8.2 – Budget Appropriation & Agreement
Amendment No. 1 – CSG Consultants, Inc.
August 13, 2025
1 It is recommended that the City Council adopt a resolution:
1. Approving a budget appropriation in the amount of $620,000 to the Builders Fund (Account No. 104-1420-6599) for Building and Safety Division services provided under existing Agreement A2324-44 with CSG Consultants, Inc. for Fiscal Year 2024-25.
2. Authorizing the City Manager to execute Amendment No. 1 to Agreement A-2324-44 with CSG Consultants, Inc., increasing the total not-to-exceed agreement amount by $1,200,000, for a revised total of $5,440,000, to reflect actual and anticipated service demands as the City continues to grow.
3. Authorizing the City Manager to take all necessary and appropriate actions to carry out the purpose and intent of these recommendations.
Recommendation
2 • Multi-year agreement with CSG approved May 2024:
• $4.24 million; expires June 2029.
• Since incorporation, building permits doubled:
• Fiscal Year 2023-24: approximately 230 full permits.
• Fiscal Year 2024-25: approximately 460 full permits.
• Added responsibilities from County in Aug 2024:
• Model Water Efficient Landscape Ordinance (MWELO) reviews. • Street naming & addressing.
Background – Existing Agreement
3 • MWELO Compliance Reviews: Plan checks for irrigation/landscape design, calculations, and drought-tolerant materials.
• Street Naming & Addressing: Assigning names/numbers, checking for conflicts, updating maps, coordinating with USPS, emergency services, utilities.
• Both are regulatory & time-sensitive tasks now managed by CSG.
Background – Additional Workload Details
4 • Appropriation is administrative – funds already collected in FY 2024-25 (approx. $2 million). • Government accounting rules require Council approval to move revenue. • CSG Services Provided
• Permit-Related Services – plan review, inspections, permitting. • General Fund Services – process development, system setup, special projects. • Developer-Funded Services – project-specific plan review and inspection, reimbursed by developers. • Revenue Model
• 65% of permit revenue to CSG (Builders Fund).
• 35% retained by the City (General Fund).
Discussion – Budget Context
5 Discussion – Revenue Model for Permits
$1,312,338.91
65%
$706,644.03
35%
Total Revenue Collected $2,018,982.94
65% - Due to CSG for Permit Services
35% - Due to City
Discussion – Revenue & Expenses
Fiscal
Year
Total
Revenue
Collected
CSG’s
Agreement
Expenses
Paid from
General Fund
Paid from
Builders Fund
(Permit Fees)
Paid by
Developers
2023-24 $0.00 $40,000.00 $40,000.00 $0.00 $0.00
2024-25 $2,018,982.94 $1,656,465.14 $123,764.45 $1,312,338.91 $220,361.78 Totals $2,018,982,94 $1,696,465.14 $163,764.45 $1,312,338.91 $220,361.78 Fiscal Impact – Budget Summary & Request
Budget Summary Amount
Total Agreement Expenses $1,696,465.14
Original Appropriation ($840,000.00)
Completed Administrative Appropriations ($236,465.14)
Requested Budget Appropriation $620,000.00
• Appropriate $620,000 to fully fund Fiscal Year 2024-25 expenditures. • Increase agreement ceiling by $1,200,000 to $5,400,000 through June 2029.
It is recommended that the City Council adopt a resolution:
1. Approving a budget appropriation in the amount of $620,000 to the Builders Fund (Account No. 104-1420-6599) for Building and Safety Division services provided under existing Agreement A2324-44 with CSG Consultants, Inc. for Fiscal Year 2024-25.
2. Authorizing the City Manager to execute Amendment No. 1 to Agreement A-2324-44 with CSG Consultants, Inc., increasing the total not-to-exceed agreement amount by $1,200,000, for a revised total of $5,440,000, to reflect actual and anticipated service demands as the City continues to grow.
3. Authorizing the City Manager to take all necessary and appropriate actions to carry out the purpose and intent of these recommendations.
Recommendation
9 Questions?
10