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Staff Report

Laguna Beach City Council
June 23, 2026

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Staff Report
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June 23, 2026
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Laguna Beach City Council
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STAFF REPORT
Meeting Date:

June 23, 2026

CONSENT
12 SUBJECT: AWARD OF CONTRACTS FOR COMMUNITY DEVELOPMENT DEPARTMENT

ON-CALL CONSULTANT SERVICES AND AMENDMENT TO SERVICE

PROVIDER AGREEMENT FOR BUILDING AND PLANNING SERVICES
RECOMMENDATION: It is recommended that the City Council:

1. Approve the selection of the on-call consultant firms identified in Attachment 1 to provide Community Development Department consulting services;

2. Authorize the City Manager to execute Professional Services Agreements, in a form approved by the City Attorney, with the selected on-call consultant firms for an initial three-year term, with two optional one-year extensions;

3. Authorize the City Manager to execute a sixth amendment to Agreement #22-49 with CSG Consultants, Inc. to increase the contract appropriation by $165,000 for a total not-to-exceed amount of $495,000 for continued building and planning services;

4. Authorize the City Manager to execute a new Professional Services Agreement with CSG Consultants, Inc., in a form approved by the City Attorney, for on-call consulting services for an amount not-to-exceed $350,000 annually for a three-year term effective July 1, 2026; and

5. Find that the recommended actions are not a “project” pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15378 because the actions involve administrative and organizational activities that will not result in a direct or indirect physical change in the environment.

SUMMARY OF THE MATTER
This report recommends that the City Council approve the selection of 34 on-call consultant firms identified in Attachment 1 to provide professional consulting services supporting the Community Development Department’s Planning, Building, Code Enforcement, and related technical operations. The report also recommends approval of a Sixth Amendment to Agreement No. 22-49 with CSG Consultants, Inc. to increase the contract appropriation by $165,000, for a revised total not-to-exceed amount of $495,000, for continued building and planning support services. Additionally, the report recommends authorization of a new three-year Professional Services Agreement with CSG Consultants, Inc. for ongoing on-call consulting services in an amount not to exceed $350,000 annually, effective July 1, 2026.

The Community Development Department issued a Request for Proposals (RFP) for 16 service categories to establish a prequalified pool of professional consulting firms capable of providing specialized technical expertise and supplemental staffing resources on an as-needed basis. Establishing the on-call consultant pool will streamline procurement processes, improve responsiveness to fluctuating operational demands, and provide access to specialized expertise necessary to support development review, permitting, inspection, and environmental compliance functions.

AWARD OF CONTRACTS FOR COMMUNITY DEVELOPMENT DEPARTMENT ON-CALL

CONSULTANT SERVICES AND AMENDMENT TO SERVICE PROVIDER AGREEMENT FOR

BUILDING AND PLANNING SERVICES
June 9, 2026

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Funding for the proposed agreements and amendment is available within existing and proposed Community Development Department operating budget appropriations.

The recommended actions are not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 because the actions involve administrative and organizational activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment.

DISCUSSION
The Community Development Department administers a broad range of development review, permitting, inspection, code enforcement, and environmental compliance functions necessary to implement the City’s Municipal Code, California Building Standards Code, California Environmental Quality Act (CEQA), and other applicable State and local regulations. These responsibilities require access to specialized technical expertise and professional support services to address fluctuating workloads, complex development proposals, and staffing resource constraints.

Operational Need
The Department experiences periodic fluctuations in permit volumes, development activity, code enforcement workload, and specialized technical review needs. Utilization of on-call consultant services allows the Department to maintain service levels, respond to operational demands in a timely manner, and access specialized expertise in a cost-effective and operationally efficient manner.

Request for Proposal Process
On March 12, 2026, the City of Laguna Beach released an RFP through the City’s PlanetBids portal for On-Call Community Development Consulting Services. This solicitation serves as a follow-up to the 2022- 2025 On-Call Community Development Services RFP, for which contracts were termed for three years with a one-year extension. Existing agreements are set to expire on June 30, 2026.

The RFP sought qualified firms in the following 16 categories:

1. Building Plan Check

2. Building Inspection

3. Fire Code Enforcement related to Group R3 Occupancies

4. Geotechnical Services

5. Permit Technician

6. Planner

7. Code Enforcement Officer

8. Housing Specialist

9. Biological Services

10. Historic Services

11. Landscape and Water Resources Plan Check

12. California Environmental Quality Act

13. Hydrology Peer Review

14. Floodplain Review Services

AWARD OF CONTRACTS FOR COMMUNITY DEVELOPMENT DEPARTMENT ON-CALL

CONSULTANT SERVICES AND AMENDMENT TO SERVICE PROVIDER AGREEMENT FOR

BUILDING AND PLANNING SERVICES
June 9, 2026

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15. Surveying

16. Traffic Engineering Services
Selection Process
The City received 59 proposals in response to the RFP. Proposals were reviewed by a selection committee comprised of City staff members in the Planning and Building Divisions. Evaluation criteria included the firm’s understanding of the scope of work, relevant qualifications and experience, proposed staffing, references, deliverables, and cost reasonableness.

Consequently, staff recommends approval of the 34 consulting firms identified in the table in Attachment

1. Nineteen of the recommended firms have previously provided services to the City and demonstrated familiarity with the unique conditions of the area. To clarify, construction contracts are awarded, as required by law, to the lowest responsive and responsible bidder after an Invitation for Bids is conducted. However, professional services require selection based upon demonstrated competence, professional qualifications, and cost reasonableness.

Following City Council approval, each selected consultant will execute a Professional Services Agreement consistent with the template agreement included as Attachment 2. Minor changes to the City’s template Professional Services Agreement may be authorized subject to approval by the City Manager and the City Attorney. The agreements will have an initial three-year term with two optional one-year extensions.

Use of On-Call Consulting Services
The purpose of establishing the on-call consultant services is to streamline the procurement process by prequalifying the best-qualified firms and utilizing these services as needed without conducting a separate competitive procurement process for each task. The use of multiple on-call consultants also increases resource availability, improves responsiveness to fluctuating workloads, and provides the City with access to specialized expertise necessary to meet performance expectations.

Individual task assignments will be authorized on an as-needed basis consistent with approved budget appropriations and applicable purchasing authority thresholds.

Cost
Cost reasonableness was included as part of the selection criteria for the on-call consultant team. The hourly rates negotiated with each selected on-call consultant will be held firm for the duration of the proposed three-year contract term.

With the exception of CSG, which is detailed further below, all professional service agreements will be capped at an annual fiscal year amount of $100,000. In the event services are required beyond the approved contract authority, any necessary contract amendment exceeding applicable purchasing thresholds would be presented to the City Council for consideration.

AWARD OF CONTRACTS FOR COMMUNITY DEVELOPMENT DEPARTMENT ON-CALL

CONSULTANT SERVICES AND AMENDMENT TO SERVICE PROVIDER AGREEMENT FOR

BUILDING AND PLANNING SERVICES
June 9, 2026

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Peer Review Protocol Changes
In an effort to further streamline the City’s permitting process and reduce permitting costs to applicants, the City is modifying its peer review practices by utilizing firms that have been vetted and deemed qualified through this RFP process.

Under the current practice, applicants retain consultants to prepare technical reports, such as geologic studies, and are then required to submit a $5,000 deposit for the City to conduct an independent peer review of those reports. Under the revised process, applicants may instead utilize technical reports prepared by subject matter experts that have been vetted and approved by the City. Technical reports prepared by these approved consultants will be accepted by the City without the need for additional peer review.

Initially, City staff will implement this protocol on a limited basis for traffic engineering services only.

Because the City maintains an internal traffic engineer, staff will be able to assist in reviewing and standardizing report templates and methodologies during the initial rollout phase. Over the coming months, Planning staff will work to develop standardized report templates and review protocols for the remaining technical disciplines identified in this program and will expand implementation as appropriate.

Use of an approved consultant will remain entirely at the applicant’s discretion. Applicants may continue to retain consultants that are not included on the City’s approved list; however, in those instances, the City will continue to require peer review of the submitted technical report.

Attachment 3 identifies the approved firms and the areas of expertise for which their technical reports will ultimately be accepted without peer review, including biological, hydraulic, geotechnical, historical, and traffic engineering services.

CSG Consultants, Inc.

CSG performs a range of services for the City including: planning, building inspection, fire code enforcement, permit technician, code enforcement, building plan check, and CEQA consulting services.

Due to increased utilization of consultant services, the Department has reached the contract appropriation for CSG.

To maintain continuity of operations through the transition to the new on-call consultant program, staff recommends increasing the appropriation for Agreement #22-49 by $165,000, for a total not-to-exceed amount of $495,000 for this year’s fiscal year ending June 30, 2026. The proposed amendment is included as Attachment 4.

Additionally, staff anticipates continued utilization of CSG to exceed the on-call appropriation limit of $100,000. Based on historical utilization and anticipated operational needs, staff further recommends authorizing the City Manager to appropriate up to $350,000 per fiscal year for CSG Consultants under the new on-call consulting program. In sum, the amendment (Attachment #4) will allow the City to continue use of CSG through this fiscal year. Once the new fiscal year commences, a new agreement with CSG will be executed – along with other on-call consultants consistent with this item – to ensure timing consistency

AWARD OF CONTRACTS FOR COMMUNITY DEVELOPMENT DEPARTMENT ON-CALL

CONSULTANT SERVICES AND AMENDMENT TO SERVICE PROVIDER AGREEMENT FOR

BUILDING AND PLANNING SERVICES
June 9, 2026

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program-wide.

It is important to note that the majority of work performed by CSG for the City involves building plan check services. Under the negotiated payment structure, CSG receives a percentage of the building plan check fees collected for the use of its services. Specifically, CSG retains 60% of the building plan check fee, while the City retains 40% to cover administrative and permit issuance costs.

This arrangement has proven to be largely cost-neutral to the City, as the permit fee revenue directly offsets consultant costs while allowing staff to efficiently augment building plan check services.

FINANCIAL ANALYSIS
Funding for the proposed on-call consultant agreements and the amendment to Agreement No. 22-49 with CSG Consultants, Inc. is available within existing and proposed Community Development Department operating budget appropriations.

With the exception of CSG Consultants, Inc. (CSG), all on-call consultant agreements will be limited to an annual not-to-exceed amount of $100,000. Consultant services will be utilized on an as-needed basis subject to available appropriations and applicable purchasing authority thresholds.

Staff recommends increasing the appropriation for Agreement No. 22-49 with CSG by $165,000 for a revised total not-to-exceed amount of $495,000 through June 30, 2026, due to increased demand for supplemental building and planning support services during Fiscal Year 2025-26.

Staff further recommends authorization of a new Professional Services Agreement with CSG under the updated on-call consultant program in an amount not to exceed $350,000 annually for a three-year term, effective July 1, 2026. The higher annual contract authority is based on historical utilization levels and anticipated operational needs associated with building plan check, inspection, planning, permit technician, and related consulting services.

The majority of services provided by CSG involve building plan check activities that are funded through applicant-paid permit and plan check fees. Under the negotiated compensation structure, CSG receives a percentage of the building plan check fees collected for services performed, while the City retains a portion of the fee revenue to offset administrative and permit issuance costs.

Accordingly, the use of CSG for building plan check services has historically been substantially cost-neutral to the City while allowing the Department to maintain service levels, address fluctuating workloads, and reduce permit processing delays.

ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
This action supports the City Council’s goals related to organizational effectiveness, service delivery, and maintaining high-quality community development services. The proposed on-call consultant program

AWARD OF CONTRACTS FOR COMMUNITY DEVELOPMENT DEPARTMENT ON-CALL

CONSULTANT SERVICES AND AMENDMENT TO SERVICE PROVIDER AGREEMENT FOR

BUILDING AND PLANNING SERVICES
June 9, 2026

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enhances the City’s ability to efficiently respond to development activity, regulatory requirements, and workload demands while maintaining professional and technical service standards.

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 actions do 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 actions are to authorize the City Manager to execute an amendment for building and planning services, and approve the selection of on-call consultant service providers and execute agreements for on-call consultant services, which will not result in any reasonably foreseeable impacts.

ATTACHMENTS

1. On-Call Community Development Consultant Services Table (Pg. 7)

2. Professional Services Agreement Template (Pgs. 8-29)

3. Consultants Exempt from Peer Review Table (Pg. 30)

4. Sixth Amendment to CSG Agreement #22-49 (Pgs. 31-32) Submitted By: Matthew Schneider Approved: .

Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Erin Fabian, Administrative Analyst Matthew Schneider, Director of Community Development

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