PREPARED BY: Sarah Maroof DATE OF MEETING: 12/18/17
SUBJECT:
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO (1) AUTHORIZING THE TRANSFER OF $160,000 FROM THE FY 2017/18 DEVELOPMENT SERVICES SALARY ACCOUNT TO ITS PROFESSIONAL SERVICES ACCOUNT; AND (2) AUTHORIZING THE CITY MANAGER TO EXECUTE A NEW AGREEMENT WITH MIG FOR ON-CALL PLANNING SUPPORT CONSULTING SERVICES IN THE AMOUNT OF $184,000 FOR FY 2017/18, WITH OPTIONS TO RENEW ANNUALLY FOR THREE YEARS UP TO $190,000 PER YEAR, BASED ON AVAILABILITY OF FUNDS, FOR A FOUR-YEAR CUMULATIVE CONTRACT TOTAL NOT TO EXCEED $754,000
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
Fiscal Sustainability - Budgetary Spending Controls is an adopted policy item under the FY2018-21 Council Priority Workplan, effective November 1, 2017.
CEQA Compliance Statement
This is not a project as defined by CEQA.
BACKGROUND
For FY 2017/18, within the Adopted City Council Budget for Development Services, the salary account (212-1755-41000) has a total budget appropriation of $742,847. As of December 4, 2017, a balance of $495,863 was remaining, or 58% of the total salary budget allocation for FY 2017/18. The higher than anticipated balance left in salary is due to various staff vacancies in the Development Services Department, and these staff vacancies, particularly in Planning, have necessitated the use of on-call contract planning support services at a higher rate than anticipated. As a result, as of December 4, 2017, the Professional Services budget account (212-1755-43600) has a remaining non-encumbered balance of $29,045, 7% of the total line item allocation of $395,000.
For the remainder of FY 2017/18, additional Professional Services will need to be obtained in order to perform contracted planning support services to cover for staff vacancies while going through the process of advertising and interviewing to fill vacant positions.
Since sufficient funding exists in the salary line of the Development Services Department budget, staff recommends reallocating $160,000 from the Salary budget (212-1755-41000) to the Professional Services budget (212-1755-43600) to cover additional planning support.
Prior MIG Contract for Planning Support Consulting Services
An Agreement for Planning Support Consulting Services between the City of San Pablo and MIG dated October 13, 2016, was for a contract amount not to exceed $24,990.
The First Amendment dated May 15, 2017, was approved by Resolution 2017-081 of the City Council of the City of San Pablo on May 15, 2017, augmenting the original contract by $88,000, for a total MIG contract amount of $112,990. The First Amendment also expanded the scope of services provided by MIG to include various current and long-range projects as assigned.
The Quadrennial Budget adopted by the San Pablo City Council on June 19, 2017, includes $90,000 budgeted for MIG planning support in the Development Services Professional Services budget (212-1755-43600) for FY 2017/18. Purchase Order #824 was opened for FY 2017/18 in the amount of $65,955, the remainder of the Amended Contract dated May 15, 2017, leaving $24,045 available in the FY 2017/18 budget for additional MIG planning support.
New MIG Contract for Planning Support Consulting Services
A proposed new Agreement for Planning Support Consulting Services between the City of San Pablo and MIG dated December 19, 2017 (Attachment A), shall not exceed $184,000 for FY 2017/18, which includes $24,000 available in the Professional Services budget (212-1755-43600) for MIG Planning Support, plus $160,000 transferred from Development Services Salary (212-1755-41000). This Agreement shall allow three (3) additional one-year renewal options in the amount of $90,000 per fiscal year per the approved Quadrennial Budget for FY2018-21, with an option to augment the contract by up to $100,000 per year for each of the additional three (3) years contingent upon approval of transfer from available salary savings, for a total contract amount not to exceed $754,000 for FY 2018-21 ($184,000 for FY 2017/18, plus a maximum of $190,000 per year for three years: FY2018/19, FY2019/20, and FY2020/21).
FISCAL IMPACT
Since sufficient funding exists in the salary line of the Development Services Department budget, staff recommends reallocating $160,000 from Development Services Salary budget (212-1755-41000) to the Professional Services budget (212-1755-43600) to cover additional discretionary professional services utilized in order to pay for needed additional planning support. As this is a reallocation of existing budgeted funds, no new funding is necessary.
ATTACHMENTS
1. Proposed Agreement for Planning Support Consulting Services between the City of San Pablo and MIG dated December 19, 2017.