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Page 3 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />ANALYSIS <br />Many of the services performed by the Building Division are on a cost recovery or user fee basis. Cost <br />recovery is accomplished through fees-for-service with the goal being 100% recovery for development- <br />related services. The Building Organizational Review indicated that plan review turnaround for larger <br />projects was taking longer because plan check was understaffed, in addition to workload demands limiting <br />quality customer interactions, particularly for over-the-counter plan reviews. The Building Division is also <br />responsible for Code Enforcement, the activities of which are, in large part, not recoverable. <br /> <br />The revenues generated for these fees are used to offset the City’s labor, materials, and professional <br />service costs in the General Fund. Although City staff completes much of the Building and Code <br />Enforcement workload, the City utilizes consultants due to staff vacancies and turnover, in high volume <br />periods, and for specialized expertise on mid-and large-scale development projects. This has created a <br />need for external consultants to provide on-site building inspectors, permit technicians, and/or off-site <br />plan review services. Due to the complexity of large-scale plan checks and the workload associated with <br />these projects in the next 2-3 years, the Division needs to maintain professional services contracts to <br />provide capacity for efficient turnaround times for projects. <br /> <br />WC3’s total contract amount ($4,038,560) is more than the Building Division’s other professional services <br />agreements due to the range and quality of services WC3 provides and their consistency in personnel <br />availability. WC3’s total contract amount ($4,038,560) reflects the original contract amount of $2,300,000 <br />and the additional $1,738,560 for the new fiscal year. WC3’s Amendment No. 1 reflects the reduction in <br />code enforcement and building inspection services from the original contract amount as the Building <br />Division will be recruiting for regular staff for these positions in accordance with the approved budget. <br />These two new positions will reduce City dependence on external firms for on-call staff and reduce costs <br />while continuing to deliver services in a timely manner. <br />True North’s total contract amount ($2,000,000) reflects the original contract amount of $1,000,000 and <br />the additional $1,000,000 for the new fiscal year. The amendment amount takes into consideration <br />continuation of essential functions such as plan review and building inspections because of consistent <br />personnel availability. TRB’s contract amount ($400,000) will continue to supplement staff workload on <br />large plan review projects that cannot be completed in-house. <br />FISCAL IMPACT <br />Approval of these amendments would have little impact on the General Fund as most of the services are <br />provided on a cost-recovery basis, with the City reimbursed for the cost of the service. The cost of these <br />services is offset by fees for service, including Building Permit and Geographic Information System (GIS) <br />technology fee revenues. Funding for these agreements is included in the FY 2024-25 Building Division <br />Inspection and Code Enforcement and Fire Department budgets. The City would not be obligated to <br />compensate the entire not-to-exceed amount as the services are provided on an on-call basis. <br />6.A. - Page 3 of 17 <br />10