Report to Mayor and City Council
Tuesday, June 06, 2017
Consent
SUBJECT:
Title
CONSIDER AMENDMENT NO. 1 TO A PROFESSIONAL SERVICES AGREEMENT WITH THE RRM DESIGN GROUP CONTRACT FOR ARCHITECTURAL SERVICES FOR PARTICIPANTS IN THE CDBG-FUNDED COMMERCIAL IMPROVEMENT PROGRAM (CITY COUNCIL)
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I. SUMMARY
In September 2015, the City Council approved a three-year contract with the RRM Design Group to provide architectural design review services for the Planning Division of the Community Development Department (the “Agreement”). Since that time, Planning has exercised its approved authority to extend the Agreement through September 2017. The Housing Division seeks to amend the Agreement to expand the scope of services to provide architectural design services to applicants in the Community Development Block Grant (CDBG)-funded Commercial Improvement Program.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE Amendment to the Agreement for Contract Services between the City of Carson and RRM Design Group.
2. AUTHORIZE the Mayor to execute the Amendment to the Agreement for Contract Services upon approval as to form by the City Attorney.
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III. ALTERNATIVES
TAKE another action City Council deems appropriate.
IV. BACKGROUND
In September 2015, the City Council approved an Agreement with RRM Design Group to provide architectural review services for the Planning Division (Exhibit No. 1). The City seeks to amend the Agreement to include architectural “design” services (the “Amendment”) for participants in the City’s Commercial Improvement Program (the “Program”). The architectural design component of the Program is a critical step in its implementation process. While applicants can procure their own architect, the Program allows the City to assist the applicant by administering the selection of the architectural designer with the applicant in order to ensure design consistency and City code conformance within the targeted areas. The Program currently has two approved commercial rehabilitation participants awaiting architectural design services facilitated by the City.
The City has budgeted Consultant’s Services at $60,000 per year over the term of the Agreement and each of the extended terms, for a total amount of $180,000. As of the date of this amendment, only $60,000 has been authorized by the City Council for the term and first extended term. The City anticipates an increase in the frequency of Consultant’s services over the second extended term, which will require expenditure of the remainder of the funds budgeted for the Services, i.e., $120,000.
With this Amendment (Exhibit No. 2), the City and Consultant also desire to amend the Agreement to provide for the additional design services in an amount not to exceed $50,000. This amendment will therefore increase the maximum contract sum to $230,000 ($180,000 for the three years of the Agreement and original scope, plus $50,000 for the additional design services).
The Amendment will change the existing contract with RRM in two ways:
• Expand the Scope of Work to include architectural design services in addition to its architectural review services.
• Increase the contract amount by $50,000.00 of Community Development Block Grant funds to fund the architectural design services.
The Agreement had a one year term with the option to extend it twice, at the City’s sole discretion, by letter. Planning has awarded one of the two one-year contract extensions, taking it through August 31, 2017. The term of the contract will remain unchanged, with the second and final extension taking the term to August 31, 2018.
V. FISCAL IMPACT
The cost for architectural review services (estimated at $180,000 over three years) is reimbursed by project applicants. There is no fiscal impact to the City for these services. The $60,000 in estimated annual expenditures and reimbursements for these services is included in the FY2016-17 budget and will be included in the FY2017-18 budget.
The $50,000 needed to cover the expanded scope of work (i.e. architectural design services) will be funded by the Community Development Block Grant special fund as program/project costs. The funds have already been approved and budgeted in the FY2016-17 CDBG Annual Action Plan and Budget.
VI. EXHIBITS
1. Amendment No. 1 (pg. 4-12)
2. RRM Design Group contract effective September 1, 2015 (pgs. 13-32)
Prepared by: Cecil C. Flournoy, Project Manager