TO:
CITY COUNCIL
Placentia Cit Council
AGENDA REPORT
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF DEVELOPMENT SERVICES
DATE: APRIL 4, 2023
SUBJECT: AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT WITH SAGECREST PLANNING+ENVIRONMENTAL FOR PROVISION OF BUILDING
OFFICIAL, PLAN CHECK, INSPECTION, AND PLANNING SERVICES FISCAL
IMPACT: REVENUE: $120,000 (102532-4160)
EXPENSE: $120,000 (102532-6290)
SUMMARY:
In June 2020, the City Council approved an updated contract with Sagecrest Planning+Environmental ("Sagecrest") to provide contract staffing services to perform building plan check, building inspection, and Building Official services related to development. However, Sagecrest has been providing these services to the City since 2017. In July 2022, Amendment No. 1 to the 2020 Professional Services Agreement was approved administratively increasing the annual consultant compensation by $40,000. The requested action would approve an amended Professional Services Agreement (Amendment No. 2) with Sagecrest for a term ending June 30, 2025, for contract staffing to include the following services as needed: building plan check, building inspection, Building Official, and other building and planning related staffing as needed, in an amount not to exceed $285,000 per Fiscal Year ("FY"), including the remainder of this Fiscal Year.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve Amendment No. 2 to the Professional Services Agreement with Sagecrest Planning+Environmental, to provide professional services related to building plan check, building inspection, Building Official, and other building and planning related staffing as needed for a term ending June 30, 2025; and
2. Adopt Resolution No. R-2023-19, A Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2022-23 in compliance with City Charter of the City of Placentia §§ 1206 and 1209 pertaining to appropriations for actual expenditures; and
1.e.
April 4, 2023
City Council Agenda
April 4, 2023
3. Authorize the City Administrator to approve up to two (2) additional one-year extensions pursuant to the terms of the subject Amendment No. 2 to the Professional Services Agreement with Sagecrest Planning+Environmental; and
4. Authorize the City Administrator and/or his designee to execute the necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
This Council action is generally related to Goal 3 to promote Community and Economic Development. Providing Building plan check, inspection and Building Official services directly results in providing a high level of customer service to ensure development projects are processed and built in a timely manner so that they generate revenue as quickly as possible. Also, specifically, this action is consistent with and furthers Objective 3.10: Implementation of Housing Element Strategies in that Sagecrest provides expedited plan check and building inspection services for our two largest housing developments that are under construction. Sagecrest is integral in helping the City provide the extremely high level of customer service that developers rely on.
BACKGROUND:
Since at least 2013, the City of Placentia has contracted out all services related to building plan check and for the State required position of Building Official. Prior to 2017, the City contracted for these services via LiIley Planning, and Sagecrest Planning+Environmental (Sagecrest) is the successor entity to Lilley Planning. Therefore, since 2017, Sagecrest has provided these services for the City.
In June 2020, the City Council approved an updated contract with Sagecrest to provide contract staffing services to perform building plan check, building inspection, and Building Official services related to development. In July 2022, Amendment No. 1 to the 2020 Professional Services Agreement was approved administratively increasing the annual consultant compensation by approximately $40,000.
The recommended actions would approve an amended Professional Services Agreement (Amendment No. 2) with Sagecrest for a term ending June 30, 2025, for contract staffing to include the following services as needed: building plan check, building inspection, and Building Official services related to development as needed in an amount not to exceed $285,000 per Fiscal Year, including the remainder of this fiscal year. Planning related services were previously authorized under the Agreement, however at this time, the City is not utilizing Sagecrest for those services.
It should be noted that one reason for this amendment is that the City recently utilized Sagecrest to provide a Contract Assistant Planner until a a vacancy was filled in the Planning Division.
City Council Agenda
April 4, 2023
DISCUSSION:
Sagecrest generally specializes in long range and current Planning, but as the successor consultant to LiIley Planning, they have provided the City's Contract Building Official services, and that individual also performs all the City's building plan checks. Sagecrest also provides the City a Contract Building Inspector who is inspecting the City's largest and most significant developments (JP' and The Hudson). These services are integral to providing the service that our residents and customers expect. Part of the amended Professional Services Agreement is an amendment to the fee schedule. Sagecrest rates are competitive, if not less than the rates charged by other consultants providing similar staffing including CSG and Transtech who are also under contract with the City. The still relatively low rates for Building Official, building plan check, and as needed building inspection services are generally more competitive via Sagecrest than other providers. In addition, Sagecrest has allowed the City continuity by providing the same individuals since at least 2017 (Building Official, Building Inspector).
FISCAL IMPACT:
It should be noted that while funds authorized under previous agreements with Sagecrest have been exhausted, adequate funds are included in the FY 2022-23 budget. However, the agreement in place limits the funds that can be expended with Sagecrest to $165,000 per fiscal year. Due to a positive increase in building activity, the City anticipates generating more revenue than anticipated, which has been reflected in the current and proposed budgets. The revenue coming in for building related development services will offset 100% of the costs incurred pursuant to the subject agreement. This amendment will allow the City to continue to provide services at a level that is expected by our residents and the development community.
Prepared by: Reviewed and approved:
r
seph Lambert
Director of Development Services
Reviewe
Damien R. Arr is
City Administrator
roved:
Jenni{er Lampman
Director of Finance
City Council Agenda
April 4, 2023
Attachments:
1. Amendment No. 2 to Professional Services Agreement with Sagecrest Planning+Environmental
a. Exhibit A: Professional Services Agreement and Amendment No. 1 b. Exhibit B: Fee Schedule
2. Certificate of Insurance
3. Resolution R-2023-19