Title
Recommendation to Authorize the City Manager to Execute a Service Provider Agreement with CSG Consultants, for a Five-Year Term in an Amount Not-to-Exceed $2,000,000 for Third Party Plan Check Services.
Environmental Determination: Not a Project. (Planning, Building and Transportation 20962720)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The purpose of this report is to request City Council to authorize the City Manager to execute a contract with CSG Consultants, Inc. (CSG) to provide plan check consulting services. The Planning, Building and Transportation Department (Department) has used CSG to provide third-party building permit plan check services to supplement in-house staff work since 2014. The current five-year agreement with CSG expires December 31, 2023. Staff recommends that City Council authorize the City Manager to execute a new Service Provider Agreement (Agreement) with CSG for a five-year term with total compensation not-to-exceed $2,000,000.
BACKGROUND
The Building Services Division is responsible for providing construction plan review services in order to ensure the safety of building occupants within homes, workplaces, and other buildings in Alameda. The process of reviewing construction plans is critical to ensuring buildings are designed to be safe for its occupants and to comply with applicable building related codes. Since 2014, the City of Alameda (City) has contracted with CSG to provide third-party plan check, consultation, and inspection services (plan check services) for the City. For the foreseeable future, staff anticipates a continued need to contract with third-party plan review service provider due to plan-review activity from previously approved major developments and new housing laws requiring shorter turnaround times for review of plans.
DISCUSSION
Despite economic uncertainty in 2023, plan review volume and permit activity have continued to such an extent that it remains necessary to supplement the Department’s single plan check engineer with third-party plan review resources. The use of CSG allows the City to ensure plan review activity remains within acceptable turnaround time frames. Additionally, starting on January 1, 2024, AB 2234 requires cities to determine the completeness of housing-related permit applications within 15 days and issue comments within 30-60 days depending on the housing type. The use of this third-party plan check service, combined with Permit Center staff, is necessary for the City to process a large volume of permit activity, while maintaining efficient turnaround times. The new agreement is for five years, for total compensation of not more than $2,000,000, which is included in the Fiscal Year (FY) 2023-2025 budget.
The Department proposes to sole source this agreement to CSG due to its experience with the City’s local permit processes over the last 10 years. CSG is effective and efficient in performing construction plan review according to Alameda permit conditions and municipal requirements. Its familiarity with Alameda’s local process results in good customer service for Permit Center customers. Staff believes continuing this relationship with CSG is important to providing stability and good customer service considering new state regulations becoming effective in 2024.
ALTERNATIVES
• Authorize the City Manager to execute an Agreement with CSG Consultants, Inc., as recommended.
• Authorize the City Manager to execute an Agreement with revisions determined necessary by City Council.
• Not authorize the City Manager’s execution of the agreement. All building plan check work will be performed by one full-time staff person in the Department. This will result in extensive wait times for plan check services, likely up to several months for every round of plan check review and in potential violation of state law.
FINANCIAL IMPACT
Funds are available in the Department’s Fiscal Year (FY) 2023-24 and 2024-25 operating budget to fund the Agreement through June 30, 2025. The agreement will be funded from Plan Check Fees collected on permits. No additional budget appropriations are needed.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
CSG will provide plan check services consistent with the California Building Standards Code, California Fire Code, Alameda Municipal Code and State housing law.
ENVIRONMENTAL REVIEW
Approval of an Agreement for plan check services is not a project under the California Environmental Quality Act (CEQA) because it is an organizational or administrative activity of the City that will not result in direct or indirect physical changes to the environment. CEQA Guidelines, section 15378(b)(5).
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager to execute a service provider agreement with CSG Consultants, for a five-year term with an amount not-to-exceed $2,000,000 for third-party plan check services.
Respectfully submitted,
Allen Tai, Planning, Building and Transportation Director
By,
Erin Garcia, Administrative Services Coordinator
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Agreement