CITY COUNCIL STAFF REPORT
DATE: JANUARY 14, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF AN APPROPRIATION OF ADDITIONAL FUNDS FOR ON-
CALL ENGINEERING PLAN CHECK SERVICES IN AN AMOUNT NOT TO EXCEED $400,000
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:
The Engineering Services Department relies on the services of a professional consulting firm to provide on-call plan check services for street, sewer, grading, traffic signal and other improvement plans, subdivision maps, right-of-way documents, and technical reports related to proposed and/or approved development projects located in the City. All costs associated with plan check services are considered pass-through costs.
Developers or Property Owners pay plan check fees up-front on a deposit basis; the deposit then returned to the General Fund. The Engineering Department budgets for plan check services based on the expenses from previous years.
RECOMMENDATION:
Approve an Appropriation of $400,000 from the General Fund to the Engineering Department's Contractual Services Budget.
BUSINESS PRINCIPAL DISCLOSURE:
The Public Integrity Disclosure Form for Engineering Resources of Southern California, Inc., is included as Attachment A.
BACKGROUND:
On June 10, 2021, the City Council approved an agreement with Engineering Resources of Southern California, Inc. to provide the City with on-call engineering plan check services. The term of the agreement was for a three-year initial term with two (2) one- year extensions. The term of the current agreement expires July 1, 2026.
City Council Staff Report
January 14, 2026 -- Page 2
Engineering On-Call Plan Check Services
STAFF ANALYSIS:
The Engineering Services Department requires As-Needed, On-Call civil engineering plan check services for a variety of future private development projects. The full extent of required civil engineering plan check services is not known at the present time; however, generally the Department anticipates the need for professional review of street, sewer, grading, traffic signal and other improvement plans, subdivision maps, right-of-way documents, and technical reports related to proposed and/or approved development projects located in the City.
Historically, the budget for plan check services has been set at $350,000 a year. For Fiscal Years 25/26 and 26/27, staff anticipated an increase in services and set the budget at $400,000. What staff did not anticipate was the simultaneous advancement of two major projects at a significantly increased pace. The Miralon and Serena Park Developments both submitted an unprecedented number of plans and maps for review, in addition to the typical projects that the department processes. While the progress of the two projects is welcomed, 95% of the plan check budget within the first four billing cycles has been exhausted.
Based on the volume of plans and maps submitted to date, the City Engineer requests that the budget be doubled to $800,000. It is important to note that fees are collected before services are rendered. From July of 2024 to the present date, staff has taken in approximately $700,000 in plan check fees. It is also important to note that there is a delay between intake of plan check fees and invoicing from our consultant. Historically, the budget of $350,000 was sufficient to cover costs even with the delays noted.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Foundation: Housing.
FISCAL IMPACT:
Fees for civil engineering plan check services are paid by developers in accordance with the City’s comprehensive fee schedule. These fees currently cover the cost for plan check services and City staff time to administer and coordinate the plan check process.
City Council Staff Report
January 14, 2026 -- Page 3
Engineering On-Call Plan Check Services
Payments made to the consultant for on-call civil engineering plan check services are paid from deposits collected, on a “pass-through” basis; sufficient funds are collected as revenue to offset incurred expenditures on an annual basis for required services. As revenue is collected from the private development community for requested plan check services, the revenue is received and offsets expenditures appropriated in the General Fund in the Engineering Department.
REVIEWED BY:
Department Director: Joel Montalvo
Director of Finance: Kristopher J. Mooney
Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Public Integrity Disclosure Form.