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Exhibit 1 - Agenda Information Sheet City of Denton ____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Materials Management CM: Todd Hileman DATE: October 23, 2018 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule municipal corporation, authorizing the City Manager to execute a Professional Services Agreement with HR Green, Inc., for Engineering Development Services related to the review of development construction projects for the City of Denton, as set forth in the agreement; providing for the expenditure of funds therefor; and providing an effective date (RFQ 6818 – Professional Services Agreement for Engineering Development Services awarded to HR Green, Inc., in the not-to-exceed amount of $815,147). INFORMATION /BACKGROUND Engineering Development Review is a division of the Capital Projects Department concerned primarily with reviewing private development construction plans as they pertain to and interact with the City of Denton’s public infrastructure (i.e., water, wastewater, drainage, streets, parks, etc.). In this regard, the purpose of this team is to ensure that private development projects that are constructing new public infrastructure and/or connecting to the public infrastructure can be constructed safely and in accordance with the City’s minimum specifications and the development code. They interface routinely with developers and their consulting professionals to verify that private projects will not overburden the existing infrastructure. To do this, the Engineering Development Review team must fully understand the City’s development code; all pertinent City, state and federal regulations; and the City of Denton’s design criteria, specifications, and construction details. Development projects typically move at a much faster pace than capital projects as the developer and their consultant have typically put together their plans and vetted them to the point that the developer is fully invested in the project by the time the Engineering Development Review team is engaged in the project. Further, private projects do not require competitive bidding or other solicitation to select contractors and design professionals. A private developer can simply choose the professional and contractor from the start of the project allowing some definitive advantages in streamlining the design process to start construction faster. Many times, private developers are on tight timelines to deliver their projects from a financial perspective which in turn drives the pace at which private development requires approvals of plans and plats to acquire permits for construction. The Engineering Review process has, throughout its history, been cumbersome to the point of frustration for both the development community and City staff. Currently, City staff is working through 145 active development projects with a staff of three senior engineers, one technician, and a consultant to help offset the high workload. Staff currently works 10 to 12 hour days 5 and 6 days a week to keep up with the City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com workload. With the increasing number of development projects submitted for review since 2008, staff resources are becoming extremely limited and they have little time to focus on process improvements. The Capital Projects Department budget for Fiscal Year 2018-2019 includes two additional engineers and another technician to help bring current workloads to a manageable level. The budget also provides for the continuation of staff augmentation as demand increases by providing funding for consultant services. In preparation for this, a request for qualifications was sent to six (6) prospective firms that would provide immediate staff augmentation while the City looks to fill the three new positions. A condition of this RFQ was also to search for a consultant that will review all current review processes and fees to determine the optimal processes and resources to contend with current and future private development submittals. Staff has reviewed all submittals, interviewed the top 3 firms, and performed extensive background checks on the finalist. The responding firms for this RFQ were; 1. HR Green, Inc. 2. CGA, Inc. 3. Freese & Nichols, Inc. Following the process outlined above and discussed in more detailed during the August 6, 2018 work session, HR Green, Inc. was selected by staff for recommendation to City Council as the most qualified firm to take on this effort. An administrative contract in the amount of $90,289 was agreed upon and executed by and between HR Green Inc. and the City to evaluate the current staff and processes, begin to reduce the backlog of active projects and determine the resources required to establish a longer presence and broader contract. However, staff and HR Green, Inc. have not been able to negotiate the broader contract to completely take on all aspects of the engineering review function. As such, staff and HR Green, Inc. have revised the scope of this effort to its original scope as defined by the May RFQ to include the following: 1. Evaluate current and recommend new/best practices and processes relating to engineering review. 2. Clear the backlog of existing development cases. 3. Provide offsite review efforts for the City. 4. Evaluate current review fees and recommend new fees. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On August 6, 2018, a work Session (ID 18-1155) item was presented regarding the current state of the engineering development review process and recommendations were to develop a better process. RECOMMENDATION Award a contract with HR Green, Inc., for Engineering Development Services related to the review of development construction projects, in the not-to-exceed amount of $815,147. PRINCIPAL PLACE OF BUSINESS HR Green, Inc. Cedar Rapids, IA FISCAL INFORMATION These services will be funded from account 640380541. PO # 171438 will be revised to include the amount of $815,147 upon approval. STRATEGIC PLAN RELATIONSHIP The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Public Infrastructure Related Goal: 1.4 Achieve a high level of customer satisfaction EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Evaluation Sheet Exhibit 3: Staff Presentation Exhibit 4: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: W. Todd Estes at 940-349-8917