Agenda #: 5.6
Meeting Date: March 21, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: FIFTH AMENDMENT TO THE CONSULTANT SERVICES
AGREEMENT WITH RKA CONSULTING GROUP TO PROVIDE
BUILDING AND SAFETY SERVICES.
STRATEGIC
GOAL: Responsible Stewardship of Public Resources
RECOMMENDATION:
A. Approve, and authorize the Mayor to sign, the Fifth Amendment to the Consultant Services Agreement with RKA Consulting Group by eliminating the position of Permit Technician from the list of personnel that the Consultant shall provide, along with a corresponding reduction in compensation; and B. Authorize one (1) additional Permit Technician on the list of full-time benefited City Personnel for FY 22/23.
FINANCIAL IMPACT:
None. In lieu of furnishing the City with a company-employed permit technician to assist with front counter Building and Safety services, the consultant will reduce its monthly invoices by an amount equal to the full cost of a City-employed Permit Technician pursuant to the City’s salary and benefit schedule, which is currently approximately $8,400 per month. The City will then apply the cost savings to bring that position inhouse. The resulting switch from a contract employee to a City employee will thus be cost neutral.
BACKGROUND/DISCUSSION:
Diamond Bar has utilized contract providers for the delivery of the City’s Building and Safety services since its incorporation. Initially, Building and Safety services were provided entirely by contract staff. As demand for services increased over the years, the City added two in-house permit technicians to the Building and Safety Division, first in 2006, and then in 2022.
Walnut-based RKA Consulting Group (RKA) has served as Diamond Bar’s Building and Safety services provider since September 2010. RKA is compensated on a commission basis that is indexed to the City’s monthly plan check and permit revenues, currently structured as follows:
Monthly plan check and permit
revenues collected by the City
Compensation
to RKA
First $25,000 65%
$25,001 to $50,000 50%
Above $50,000 40%
In return, RKA provides the following personnel to perform the duties set forth in the Consultant Services Agreement:
1. Building Official – 15 to 20 hours per week.
2. Building Inspector(s) – One full-time inspector, plus additional inspectors as needed in the event of increased volumes or workloads.
3. Plans Examiners – As needed to maintain expected plan check turnaround times.
4. Permit Technician – One permit technician to support the in-house staff in providing front-counter permit services.
Overall, RKA has provided excellent service to the City and the City’s customers, and works seamlessly with staff. In addition to providing permit, plan checking and inspection services, RKA also prepares the triennial building and fire code updates, provides 24/7 response to emergencies involving damaged structures, and works closely with the City Attorney and City Prosecutor on complex enforcement matters.
The one area that has been challenging for RKA over the years has been in the retention of a permit technician to augment front counter services. Over the past 11 years, there has been a turnover of approximately 15 RKA-employed permit technicians, resulting in permit application intake disruptions, and an extra burden on the City’s Permit Services Coordinator, who must train each new contract technician.
Staff and RKA have discussed this ongoing issue, and the underlying reasons for the turnover, and agree that the most effective long-term solution would be to bring the position in house for the following reasons:
• Consolidated chain of command. As stated, front counter services are currently staffed by two City employees and one RKA contractor. This arrangement leads to challenges and inefficiencies because the Community Development Director must coordinate with RKA over routine supervisory matters.
• Employee retention. Consolidating the chain of command at the front counter will also foster an improved workplace environment. The current arrangement has been challenging for some of the contract permit technicians because they are not reporting to the same supervisor as the City-employed front counter staff. In staff’s opinion, a fully in-house permit services roster will lead to a higher functioning front counter team and higher levels of customer service.
• Cost Neutrality. The fully-burdened cost1for a City-employed Permit Technician at top step for the current fiscal year is $8,400 per month. The cost is roughly the same for RKA to provide a contract employee that is qualified to perform the duties of that position. As a result, RKA has agreed to an amendment to the Consulting Services Agreement whereby its monthly invoices will deduct the fully-burdened cost of a Permit Technician in exchange for no longer being contractually obligated to provide staff to serve that function. The credit amount will be benchmarked to the City’s salary schedule as it changes over time.
LEGAL REVIEW:
The City Attorney has reviewed and approved the attached Fifth Amendment to the Consulting Services Agreement as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 5.6.a Fifth Amendment to Consultant Services Agreement with RKA Consulting Group
1 The “fully-burdened” cost is the sum of wages, benefits, retirement contribution, Medicare, Workers Compensation, life insurance and survivor benefits.