the agreement, Interwest requests a Consumer Price Index (CPI) increase of 7.8%. Applying the CPI increase yields a new rate of $180 per hour. City staff is amenable to this rate increase per the PSA provisions. See Exhibit A - Revised Fee Rates for reference. This contract agreement is on an as-needed basis; the City may elect to terminate the contract at any time.
The Finance Committee reviewed staff’s recommendation at their February 28, 2023 meeting and recommended for Council approval.
There will be no impact to the General Fund. Consultant fees are paid from corresponding CIP project accounts and/or Cost Center accounts.
William Gallardo, City Manager
Prepared by:   Ryan S. Chapman, P.E., Assistant City Engineer
Concurrence:  Michael Ho, P.E., Director of Public Works/City Engineer
Amendment No. 3
Exhibit A

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