DATE:
March 21, 2023
TO:
Paul Buddenhagen, City Manager
FROM:
Charles S. Bryant, Community Development Director
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Authorizing A First Amendment Of The Professional Services Contract With West Coast Code Consultants (WC3) For Fiscal Year 2022-2023 For Building Division Services In An Amount Of $1,704,640 To Cover Expanded Services For A Total Amount Not To Exceed $2,841,714 And Increasing Revenues And Expenditures In The Building Division Budget For Fiscal Year 2022-2023
RECOMMENDATION
Staff recommends that the City Council approve the above-entitled resolution authorizing a First Amendment to the fiscal year 2022-2023 West Coast Code Consultants (WC³) contract to increase compensation from $1,137,074 to $2,841,714 for previously unbudgeted plan review, building inspection, and office support services to the Building Division, and making corresponding increases in revenues and expenditures in the Community Development Department budget for fiscal year 2022-2023.
BACKGROUND
The existing WC³ contract was approved by the City Council on June 21, 2022, by Resolution No. 22-77. Subsequently, the following additional major projects were submitted for plan review services to the Building Division:
Description
Address
Valuation
Plan Check Fee Collected
Consultant Plan Review Fee
Sound AG Tenant Improvements
6401 Hollis Street
$6,169,206
$57,374
$40,162
Grocery Store Tenant Improvements
5621 Bay Street
$6,339,811
$39,307
$27,515
Stanford Health Care Tenant Improvements
6121 Hollis Street
$22,508,300
$139,551
$97,686
Amyris Tenant Improvements
5885 Hollis Street
$77,000,000
$47,740
$33,418
Public Market Garage
5900 Hollis Street
$48,396,300
$300,057
$210,040
Public Market Lab Building Foundation
6000 Shellmound Street
$194,428,800
$ 1,506,823
$ 1,054,776
Totals
$2,090.852
$1,463,597
DISCUSSION
The existing contract executed with WC³ for fiscal year 2022-2023, does not include the cost to provide plan check, inspection, and office support services related to these projects. Therefore, Section 3B of the Professional Services Contract, “Compensation and Method of Payment”, should be revised from $1,137,074 to $2,841,714 an increase of $1,704,640, which is the estimated cost to provide these services by WC³.
In preparing the proposed Building Division budget for Fiscal Years 2023-24 and 2024-25, staff intends to include all known major development projects that are reasonably foreseeable to be submitting building permit applications within the next two years, as opposed to the previous practice of including only those projects that were a certainty. Hopefully, this will reduce the number of contract amendments and budget adjustments that will be necessary in the future.
In addition, in spring 2023, staff will issue a Request for Proposals (RFP) for Building Division services covering the next two fiscal years, as has been our past practice since the last time an RFP was issued was four years ago, in 2019.
FISCAL IMPACT
Appropriations from the General Fund (Fund 101) to the Building Division budget are required to cover this contract increase. To offset this additional expense, revenues should likewise be increased. Requested adjustments to the Building Division revenue and expenditure budgets are indicated in the following table.
Account
Title
Existing Budget
Additional Revenues and Expenditures
Proposed Budget
101
1730
58200
Building Permits
$2,269,853
$298,967
$2,568,820
101
1730
58380
Title 24 Energy Rev. Fee
$180,000
$256,784
$436,784
101
1730
58400
Plan Checking
$702,000
$1,335,274
$2,037,274
TOTAL REVENUES
$4,107,773
$1,891,025
$5,998,798
101
1730
80045
In-House Counter Service
$29,000
$13,600
$42,600
101
1730
80050
Professional Services
$100,000
$36,275
$136,275
101
1730
80305
Reimbursable Exp-Mileage
$10,500
$3,744
$14,244
101
1730
80480
Prof Svc-Plan Check Fees
$627,574
$1,452,748
$2,080,322
101
1730
80490
Prof Svc-Inspections
$340,000
$218,169
$558,169
TOTAL EXPENDITURES
$1,107,074
$1,724,536
$2,831,610
Revenues exceed expenditures because expenditures include only consultant services, whereas revenues must also cover other City expenses such as staffing, overhead, and administrative costs.
Staff Communication with the Public
None.
Conflict of Interest
None.
Conclusion
Staff recommends that the City Council approve the attached resolution authorizing an amendment to the fiscal year 2022-2023 contract with WC³ for Building Division services and making corresponding budget adjustments as detailed above.
PREPARED BY: Victor R. Gonzales, Chief Building Official
APPROVED AND FORWARDED TO THE
CITY COUNCIL OF THE CITY OF EMERYVILLE:
______________________________
Paul Buddenhagen, City Manager
ATTACHMENTS:
Professional Services Contract with WC³
Draft Resolution including Exhibit A, First Amendment to Contract with WC³ WC3 Contract First Amendment FY2022-2023
City Council Meeting | March 21, 2023
City of Emeryville
CALIFORNIA
MEMORANDUM