City Council Agenda Report
Meeting Date: June 16, 2026
From: Daniel S. Wall, P.E., Director of Public Works-City Engineer Department: Public Works
Submitted by: Dulce Gonzalez, Management Analyst
Subject
Amendment No.1 to Services Agreement with Interwest Consulting Group, Inc., Contract No. 20250081
Recommendation
Approve and authorize the City Administrator to execute Amendment No.1 to the Services Agreement with Interwest Consulting Group, Inc., in substantially the same form as submitted, for On-Call Building Plan Checks and Inspection Services, for a total amount not to exceed $2,500,000 in additional funds.
Background
Pursuant to Vernon Municipal Code (VMC) Sections 3.32.080 and 3.32.090, the City solicited proposals for On-Call Building Plan Check and Inspection Services via PlanetBids on March 20, 2024. Following the evaluation of proposals, the City Council awarded Contract No. 20250081 to Interwest Consulting Group, Inc. (Interwest) on July 16, 2024. The agreement established a three-year term, from July 30, 2024, through July 29, 2027, with a total not-to-exceed $2,500,000.
While the City relies on in-house staff for routine building plan checks and inspections, a recent influx of large-scale, complex development projects has required greater reliance on Interwest’s specialized expertise. Interwest's fee structure is based on a percentage of the revenue generated by specific projects, so increased costs are directly offset by a corresponding rise in municipal fee collections. However, supplemental appropriation from the General Fund Unassigned Fund Balance is necessary to accommodate these developer-funded costs and ensure continued processing of building projects.
Staff is requesting $2,500,000 in additional funding, bringing the total contract value to $5,000,000. This increase is driven by two factors. First, as project valuations rise, the plan review fees the City charges applicants increase proportionally, and pass-through fees payable to Interwest increase accordingly. Second, additional funding is required to cover outstanding invoices for completed building inspections and comprehensive plan reviews, including building, safety, and engineering, performed within the contract term.
Pursuant to VMC Section 3.32.030(A), City Council approval of Amendment No. 1 is required because the cumulative lifetime value of the contract will exceed the $100,000 threshold. The proposed amendment has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is not-to-exceed $2,500,000. Sufficient funds are available in the General Fund, Public Works Department, Building Regulations Division, Professional Services Account No. 011-040-405-529225. While the action requires a supplemental appropriation of $2,500,000, these expenditures are directly offset by the permit and plan check fees collected from developers.
Attachments
1. Amendment No. 1 with Interwest Consulting Group, Inc Contract 20250081