Title
Recommendation to Authorize the City Manager to Execute a Second Amendment to the Service Provider Agreement with CSG Consultants, to Extend the Term of the Agreement through December 31, 2023, for Third Party Plan Check Services. (Planning, Building & Transportation 20962720)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Since 2014, the Planning, Building and Transportation Department (Department) has used CSG Consultants, Inc. (CSG) to provide third-party building permit plan check services to supplement in-house staff work. The current five-year agreement with CSG expires September 30, 2023. Staff recommends that the City Council authorize the City Manager to execute a Second Amendment to the Service Provider Agreement (Agreement) with CSG to extend the term of the agreement through December 31, 2023. The purpose of the 3-month time extension is to provide time for the City to complete its master fee study so it can inform the terms and pricing for a new agreement with CSG or another service provider. This is simply a request to extend the contract term with no changes to compensation or any other provision in the Agreement.
BACKGROUND
The City of Alameda (City) has an existing contract with CSG to provide third-party plan check, consultation and inspection services (plan check services) for the City. The use of this third-party plan check service, combined with Permit Center staff, has been an effective way for the City to process a large volume of permit activity, while maintaining efficient turnaround times. The current agreement is a five-year agreement for total compensation of $2,100,000 set to expire on September 30, 2023.
DISCUSSION
The City is current preparing a master fee study for its next update of the Master Fee Schedule and City Council review is anticipated in October 2023. The Department wishes to use the fee study to inform the terms and pricing for a new agreement with CSG or another service provider. The proposed three-month extension to the CSG Agreement allows the City to complete the fee study and explore options for a new service agreement without any interruption to the current plan check services provided by CSG.
There is a sufficient amount of funds remaining in the total agreement compensation as well as funding available in the Fiscal Year 23-24 budget to accommodate the proposed agreement extension without any budget adjustments.
ALTERNATIVES
• Authorize the City Manager to execute a Second Amendment to the Agreement with CSG Consultants, Inc. as recommended.
• Authorize the City Manager to execute a Second Amendment to the Agreement with revisions determined necessary by City Council.
• Not authorize the City Manager’s execution of the Second Amendment. 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.
FINANCIAL IMPACT
Funds are available in the Department’s Fiscal Year (FY) 2023-24 operating budget to fund the extended term of the Agreement through December 31, 2023. The original contract is funded from Plan Check Fees collected on permits. No additional budget appropriations are needed at this time.
City Council previously approved the original contract and the contract amendment is presented below:
|
Contract |
Authorized Amount |
Expended to Date |
|
Original Contract |
$1,750,000 |
$1,800,366 |
|
First Amendment |
$350,000 |
|
|
Second Amendment - Time Extension only |
N/A |
|
|
Total |
$2,100,000 |
$1,800,366 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
CSG will provide plan check services consistent with the California Building Standards Code, California Fire Code, and Alameda Municipal Code.
ENVIRONMENTAL REVIEW
Approval of a contract amendment for plan check services is not a project under the California Environmental Quality Act 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 Second Amendment to the service provider agreement with CSG Consultants, to extend the term of the agreement through December 31, 2023, for third party plan check services.
Respectfully submitted,
Allen Tai, Acting Planning, Building and Transportation Director
By,
Erin Garcia, Administrative Services Coordinator
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Second Amendment
2. Original Agreement and First Amendment