agenda-report Amendments to Consultant Services Agreements for On-Call Planning Services, Building Division Staff Augmentation, and Related Services Between the City of Pacifica and CSG Consultants, Inc., M-Group, and Raney Planning & Management, Inc.

CITY OF PACIFICA

COUNCIL AGENDA SUMMARY REPORT
6/26/2023
1 SUBJECT:

Amendments to Consultant Services Agreements for On-Call Planning Services, Building Division Staff Augmentation, and Related Services Between the City of Pacifica and CSG Consultants, Inc., M-Group, and Raney Planning & Management, Inc.

RECOMMENDED ACTION:

Move to adopt the following resolutions to approve the following agreement amendments:
1) Adopt the Resolution titled, “A Resolution of the City Council of the City of Pacifica Authorizing the City Manager to Execute a Sixth Amendment of the Consultant Services Agreement With CSG Consultants, Inc. for Building Official, Building Inspection, Plan Review, Current Planning And Related Services” to extend the term of the Agreement to June 30, 2024, and to authorize compensation not to exceed the compensation for Building Division contractual services in the City budget, to be adopted, for FY 2023-24, and authorize the City Manager to execute the amendment; 2) Adopt the Resolution titled, “A Resolution of the City Council of the City of Pacifica Authorizing the City Manager to Execute a Sixth Amendment to the Consultant Services Agreement with M-Group for On-Call Planning and Related Services” to increase the cost ceiling amount by $125,000 with a total contract amount not to exceed $1,075,000 and to extend the term of the Agreement two years to June 30, 2025, and authorize the City Manager to execute the amendment; and, 3) Adopt the Resolution titled, “A Resolution of the City Council of the City of Pacifica Authorizing the City Manager to Execute a Seventh Amendment to the Consultant Services Agreement with Raney Planning & Management, Inc. for Contract and Related Services” to increase the cost ceiling amount by $75,000 with a total contract amount not to exceed $975,000 and to extend the term of the agreement two years to June 30, 2025, and authorize the City Manager to execute the amendment.

STAFF CONTACT:

Elizabeth Brooks, Management Analyst II
(650) 501-6025
[email protected]
Christian Murdock, Planning Director
(650) 738-7341
[email protected]
BACKGROUND/DISCUSSION:

The Planning Department is processing a significant number of routine and complex development project applications submitted for City permits. The Planning Department is also the lead department for several City Council priority initiatives, including the preparation of an update to the 2023-2031 Housing Element of the General Plan for future approval by the City Council. The Planning Department also has a key supporting role in several other priority initiatives and is involved in ongoing efforts to implement the 2040 General Plan and Sharp Park Specific Plan.

Pacifica City Council 2
June 26, 2023
The Planning Department currently relies on several consulting firms to augment planning staff resources for routine project reviews and California Environmental Quality Act (CEQA) analyses. The costs for these activities related to private development projects is reimbursed by project applicants.

BUILDING DIVISION
In October 2015, the City entered into its current contract with CSG Consultants to provide Building Division services including plan checking, inspection, code enforcement, building official, administration, and special project services (Attachment A). The term of the initial threeyear contract expired at the end of October 2018, and the City Council subsequently extended the contract for additional one-year terms in 2019, 2020, and a 2-year term in 2021. The annual maximum compensation for the contract is determined during the budget process each fiscal year.

The Planning Department is seeking an extension of the term identified in Section 3.1 (“Effective Date”) of the Agreement to June 30, 2024 (see Attachment A1: CSG Sixth Amendment).

PLANNING DIVISION
In 2016, after issuing a Request for Proposals for contract planning services to augment planning staff resources for routine project reviews and California Environmental Quality Act (CEQA) analyses, the City initially engaged consultants M-Group and Raney Planning and Management, Inc. (“Raney”) with consultant services agreements in an amount not to exceed $50,000 each (Attachments B and C, respectively). Since that time, the City Council has several times approved amendments to these agreements to increase the maximum cost ceiling and term, as shown below. Cost ceiling increase requests and term extension requests are predicated on what level of staffing is required to complete current and upcoming planning initiatives.

M-Group
Amendment Date Executed Cost Ceiling Approved
First November 15, 2016 Not to exceed $150,000
Second January 22, 2018 Not to exceed $300,000
Third December 4, 2018 Not to exceed $450,000
Fourth January 27, 2020 Not to exceed $600,000
Fifth July 12, 2021 Not to exceed $950,000
Raney Planning and Management, Inc.

Amendment Date Executed Cost Ceiling Approved
First November 15, 2016 Not to exceed $150,000
Second August 14, 2017 Not to exceed $250,000
Third September 10, 2018 Not to exceed $400,000
Fourth November 12, 2019 Not to exceed $500,000
Fifth March 9, 2020 Not to exceed $700,000
Sixth July 12, 2021 Not to exceed $900,000
M-Group and Raney are currently working on initiatives with the Planning Department as detailed below.

M-Group
M-Group’s primary services for the Planning Department have involved staff augmentation for project processing. However, M-Group has also prepared environmental review documents to assist the City with compliance with CEQA. Since execution of the Fifth Amendment to the Pacifica City Council 3
June 26, 2023
Agreement with M-Group in July 2021, the Planning Department has received applications for several new projects that M-Group is processing. While the Agreement’s Scope of Work allows for the performance of planning services for all types of projects requesting entitlements, the costs associated with this work are projected to exceed the existing cost ceiling of $950,000.

Accordingly, the Planning Department is seeking an increase in the Cost Ceiling amount identified in Section 2.1 (“Compensation”) of the M-Group Agreement (Attachment B) by $125,000, with a total contract amount not to exceed $1,075,000. The Planning Department is also seeking an extension of the completion date identified in Section 3.1 (“Effective Date”) of the Agreement to June 30, 2025 (see Attachment B1: M-Group Sixth Amendment). The purpose of the increased cost ceiling and extension of the completion date is to continue to utilize MGroup for staff augmentation during periods of peak workload and during temporary staff vacancies. M-Group will continue to provide the Planning Department with ongoing staff augmentation including but not limited to processing projects, preparing staff reports, and preparing CEQA documents.

Raney Planning and Management, Inc.

Since execution of the Sixth Amendment to the Agreement with Raney in July 2021, the Planning Department has determined that several projects it has and is currently processing are not exempt from environmental review under CEQA, and therefore, require environmental review. Raney is currently supporting several large projects requiring CEQA review. Raney continues to provide the City with CEQA expertise and assists the City with CEQA compliance on many large projects by preparing all types of CEQA documentation including, but not limited to, categorical exemptions, initial study/mitigated negative declarations, and program-level and project-level environmental impact reports (EIRs).

The costs associated with work under the Agreement are projected to exceed the existing cost ceiling of $900,000. Accordingly, the Planning Department is seeking an increase in the Cost Ceiling amount identified in Section 2.1 (“Compensation”) of the Raney Agreement (Attachment C) by $75,000, with a total contract amount not to exceed $975,000. The Planning Department is also seeking an extension of the completion date identified in Section 3.1 (“Effective Date”) of the Agreement to June 30, 2025, to allow sufficient time for the long and complex work related to CEQA (see Attachment C1: Raney Seventh Amendment).

ALTERNATIVE ACTION:

Deny, or authorize a different amount for the amendments to the CSG, M-Group, and/or Raney Agreements.

Authorization of a reduced amount for an amendment will require Planning Department staff take over responsibilities from the consultants while continuing to perform other staff general responsibilities, including obligations to process building permit applications and other private development project applications.

If the Council denies the requested authorization for consultant CSG, the City will need to transition to an alternative consultant to provide Building Division services or would need to recruit and hire in-house staff. Both of these alternatives would have the potential to disrupt ongoing Building Division services in the interim.

If the Council denies the requested authorization for consultants M-Group or Raney, Planning Department staff would need to direct time to complete in-house environmental review documents in accordance with CEQA in addition to establishing contracts with various consultants possessing the technical expertise to analyze specific environmental resource topics that are beyond staff’s qualifications. The impact of this increased workload would Pacifica City Council 4
June 26, 2023
negatively affect staff’s ability to address other general responsibilities, including the goals and strategies of the City Council’s Strategic Plan.

RELATION TO CITY COUNCIL GOALS AND WORK PLAN:

The tasks being performed by CSG Consultants, Inc., M-Group, and Raney Planning & Management, Inc. are not directly associated with any of the goals and strategies of the City Council’s Strategic Plan, as the functions of the Building Division, compliance with CEQA and planning permit review, and development proposal processing are all general government responsibilities of the City as a local public agency.

However, the environmental review that is required under CEQA discloses the physical impacts of a project on the environment and includes additional community outreach beyond the minimum requirements of the Pacifica Municipal Code. Furthermore, hiring a consultant allows experts to perform highly technical analyses for which staff is unqualified.

The benefits and efficiencies of engaging professional planning firms to perform these tasks will indirectly allow in-house staff resources to devote time to the goals and strategies of the City Council’s Strategic Plan including Goal 1 - Enhance organizational and fiscal stability and Goal 3 - Prioritize protection and development of affordable housing.

FISCAL IMPACT:

The budget for Fiscal Year 2023-2024 is pending adoption at the time of this report. As prepared, the proposed amendment to the CSG Agreement would be limited to the amount budgeted for Building Division contractual services. The cost to operate the Building Division is offset by permit fees.

The amounts of the requested contract budget increases for M-Group and Raney Planning & Management, Inc., $125,000 and $75,000 respectively, are included in the Fiscal Year 2023- 2024 Planning Department budget as a developer-reimbursed expenditure and, if adopted as-is, will require no additional appropriation. Because the expense is paid by project applicants, there is no net fiscal impact to the City.

ORIGINATED BY:

Planning Department
ATTACHMENT LIST:

Attachment A - CSG Agreement to Provide Contractual Building Services (PDF) Attachment A1 - Amendment 6 to CSG Agreement to Provide Contractual Building Services (PDF)
Attachment B - M-Group Agreement to Provide On-Call Planning Services (PDF) Attachment B1 - Amendment 6 to M-Group Agreement to Provide On-Call Planning Services (PDF)
Attachment C - Raney Agreement to Provide Contract Planning Services (PDF) Attachment C1 - Amendment 7 to Raney Agreement to Provide Contract Planning Services (PDF)
Pacifica City Council 5
June 26, 2023
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA AUTHORIZING THE

CITY MANAGER TO EXECUTE A SIXTH AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT WITH CSG CONSULTANTS, INC. FOR BUILDING OFFICIAL, BUILDING INSPECTION, PLAN REVIEW, CURRENT PLANNING AND RELATED SERVICES. ______________________________________________________________________ WHEREAS, consistent with the City of Pacifica’s Purchasing Policy (Administrative Policy No. 76), the City of Pacifica entered into an agreement with CSG Consultants, Inc. for consulting services under the City Manager’s purchasing authority in October 2015; and WHEREAS, the City Council authorized amendments to the City’s agreement with CSG Consultants, Inc. for consulting services in May 2017, September 2018, October 2019, October 2020, and October 2021; and
WHEREAS, the City Council of the City of Pacifica has considered the City Manager’s recommendation to approve a sixth amendment to the City’s agreement with CSG Consultants, Inc. for consultant services on June 26, 2023.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pacifica to authorize the City Manager, following adoption of the Fiscal Year 2023-2024 budget, to amend the agreement with CSG Consultants, Inc. for the purpose of extending the term of the agreement to June 30, 2024.
* * * * *
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 26th day of June 2023, by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:
______________________________
Tygarjas Twyrls Bigstyck, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney Pacifica City Council 6
June 26, 2023
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA AUTHORIZING THE

CITY MANAGER TO EXECUTE A SIXTH AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT WITH M-GROUP FOR ON-CALL PLANNING AND RELATED SERVICES. ______________________________________________________________________ WHEREAS, consistent with the City of Pacifica’s Purchasing Policy (Administrative Policy No. 76), the City of Pacifica entered into an agreement with M-Group for consulting services under the City Manager’s purchasing authority in July 2016; and WHEREAS, the City Council authorized amendments to the City’s agreement with MGroup for consulting services in November 2016, January 2018, December 2018, January 2020, July 2021; and
WHEREAS, the City Council of the City of Pacifica has considered the City Manager’s recommendation to approve a sixth amendment to the City’s agreement with M-Group for consultant services on June 26, 2023.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pacifica to authorize the City Manager, following adoption of the Fiscal Year 2023-2024 budget, to amend the agreement with M-Group for the purpose of increasing the cost ceiling amount by $125,000 with a total contract amount not to exceed $1,075,000 and to extend the term of the agreement two years to June 30, 2025.
* * * * *
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 26th day of June 2023, by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA AUTHORIZING THE

CITY MANAGER TO EXECUTE A SEVENTH AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT WITH RANEY PLANNING & MANAGEMENT, INC. FOR

CONTRACT AND RELATED SERVICES
______________________________________________________________________ WHEREAS, consistent with the City of Pacifica’s Purchasing Policy (Administrative Policy No. 76), the City of Pacifica entered into an agreement with Raney Planning & Management, Inc. for consulting services under the City Manager’s purchasing authority in May 2016; and
WHEREAS, the City Council authorized amendments to the City’s agreement with Raney Planning & Management, Inc. for consulting services in November 2016, August, 2017, September 2018, November 2019, March 2020, and July 2021; and WHEREAS, the City Council of the City of Pacifica has considered the City Manager’s recommendation to approve a seventh amendment to the City’s agreement with Raney Planning & Management, Inc. for consultant services on June 26, 2023.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pacifica to authorize the City Manager, following adoption of the Fiscal Year 2023-2024 budget, to amend the agreement with Raney Planning & Management, Inc. for the purpose of increasing the cost ceiling amount by $75,000 with a total contract amount not to exceed $975,000 and to extend the term of the agreement two years to June 30, 2025.
* * * * *
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 26th day of June 2023, by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

Pacifica City CouncilJune 26, 2023

Pacifica City Council
June 26, 2023