STAFF REPORT
Meeting Date:
February 10, 2026
CONSENT
6 SUBJECT: AMENDMENT TO SERVICE PROVIDER AGREEMENT FOR BUILDING AND
PLANNING SERVICES
RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to execute a third amendment to Agreement #22-64 with the Code Group, Inc. (dba VCA Code) to increase the contract amount by $190,000 for continued building and planning services; and
2. Find this action is not a “project” subject to the California Environmental Quality Act (CEQA) pursuant to Section 15378 of the CEQA Guidelines.
SUMMARY OF THE MATTER
This report recommends that the City Council authorize a third amendment to Agreement #22-64 with the Code Group, Inc. (VCA) to increase the contract authority by $190,000 for continued as-needed building and planning services. This amendment is necessary due to ongoing staffing shortages and unanticipated workload needs. Sufficient funds are available from existing contract services appropriations and salary savings, and no new funds are required.
DISCUSSION
On June 21, 2022, the City Council authorized the City Manager to execute on-call service provider agreements with multiple firms to provide building and planning services for a three-year term. Code Group, Inc. (dba VCA) was awarded Agreement #22-64 and has received one-year extensions beginning July 1, 2025. This amendment represents the third amendment to Agreement #22-64.
Per the City’s purchasing Policy, the City Manager can approve task orders up to $100,000; task orders above $100,000 are presented to the City Council for approval.
The State of California, and Orange County in particular, continue to experience a shortage of qualified building inspectors, making it challenging to fill vacant positions. As a result, staff have relied heavily on VCA during the first half of the fiscal year to help augment staffing levels. Although both vacant inspector positions have recently been filled, one employee is not expected to begin work for several weeks, and the other just started training. Consequently, staff anticipate that continued short-term use of VCA services will maintain staffing levels appropriate for inspection capacity.
While staff does not expect VCA services will be necessary through the end of the fiscal year, the requested $190,000 increase in contract authority is also intended to provide contingency funding for unforeseen staffing needs, such unexpected illness, injury, or turnover. In such cases, VCA would continue to serve as the City’s primary option to ensure uninterrupted building and planning services delivery.
FINANCIAL ANALYSIS
The proposed amendment would increase VCA’s total contract authority from $100,000 to $290,000, representing an increase of $190,000.
AMENDMENT TO SERVICE PROVIDER AGREEMENT FOR BUILDING AND PLANNING
SERVICES
February 10, 2026
Most of the original $100,000 allocation has already been expended using budgeted contract services funds.
The remaining costs associated with this amendment are anticipated to be absorbed through:
• Existing Contract Services Appropriations, and/or
• Approximately $194,000 in salary savings realized during the current fiscal year due to long-term vacancies in building inspector positions.
As a result, no additional appropriations are requested, and sufficient funding is available within the adopted FY 2025-26 Community Development Department budget to support the proposed contract increase.
ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
The proposed contract amendment supports the City Council’s strategic priorities by maintaining highquality public services and ensuring the continuity of building, planning, and environmental review functions. By supplementing City staffing with on-call consultant support during periods of high demand or staffing transition, the action helps ensure efficient review and timely customer service. Additionally, utilizing available salary savings to fund the amendment reflects the Council’s commitment to operational efficiency and responsible financial management.
ENVIRONMENTAL ANALYSIS
This action is not subject to the California Environmental Quality Act ("Public Resources Code Section 21000 et seq.) ("CEQA") because it does not qualify as a "project" under CEQA. The state CEQA Guidelines provide that "[a]n activity is not subject to CEQA if ... The activity is not a project as defined in Section 15378." (State CEQA Guidelines, § 15060(c).) Here, the action does not qualify as a "project" as defined in State CEQA Guidelines section 15378 for at least two different reasons. First, Section 15378 defines a project as an activity that "has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment." (State CEQA Guidelines, §15378(a).) Here, the action is to authorize the City Manager to increase funds for planning services, which will not result in any reasonably foreseeable impacts.
ATTACHMENTS
1. Third Amendment to VCA Agreement #22-64 (Pgs. 3-4)
Submitted By: Matthew Schneider Approved: .David A Kiff Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Erin Fabian, Administrative Analyst