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SR 01-11-2022 3E City Council Report City Council Meeting: January 11, 2022 Agenda Item: 3.E 1 of 4 To: Mayor and City Council From: David Martin, Director, Building & Safety Subject: Approval of Second Modification Extending Term of Professional Services Agreement with Degenkolb Engineers for Seismic Structural Analysis and Plan Review Services Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a second modification to agreement #10635 (CCS) with Degenkolb Engineers for seismic structural analysis review and seismic plan review services for the Community Development Department. This modification will extend the term by one year and will result in a five-year amended agreement. Summary To help ensure Santa Monica buildings could withstand a sizable earthquake, the City initiated the Seismic Retrofit Program (“Program”) in 2017 to identify potentially vulnerable buildings that may be in need of retrofit. Approximately 2,000 buildings were identified, including some large, complex structures such as Non-Ductile Concrete (“NDC”) and Steel Moment Frame (“SMF”) building types. Building and Safety engineering staff does not have the experience and expertise to conduct the review of these building types; therefore, a contract was executed with Degenkolb Engineers (“Degenkolb”) in 2018 to provide engineering review services for the structural analysis and plan review submissions for NDC and SMF buildings. At its December 14, 2021 meeting, the City Council postponed approval of this contract modification until January 11, 2022, otherwise the contract term was scheduled to expire on December 31, 2021. Staff anticipates the continued need for Degenkolb’s services and recommends extending the agreement by one year to ensure these review services are maintained 3.E Packet Pg. 45 2 of 4 for the remaining buildings that are subject to the Program. This aspect of the Program is full cost recovery and is currently fully funded; no additional funding is required for this request. Discussion The Seismic Retrofit Program requires owners of buildings identified as potentially seismically vulnerable to submit a structural analysis report to the Building and Safety Division for review by an engineer to indicate if a seismic retrofit of the structure is necessary. If a retrofit is required, the subsequent phase in the program would consist of submittal for plan review to verify code compliance prior to the issuance of a building permit. On March 6, 2018, Council awarded an RFP, and authorized the City Manager to negotiate and execute a contract with Degenkolb to provide engineering review services for the structural analysis and plan review submissions for NDC and SMF building types (Attachment A). The services of Degenkolb are necessary to perform a comprehensive review due to lack of expertise within the Building and Safety Division. As detailed in Exhibit A (Scope of Services) of the contract, the engineering services could be utilized for structural analysis or plan review for the Seismic Retrofit Program or general plan review (Attachment B). There is a continued need for Degenkolb’s services as the deadlines prescribed by the Seismic Ordinance for plan review submittal of NDC and SMF buildings are April 2022 and October 2029, respectively. The deadlines for submittal of structural analysis reports for these building types passed in October 2020; however, there remain buildings within these building type categories that have not yet submitted. Once a review has been completed, Building and Safety pays Degenkolb for their services, then charges the applicant for the same amount prior to issuing a final determination to the applicant. This ensures that the peer review process is full cost recovery. 3.E Packet Pg. 46 3 of 4 Vendor Selection After completing a formal RFP process (RFP #147), the City executed a contract with Degenkolb for engineering services in June of 2018. A first modification to the contract was executed in February of 2021 to extend the term by one year. One additional year would allow the continued implementation of the Program by retaining the supplemental peer review services and providing sufficient time to complete the remaining phases required by the Program. Therefore, staff is recommending a second modification to the existing agreement with Degenkolb to extend the term by one year, through December 31, 2022. No other modifications to the agreement are proposed. Past Council Actions Meeting Date Description 03/06/18 (Attachment A) Council awarded $625,000 to Degenkolb Engineers to provide seismic structural analysis review and seismic plan review services Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. Funding for this phase of the Program has been budgeted for the 2021- 2022 fiscal year. Prepared By: Kevin Purcell, Principal Administrative Analyst Approved Forwarded to Council Attachments: A. March 06, 2018 Staff Report (Web Link) 3.E Packet Pg. 47 4 of 4 B. Contract 10635 CCS C. Degenkolb - First Modification D. 2021 Oaks Form (Degenkolb) E. Degenkolb Living Wage 21-22 F. Written Comments 3.E Packet Pg. 48 3.E.b Packet Pg. 49 Attachment: Contract 10635 CCS (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 3.E.b Packet Pg. 50 Attachment: Contract 10635 CCS (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 3.E.b Packet Pg. 51 Attachment: Contract 10635 CCS (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 3.E.b Packet Pg. 52 Attachment: Contract 10635 CCS (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 3.E.b Packet Pg. 53 Attachment: Contract 10635 CCS (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 3.E.b Packet Pg. 54 Attachment: Contract 10635 CCS (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 3.E.b Packet Pg. 55 Attachment: Contract 10635 CCS (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 3.E.b Packet Pg. 56 Attachment: Contract 10635 CCS (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 3.E.b Packet Pg. 57 Attachment: Contract 10635 CCS (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 3.E.b Packet Pg. 58 Attachment: Contract 10635 CCS (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 3.E.b Packet Pg. 59 Attachment: Contract 10635 CCS (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 3.E.b Packet Pg. 60 Attachment: Contract 10635 CCS (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 3.E.b Packet Pg. 61 Attachment: Contract 10635 CCS (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 1 FIRST MODIFICATION OF AGREEMENT NO. 10635 (CCS) This First Modification of Agreement Number 10635 (“First Modification”), entered into as of _________________(“Execution Date”), by and between the City of Santa Monica, a municipal corporation (“City”), and Degenkolb Engineers (“Degenkolb”), is made with reference to the following: RECITALS A. On or about June 20, 2018, the City and Degenkolb entered into Professional Service Agreement, Contract Number 10635 (the “Agreement”). B. The Agreement provided for a term that commenced on June 20, 2018 and terminated on December 31, 2020, with a unilateral option by the City to renew for an additional one year period. C. The City and Degenkolb desire to modify the Agreement to extend the contract term beyond December 31, 2020. TERMS AND CONDITIONS Now, therefore, the undersigned parties do hereby mutually agree to modify the Agreement as follows: 1. Degenkolb and the City acknowledge and agree that the effective date of this First Modification is December 31, 2020. 2. Section 1 of the Agreement entitled “Term” shall be deleted in its entirety and replaced with the following paragraph: Term. This Agreement begins on June 20, 2018 and terminates on December 31, 2021, unless terminated earlier in accordance with Section 14 or extended by the parties in writing. 3. Section 1.1 of the Agreement entitled “Option to Extend” shall be deleted in its entirety. 4. Section 4 of the Agreement entitled “Compensation” shall be deleted in its entirety and replaced with the following paragraph: Compensation. The City will compensate Degenkolb for the Services performed during the period of June 20, 2018 until December 31, 2020 (the “Original Term”) in an amount not to exceed $525,000, as set forth in Exhibit B. 5. Section 4.1 of the Agreement entitled “Extension Term” shall be deleted in its entirety and replaced with the following paragraph: Extension Term. The City will compensate Degenkolb for the Services performed during the period of January 1, 2021 until December 31, 2021 (the “Extension Term”) in an amount not to exceed $100,000. The total amount of compensation for Services rendered during the DocuSign Envelope ID: 6D22D017-A0C3-4075-918A-BCD63E9A0B32 2/24/2021 3.E.c Packet Pg. 62 Attachment: Degenkolb - First Modification (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 2 Original Term and the Extension term shall not exceed $625,000, as set forth in Exhibit B. 6. Except as expressly modified by this First Modification, all other terms and conditions of the Agreement shall be and remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this First Modification as of the date and year first written above. ATTEST: ______________________________ DENISE ANDERSON-WARREN City Clerk APPROVED AS TO FORM: ______________________________ LANE DILG City Attorney CITY OF SANTA MONICA, a municipal corporation By: ______________________________ RICK COLE City Manager Dudek #VENDOR By: _______________________________ DocuSign Envelope ID: 6D22D017-A0C3-4075-918A-BCD63E9A0B32 Interim City Attorney George Cardona 2/23/2021 Degenkolb Engineers Principal 2/23/2021 Daniel Zepeda 2/24/2021 Lane Dilg Interim City Manager 2/24/2021 City Clerk Denise Anderson-Warren 3.E.c Packet Pg. 63 Attachment: Degenkolb - First Modification (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 3.E.d Packet Pg. 64 Attachment: 2021 Oaks Form (Degenkolb) (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) dzepeda@degenkolb.com 3.E.d Packet Pg. 65 Attachment: 2021 Oaks Form (Degenkolb) (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) CITY OF SANTA MONICA LIVING WAGE ORDINANCE Certification for Providers of Services to the City of Santa Monica (Fiscal Year 21/22 – July 1, 2021 through June 30, 2022) TO BE COMPLETED BY ALL CONTRACTORS PROVIDING SERVICES TO THE CITY OF SANTA MONICA IN EXCESS OF $54,200 The City of Santa Monica Municipal Code Chapter 4.65, Living Wage Ordinance (LWO), establishes a Minimum Wage of $17.64 per hour for certain employees of contractors providing services to the City where services exceed $54,200 or more and requires that contractors also provide the same health care and other benefits to employees’ same sex spouses and domestic partners as are provided to other employees’ spouses. An employee covered by the LWO is any person who does not actually work as a manager, supervisor, or confidential employee, and who is not required to possess an occupational license. The Living Wage Ordinance applies the services sought pursuant to this bid and bidders are required to prepare and return the Living Wage Certification Form. If the bidder is selected, the bidder must maintain payroll records that include, at minimum, the full name of each employee providing services under the contract, job classification and rate of pay. Bids that fail to include Certification Forms may be considered non- responsive and excluded from further consideration. Please prepare the following certification if you are a contractor engaging in a contract for services with the City of Santa Monica in excess of $54,200. Your signature on this certification grants the City permission to review any and all payroll books and records and any company documents pertaining to the benefits offered to employees to assure your compliance with the LWO during the term of the contract. Please direct any questions to: City of Santa Monica Finance Department Attention: Living Wage Compliance Section 1685 Main Street, Mail Stop 09 Santa Monica, CA 90401 You can also contact staff regarding living wage ordinance questions by e-mail at finance.mailbox@smgov.net or by phone 310-458-8281. 3.E.e Packet Pg. 66 Attachment: Degenkolb Living Wage 21-22 (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) CITY OF SANTA MONICA LIVING WAGE ORDINANCE CERTIFICATION July 1, 2021 through June 30, 2022 TO BE COMPLETED BY ALL CONTRACTORS PROVIDING SERVICES TO THE CITY OF SANTA MONICA IN EXCESS OF $54,200 MINIMUM WAGE - $17.64 per hour Please read, complete, and sign the following: THIS CONTRACT IS SUBJECT TO THE LIVING WAGE ORDINANCE THIS CONTRACT IS NOT SUBJECT TO THE LIVING WAGE ORDINANCE If this contract is not subject to the Living Wage Ordinance requirements, please note the reason below and attach supporting documentation for exemption. For example, in order to be exempt pursuant to a collective bargaining agreement, a signed collective bargaining agreement must be attached. (a)________ contractor is a government agency and is exempt (b)________ contractor is a City grantee and is exempt (c)________ contractor is a non-profit corporation and is exempt (d)________ contractor is an employer whose employees are covered by a bona fide collective bargaining agreement where the waiver is explicitly set forth in an agreement in clear and unambiguous terms (e)________ contractor is a corporation providing banking services The undersigned, on behalf of himself or herself individually and on behalf of his or her business or organization, hereby certifies that he or she is fully aware of Santa Monica’s Living Wage Ordinance (LWO), and the applicability of the LWO, and the applicability of the subject contract, as determined herein. The undersigned further agrees to be bound by all terms of the LWO, as mandated in all sections of Santa Monica Municipal Code, Chapter 4.65. If, at any time during the term of the contract, the answers to the questions posed herein change so that Contractor would be subject to the LWO, Contractor will promptly notify the Director of Finance in writing. Contractor further understands and agrees that the failure to comply with the LWO, this certification, or the terms of the Contract as it applies to the LWO, shall constitute a default of the Contract, which shall be grounds for termination. City shall have the right to examine all books and records of the Contractor as they relate to compliance with the LWO. Payroll records shall at a minimum include the full name of each employee performing labor or providing services under the contract, job classification, and rate of pay. These statements are made under penalty of perjury under the laws of the State of California. Printed Name: _______________________________________Title: _______________________________ Signature: __________________________________________ Date: _______________________________ Contractor: ________________________________________ Bid Number (if applicable):_____________ Service Description: _______________________________________________________________________________________ _______________________________________________________________________________________ 3.E.e Packet Pg. 67 Attachment: Degenkolb Living Wage 21-22 (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 1 Vernice Hankins From:Clerk Mailbox Sent:Tuesday, December 14, 2021 2:04 PM To:councilmtgitems Subject:FW: Items 133D and 13 J at Council meeting Tuesday From: Stanley H Epstein <stanatty@yahoo.com>   Sent: Sunday, December 12, 2021 8:21 AM  To: Ariel Socarras <Ariel.Socarras@santamonica.gov>  Cc: David White <David.White@santamonica.gov>; David Martin <David.Martin@santamonica.gov>; Sue Himmelrich  <sue.himmelrich@gmail.com>; Clerk Mailbox <Clerk@santamonica.gov>; Phil Brock <Phil.Brock@santamonica.gov>;  David White <David.White@santamonica.gov>; Oscar de la Torre <odelatorre16@yahoo.com>; Christine Parra  <Christine.Parra@santamonica.gov>; kristinmccowan@smgov.net; Gleam Davis <Gleam.Davis@santamonica.gov>;  jlawrence@smgov.net; Lana Negrete <lananegrete@me.com>  Subject: Re: Items 133D and 13 J at Council meeting Tuesday  EXTERNAL  Dear Ariel. Thanks to you and David Martin for successfully  asking the Clerk to modify Item 13D and add 13 J to  Tuesday’s Agenda. Since you chose not to discuss changes with me, there are still the following open matters concerning  retrofit experts retained by the City:  1.Neither Item has attached the respective 2018 contracts being extended. Since then, we have 5 wonderful new Council members, and a new City Attorney and Manager. They all, as well as the public, should have the opportunity to review what is being extended and perhaps make changes with the approval of the other party. Please have Denise attach the current contracts. 2. The 2018 Staff Report recommended Degenkolb and IDS for seismic structural  analysis review and JAS Pacific and Intervest for plan review services. Was that changed by Council to exclude the last two?   3. The law passed by Council provided for all plan review to be completed by late 2020, but the extensions run until December 31, 2022, or about 27 months later. Are these extensions pursuant to language in the code or by staff waivers? Can we expect further retrofit extensions, such as the 2037 date established for the kind of building I live in?          Will Denise kindly include these comments under both Items?     Sincerely, Stan Epstein. 310 393 7619.  On Dec 10, 2021, at 5:55 PM, Stanley H Epstein <stanatty@yahoo.com> wrote:  Dear Ariel. I very much am of the opinion that it would be in the  interest of you, the City Attorney,  Clerk, and Manager, Council, and residents if you and I could talk over the week end to clarify issues that  are either very unclear or flatly wrong in the wording of Item 3D and thereby agree upon the language  changes to properly reflect your views concerning the proposed extension . However, If the Clerk says it  is too late to change, I will set forth the problems with the current language in a note Monday to  everyone who will be involved in the decisions. Sincerely, Stan Epstein  Sent from my iPad  On Dec 10, 2021, at 4:35 PM, Stanley H Epstein <stanatty@yahoo.com> wrote:  Item 3.D 12/14/21 1 of 2 Item 3.D 12/14/21 3.E.f Packet Pg. 68 Attachment: Written Comments (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers) 2 I believe changes can be made until the day before the meeting. Could you kindly call  me to see if you and I are on the same page in any event . It will not take more than 10  minutes and will be in the public interest. Thanks. Stan Epstein  W  Sent from my iPad    On Dec 10, 2021, at 4:25 PM, Ariel Socarras  <Ariel.Socarras@santamonica.gov> wrote:     Hello Mr Epstein    The agenda is posted and any changes or modifications at this point  would need to occur orally at the meeting so I would suggest putting  your concerns in writing to myself, Council, or both (as you deem  appropriate) for consideration.     Get Outlook for iOS    From: Stanley H Epstein <stanatty@yahoo.com>  Sent: Friday, December 10, 2021 4:09:56 PM  To: Ariel Socarras <Ariel.Socarras@santamonica.gov>  Cc: Clerk Mailbox <Clerk@santamonica.gov>  Subject: Item 3D at Council meeting Tuesday      EXTERNAL    Hi Ariel. I think there are two major errors in Item 3D for Tuesday’s  Council meeting. This involves a one year extension of a retrofit  related  contractor’s agreement with the City.   Please call me at 310 393 7619 to hear what I think are the necessary  revisions. I can be reached at all times, including the weekend, at 310  393 7619.  If I do not hear from you by noon on Monday, it will be  necessary to notify Councilmembers and the Manager so that an  appropriate decision can be made at the meeting.  Sent from my iPad.  Sincerely, Stan Epstein  Item 3.D 12/14/21 2 of 2 Item 3.D 12/14/21 3.E.f Packet Pg. 69 Attachment: Written Comments (4883 : Term Extension for Professional Services Agreement with Degenkolb Engineers)