CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report

October 3, 2017
CONSENT AGENDA

TO: Honorable Mayor and City Council Members

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

BY:

Consideration of a resolution authorizing the City Administrator to execute

Amendment No. 3 to a Professional Services Agreement with Viva International
SUBJECT:
LLC for extended Project Management Services with an increased not-to-exceed
fee limit of $82,000.

RECOMMENDATION:

Adopt a resolution authorizing the City Administrator to execute Amendment No. 3 to Professional
Services Agreement PWLLEO-104-16-17 with Viva International LLC for Project Management
Services with an increased not-to-exceed fee of $82,000.00 and extending the term through June
30, 2018.

BACKGROUND/SUMMARY:

The Public Works Departments Project Management Division is currently stymied due to
vacancies of both Project Manager positions. Over the past few years, the Department has
utilized services of both consultants and sole proprietors to manage capital improvement projects;
however, many contract project managers leave the City after a relatively short term. This causes
disruption and inefficiency to implementing these projects. Further, we have been unsuccessful to
date in hiring a permanent Project Manager(s).

Ms. Lisa Leo, owner of Viva International, has been an exception to the rule. She has supported
Public Works over the past year and wishes to continue to do so for the remainder of this fiscal
year. Viva bills at a rate of $90 per hour and invoices an average of $4,000 per month. Due to low
overhead, this hourly rate is lower than most other local project management professionals.
Approximately 75% of these billings are directly charged to funded capital improvement projects
with the remainder charged to the Public Works Operating Budget.

Over the past few months, Viva International, under direction of the Director of Public Works, has
been instrumental in advancing several capital improvement projects including:
Contract execution with Kasavan Architects for the Police Building Renovation
Updating technical report and proposal negotiations with Axiom Engineers for two (2)
 HVAC-oriented projects at both libraries
Development of updated standard construction contract documents
Bidding of the Landscape Maintenance contract for up to 31 sites City-wide

The original Professional Services Agreement with Viva was executed in September 2016,
authorized up to $22,500 in fees, and had an expiration date of January 31, 2017. On January 3,
2017, Council adopted a resolution authorizing the City Administrator to execute Amendment No.
1 to the Agreement with an increased total, not-to-exceed fee of $59,500 and a term extending to
June 30, 2017. Amendment No. 2 was executed administratively with no change in fee limits, and
extended the term to October 31, 2017.

Proposed Amendment No. 3 would increase the maximum fee by $22,500 for a new total not-to-
exceed fee of $82,000, and extend the Agreement to June 30, 2018.

FISCAL IMPACT:
Document Not-to-Exceed Term Ending
Fee
Agreement $22,500 January 31, 2017
Amendment No. 1 $59,500 June 30, 2017
Amendment No. 2 $59,500 October 31, 2017
Amendment No. 3 $82,000 June 30, 2018

PRIOR CITY COUNCIL ACTION:

On January 3, 2017, Council adopted a resolution authorizing the City Administrator to execute
Amendment No. 1 to the Agreement with an increased total, not-to-exceed fee of $59,500 and a
term extending to June 30, 2017.
Attachments:

Amendment No. 3 to Agreement #PWD-LLEO-104-16-17

Resolution for Amendment No. 3 to Agreement #PWD-LLEO-104-16-17
 Attachment 1

Amendment No. 3 to
Professional Services Agreement #PWD-LLEO-104-16-17
VIVA INTERNATIONAL LLC

1. This amendment (the Amendment) is made by the City of Carmel-by-the-Sea and Viva International LLC,
parties to agreement PWD-LLEO-104-16-17, executed on September 14, 2016.

2. The Agreement is amended as follows:

a. The Term of the Agreement is amended as follows:

Services under this Agreement shall commence on September 14, 2016 and shall terminate on June
30, 2018, unless services are no longer needed prior to June 30, 2018. The parties may agree to
extend or amend this Agreement prior to its expiration.

b. The Compensation of the Agreement is amended to increase by $22,500 as follows:

CITY shall pay CONSULTANT in an amount not to exceed $82,000, which is based on an hourly rate
of $90.00 and which said sum shall include all direct costs.

3. Except as set forth in this Amendment, the Agreement, Amendment No. 1, and Amendment No. 2 are
unaffected and shall continue in full force and effect in accordance with its terms. If there is a conflict
between this Amendment and the Agreement or an earlier amendment, the terms of this Amendment will
prevail.

CONSULTANT: DATE:

________________________ ____________________
Lisa Leo, Viva International LLC

CITY: DATE:

________________________ ____________________
Chip Rerig, City Administrator

ATTEST: DATE:

________________________ ____________________
Ashlee Wright, City Clerk
 Attachment 2

RESOLUTION 2017-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE AMENDMENT No. 3 TO
AGREEMENT PWD-LLEO-104-16-17 WITH VIVA INTERNATIONAL LLC FOR
PROJECT MANAGEMENT SERVICES IN AN AMOUNT NOT TO EXCEED $82,000 AND
EXTENDING THE TERM TO JUNE 30, 2018

WHEREAS, the Public Works Department seeks outside assistance in managing funded
capital improvement projects due to staff vacancies and a backlog of projects; and

WHEREAS, Carmel Municipal Code Section 3.12.140D allows for the dispensation of
competitive requirements when professional services, such as that available from an attorney,
accountant, architect or consultant, involves specialized knowledge or skills; and

WHEREAS, on September 14, 2016, the City Administrator entered into a Professional
Services Agreement with Viva International LLC for Project Management Services for a not-to-exceed
fee of $22,500 and term ending January 31, 2017; and

WHEREAS, on January 3, 2017, the City Council authorized Amendment No. 1 increasing the
not-to- exceed fee of $59,500 and extending the term to June 30, 2017; and

WHEREAS, the City Administrator executed Amendment No. 2 extending the term to October
31, 2017; and

WHEREAS, the City wishes to allocate additional funding to continue the implementation of
assigned capital projects which requires Council authorization.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-
THE-SEA does hereby:

Authorize the City Administrator to execute Amendment No. 3 to Agreement PWD-LLEO-104-

16-17 with Viva International LLC for Project Management Services with a not-to-exceed fee of
$82,000 and a term ending June 30, 2018.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA

on this 3rd day of October 2017 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:

SIGNED: ATTEST:
 Attachment 2

Steve G. Dallas, MAYOR Ashlee Wright

City Clerk