AgdaPkt 2014-12-08 Closed and Joint SA

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7.1.C. - Page 2 cost of services. The fees are based on the value of project construction costs. The higher the value of the project, the higher the plan check and permit costs. For plan check services, the City pays the consultants a percentage of the plan check fees received. The amount is typically 60-75% of that collected fee. These are standard fee arrangements in the Bay Area for this service. The City keeps the remainder of the fee in order to cover the costs of administrating the plan check program and other overhead costs. Building inspection costs are paid for on an hourly basis. The current agreement with Shums-Coda Associate agreement is in place to the end of this calendar year 2014. Due to the numerous development projects, and current vacancies, additional funds are required to continue providing plan check and building inspections services until that time. It is important to note that several Building Division positions have recently been filled, and all vacant positions will be filled shortly. This will reduce the reliance on consultants for building inspection services. A review of recent invoices that we currently at a deficit of approximately $230,000 (the amount owned to Shum-Coda), due to the cost of plan check services associated with large development projects. Therefore, staff is recommending an increase of $400,000 to the Agreement, for a total Agreement of $1,100,000. The Agreement terminates in December 2014, and no extension of time is recommended with this amendment. Rather, the Community Development Department will be issuing a Request for Proposal (RFP) for Plan Check Services in December. Based on the results of the RFP, staff will bring forward contracts for City Manager and/or Council consideration. ALTERNATIVES The City Council could choose to not add funds to the Agreement, however staff does not recommend this approach as the City has received approximately $230,000 in services beyond the scope of the current contract. A second option would be to simply extend the contract by the amount owed to the consultant ($230,000). However, staff does not recommend this approach, as the additional funds may be necessary to cover the costs of several imminent plan checks associated with large development projects. FISCAL IMPACT Building Permit and Plan Check fees are collected from developers and property owners to pay for these services. For financial accounting, an appropriation transfer will be requester to transfer funds from Total Employee Services to Professional Services. This is necessary due to staff vacancies. A budget amendment may be required during mid-year budget adjustments, however, to pay for services for the remainder of the fiscal year. ENVIRONMENTAL REVIEW Not a project under CEQA (California Environmental Quality Act).