September 26, 2023
Agenda Item No. 7
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Seimone Jurjis, Assistant City Manager/Community Development Director – (949) 644-3282, [email protected] PREPARED BY:
Tonee Thai, Deputy Community Development Director / Chief Building Official PHONE:
949-718-1867, [email protected]
TITLE:
Amendments to Professional Services Agreements for JLee Engineering, Inc., Bureau Veritas North America, Inc., and CSG Consultants, Inc. for Building Safety Related Services ABSTRACT:
The strong development activity occurring in Newport Beach is evidenced by over 2,600 active projects currently under construction with a combined construction value of $1.5 billion. The corresponding workload necessitates consultant services to augment the work of Community Development Department (CDD) staff. Using consultant services allows CDD to adjust to increased workloads and assist when staff vacancies occur in civil engineering plan check or building inspection. For the City Council’s consideration are amendments to existing contracts with the following consulting firms: JLee Engineering Inc., Bureau Veritas North America, Inc., and CSG Consultants.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve and authorize the Mayor and City Clerk to execute Amendment No. One to Professional Services Agreement with JLee Engineering, Inc., to increase the contract amount by $250,000, not-to-exceed amount of $610,000; c) Approve and authorize the Mayor and City Clerk to execute Amendment No. Three to Professional Services Agreement with Bureau Veritas North America, Inc., to increase the contract amount by $150,000, not-to-exceed amount of $270,000; and d) Approve and authorize the Mayor and City Clerk to execute Amendment No. Three to Professional Services Agreement with CSG Consultant, to increase the contract amount by $250,000, not-to-exceed amount of $370,000; DISCUSSION:
CDD partners with third-party consulting firms to provide on-call plan review services and staffing augmentation. Plan reviews are categorized into three types: mechanical-electrical-plumbing, structural, and building-fire-life safety. Staff augmentation includes the provision of contract personnel for plan review, building inspection, and counter permit technician roles.
CDD conducted a Request for Proposals (RFP) process in 2022 to secure Building and Fire Prevention services. After a thorough review process, the City of Newport Beach (City) entered into a three-year professional services agreement (PSA) with the consulting firms: JLee Engineering Inc., Bureau Veritas North America, Inc., and CSG Consultants. The not-to-exceed terms of the PSAs differed depending on how the consultant scored during the RFP review process.
Staff is recommending amendments to the PSAs to continue assisting applicants with building code plan check services, primarily due to two vacant civil engineering positions within the City. One of the vacant civil engineering positions will be filled in October, but training of the new employee will be required before that individual is working to full capacity. Additionally, contract building inspection and permit technician staffing are needed to assist with temporary vacancies in the department. The consultants will play a pivotal role in upholding our commitment to delivering a high level of customer service and ensuring timely turnaround times. Furthermore, staff augmentation will help with building inspections and front counter permit technician services.
Staffing challenges have surfaced not only for CDD, but also for the consultants the department uses. Recognizing that a single consultant cannot meet all the service and staffing needs, CDD will leverage a combination of the consulting firms to fulfill the necessary services. This approach will ensure that CDD continues to provide effective support to its applicants.
JLee Engineering Inc
This is the first requested amendment for JLee Engineering, for an additional $250,000. The original contract amount for $360,000 was issued on June 28, 2022, with an expiration date of June 30, 2025. Since the time the contract was issued, CDD had vacancies in the plan check civil engineering section and needed services from the consultants to keep up with demand. Therefore, CDD used the consultant more than originally planned. The revised not-to-exceed amount is $610,000 over the remaining term of the contract.
Bureau Veritas North America
If approved, this would be the third amendment for Bureau Veritas North America, for an additional $150,000. The original contract was entered into on July 15, 2022, for $45,000 with an expiration date of July 14, 2025.
On October 19, 2022 Amendment No. One was entered into for an additional $30,000. On February 2, 2023 Amendment No. Two was entered into for an additional $45,000, raising the not-to-exceed contract amount to $120,000. Staff is requesting a third amendment to use the consultant for both plan check services and on-call building inspection services. The revised not-to-exceed amount is $270,000 over the remaining term of the contract.
CSG Consultants
This is the third amendment for CSG Consultants for an additional $250,000. The original contract was entered into on July 15, 2022 for $30,000 with an expiration date of July 14, 2025. Since the time the contract was issued, CDD needed the services of a contract building inspector. On October 7, 2022 Amendment No. One was entered into for an additional $45,000. On February 2, 2023 Amendment No. Two was entered into for an additional $45,000 raising the not-to-exceed to $120,000. Staff is requesting a third amendment to use the consultant for both plan check and on-call building inspection services. The revised not-to-exceed amount is $370,000 over the remaining term of the contract.
FISCAL IMPACT:
No additional General Funds are being requested for this agenda item. The total cost for all three amendments is $650,000 over the remaining term of the contracts. The adopted budget includes sufficient funding for the remainder of the fiscal year. Additional professional service funds will be requested during the next budget process. The costs will be expensed to the professional services account number - 0105042-811008.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A – Amendment No. One with JLee Engineering, Inc.
Attachment B – Amendment No. Three with Bureau Veritas North America, Inc.
Attachment C – Amendment No. Three with CSG Consultant, Inc. 7-3
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Amendments to Professional Services Agreements for JLee Engineering, Inc., Bureau Veritas North America, Inc., and CSG Consultants, Inc. for Building Safety Related Services
September 26, 2023
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