AgdaPkt 2015-07-27 Joint SA and PFA

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7.1.S. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager July 27, 2015 SUBJECT Agreement with CSG Consultants, Inc. for Building and Plan Check Services Rendered RECOMMENDATION By motion, approve and authorize the City Manager to execute the Agreement with CSG Consultants, Inc., for Building Plan Check Services in the amount of $347,000. BACKGROUND In 2012, the City entered into a $55,000 Agreement with CSG Consultants, Inc. ( "CSG ") to provide plan review services for the Building Division. Subsequently, Council approved three amendments to expand the scope for building plan review and permit counter services and to increase the agreement by $570,000 for an overall total of $625,000 through June 30, 2014. In July 2014, a fourth amendment was approved to expand the scope for code enforcement services and to extend the agreement expiration date to December 31, 2014. Since January 1, 2015, CSG has continued to provide building and fire plan check services, on -site building inspections, technical support at the permit counter, and code enforcement without a new written agreement. Therefore, a new agreement authorizes payment retroactively for services already provided. ANALYSIS The proposed new written Agreement memorializes the terms of the unwritten agreement under which CSG rendered services to the City from January 1, 2015 to July 31, 2015. This new Agreement will authorize the City Manager to compensate CSG $347,000 for those services performed from January 1, 2015 through June 30, 2015. In recent years, the expansion of residential and commercial construction projects in the City has required City's Building Division to retain outside services for building and fire plan, review, counter permit services, inspection, and code enforcement. A review of past months' invoices since July 1, 2014 indicate that CSG's fees are approximately $55,000 per month. CSG's compensation comes in part from building plan check fees. When CSG reviews larger scale projects off -site, they retain 75 percent of the building plan check fees. A number of recent larger scale projects have paid a significant amount of fees. Those fees wholly paid for the building plan check services performed by CSG.