11 Staff_Report-CSG_Encroachment_Review_and_Inspection_Services - Comcast with attachments
PREPARED BY: James Watson
Senior Civil Engineer – Land Development
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 01/21/2025 ITEM NO: 11
DATE: January 16, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Pass-Through Agreement with
CSG, Inc. for Review and Inspection of Encroachment Permit Applications
Related to Comcast Infrastructure; and Authorize Revenue and Expenditure
Budget Adjustments in the Amount of $200,000 to Recognize the Comcast
Deposit Revenue and Associated Expenditure for CSG Review Services
RECOMMENDATION:
Authorize the Town Manager to execute a pass-through agreement with CSG, Inc. for review
and inspection of encroachment permit applications related to Comcast infrastructure; and
authorize revenue and expenditure budget adjustments in the amount of $200,000 to
recognize the Comcast deposit revenue and associated expenditure for CSG review services.
BACKGROUND:
Encroachment permits are used by the Town to control work in the public right-of-way
(“ROW”). Encroachment permit applications vary in scope from general maintenance activities
such as inspection of overhead electrical appurtenances from a bucket truck to installation of
new facilities such as fiber optic lines buried along the side of the road. Encroachment permit
applications are required to ensure Town Codes are followed and work in the ROW is done
safely with proper traffic control that accommodates all modes of transportation through the
work area.
The Town has received a large increase in encroachment permit applications due to the
expansion of new telecommunication technologies in the area, including fiber optic to homes.
Frontier, AT&T, and Zayo have submitted 62 encroachment permit applications in the past year
and a half that impacts most areas of the Town. Comcast has now begun submitting
applications for their improvements in Los Gatos.
PAGE 2 OF 3 SUBJECT: Authorize the Town Manager to /Execute a Pass-Through Agreement with CSG, Inc. DATE: January 16, 2025
DISCUSSION:
Comcast has ambitious goals to improve service in the Town to serve residents interested in
this new communication technology. Current staff does not have the capacity to review the
applications in a timely manner and provide the subsequent inspections necessary to ensure
the Town’s interests are protected. Parks and Public Works issued a Request for Qualifications
for On-Call Services in September 2023 and the Town Council approved the list of on-call
consultants on February 20, 2024. CSG Consultants, Inc. (“CSG”) was one of the firms approved
to provide on-call services.
The proposed agreement would provide authorization to augment Town staff with services
from CSG to review encroachment permit applications and inspect the work performed during
the installation of facilities. The agreement is a pass-through arrangement meaning that
Comcast will pay a deposit to the Town and the invoices from CSG for Comcast related services
will be paid from the deposit.
The Town has executed three previous pass-through agreements with CSG for the review and
inspection of encroachment permit applications from Frontier, AT&T, and Zayo. The cost of
these reviews and inspections are fully funded by the encroachment permits applicants. Over
time, staff will consolidate other telecommunication contracts, but at present, the Town has
separate contracts with CSG for the work of Frontier, AT&T, and Zayo.
CONCLUSION:
If approved, the requested action will ensure that the Town provides a high level of service in
both the quality and expediency of reviews and inspections for Comcast application.
COORDINATION:
This staff report has been coordinated with Finance Department and Town Attorney.
FISCAL IMPACT:
Staff recommends authorization of the proposed agreement with CSG to provide review and
inspection services related to Comast infrastructure. The proposed revenue and expenditure
budget adjustments in the amount of $200,000 will recognize the Comcast deposit revenue and
to authorize expending for the third-party encroachment permit review services. The proposed
contract will be a pass-through contract with a not-to-exceed (“NTE”) amount of $500,000. The
additional $300,000 will be recognized through the annual budget process. When the Comcast
deposit is nearly exhausted, the Town will request supplemental funds from Comcast based on
PAGE 3 OF 3 SUBJECT: Authorize the Town Manager to /Execute a Pass-Through Agreement with CSG, Inc. DATE: January 16, 2025
the projection of future work. The current hourly billing rates for CSG will be included in the
contract and include inflationary increases annually.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. CSG Agreement
2. CSG Agreement Exhibit A: Scope of Services
3. CSG Agreement Exhibit B: Fee Schedule
Page 1 of 7 Agreement for Consultant Services ATTACHMENT 1 CSG Consultants, Inc.
AGREEMENT FOR CONSULTANT SERVICES
THIS AGREEMENT is dated for identification on this 21st day of January 2025 by and between
TOWN OF LOS GATOS, a California municipal corporation, (“Town”) and CSG Consultants, Inc.
(“Consultant”), identified as a C Corporation and whose address is 550 Pilgrim Drive, Foster City,
CA 94404. This Agreement is made with reference to the following facts.
I. RECITALS
1.1 The Town desires to engage Consultant to provide services to support the Comcast
encroachment permit application plan review and inspection.
1.2 The Consultant represents and affirms that it is willing to perform the desired work
pursuant to this Agreement.
1.3 Consultant warrants it possesses the distinct professional skills, qualifications, experience,
and resources necessary to timely perform the services described in this Agreement.
Consultant acknowledges Town has relied upon these warranties to retain Consultant.
II. AGREEMENTS
2.1 Scope of Services. Consultant shall provide services as described in that certain proposal
sent to the Town on December 12, 2024 which is hereby incorporated by reference and
attached as Exhibit A.
2.2 Term and Time of Performance. This contract will remain in effect upon execution through
June 30, 2026. Consultant shall perform the services described in this agreement as
described in Exhibit A.
2.3 Compliance with Laws. The Consultant shall comply with all applicable laws, codes,
ordinances, and regulations of governing federal, state and local laws. Consultant
represents and warrants to Town that it has all licenses, permits, qualifications and
approvals of whatsoever nature which are legally required for Consultant to practice its
profession. Consultant shall maintain a Town of Los Gatos business license pursuant to
Chapter 14 of the Code of the Town of Los Gatos.
2.4 Sole Responsibility. Consultant shall be responsible for employing or engaging all persons
necessary to perform the services under this Agreement.
2.5 Information/Report Handling. All documents furnished to Consultant by the Town and all
reports and supportive data prepared by the Consultant under this Agreement are the
Town’s property and shall be delivered to the Town upon the completion of Consultant's
services or at the Town's written request. All reports, information, data, and exhibits
prepared or assembled by Consultant in connection with the performance of its services
Page 2 of 7 Agreement for Consultant Services ATTACHMENT 1 CSG Consultants, Inc.
pursuant to this Agreement are confidential until released by the Town to the public, and
the Consultant shall not make any of the these documents or information available to any
individual or organization not employed by the Consultant or the Town without the
written consent of the Town before such release. The Town acknowledges that the
reports to be prepared by the Consultant pursuant to this Agreement are for the purpose
of evaluating a defined project, and Town's use of the information contained in the reports
prepared by the Consultant in connection with other projects shall be solely at Town's risk,
unless Consultant expressly consents to such use in writing. Town further agrees that it
will not appropriate any methodology or technique of Consultant which is and has been
confirmed in writing by Consultant to be a trade secret of Consultant.
2.6 Compensation. Compensation for the Consultant’s professional services shall be paid at
the established hourly rates, as set forth in the Fee Schedule (Exhibit B), which is attached
hereto. Payment shall be based upon Town approval of the Scope and Fee for each task
and payment of fees by Comcast. The total not-to-exceed amount for this agreement shall
not exceed $500,000.
2.7 Billing. Billing shall be monthly by invoice within thirty (30) days of the rendering of the
service and shall be accompanied by a detailed explanation of the work performed by
whom at what rate and on what date. Also, plans, specifications, documents or other
pertinent materials shall be submitted for Town review, even if only in partial or draft
form.
Payment shall be net thirty (30) days. All invoices and statements to the Town shall be
addressed as follows:
Invoices:
Town of Los Gatos
Attn: Accounts Payable
P.O. Box 655
Los Gatos, CA 95031-0655
Email (preferred): AP@losgatosca.gov
2.8 Availability of Records. Consultant shall maintain the records supporting this billing for not
less than three years following completion of the work under this Agreement. Consultant
shall make these records available to authorized personnel of the Town at the Consultant's
offices during business hours upon written request of the Town.
2.9 Assignability and Subcontracting. The services to be performed under this Agreement are
unique and personal to the Consultant. No portion of these services shall be assigned or
subcontracted without the written consent of the Town.
2.10 Independent Contractor. It is understood that the Consultant, in the performance of the
work and services agreed to be performed, shall act as and be an independent contractor
Page 3 of 7
Agreement for Consultant Services ATTACHMENT 1
CSG Consultants, Inc.
and not an agent or employee of the Town. As an independent contractor he/she shall not
obtain any rights to retirement benefits or other benefits which accrue to Town
employee(s). With prior written consent, the Consultant may perform some obligations
under this Agreement by subcontracting, but may not delegate ultimate responsibility for
performance or assign or transfer interests under this Agreement. Consultant agrees to
testify in any litigation brought regarding the subject of the work to be performed under
this Agreement. Consultant shall be compensated for its costs and expenses in preparing
for, traveling to, and testifying in such matters at its then current hourly rates of
compensation, unless such litigation is brought by Consultant or is based on allegations of
Consultant's negligent performance or wrongdoing.
2.11 Conflict of Interest. Consultant understands that its professional responsibilities are solely
to the Town. The Consultant has and shall not obtain any holding or interest within the
Town of Los Gatos. Consultant has no business holdings or agreements with any individual
member of the Staff or management of the Town or its representatives nor shall it enter
into any such holdings or agreements. In addition, Consultant warrants that it does not
presently and shall not acquire any direct or indirect interest adverse to those of the Town
in the subject of this Agreement, and it shall immediately disassociate itself from such an
interest, should it discover it has done so and shall, at the Town's sole discretion, divest
itself of such interest. Consultant shall not knowingly and shall take reasonable steps to
ensure that it does not employ a person having such an interest in this performance of this
Agreement. If after employment of a person, Consultant discovers it has employed a
person with a direct or indirect interest that would conflict with its performance of this
Agreement, Consultant shall promptly notify Town of this employment relationship, and
shall, at the Town's sole discretion, sever any such employment relationship.
2.12 Equal Employment Opportunity. Consultant warrants that it is an equal opportunity
employer and shall comply with applicable regulations governing equal employment
opportunity. Neither Consultant nor its subcontractors do and neither shall discriminate
against persons employed or seeking employment with them on the basis of age, sex,
color, race, marital status, sexual orientation, ancestry, physical or mental disability,
national origin, religion, or medical condition, unless based upon a bona fide occupational
qualification pursuant to the California Fair Employment & Housing Act.
III. INSURANCE AND INDEMNIFICATION
3.1 Minimum Scope of Insurance:
i. Consultant agrees to have and maintain, for the duration of the contract,
General Liability insurance policies insuring him/her and his/her firm to an
amount not less than: two million dollars ($2,000,000) combined single
limit per occurrence for bodily injury, personal injury and property damage.
Page 4 of 7
Agreement for Consultant Services ATTACHMENT 1
CSG Consultants, Inc.
ii. Consultant agrees to have and maintain for the duration of the contract, an
Automobile Liability insurance policy ensuring him/her and his/her staff to
an amount not less than one million dollars ($1,000,000) combined single
limit per accident for bodily injury and property damage.
iii. Consultant shall provide to the Town all certificates of insurance, with
original endorsements effecting coverage. Consultant agrees that all
certificates and endorsements are to be received and approved by the
Town before work commences.
iv. Consultant agrees to have and maintain, for the duration of the contract,
professional liability insurance in amounts not less than $1,000,000 which is
sufficient to insure Consultant for professional errors or omissions in the
performance of the particular scope of work under this agreement.
General Liability:
i. The Town, its elected and appointed officials, employees, and, agents are to
be covered as insured as respects: liability arising out of activities
performed by or on behalf of the Consultant; products and completed
operations of Consultant, premises owned or used by the Consultant. This
requirement does not apply to the professional liability insurance required
for professional errors and omissions.
ii. The Consultant's insurance coverage shall be primary insurance as respects
the Town, its elected and appointed officials, employees, and agents. Any
insurance or self-insurances maintained by the Town, its officers, officials,
employees or volunteers shall be excess of the Consultant's insurance and
shall not contribute with it.
iii. Any failure to comply with reporting provisions of the policies shall not
affect coverage provided to the Town, its officers, officials, employees or
volunteers.
iv. The Consultant's insurance shall apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits of
the insurer's liability.
3.2 All Coverages. Each insurance policy required in this item shall be endorsed to state that
coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except
after thirty (30) days' prior written notice by certified mail, return receipt requested, has
been given to the Town. Current certification of such insurance shall be kept on file at all
times during the term of this agreement with the Town Clerk.
Page 5 of 7
Agreement for Consultant Services ATTACHMENT 1
CSG Consultants, Inc.
3.3 Workers’ Compensation. In addition to these policies, Consultant shall have and maintain
Workers' Compensation insurance as required by California law and shall provide evidence
of such policy to the Town before beginning services under this Agreement. Further,
Consultant shall ensure that all subcontractors employed by Consultant provide the
required Workers' Compensation insurance for their respective employees.
3.4 Indemnification. The Consultant shall save, keep, hold harmless and indemnify and defend
the Town its elected and appointed officials, agents, employees and volunteers from all
damages, liabilities, penalties, costs, or expenses in law or equity that may at any time
arise or be set up because of damages to property or personal injury received by reason of,
or in the course of performing work which may be occasioned by a willful or negligent act
or omissions of the Consultant, or any of the Consultant's officers, employees, or agents or
any subconsultant.
IV. GENERAL TERMS
4.1 Waiver. No failure on the part of either party to exercise any right or remedy hereunder
shall operate as a waiver of any other right or remedy that party may have hereunder, nor
does waiver of a breach or default under this Agreement constitute a continuing waiver of
a subsequent breach of the same or any other provision of this Agreement.
4.2 Governing Law. This Agreement, regardless of where executed, shall be governed by and
construed to the laws of the State of California. Venue for any action regarding this
Agreement shall be in the Superior Court of the County of Santa Clara.
4.3 Termination of Agreement. The Town and the Consultant shall have the right to terminate
this agreement with or without cause by giving not less than fifteen days (15) written
notice of termination. In the event of termination, the Consultant shall deliver to the
Town all plans, files, documents, reports, performed to date by the Consultant. In the
event of such termination, Town shall pay Consultant an amount that bears the same ratio
to the maximum contract price as the work delivered to the Town bears to completed
services contemplated under this Agreement, unless such termination is made for cause,
in which event, compensation, if any, shall be adjusted in light of the particular facts and
circumstances involved in such termination.
4.4 Amendment. No modification, waiver, mutual termination, or amendment of this
Agreement is effective unless made in writing and signed by the Town and the Consultant.
4.5 Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be
entitled to reasonable attorney's fees, including costs of appeal.
4.6 Notices. Any notice required to be given shall be deemed to be duly and properly given if
mailed postage prepaid, and addressed to:
Page 6 of 7
Agreement for Consultant Services ATTACHMENT 1
CSG Consultants, Inc.
Town of Los Gatos
Attn: Town Clerk
110 E. Main Street
Los Gatos, CA 95030
CSG Consultants, Inc.
550 Pilgrim Drive
Foster City, CA 94404
or personally delivered to Consultant to such address or such other address as Consultant
designates in writing to Town.
4.7 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the
terms and conditions of this Agreement in respect of the Products or Services and any
attachments to this Agreement, then the terms and conditions of this Agreement shall
prevail over attachments or other writings.
4.8 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and
exclusive statement of the Agreement between the Town and Consultant. No terms,
conditions, understandings or agreements purporting to modify or vary this Agreement,
unless hereafter made in writing and signed by the party to be bound, shall be binding on
either party.
Page 7 of 7
Agreement for Consultant Services ATTACHMENT 1
CSG Consultants, Inc.
IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement.
Town of Los Gatos by:
Chris Constantin, Town Manager
Recommended by:
Nicolle Burnham
Director of Parks and Public Works
Consultant, by:
Cyrus Kianpour, President
Approved as to Form:
Gabrielle Whelan, Town Attorney
Attest:
Wendy Wood, CMC, Town Clerk
550 Pilgrim Drive
Foster City, CA 94404
phone 650.522.2500
fax 650.522.2599
www.csgengr.com
FOSTER CITY | PLEASANTON | SAN JOSE | SACRAMENTO | NEWMAN | ORANGE
December 12, 2024
Gary Heap,
Town Engineer
Town of Los Gatos
41 Miles Avenue
Los Gatos, CA 95030
RE: Comcast Encroachment Permit Plan Review - Proposal
Dear Gary:
CSG Consultants, Inc. is pleased to present this proposal to assist the Town of Los Gatos with Plan Review
for the Comcast Encroachment permit application.
Comcast proposes to install communication lines within the Town of Los Gatos Public Right-of-Way..
Work to be performed under this proposal will include the following:
Plan Review
1)Plan Review:
•Review plans for conflicts with existing surface improvements.
•Review plans for conflicts with existing utilities. Identify utilities that may require potholing
prior to construction.
•Review plans for consistency with Town trench resurfacing standards.
•Confirm plans show appropriate repairs to other surface improvements (concrete, pavers,
landscaping) where these improvements are impacted.
2)Prepare a comment letter for each review. Meet with staff and/or the applicant as needed to
review comments and how comments will be addressed.
3)Complete subsequent reviews as needed.
4)Review traffic control plans and provide comment letters and meet with Town staff and Comcast
as needed.
5)Attend other meetings as needed.
Sandra Meditch, P.E., will serve as the point of contact, oversee plan review work, and conduct QA/QC.
Fee
Our fee for performing the work described above will be on a time and materials basis, based on our 2024
Standard Fee Schedule. See attached.
ATTACHMENT 2
2
Inspection Services
CSG stands ready to provide inspection services if and when needed. Enforcing traffic control
requirements and the permit provisions are vital on this type of work. Also working closely with the
contractor to ensure all utilities are marked and trenches are backfilled according to project plans and
Town/Caltrans standards. As the level of effort and the contractor’s schedule are unknown, it is very
difficult to arrive at a cost at this time. However, as a place holder we suggest the Town set aside
$10,000 to be finalized upon the determination of the level of effort desired by the Town and number of
working days dictated by the contract.
Thank you for considering CSG Consultants for this work. We look forward to working with you on this
project. Please feel free to call Sandra Meditch at (650) 522-2629 if you would like to discuss this further.
Sincerely,
_______________________________
Sandra A. Meditch, P.E.
Principal Engineer
cc: Hatem Ahmed, P.E.
Nourdin Khayata, P.E.
Sophie Truong, PE, PLS
Attachment
CSG Engineering Division Hourly Rates
Calendar Year 2024
San Francisco Bay Area
CSG Consultants’ services are billed on a time-and-materials basis according to our standard rates,
shown below.
PROFESSIONAL ENGINEERING SERVICES HOURLY RATE
Administrative Assistant $90
Analyst $150
Construction Inspector $165
Assistant Resident Engineer $195
Assistant Engineer $165
Associate Engineer $200
Associate Surveyor $195
Senior Construction Inspector $185
Senior Engineer $220
Senior Land Surveyor $220
Resident Engineer $240
Structure Representative $240
Senior Project Manager $245
Principal Engineer $270
Senior Principal Engineer $290
Two-Person Survey Crew $395
All hourly rates include overhead costs including, but not limited to, salaries, benefits, workers’ compensation
insurance, travel and office expenses. CSG will coordinate the pickup and return of plans between CSG and agency
offices. Overtime services and services provided outside of normal business hours will be billed at 1.5x the applicable
hourly rate. On July 1 of each year following the contract start year, CSG will initiate a rate increase based on change
in CPI for the applicable region. CSG will deliver an invoice every month for services rendered during the previous
month.
ATTACHMENT 3