DATE: APRIL 26, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, DIRECTOR
BY: TERESA KISTLER, REVENUE OFFICER
ANGELINE SICKLER, SENIOR PLAN CHECK ENGINEER
TITLE: AMENDMENTS TO AGREEMENTS FOR PROFESSIONAL SERVICES WITH CSG AND BV CONSULTING FIRMS RECOMMENDED MOTION:
A motion to approve a resolution 1) authorizing the Mayor to execute Amendment No. 2 to the Agreement for Professional Services (Agreement) with CSG Consultants, Inc. to increase the total not to exceed compensation amount to $1,000,000 and to execute Amendment No. 1 to the Agreement for Professional Services (Agreement) with Bureau Veritas North America, Inc. to increase the total not to exceed compensation amount to $125,000 and 2) authorize an increase of $125,000 to the Permit Services Fund and corresponding revenue budget.
RECOMMENDATION:
It is recommended that the City Council approve the attached resolution 1) authorizing the Mayor to execute Amendment No. 2 to the Agreement with CSG Consultants, Inc. to increase the total not to exceed compensation amount for plan review, permitting and inspection services from $950,000 to $1,000,000 and to execute Amendment No. 1 to the Agreement with Bureau Veritas North America, Inc. to increase the total not to exceed compensation amount for plan review services from $50,000 to $125,000 and 2) authorize an increase of $125,000 to the Permit Services Fund and corresponding revenue budget.
EXECUTIVE SUMMARY:
The Permit Services Division relies on outside technical professionals to assist with plan review, permitting and inspection services. Contracting for these services allows for the scaling up of experienced technical staffing to be able to respond in a timely manner to increases in the number of development applications due to economic growth, particularly for major, more complicated development projects. The City currently has contracts with CSG and with Bureau Veritas North America, Inc. (BV). The current Agreement with CSG for FY 2021-2022 sets the total not to exceed compensation amount at $950,000. The current Agreement with BV for FY 2021-22 sets the total not to exceed compensation amount at $50,000.
Since contracting with these firms, the City has received multiple unique and complex development project applications. As a result of these applications, the City has nearly reached the not to exceed cap for both contracts with more than two months remaining in the fiscal year. Permit Services staff anticipates plan review submittals for large projects before the end of the fiscal year and therefore is requesting amendments to these contracts. The proposed Amendment No. 2 to the Agreement with CSG increases the not to exceed compensation amount of $950,000 to $1,000,000 for Fiscal Year 2021-2022, an increase of $50,000. The proposed Amendment No. 1 to the Agreement with BV increases the not to exceed compensation amount of $50,000 to $125,000 for Fiscal Year 2021-2022, an increase of $75,000. Funding for both Amendments will be fully covered with the collection of fees through the Permit Services Enterprise Fund. It is recommended that the Council approve a resolution authorizing the Mayor to execute Amendment No. 2 to the Agreement with CSG Consultants, Inc and Amendment No. 1 to the Agreement with Bureau Veritas North America, Inc.
BACKGROUND:
Since 2020, the Permit Services Division has contracted with CSG Consultants, Inc. and Bureau Veritas North America, Inc. to augment the plan review, permitting and inspection capacity of the Permit Center. These consulting firms have extensive knowledge and experience in providing technical services to building departments in multiple jurisdictions in California. The firms provide services and staff specifically tailored to manage the development process and all levels of plan review, permitting, and inspection services. All contract staff hold the required certifications to conduct the assigned duties. At this time, there are no other vendors within the City of Salinas or County of Monterey that can perform this level of work. The FY 2021-2022 Agreement with CSG for technical staffing and services sets a total not to exceed compensation amount of $350,000 and an Amendment 1 increasing the $350,000 to $950,000; the Agreement with BV sets a total not to exceed compensation amount of $50,000.
DISCUSSION:
Since entering into the 2021-2022 Agreements with CSG and BV, it has been an unusually demanding year with multiple large and complex development applications submitted. Scalable resources are necessary for the Permit Center to respond to these new applications in a timely manner and are the driver for the proposed amendments. The proposed Amendment No. 2 for CSG increases the total not to exceed compensation amount to $1,000,000, which is paid on a time and materials basis, according to the rates of compensation set in Exhibit B to the Agreement and provided as Attachment 4 to this report. The proposed Amendment No. 1 for BV increases the total not to exceed compensation amount to $125,000, also paid on a time and materials basis, according to the rates of compensation set in Exhibit B to the Agreement and provided as Attachment 7 to this report.
The Amendments will allow the Permit Center the flexibility to use CSG and BV technical staff and services to address Permit Center staffing shortfalls and the current increase in workload. The Permit Services Division has been able to fill a second Senior Plan Check Engineer position; however, the Combo Building Inspector I/II and Building Official positions remain vacant. Large and complex projects pose the greatest issue of balancing staff time between focusing on those more complex tasks, while still providing the required customer service for the smaller, routine projects.
Permit Services is proposing to amend the Agreements with CSG and BV because of their expertise and demonstrated ability to provide a full complement of cost effective and efficient services. Because they have been providing permitting services in Salinas for years, their contract staff have knowledge of the City and our customer base and therefore, are able to provide more efficient building official, plan review and inspection, and enhanced customer service. The Permit Center has utilized CSG and BV for projects such as the E. Romie Parking Garage, 11 Hill Circle, the N. Davis hotels, Love’s Travel Center, the Parkside Phase 1 affordable housing project, North Salinas Valley Mosquito Abatement District Facility, Chick-Fil-A at Northridge Mall, and a new storage facility on Westridge Parkway. Contracting with new companies would require additional staff training and would be more expensive. While staff is always searching for local preferred providers, there are currently no vendors within the City of Salinas or the County of Monterey that can perform this level of work.
CEQA CONSIDERATION:
The proposed action of amending the Agreements is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
The use of contract technical staff and services supports City Council’s Strategic Plan Goals and Strategies of Economic Development and Effective and Culturally Responsive Government. Contracted services augment limited staffing capacity to support the timely processing of larger, more complex development projects that will bring jobs and increased revenue to the city.
DEPARTMENTAL COORDINATION:
This report and Amendments were prepared by the Community Development Department Permit Services Division in collaboration with the City Attorney’s Office, and Finance Department.
FISCAL AND SUSTAINABILITY IMPACT:
There is no direct or indirect cost to the General Fund. The additional cost of $125,000 for increased CSG and BV staff and services will be fully recovered with the collection of fees through the Permit Center Enterprise Fund which was established in July 2017. Part of the requested City Council action is authorizing an increase of $125,000 to the Permit Services Fund and corresponding revenue budget.
ATTACHMENTS:
Resolution authorizing Mayor to execute Amendments
Amendment No. 2 to CSG Agreement for Professional Services June 2021 CSG Agreement for Professional Services
FY 2021-2022 CSG Contract Rates
Amendment No. 1 to BV Agreement for Professional Services June 2021 BV Agreement for Professional Services
FY 2021-22 BV Contract Rates
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