REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, Acting City Manager
VIA: Jennifer Villasenor, Director of Community Development
PREPARED BY: Celeste Coggins, Senior Management Analyst
Subject:
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Approve and authorize execution of Amendment No. 1 to the professional services contract with CSG Consultants, Inc., for inspection services in the amount of $385,000
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Statement of Issue:
Staff is requesting approval to amend an existing contract between the City of Huntington Beach and CSG Consultants, Inc., for professional building inspection services. The contract would be increased by $385,000 from $95,000 to $480,000. The proposed amendment is to cover additional anticipated inspection costs due to increased demand for inspection services for major projects and ongoing residential construction. Fees for inspection services and associated permits generated from development activity is used to pay for these services.
Financial Impact:
The CSG Consultants, Inc. amendment will be funded from the approved Community Development Department Fiscal Year 24/25 Professional Services budget (account 10060401.69365). Funding for future year costs will be included in future year budgets. No funds will be expended on these services unless they are approved in the City’s annual budget and no additional funding is required.
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute “Amendment No. 1 to Professional Services Contract Between the City of Huntington Beach and CSG Consultants, Inc., for Counter Services and Field Inspection of Construction Projects,” to increase the contract amount by $385,000 (Attachment No.1)
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Alternative Action(s):
Do not authorize the amendment and direct staff accordingly.
Analysis:
The current contract for inspection services is approved for $95,000 over a three-year term, ending July 18, 2027. It is necessary to increase the approved contract amount in order to meet the current and anticipated demand for inspection services. Fees for inspection services and associated permits generated from development activity is used to pay for these services. Development activity remains stable, and the inspection related demand is at its highest level in ten years. This is not forecasted to change in the coming years.
The current contract with CSG Consultants, Inc. was awarded in July 2024 following issuance of a Request for Proposal (RFP) and evaluation of the eleven proposals received. CSG Consultants, Inc has provided a highly qualified contract inspector who has proven to be very productive and effective in the field. The current contract award amount has been exhausted as a result of high demand for services, and staff is recommending that an amendment to the initial contract be approved to ensure continuity of inspection services.
Of note, the contract inspector offers upwards of 4,000 to 5,000 additional inspections completed in the field. Without a contract inspector, wait times would become longer, and public complaints would become more frequent. In the event that the need for inspectors lessens, the work passed to the contract inspector goes down.
Funding for these services is provided through inspection fees collected for these projects. The proposed amendment will be used only if inspection service demand exceeds City staff resources, necessitating the need for supplemental help from the consultant. The proposed amendment increases the contract not-to-exceed amount by $385,000 for the remaining contract period, with no guarantee of work. Funding for any and all of these contract services is only through City Council authorization in the budget approval process.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Amendment No. 1 to Agreement between City of Huntington Beach and CSG Consultants, Inc., for Counter Service and Field Inspection of Construction Projects.
2. Original Professional Service Contract between the City of Huntington Beach and CSG Consultants, Inc., for Counter Service and Field Inspection of Construction Projects.
3. Insurance Certificate for CSG Consultants, Inc.
4. CSG’s Huntington Beach Business License
5. Professional Services Award Analysis
6. PowerPoint Presentation