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Item 1.4 - Award of Contract to MJC & Assoc. for Fire & Life Safety Plan Check/Inspection Svs.OF POIY�f �F f� \1 THE Poway C i .� S i�i COUNCIL AGENDA REPORT APPROVED APPROVED AS AMENDED (SEE MINUTES) DENIED REMOVED CONTINUED Resolution No. DATE: June 3, 2014 TO: Honorable Mayor and Members of the City Council FROM: Daniel Singer, City Manager INITIATED BY: Mark A. Sanchez, Director of Sa ty Services Jon M. Canavan, Division Chief — Fire Marsh 9 SUBJECT: Award of Contract to MJC & Associates for Fire and Life Safety Plan Check and Inspection Services Summary: The City currently provides fire and life safety plan check and inspection services through a combination of full -time City staff and a contract with MJC & Associates. The contract with MJC & Associates became effective on July 1, 2009, and expires on June 30, 2014. On March 27, 2014, the City advertised a Request for Proposals (RFP) to invite agencies to submit proposals for fire and life safety plan check and inspection services for the Department of Safety Services. Upon approval, the contract will be effective starting July 1, 2014, and last three years with two one -year options not to exceed a total of five years. The City received two qualified responses, of which MJC & Associates was the most cost - effective proposal. Recommended Action: It is recommended that the City Council authorize the City Manager to execute an Agreement for Consultant or (Contract) Services with MJC & Associates for fire and life safety plan check and inspection services. Background: Fire and life safety plan check and inspection services are required of all new building construction, tenant improvements, and installation of fire and life safety protection systems. These professional and technical services are provided through a combination of full -time City staff and contract services. This method of service delivery maintains responsive customer service while providing cost containment using a revenue - sharing arrangement as a percentage of fees collected, as delineated by the City's Master Fee Schedule. This method also ensures high - quality services are delivered based on demand. In 2009, MJC & Associates was awarded a contract for providing fire and life safety plan check and inspection services. The City exercised two 1 -year extensions of the contract upon favorable review of the services provided. These services are provided at 75 percent of the plan check and inspection service fees collected by the City. MJC & 1 of 12 June 3, 2014, Item # Jo Agenda Report Award of Contract for Fire and Life Safety Plan Check and Inspection Services Page 2 Associates has delivered services when needed and without deficit to the City. Findings: On March 27, 2014, the City advertised a Request for Proposals (RFP) to invite qualified individuals and companies to submit proposals for fire and life safety plan check and inspection services for the Department of Safety Services. The City received two qualified responses. MJC & Associates was determined to be the most cost effective candidate. MJC & Associates proposed services at 75 percent of the plan check and inspection service fees collected by the City. This is the same revenue - sharing fee schedule the City has maintained for the last five years. Since 2009, MJC & Associates has been providing these same services to the City and has performed all provisions of the current agreement with no request for adjustment to fees, no submittals for questionable requests for reimbursement, and has not engaged the City in any disputes with the agreement. MJC & Associates has provided a high level of technical competency and professional fire and life safety plan checks and inspection services. MJC & Associates has also demonstrated a wealth of knowledge and experience in applicable fire and life safety codes, regulations, and laws. These attributes have served many clients with customized services and consultation focused on compliant project completion. MJC & Associates excels at customer service and maintains excellent working relationships with City staff, business owners, residents, and professional service clients. The services performed by MJC & Associates has generated no complaints for service from customers or City staff. They maintain a strong, flexible working relationship with City staff. This is highlighted by their embrace of the City's express plan check initiatives with no complaint, resistance, or change in fees. Fiscal Impact: Sufficient funds are available in the Safety Services Department operating budget, Fire Prevention Division — Building Inspection account 0502- 4112A. Expenditures for this contract will be fully offset by fees collected for plan check and inspection service activity. Environmental Review: This item is not subject to CEQA review. Public Notification: None Attachment: Standard Agreement for Consultant or (Contract) Services between the City of Poway and MJC & Associates 2 of12 June 3, 2014, Item # ), City of Poway STANDARD AGREEMENT FOR CONSULTANT or (CONTRACT) SERVICES This Agreement, entered into this first day of July, 2014, by and between the CITY OF POWAY (hereinafter referred to as "City ") and MJC & Associates (hereinafter referred to as "Consultant" or "Contractor "). RECITALS WHEREAS, City desires to obtain the services of a private consultant to perform fire and life safety plan check and inspection services; and WHEREAS, Consultant is a fire and life safety consultant and has represented that Consultant possesses the necessary qualifications to provide such services; and WHEREAS, City has authorized the preparation of an agreement to retain the services of Consultant as hereinafter set forth. NOW, THEREFORE, IT IS MUTUALLY AGREED THAT CITY DOES HEREBY RETAIN CONSULTANT ON THE FOLLOWING TERMS AND CONDITIONS: 1. Scope of Services. Consultant shall provide services as described in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 2. Compensation and Reimbursement. City shall compensate and reimburse Consultant as provided in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 3. Term of Agreement. The term of this Agreement shall be as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 4. Termination. This Agreement may be terminated with or without cause by City. Termination without cause shall be effective only upon 60 -day written notice to Consultant. During said 60 -day period Consultant shall perform all consulting services in accordance with this Agreement. This Agreement may be terminated by City for cause in the event of a material breach of this Agreement, misrepresentation by 3 of 12 Attachment June 3, 2014, Item # I `g Consultant in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by City. Termination for cause shall be effected by delivery of written notice of termination to Consultant. Such termination shall be effective upon delivery of said notice. 5. Confidential Relationship. City may from time to time communicate to Consultant certain information to enable Consultant to effectively perform the services. Consultant shall treat all such information as confidential, whether or not so identified, and shall not disclose any part thereof without the prior written consent of the City. Consultant shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services. The foregoing obligation of this Paragraph 5, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of Consultant, hereafter disclosed in publicly available sources of information; (iii) is now in the possession of Consultant without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to Consultant by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. Consultant shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this contract without the prior written consent of the City. In its performance hereunder, Consultant shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. 6. Office Space and Clerical Support. Consultant shall provide its own office space and clerical support at its sole cost and expense. 7. Covenant Against Contingent Fees. Consultant declares that it has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or making of the Agreement. For breach of violation of this warranty, City shall have the right to annul this Agreement without liability, or, at its sole discretion, to deduct from the Agreement price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. 4 of 12 June 3, 2014, Item # iA- 8. Ownership of Documents. All memoranda, reports, plans, specifications, maps and other documents prepared or obtained under the terms of this Agreement shall be the property of City and shall be delivered to City by Consultant upon demand. Consultant shall retain all records for such period of time as meets the City's record retention policy for the particular records, and shall not alter, destroy, obliterate text or drawings, or otherwise modify the records without the consent of the City's legal counsel. 9. Conflict of Interest and Political Reform Act Obligations. During the term of this Agreement Consultant shall not act as consultant or perform services of any kind for any person or entity whose interests conflict in any way with those of the City of Poway. Consultant shall at all times comply with the terms of the Political Reform Act and the local conflict of interest ordinance. Consultant shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the City in which the Consultant has a financial interest as defined in Government Code Section 87103. Consultant represents that it has no knowledge of any financial interests which would require it to disqualify itself from any matter on which it might perform services for the City. "Consultant" means an individual who, pursuant to a contract with a state or local agency: (A) Makes a governmental decision whether to: 1. Approve a rate, rule or regulation; 2. Adopt or enforce a law, 3. Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement; 4. Authorize the City to enter into, modify, or renew a contract provided it is the type of contract that requires City approval; 5. Grant City approval to a contract that requires City approval and to which the City is a party, or to the specifications for such a contract; 6. Grant City approval to a plan, design, report, study, or similar item; 7. Adopt, or grant City approval of, policies, standards, or guidelines for the City, or for any subdivision thereof; or (B) Serves in a staff capacity with the City and in that capacity participates in making a governmental decision as defined in Regulation 18702.2 or performs the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City's Conflict of Interest Code. 5 of 12 June 3, 2014, Item # 1'0 DISCLOSURE DETERMINATION: ❑ 1. Consultant /Contractor will not be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. No disclosure required. ❑ 2. Consultant/Contractor will be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. As a result, Consultant/Contractor shall be required to file a Statement of Economic Interest with the City Clerk of the City of Poway in a timely manner as required by law. DEPARTMENT DIRECTOR 10. No Assignments. Neither any part nor all of this Agreement may be assigned or subcontracted, except as otherwise specifically provided herein, or to which City, in its sole discretion, consents to in advance thereof in writing. Any assignment or subcontracting in violation of this provision shall be void. 11. Maintenance of Records. Consultant shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the contract period and for three (3) years from the date of final payment under this Agreement, for inspection by City and copies thereof shall be furnished, if requested. 12. Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of the City of Poway. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement, however, City shall not have the right to control the means by which Consultant accomplishes such services. 13. Licenses, Permits, Etc. Consultant represents and declares to City that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any 6 of 12 June 3, 2014, Item # I.`I license, permit, or approval which is legally required for Consultant to practice its profession. 14. Consultant's Insurance. Consultant shall provide insurance as set forth in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 15. Liability. Notwithstanding any other provision contained in this Agreement, Consultant shall be responsible for all injuries to persons and for all damage to real or personal property of City or others, caused by or resulting from the wrongful act or negligent acts, errors, or omissions of itself, its employees, or its agents during the progress of, or in connection with, the rendition of services hereunder. Consultant shall hold harmless and indemnify City, and all officers and employees of City from all costs and claims for damages to real or personal property, or personal injury to any third party, including reasonable attorney fees resulting from the negligent performance of Consultant, its employees, or its agents, under this Agreement. 16. Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, expressed or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, expressed or implied, pursuant to this Agreement to bind City to any obligation whatsoever. 17. Personnel. Consultant shall assign qualified and certified personnel to perform requested services. The City shall have the right to review and disapprove personnel for assignment to Poway projects. City shall have the unrestricted right to order the removal of any person(s) assigned by Consultant by giving oral or written notice to Consultant to such effect. Consultant's personnel shall at all times comply with City's drug and alcohol policies then in effect. 18. Notices. Notices shall be given as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 7 of 12 June 3, 2014, Item # l 19. Arbitration. In the event of a dispute between City and Consultant concerning the terms of this Agreement or its performance, the parties agree to submit such dispute to arbitration before the American Arbitration Association or other mutually acceptable arbitrator. In the event that the subject of such arbitration is compensation claimed by Consultant in the event of termination, Consultant's damages shall be limited to compensation for the 60 -day period for which Consultant would have been entitled to receive compensation if terminated without cause. In the event of arbitration, each party shall bear its own attorneys' fees and costs incurred. 20. Gender. Whether referred to in the masculine, feminine, or as "it," "Consultant" shall mean the individual or corporate consultant and any and all employees of consultant providing services hereunder. 21. Entire Agreement. This Agreement shall constitute the entire understanding between Consultant and City relating to the terms and conditions of the services to be performed by Consultant. IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first above written. City of Poway Approved as to form: Office of the City Attorney Dated: IS Its: Morgan L. Foley, City Attorney Dated: Its: Tina White, Interim City Manager Consultant Company Name: MJC & Associates Dated: Its: 8 of 12 June 3. 2014. Item # I. q "SPECIAL PROVISIONS" EXHIBIT "A" A. Scope of Services. Consultant agrees to perform consulting services as required by City. Consultant shall provide the necessary qualified personnel to perform the services. In performance of the services Consultant shall: Plan Checking Service 1) Attend preconstruction meetings as necessary. 2) Perform review and evaluate submitted building plans and fire and life safety system plans including alarm systems to determine compliance with applicable fire safety codes and regulations as described within the: i. California Fire Code as amended by the Poway Municipal Code. ii. California Building Code as amended by the Poway Municipal Code. iii. International Wildland Urban - Interface Code as amended by the Poway Municipal Code. iv. Title 19, California Code of Regulations. v. NFPA Standards. 3) Develop and maintain written lists of corrections needed to have the submitted plans conform to the applicable codes and regulations. 4) Transmit such correction lists to, and consult with, the applicant or design professional as necessary in order to explain the corrections to be made to have the proposed construction conform to the applicable codes and regulations. 5) Issue the necessary approvals when, in the Agency's opinion, the plans appear to be complete and correct after having been plan checked or rechecked. 6) Perform fire alarm system and hydraulic fire sprinkler calculations and sprinkler coverage /densities plan reviews. Field Inspection Services 1) Field inspect projects under construction to determine compliance with applicable fire safety codes and regulations as described within the: i. California Fire Code as amended by the Poway Municipal Code. 9 of 12 June 3, 2014, Item # 1 ii. California Building Code as amended Code. iii. International Wildland Urban - Interface Poway Municipal Code. iv. Title 19, California Code of Regulations. v. NFPA Standards. by the Poway Municipal Code as amended by the 2) Develop and maintain written lists of corrections needed to have the physical improvements conform to the approved plans and applicable codes and regulations. 3) Transmit such correction lists to, and consult with, the applicant or design professional or contractor as necessary in order to explain the corrections to be made to have the physical improvements conform to the approved plans and applicable codes and regulations. 4) Field inspect fire alarm and fire sprinkler system installations to ensure conformance with the approved plans and applicable codes and regulations. B. Compensation and Reimbursement. City shall pay Consultant a fee as follows: each month the City shall pay the Consultant seventy -five percent of the fees collected as delineated by the City's master fee schedule for fire and life safety plan check and inspection services. Consultant's fee shall include, and Consultant shall be responsible for, the payment of all federal, state, and local taxes of any kind which are attributable to the compensation received. In addition to said consulting fee, Consultant shall be reimbursed for all reasonable expenses, including lodging, telephone, and travel (air, auto, rail) necessarily incurred in performance of the services. Consultant shall bill City for such expenses as incurred, referencing this Agreement. All expenses shall be itemized and supported by receipts for amounts in excess of Twenty -Five Dollars ($25.00). Statements for reimbursement of expenses shall be paid within ten (10) days of approval by City. All air travel shall be billed at coach or special fare rates. Only lodging outside San Diego County shall be reimbursable. Consultant shall receive prior authorization for air travel and lodging expenses. All other expenses shall be reimbursed in accordance with City's cash disbursement policies in effect at the time incurred. C. Term of Agreement. This Agreement shall be effective from the period commencing July 1, 2014 and ending June 30, 2017, with two one -year optional extensions for a total of five years, unless sooner terminated by City as provided in the section of this Agreement entitled "Termination." Upon expiration or termination of this Agreement, Consultant 10 of 12 June 3, 2014, Item # I``C shall return to City any and all equipment, documents or materials and all copies made thereof which Consultant received from City or produced for City for the purposes of this Agreement. D. Consultant's Insurance. 1. Coverages: Consultant shall obtain and maintain during the life of this Agreement all of the following insurance coverages: (a). Comprehensive General Liability, including premises - operations, products /completed, broad form property damage, and blanket contractual liability with the following coverages: General Liability $500,000 per person per occurrence/ $1,000,000 aggregate per occurrence $500,000 property damage per occurrence (b) Automobile Liability, including owned, hired, and non -owned vehicles with the following insurance coverages: Auto Liability $ 500,000 per person per occurrence/ $1,000,000 aggregate per occurrence $100,000 property damage per occurrence (c) Consultant shall obtain and maintain, during the life of the Agreement, a policy of Professional Errors and Omissions Liability Insurance with policy limits of not less than $1,000,000.00 combined single limits, per claim and annual aggregate. (d) Workers' Compensation insurance in statutory amount. All of the endorsements which are required above shall be obtained for the policy of Workers' Compensation insurance. 2. Endorsements: Endorsements shall be obtained so that each policy contains the following three provisions: (a) Named Additional Insured. (Not required for Professional Errors and Omissions Liability Insurance or Workers' Compensation.) "City of Poway and its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this subject project and contract with City." (b) Notice. 11 of 12 June 3, 2014, Item # l i `I "Said policy shall not terminate, nor shall it be canceled, until thirty (30) days after written notice is given to City." (c) Primary Coverage. "The policy provides primary coverage to City and its elected and appointed boards, officers, agents, and employees. It is not secondary or in any way subordinate to any other insurance or coverage maintained by City." 3. Insurance Certificates: Consultant shall provide City certificates of insurance showing the insurance coverages described in the paragraphs above, in a form and content approved by City, prior to beginning work under this Agreement. E. Notices. All notices, billings and payments hereunder shall be in writing and sent to the following addresses: To City: Jon M. Canavan Department of Safety Services City of Poway P.O. Box 789 Poway, CA 92074 To Consultant: Michael J. Chillinsky MJC & Associates 748 Hamilton Lane Escondido, CA 92029 12 of 12 June 3, 2014, Item # 14