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HomeMy WebLinkAboutReg 2015-06-01 Item 4E - Agreement - 2015 Inspection Services with 4Leaf IncCOUNCIL AGENDA SYNOPSIS ---------------------------- - - - - -- Initials ITEM INFORMATION ITEMNO. 4.E. ISTAFF SPONSOR: JERRY E HIGHT ORIGINAI-,AGENDADA'IT,: 05/26/15 AGENDA ITEM TITLE Contract inspection service funding CATEGORY Z Discussion Mtg Date 05126115 Z Motion Mtg Date 611119 F-1 Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date [:] Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ HR Z DCD O.Finance D.Fire ❑ IT ❑ P&R ❑ Police ❑ PWI SPONSOR'S The building division has three vacant positions and has been unsuccessful to date with SUMMARY recruitment to fill these positions. The council is being ask to continue to contract with inspection services until the three vacant positions have been filled. Rrvi1-,WF'.D BY ❑ cow Mtg- Z CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. F-1 Parks Comm. ❑ Planning Comm. DATE: 05/11/15 COMMITTEE CHAIR: SEAL RECOMMENDATIONS: SPONsoR/ADMIN- Department of Community Development C0mmFI`TEj--- Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $N/A $100,000 $ Fund Source: 2015/2016 BUDGET SALARIES Comments: MTG. DATE RECORD OF COUNCIL ACTION 05/26/15 MTG. DATE ATTACHMENTS 05/26/15 Informational Memorandum dated 05/11/15 Contract Minutes from the Community Affairs and Parks Committee Meeting of 5/11/15 6/1/15 21 22 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton, David Cline Community Affairs and Parks FROM: Jack Pace, Director of the Department of Community Development BY: Jerry E Hight, Building Official DATE: May 11, 2015 SUBJECT: Contract for 4Leaf Inc. inspections services ISSUE Should council approve a $100,000.00 contract to fund building inspections services with 4Leaf Inc. until December 31, 2015? Previous contracts with 4Leaf Inc. have reached Director /Mayor contract approval limitations. The proposed contract has the same terms as the original contract. BACKGROUND The Building Division last year experienced the retirement of two positions a Senior Plans Examiner and Combination Building Inspector. In addition, earlier this year, we lost another Combination Building Inspector who relocated to the bay area. The recruitment for these positions is on- going, as we are having some challenges finding qualified applicants to feel these positions. This problem is not unique to Tukwila, it is also affecting our neighboring jurisdictions due to the boom in the Construction Industry. During our efforts to attract viable candidates the building division has been relying heavily on the building inspection services of 4Leaf Inc. We will continue to rely on contract inspection services until the three vacant positions have been filled. DISCUSSION We currently have many highly technical, complex commercial projects in plan review or ready to issue such as Tukwila Village, King County Library, and Museum of Flight Structure. We are also aware of upcoming projects such as the 19 story Washington Place tower and the North West Arena (with a five story 5,000 vehicle parking structure). There is no doubt that there are also many upcoming projects .that we are not aware of. These could be considered a once in a decade project and they are looming together over an understaffed building division. Staff is working at maximum proficiency to accommodate the current workload. However, when the above projects begin and start demanding additional time for daily inspections and plan reviews, staff will not be able to handle the workload. Additional contract staff will be required beyond filling the three current vacancies. Each of these large projects will require minimum of one full time inspector, two when they are fully engaged. Each project will also need City supervision of the contract staff in order to insure their work is in compliance with all codes. FINANCIAL IMPACT None. The financial savings from the three vacant positions will cover the $100,000.00 contract to fund building inspection services with 4Leaf Inc. 23 INFORMATIONAL MEMO Page 2 RECOMMENDATION Staff recommends approval of the contract for building inspection services with 41-eaf Inc. at the May 26, 2015 COW and forward this item onto the June 1, 2015 Regular Meeting consent agenda for approval. ATTACHMENTS Contract for building inspections services with 41-eaf Inc. 24 C: \Users\Jerry-H \Documents \CounciA4Leat4Leaf 5- 2015 \4Leaf InfoMemo 5- 11- 2015.doc )LA Wq`\ 1 Tukwila • Number: S • 11 Southcenter Boulevard, 98188 CONTRACT FOR SERVICES This Agreement is entered into by and between the City of Tukwila, Washington, a non - charter optional municipal code city hereinafter referred to as "the City," and 4Leaf Inc. , hereinafter referred to as "the Contractor," whose principal office is located at 2110 Rheem Drive, Ste. A Pleasanton, CA 94588. WHEREAS, the City has determined the need to have certain services performed for its citizens but does not have the manpower or expertise to perform such services; and WHEREAS, the City desires to have the Contractor perform such services pursuant to certain terms and conditions; now, therefore, IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Scope and Schedule of Services to be performed by Contractor. The Contractor shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, the Contractor shall at all times comply with all Federal, State, and local statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith. The Contractor shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. 2. Compensation and Method of Payment. The City shall pay the Contractor for services rendered according to the rate and method set forth on Exhibit B attached hereto and incorporated herein by this reference. The total amount to be paid shall not exceed $100,000.00 at a rate of $70.00 per hour. 3. Contractor Budget. The Contractor shall apply the funds received under this Agreement within the maximum limits set forth in this Agreement. The Contractor shall request prior approval from the City whenever the Contractor desires to amend its budget in any way. 4. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing June 1, 2015, and ending December 31, 2015, unless sooner terminated under the provisions hereinafter specified. 5. Independent Contractor. Contractor and City agree that Contractor is an independent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Contractor nor any employee of Contractor shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Contractor, or any employee of the Contractor. CA Revised 2012 Page I of 4 25 6. Indemnification. The Contractor shall defend, indemnify and hold the City, its officers, agents, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officers, officials, employees, and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Contractor's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 7. Insurance. The Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. Contractor's maintenance of insurance, its scope of coverage and limits as required herein shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance. Contractor shall obtain insurance of the types and with the limits described below: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. Automobile liability insurance shall cover all owned, non - owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and $2,000,000 products - completed operations aggregate limit. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products - completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 11 85 or an equivalent endorsement. There shall be no endorsement or modification of the Commercial General Liability Insurance for liability arising from explosion, collapse or underground property damage. The City shall be named as an insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed for the City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured- Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing equivalent coverage. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. CA Revised 1 -2013 26 Page 2 of 4 B. Other Insurance Provision. The Contractor's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance with respect to the City. Any insurance, self- insurance, or insurance pool coverage maintained by the City shall be excess of the Contractor's insurance and shall not contribute with it. C. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. D. Verification of Coverage. Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. E. Subcontractors. The Contractor shall have sole responsibility for determining the insurance coverage and limits required, if any, to be obtained by subcontractors, which determination shall be made in accordance with reasonable and prudent business practices. F. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this work with written notice of any policy cancellation, within two business days of their receipt of such notice. G. Failure to Maintain Insurance. Failure on the part of the Contractor to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days notice to the Contractor to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Contractor from the City. 8. Record Keeping and Reporting. A. The Contractor shall maintain accounts and records, including personnel, property, financial and programmatic records which sufficiently and properly reflect all direct and indirect costs of any nature expended and services performed in the performance of this Agreement and other such records as may be deemed necessary by the City to ensure the performance of this Agreement. B. These records shall be maintained for a period of seven (7) years after termination hereof unless permission to destroy them is granted by the office of the archivist in accordance with RCW Chapter 40.14 and by the City. 9. Audits and Inspections. The records and documents with respect to all matters covered by this Agreement shall be subject at all times to inspection, review or audit by law during the performance of this Agreement. 10. Termination. This Agreement may at any time be terminated by the City giving to the Contractor thirty (30) days written notice of the City's intention to terminate the same. Failure to provide products on schedule may result in contract termination. If the Contractor's insurance coverage is canceled for any reason, the City shall have the right to terminate this Agreement immediately. 11. Discrimination Prohibited. The Consultant, with regard to the work performed by it under this Agreement, will not discriminate on the grounds of race, religion, creed, color, national origin, age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation or the presence of any disability in the selection and retention of employees or procurement of materials or supplies. CA Revised 1 -2013 Page 3 of 4 27 12. Assignment and Subcontract. The Contractor shall not assign or subcontract any portion of the services contemplated by this Agreement without the written consent of the City. 13. Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Contractor and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. 14. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this Agreement, which by their sense and context are reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 15. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk, City of Tukwila 6200 Southcenter Blvd. Tukwila, Washington 98188 Notices to the Contractor shall be sent to the address provided by the Contractor upon the signature line below. 16. Applicable Law; Venue; Attorney's Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. DATED this day of , 20_. CITY OF TUKWILA CONTRACTOR Jack Pace, Director Department of Community Development CA Revised 1 -2013 W. By: Printed Name and Title: Craig Tole Director of Development Services 4LEAF, INC. 2110 Rheem Drive, Ste. A Pleasanton, CA 94588 (925) 462 -5959 - Office (925) 580 -4055 — Cell Page 4 of 4 Community Affairs & Parks Committee Minutes May 11, 2015 - Page 2 In addition, staff is proposing transferring $171,295.00 from the 412 Surface Water Utility, since habitat projects are now included in that fund due to surface water runoff impacts. The East Marginal Way South Stormwater Outfalls Project construction will be delayed until 2016 and those funds could be applied to Duwamish Gardens in 2015. Also, that project has tentatively been approved to receive $1,106,000 in grant funding through the Department of Ecology, well over the anticipated $300,000 reflected in the adopted CIP. UNANIMOUS APPROVAL. FORWARD TO MAY 18, 2015 REGULAR MEETING. C. North Highline Annexation Area Update Staff provided an update on the North Highline Annexation Area. The City of Seattle has filed a Notice of Intent to Annex its Duwamish Annexation Area, including the Duwamish Industrial Area (North Highline Area Q) and the South Park "Sliver by the River." Area Q overlaps with Tukwila's designated Potential Annexation Area. In 2012 property owners in the Duwamish Industrial area filed a petition to annex into the City of Seattle, but the Boundary Review Board denied Tukwila's Notice of Intent and a subsequent mediation process resulted in no agreements. The City of Tukwila plans to submit comments to the Boundary Review Board opposing Seattle's Notice of Intent on the basis that it does not offer the comprehensive solution that was the basis for denying Tukwila's Notice in 2012, and because the property owners in the area desire to be part of the City of Tukwila as evidenced by the 2012 petition. The Committee will be briefed following the Boundary Review Board action on Seattle's Notice of Intent. INFORMATION ONLY. D. Contract: Inspection Services Staff is seeking Council approval of a contract with 41-eaf, Inc. in an amount not to exceed $100,000.00 for building inspection services, negotiated at $70 perhour. The proposed contract includes the same terms and scope of work as an existing contract signed in January 2015, but the dollar amount for the services required by the City now exceeds the amount requiring Council approval. The Buiding Division has recently lost three staff members due to retirements and resignation, and recruitment for these positions is ongoing. Cities are generallyexperience trouble filling positions like these due to the construction boom and fewer qualified applicants coming up through the trade. There are many highly technical commercial projects underway such as Tukwila Village, King County Library, Museum of Flight, and Washington Place. The expertise and services provided by 41-eaf will be necessary until the City can fill its vacant positions. UNANIMOUS APPROVAL. FORWARD TO MAY 26, 2015 COMMITTEE OF THE WHOLE. III. MISCELLANEOUS Meeting adjourned at 6:22 p.m Next meeting: Monday, May 26, 2015 Committee Chair Approval Minutes by LH c