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APPROVE A PROFESSIONAL SERVICES CONTRACT WITH MICHAEL BAKER INTERNATIONAL FOR PLANNING SERVICES IN THE AMOUNT OF $500,000, AND AMEND THE FISCAL YEAR 2016-2017 DEVELOPMENT SERVICES ANNUAL BUDGET
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Authorizing the City Manager to execute a Professional Services Contract with Michael Baker International in the amount of $500,000 for planning services; and
2. Authorizing a budget amendment to the Fiscal Year 2016-2017 Development Services budget to increase appropriations by $500,000 from available fund balance for this contract; and
3. Authorizing the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
During the current budget development and adoption, staff discussed a workload management approach to staff to the lowest anticipated staffing need in upcoming years and use contracted services to address peaks in workload or specialized tasks requiring expert assistance. This minimizes staffing fluctuations and potential layoffs. Council reviewed and approved this recommendation at that time. Consistent with that recommendation, staff is now recommending that Council adopt a resolution authorizing the City Manager to execute a Professional Services Contract with Michael Baker International, in the amount of $500,000 for planning services (Attachment A - Professional Services Contract). It is anticipated that the contract will have a duration of three years, with options for extensions. A Request for Proposals was issued July 14, 2016 and Michael Baker International was ranked the top firm out of the six firms that applied.
DISCUSSION
Background
As a part of the annual budget process for the current budget year, consideration of additional resources to augment planning staffing and provision of specialized planning services was included in the budget. A combination of modest staffing increases and use of consulting services was determined to be the most responsible way to address increasing development activity and increased demand for advance planning activities such as development code updates, financial impact analysis of new development, and implementation of General Plan policies and programs. This approach avoids over-hiring of permanent staff in response to cyclical development activity by using consultants to augment staffing and procures specialized planning services that would not be economical to provide by hiring permanent specialist staff.
There has been a rapid increase in development project valuation in the City of Stockton over the last several years as the market continues an upward trend which resulted in increased planning and building permit activity and economic growth.
• In FY 2012-13, project valuation for all issued permits in the City was $121 million
• In FY 2013-14, project valuation for all issued permits in the City was $141 million
• In FY 2014-15, project valuation for all issued permits in the City was $215 million
• In FY 2015-16, project valuation for all issued permits increased to $315 million
Permit valuation increased due to the volume, type, and complexity of projects proposed in this economy. While the department managed the workload up to this point with the current staff, consultant services are recommended to be utilized to maintain project processing timelines and provide good customer service as development activity continues to increase. Consultant services are recommended to protect against market volatility as an alternative to hiring permanent staff, while maintaining the capacity to temporarily respond to increased staffing needs. Such use of contract services addresses peaks in the development cycle, and can easily be reduced during cyclical downturns, similar to the department’s current use of professional services contracts for building plan check and inspection services.
Present Situation
On July 14, 2016, a Request for Proposal (RFP) was posted to the City’s Bid Flash webpage. On August 4, 2016, proposals were received from the following planning consultant firms:
• Dudek
• EMC Planning Group
• John B. Anderson Land Use Planning
• Michael Baker International
• Stantec Consulting Services, Inc.
• Willdan Engineering
Initial review determined that all six firms were qualified to provide the specialized services required. A selection committee comprised of representatives from the Community Development Department then reviewed the proposals; ranked them based on factors including project understanding, team qualifications, relevant experience, and services offered; and based on the initial rankings, interviewed the top two firms. Upon conclusion of this process, Michael Baker International was the highest ranked firm and was selected to provide the planning services. Michael Baker International’s not-to-exceed cost for this project is $500,000 for as-needed services, for the three-year duration of the contract, which staff considers reasonable for the scope and complexity of services required.
Therefore, staff recommends that Council adopt a resolution authorizing the City Manager to execute a Professional Services Contract with the selected firm and amend the Fiscal Year 2016-2017 Development Services budget to increase appropriations by $500,000 from the available fund balance for this contract. This approach was discussed during the current budget development and adoption. Council reviewed and approved staff’s recommendation to staff to the lowest anticipated staffing need in upcoming years and use contracted services to address peaks in workload or specialized tasks requiring expert assistance. This minimizes staffing fluctuations and potential layoffs.
FINANCIAL SUMMARY
Although a budget of $9,133,277 was appropriated in the FY 2016-17 Annual Budget, an additional appropriation is recommended from the Development Services available fund balance in the amount of $500,000 to Account Number 048-1825-510. The available fund balance in the Development Services Fund is more than sufficient to cover the recommended appropriation. The total anticipated cost of the contract with Michael Baker International is $500,000 and will be charged to Account Number 048-1825-510.
Attachment A - Professional Services Contract