CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report

July 2, 2018
CONSENT AGENDA

TO: Honorable Mayor and City Council Members

SUBMITTED BY: Robert M. Harary, P.E., Director of Public Works

APPROVED BY: Chip Rerig, City Administrator

Resolution 2018-066, Authorizing the City Administrator to Execute Amendment No. 1

to the Professional Services Agreement with Neill Engineers Corp. for Additional
SUBJECT: Engineering Services Required for Fiscal Year 2017/18 and 2018/19 Capital Projects
for a Fee Increase not to Exceed $186,000.

RECOMMENDATION:
Adopt Resolution 2018 - 066, authorizing the City Administrator to execute Amendment No. 1 to the Professional
Services Agreement with Neill Engineers for additional engineering services required for Fiscal Year (FY) 2017/18
and 2018/19 capital projects for a fee increase not to exceed $186,000.

BACKGROUND/SUMMARY:
Neill Engineers has continuously served as the City Engineer since nearly the City’s inception in 1916. They are a
reputable firm located in Carmel and possess institutional knowledge of the City’s infrastructure systems that are
second to none. Their hourly billing rates are below industry standard rates for similar services performed on the
Monterey Peninsula.

On August 8, 2017, the City Council awarded a new Professional Services Agreement to Neill Engineers for a
not-to-exceed fee of $70,800 and a two-year term ending June 30, 2019. At that time, the scope of work of the
City’s key infrastructure projects which are currently under construction: namely the $2.1M, FY 2017/18 City-
wide Pavement Rehabilitation Project and the $1.4M, 5th Avenue Storm Drainage Project (Phases 1 to 3), was
unknown. The actual fees for these services were higher than anticipated in the Agreement but are lower than
they would have been if these projects were designed one phase at a time over several years as originally
intended. Also, the Agreement inadvertently did not include any budget to finish several FY 2016/17 projects nor
to design any new FY 2018/19 projects. In addition, until recently, this firm billed the City for all work performed
through a project phase, rather than on a monthly basis where costs could have been more closely monitored.
The additional costs will predominantly be covered by applicable Capital Improvement Program (CIP) project
accounts. The billing practice has been amended by the City and Neill Engineers as well.

Proposed Amendment No. 1 to the Agreement will allow the City to pay for additional services performed for FY
2016/17 and 2017/18 projects, continue to provide necessary engineering and land surveying services on an
on-call, as-needed basis, fund the design of the upcoming FY 2018/19 City-wide Pavement Rehabilitation
Project, and set a contingency that would only be used if authorized in advanced by the City.

In an ongoing effort to gradually seek a more sustainable, long-term balance of contracting work out versus
performing basic engineering tasks in-house, the City’s Director of Public Works and Project Management team
will develop plans and specifications for several FY 2018/19 projects such as Sidewalk Repairs.

FISCAL IMPACT:
A $200 per month stipend to Neill Engineers to serve as City Engineer will continue to be paid out of the Public
Works Department’s FY 2018/19 operating budget ($2,400 per year). Engineering services will also continue on an
on-call, as-needed basis and funded by applicable CIP projects or by the Public Works operating budget for general
engineering tasks.

In FY 2017/18, on-call services included surveying and mapping of the Public Works Yard for Fuel Station
Decommissioning and the Police Building expansion areas, and supporting construction of the Junipero and 5th
Avenues Storm Drain Repair Project and 4th Avenue Irrigation Project. These fees were paid out of applicable,
Council-adopted, CIP project accounts.

CIP Project accounts are also anticipated to cover much of the engineering costs associated with the City-wide
Pavement Projects for FY 2017/18 and 2018/19, and the 5th Avenue Storm Drainage Project. The shortfall, of
approximately $65,000, will need to be deducted from the Measure D end balance.

Although funding is available, invoices cannot be paid until the upper limit in the Agreement is raised. It should
be noted that Neill Engineers’ total billings for the FY 2017/18 City-wide Pavement and 5 th Avenue Storm Drainage
Projects was approximately 4% of the construction costs, which are well below the industry standard range of 8 to
10% for similar projects.

The following table details the budget in the original Agreement, the actual or anticipated engineering costs when
the assigned capital improvement projects are completed, the balance (without Amendment No. 1), and the
budget increase recommended for Amendment No. 1.

Original Actual or Proposed Amendment

Project/Activity Agreement Anticipated Cost Balance No. 1 Budget Increase
Budget
City Engineer Stipend $4,800 $4,800 $0 $0
On-call Engineering $16,000 $7,442 $8,558 $0
& Surveying Services
FY 2016/17 CIPs $0 $7,495 <$7,495> $0
Paid in 2017/18
City-wide Pavement $20,000 $60,827 <$40,827> $41,000
Project FY 2017/18
City-wide Pavement
$0 $75,000 <$75,000> $75,000
Project FY 2018/19
5th Ave. Storm $30,000 $80,000 <$50,000> $50,000
Drainage Project
8% Contingency $0 $20,000 <$20,000> $20,000
Total $70,800 $255,564 <$184,764> $186,000

PRIOR CITY COUNCIL ACTION:

 On August 8, 2017, Council awarded a new Professional Services Agreement to Neill Engineers for a not-to-exceed
fee of $70,800 and a two-year term ending June 30, 2019.

ATTACHMENTS:

Attachment #1 - Resolution No;. 2018-66

Attachment #2 - Amendment No. 1 Neill Engineers
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SIGNED: ATTEST:

Steve G. Dallas, Mayor Thomas A. Graves, MMC

City Clerk
 AMENDMENT NO. 1 Attachment 2
PROFESSIONAL SERVICES AGREEMENT PWD-NEI-004-17-19
Neill Engineers Corp. - Engineering Services

THIS AMENDMENT No. 1 to AGREEMENT PWD-NEI-004-17-19 (“Amendment”), made and entered into as
of this _____ day of July, 2018, amends the Agreement heretofore entered into between the CITY OF
CARMEL-BY-THE-SEA, a municipal corporation, hereinafter referred to as “CITY”, and NEILL ENGINEERS
CORP., hereinafter referred to as “CONSULTANT.”

RECITALS

WHEREAS on August 29, 2017, CITY and CONSULTANT entered into Agreement PWD-NEI-004-17-
19 for a not-to-exceed fee of $70,800 and a term expiring on June 30, 2019, for CONSULTANT to provide
engineering services on an on-call, as-needed basis, and for engineering services required for various Capital
Improvement Program (CIP) projects; and

WHEREAS CITY and CONSULTANT now desire to augment the scope of work and associated budget
to include engineering services for additional and expanded CIP projects funded by CITY in Fiscal Years
2017/18 and 2018/19.
AGREEMENT

NOW, THEREFORE, in consideration of the above recitals, which recitals are contractual in nature,
the mutual premises herein contained, and for other good and valuable consideration hereby acknowledge,
the parties agree that the aforesaid Agreement be amended as follows:

1. CONSULTANT shall continue to provide engineering services described in Attachment “A” for
CIP projects assigned by the CITY’s Director of Public Works. Attachment “A” is attached hereto and
incorporated herein by reference.

2. CONSULTANT’S sole compensation for satisfactory performance of all services rendered

pursuant to this Amendment No. 1 shall be a total fee of $166,000. The total for the Agreement plus this
Amendment No. 1 shall be $236,800. Billings shall be submitted monthly and list actual hourly labor and other
direct costs as detailed in Attachment “B,” attached hereto and incorporated herein by reference. An 8%
contingency of $20,000 is also available for unanticipated extra work, but will require prior written approval by
the City before any such additional work begins. The total amount of the Agreement plus this Amendment No.
1 with contingency shall not exceed $256,800.

3. Except as set forth in this Amendment No. 1, the Agreement is unaffected and shall continue
in full force and effect in accordance with its terms. If there is conflict between this Amendment No. 1 and the
Agreement or any earlier amendment, the terms of this Amendment No. 1 shall prevail.

NEILL ENGINEERS CORP., CONSULTANT:

______________________
Sherman Low, P.E. Date

CITY OF CARMEL-BY-THE-SEA

______________________
Richard Rerig, City Administrator Date

ATTEST:

______________________
Thomas A. Graves, MMC, City Clerk Date

APPROVED AS TO FORM:

______________________
Glen R. Mozingo, Esq., City Attorney Date