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SR 06-08-2021 3F City Council Report City Council Meeting: June 8, 2021 Agenda Item: 3.F 1 of 3 To: Mayor and City Council From: David Martin, Director, Building & Safety Subject: Approval of Second Modification to Professional Services Agreement with JAS Pacific, Inc. for Seismic Retrofit Plan Review Services Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a second modification to agreement #10637 (CCS) with JAS Pacific, Inc., for seismic retrofit plan review services for the Community Development Department. This modification will extend the term by one year and will result in a four-year amended agreement. Summary The City initiated a Seismic Retrofit Program in 2017 to facilitate the structural improvement of nearly 2,000 City multi-family and commercial buildings to be seismically sound. The volume of work required to process this number of reviews was and remains beyond the capacity of staff. Council approved a contract with JAS to provide engineering review for the Seismic Retrofit Program. A sizable number of buildings still must be upgraded before the 2023 deadline. Staff recommends extending the agreement by one year to provide these services; no additional funding is required. Discussion The City’s seismic retrofit program (“Program”) was adopted by Council on March 28, 2017. The Program requires owners of buildings identified as seismically vulnerable to submit retrofit plans to the Building and Safety Division for review by an engineer to verify compliance with State and local construction standards (i.e., plan review) prior to commencing retrofit work. Nearly 2,000 commercial and multi-family residential buildings in the City were identified as potentially in need of structural improvement and required to undergo a seismic 3.F Packet Pg. 176 2 of 3 retrofit. In 2017, the City executed professional services agreement #10637 with JAS Pacific (JAS) to specifically address the increased volume of plan submittals resulting from the Program requirements. The principal purpose of the agreement was to supply additional engineering services that would supplement City plan review staff and provide the ability to manage the increased volume, maintain appropriate levels of service, and ensure the timely and efficient review of seismic retrofit plan submittals. The cost related to the services provided by JAS are full cost recovery and paid by the applicant as part of plan review fees. The three-year contract with JAS is set to expire on June 30, 2021; however, there is still a need for augmented plan review services. The compliance date in which a property is required to submit plans varies across the properties subject to the Program requirements, but a significant number of projects are still expected to be submitted to the City during FY 2021-22. Therefore, staff recommends executing a modification to the agreement to extend its term by one year in order to utilize the remaining approved funding for this project. After completing a formal RFP process (RFP #147), the City executed a contract with JAS for engineering services in July of 2018. It became evident that the initial contract amount of $125,000 would be insufficient to address the volume of seismic retrofit plan submittals being received. As a result, staff executed a first modification to the contract in July of 2020 to increase the not to exceed amount of the contract from $125,000 to $425,000. Approximately $240,000 of the $425,000 contract amount has been utilized to-date, resulting in remaining contract authority of approximately $185,000. A majority of properties identified as potentially seismically vulnerable have not completed the required retrofit work so we can reasonably expect that plan check volume for retrofit projects will continue to increase as we near the required completion dates set forth in the Municipal Code. Also, it is worth noting that the full cost of all seismic-related plan review services, including JAS costs, are fully recovered through the plan review fees charged to the customer. 3.F Packet Pg. 177 3 of 3 Therefore, staff is recommending a second modification to the existing agreement with JAS to extend the term by one year, through June 30, 2022, to utilize the remaining contract authority. No other modifications to the agreement are proposed. Past Council Actions Meeting Date Description 05/06/18 (attachment A) Council awarded $125,000 to JAS Pacific to provide seismic retrofit plan review services 12/17/19 (attachment B) First modification to agreement with JAS Pacific, increasing contract amount to $425,000 Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of recommended action. Staff will return to Council if specific budget actions are required in the future. Prepared By: Kevin Purcell, Principal Administrative Analyst Approved Forwarded to Council Attachments: A. Attachment A: Original Seismic PSA Staff Report B. Attachment B: JAS 1st Modification Staff Report C. Attachment C: JAS Oaks 2021 3.F Packet Pg. 178 City Council Report City Council Meeting: March 6, 2018 Agenda Item: 3.E 1 of 6 To: Mayor and City Council From: David Martin, Director, Building & Safety Subject: Award Contracts for Seismic Retrofit Program Engineering Reviews Recommended Action Staff recommends that the City Council: 1) Award RFP# 147 to the following four firms: a) Degenkolb Engineers, a California-based company for seismic structural evaluation report peer review services; b) IDS Group, a California-based company for seismic structural evaluation report peer review services; c) JAS Pacific, a California-based company for plan review services; and d) Interwest Consulting Group, a California-based company for plan review services. 2) Authorize the City Manager to negotiate and execute professional service agreements with: a) Degenkolb Engineers, in an amount not to exceed $525,000 (for three years, with one additional one-year renewal option in the amount of $100,000 on the same terms and conditions) for a total amount not to exceed $625,000 over a four-year period, with future year funding contingent on Council budget approval; b) IDS Group, in an amount not to exceed $525,000 (for three years, with one additional one-year renewal option in the amount of $100,000 on the same terms and conditions) for a total amount not to exceed $625,000 over a four-year period, with future year funding contingent on Council budget approval; c) JAS Pacific, in an amount not to exceed $125,000 (for three years), with future year funding contingent on Council budget approval; and d) Interwest Consulting Group, in an amount not to exceed $125,000 (for three years), with future year funding contingent on Council budget approval; Executive Summary In order to meet the demands of the City’s Seismic Retrofit program, the Building and Safety Division will need to hire engineering consultants with expertise in analyzing large, complex buildings. As part of the Seismic Retrofit Program, engineers and architects will submit structural evaluation reports regarding buildings on the City’s list of 3.F.a Packet Pg. 179 Attachment: Attachment A: Original Seismic PSA Staff Report (4558 : Second Modification to Professional Services Agreement with JAS 2 of 6 Potentially Seismically Vulnerable Buildings (PSVB) for the City’s review. Current Building and Safety staff do not have the experience necessary to quickly and accurately review structural evaluation reports for the largest, most complex buildings on the PSVB list. Similarly, staff do not have the experience necessary to perform Plan Checks of construction plans submitted for these types of large buildings. Consultant services may also be necessary to augment existing plan check staff if plan check volumes increase significantly due to retrofit submissions. As such, the Building and Safety Division is seeking to contract with consultants to assist with the tasks of structural report review and plan check review to ensure that 1) structural analyses are comprehensively reviewed by qualified individuals, and 2) the current level of plan check service to customers is not compromised. The full cost of these services would be recouped through seismic fees adopted in the FY2017-18 budget. Background Santa Monica’s Seismic Retrofit Program officially commenced on August 14, 2017, when the Building Officer first issued orders to building owners of 30 Concrete Tilt-Up buildings to seismically evaluate and, if necessary, retrofit their building(s). Orders will continue to go out in waves to the owners of various building types through August of this year. The Building Officer’s order directs owners to perform a structural analysis of their building(s) by a licensed engineer or architect for the City’s review, pursuant to SMMC Section 8.58.030, to determine if the building meets the minimum earthquake standards specified in the City’s Seismic Retrofit laws. If not in compliance with the minimum earthquake standards, a structural retrofit of the building is required. Fees to support the Seismic Retrofit program were established during the 2017 fee study. Four new fees resulted from the study and were adopted by Resolution No. 11051 (CCS) during the June 27, 2017, budget adoption Council meeting (Attachment E). The intent of these fees is to make the Seismic Retrofit Program a full cost recovery program. The four fees and their purpose are as follows: 3.F.a Packet Pg. 180 Attachment: Attachment A: Original Seismic PSA Staff Report (4558 : Second Modification to Professional Services Agreement with JAS 3 of 6 1) Seismic Retrofit Report Review – Covers cost of City staff time to review a structural report of a building subject to the Seismic Retrofit law. 2) Seismic Retrofit Plan Check – Covers cost of City staff time, or outside consultant, to review a plan check submittal for a proposed retrofit of a building subject to Seismic Retrofit law. 3) Seismic Retrofit Permit – Covers cost of retrofit permit issuance and subsequent City inspections associated with retrofit construction for a building subject to Seismic Retrofit ordinance. 4) Seismic Retrofit Peer Review – Covers cost of peer review of a structural report by an outside agency for a building subject to the Seismic Retrofit law. Discussion The entire PSVB list encompasses just under 2,000 buildings. Non-Ductile Concrete (NDC) and Steel Moment Frame (SMF) buildings comprise roughly 140 of the overall total; however, they are the largest and most complex building types on the list. The submitted structural evaluation reports for these buildings must be reviewed by the City to determine whether or not the building in question needs to be retrofitted. There is not a sufficient amount of Building & Safety plan check staff with the technical expertise necessary to quickly and efficiently evaluate the very dense and highly technical reports for NDC and SMF building types. Therefore, outside consultant services are needed to perform these evaluations and make a recommendation to Building and Safety staff based on their review. A similar situation will arise when NDC and SMF owners submit plans for a retrofit plan check review. The complexity of these building types demands a high level of structural expertise to thoroughly evaluate a plan submission. Additional consultant services will also be necessary to assist the City with the review of these plan checks. The final round of Building Officer orders for the Seismic Retrofit Program is scheduled to be distributed to property owners on August 6, 2018. Property owners will have anywhere from two to twenty years (depending on the building type) from the date their order was issued to complete the retrofit of their building(s). It is anticipated that the 3.F.a Packet Pg. 181 Attachment: Attachment A: Original Seismic PSA Staff Report (4558 : Second Modification to Professional Services Agreement with JAS 4 of 6 increase in plan check submittals as a result of the retrofit plan submissions will necessitate additional reviewers to supplement the capacity that City plan check staff is able to accommodate without compromising a satisfactory level of service to the public. As such, consultant services will be required to perform plan check reviews and accommodate this additional plan check volume. The 60 NDC and 78 SMF buildings on the PSVB list are required, pursuant to SMMC Chapters 8.76 and 8.80, to submit a structural evaluation report to the City within three years from the date of issuance of the Building Officer order (October 23, 2017). This assumes that approximately 140 structural reports will require review by consultants. Each report would be charged a $121.84 fee for staff processing when it is submitted, with an additional hourly review rate of $256.68 for the peer review by an engineer. Assuming that reports will take, on average, 35 hours to review (based on past experience), Building and Safety is requesting authority to award $1,250,000 to fund these reviews. All expenditures to consultants for these reviews would be recouped in- full through the established Seismic Retrofit fees. Staff recommends executing contracts with both Degenkolb Engineers and IDS Group to perform these structural evaluation report reviews. Having two firms available for this task gives the City flexibility in assigning the reviews and makes it possible to send reports to multiple firms if a high volume is received in a short period of time to ensure that turn-around times remain reasonable for customers. Plan Check fees for seismic retrofit plan reviews would be charged in exactly the same way. Every submission will receive a $121.84 fee for intake, along with $256.84 per hour for review. NDC buildings have 10 years from October 23, 2017, to complete a retrofit, and SMF buildings have 20 years from the same date to complete construction. It is difficult to predict when these buildings will actually submit for plan check and initiate the construction phase of their retrofits, but staff does not anticipate many submissions in the first few years of the program. At this time, Building and Safety would like to request authority to award $250,000 to fund consultant plan check services to cover the review of these projects. This will allow any early plan checks submitted for NDC or SMF buildings to be reviewed, as well as provide funding to address any 3.F.a Packet Pg. 182 Attachment: Attachment A: Original Seismic PSA Staff Report (4558 : Second Modification to Professional Services Agreement with JAS 5 of 6 overflow of retrofit plan check submissions due to the Seismic Retrofit program. If a consistent increase in volume occurs, additional funding will be necessary to accommodate the increase and staff, as authorized by Council. Again, all expenditures for seismic retrofit plan checks to outside consultants would be entirely recouped through Seismic Retrofit Plan Check fees. Staff recommends executing contracts with both JAS Pacific and Interwest Consulting Group to perform the seismic retrofit plan check reviews for the same reasons stated above regarding structural evaluation report reviews. Vendor/Consultant Selection In November 2017, the City published a Request for Proposals (RFP) to provide both structural evaluation report peer review services and seismic retrofit plan check services to the Building and Safety Division in accordance with City specifications. The RFP was posted on the City’s online bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. The City received 15 proposals. Proposals were evaluated and the respondents were ranked based on the criteria in SMMC Section 2.24.073 for selecting the best qualified person or firm. Firms had the option to submit only for structural evaluation report peer review, only retrofit plan check, or both. After considering the proposals, evaluators selected the top two firms for structural report review and the top two firms for plan check services based on overall qualifications. The firms selected for structural report review are 1) Degenkolb Engineers and 2) IDS Group. The firms selected for plan check services are 1) JAS Pacific and 2) Interwest Consulting Group. All four companies specialize in the areas they were selected for and excel in at least three of the four major evaluation criteria: engineering experience, staff qualifications, record of success with past clients, and fee proposal. Staff recommends that Council authorize the City Manager to negotiate and execute a professional services agreement with Degenkolb Engineers and IDS Group for structural report peer review services. Each agreement would be for an amount not to 3.F.a Packet Pg. 183 Attachment: Attachment A: Original Seismic PSA Staff Report (4558 : Second Modification to Professional Services Agreement with JAS 6 of 6 exceed $625,000 over a four year period. This would allow for any buildings needing extensions on their structural report submissions that may carry over beyond the three year deadline for submissions. Both companies would be assigned to peer review structural evaluation reports submitted to the Building and Safety Division as part of the Seismic Retrofit program. Staff also recommends that Council authorize the City Manager to negotiate and execute a professional services agreement with JAS Pacific and Interwest Consulting Services for retrofit plan check services. Each agreement would be for an amount not to exceed $125,000 over a three year period. Both companies would be assigned to review seismic retrofit plans submitted to the Building and Safety Division for plan check review as part of the Seismic Retrofit Program Financial Impacts and Budget Actions The agreements to be awarded to Degenkolb Engineers, IDS Group, JAS Pacific, and Interwest Consulting Group are for an amount not to exceed $1,500,000. Funds of $408,000 are available in the FY 2017-18 budget in the Planning and Community Development Department. The agreements will be charged to account 01321.555060. Future year funding is contingent on Council budget approval. Prepared By: Kevin Purcell, Principal Administrative Analyst Approved Forwarded to Council Attachments: A. Degenkolb Oaks 2018 B. IDS Group - Oaks Initiative Disclosure Form C. JAS - Oaks Initiative Disclosure Form D. Interwest - Oaks Initiative Disclosure Form E. June 27, 2017 Item 9A (http://santamonicacityca.iqm2.com/Citizens/FileOpen.aspx?Type=30&ID=15662 &MeetingID=1096) 3.F.a Packet Pg. 184 Attachment: Attachment A: Original Seismic PSA Staff Report (4558 : Second Modification to Professional Services Agreement with JAS City Council Report City Council Meeting: December 17, 2019 Agenda Item: 3.E 1 of 3 To: Mayor and City Council From: David Martin, Director, Building & Safety Subject: Approval of First Modification to Contract #10637 (CCS) with JAS Pacifc Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to agreement #10637 (CCS) in the amount of $300,000 with JAS Pacific Corporation, a California-based company, for seismic retrofit plan review services for the Planning and Community Development Department. This will result in a three-year amended agreement with a new total amount not to exceed $425,000, with future year funding contingent on Council budget approval. Summary The Building and Safety Division executed a contract with JAS Pacific (JAS) in 2018 in support of the City’s Seismic Retrofit Program (Program). JAS was hired to provide engineers to augment City Plan Check Engineering staff and maintain acceptable customer service levels during the periods of increased plan submittal volume anticipated as a result of the Program. The funding requested in 2018 has proven to be insufficient to sustain this work through the contract term, so additional funding is necessary. JAS staff perform plan reviews on seismic retrofit projects exclusively, so the cost of their work is entirely recouped through seismic plan check fees. Discussion Although Building and Safety executed a contract with JAS in July of 2018, JAS did not commence plan reviews on seismic retrofit projects until April of 2019, as the volume of retrofit plan reviews increased. At the time of contract execution in 2018, it was unclear what level of support, if any, from JAS would be necessary. Once the decision was made to start assigning seismic retrofit plan check reviews to JAS, it became clear that the level of support required would quickly outpace what had initially been anticipated. This is mainly due to the lack of staffing in Building and Safety’s Plan Check section. 3.F.b Packet Pg. 185 Attachment: Attachment B: JAS 1st Modification Staff Report (4558 : Second Modification to Professional Services Agreement with JAS 2 of 3 The absence of a Building Officer has necessitated senior-level Plan Check Engineers to fill that role in an ‘acting’ capacity over the past year, taking them away from their day-to-day duties. Further, a retirement and loss of a Sr. Plan Check Engineer in the section have also contributed to the staffing deficiency. This has led to a higher than anticipated use of JAS engineers to augment City staff. In March 2018, Council approved a contract amount of $125,000 for three years. The intent was to have funding available if necessary, but not to request an excessive amount in case JAS staff were never needed. Now that the Seismic Retrofit Program is established, Building and Safety has spent roughly $75,000 in five months for plan check services provided by JAS. Given that there are roughly 20 months remaining on the contract, staff is requesting an additional $300,000 to the total contract amount to ensure funding remains available for the remainder of the contract term. JAS staff only perform plan reviews on seismic retrofit projects and, as a result, the costs of these services are completely recouped through the seismic plan review fees paid by applicants. JAS engineers perform the same function as City Plan Check Engineering staff, yet only address seismic retrofit projects that City staff do not have the hourly capacity to review. Past Council Actions 03/06/18 (attachment A) Council awarded $125,000 to JAS Pacific for seismic retrofit plan review services. Financial Impacts and Budget Actions Staff seeks authority to approve funding from the General Fund to increase the amount of the agreement with JAS Pacific for seismic retrofit plan review services. Funds are available in the FY 2019-20 Revised Budget. Agreement Modification Request Agreement # Current Authorized Amount FY 2019-20 Modified Request Amount FY 2020-21 Modified Request Amount PCD Account # Total Revised Contract Amount 10637 (CCS) $125,000 $125,000 $175,000 01700004.552010 $425,000 Future year funding is contingent on Council budget approval. 3.F.b Packet Pg. 186 Attachment: Attachment B: JAS 1st Modification Staff Report (4558 : Second Modification to Professional Services Agreement with JAS 3 of 3 Prepared By: Kevin Purcell, Principal Administrative Analyst Approved Forwarded to Council Attachments: a March 6, 2018 Staff Report (http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID= 1136&MediaPosition=&ID=2860&CssClass=) - Web Link b Current Oaks Disclosure Form 3.F.b Packet Pg. 187 Attachment: Attachment B: JAS 1st Modification Staff Report (4558 : Second Modification to Professional Services Agreement with JAS Please attach additional pages if more space is required.  CITY OF SANTA MONICA OAKS INITIATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months. 3.F.c Packet Pg. 188 Attachment: Attachment C: JAS Oaks 2021 (4558 : Second Modification to Professional Services Agreement with JAS Pacific) Please attach additional pages if more space is required.  CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ Jason Addison Smith Consulting Services Inc.,DBA JAS Pacific Jason Addison Smith Jason Addison Smith Christine Champany Regional Manager 5/6/21 christine@jaspacific.com 909-605-7777 3.F.c Packet Pg. 189 Attachment: Attachment C: JAS Oaks 2021 (4558 : Second Modification to Professional Services Agreement with JAS Pacific)