REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Jane James, Interim Director of Community Development
Subject:
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Approve and authorize execution of a 3-year Professional Services Contract with CSG Consultants, Inc. in the amount of $562,500 to provide Building Staffing Services; and, approve the increase in the Community Development Department’s Professional Services listing authority by $112,500 in FY18/19
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Statement of Issue:
Transmitted for City Council’s consideration is a request to enter into a Professional Services Contract with CSG Consultants, Inc. to provide professional building inspection services.
Financial Impact:
The CSG Consultants’ contract is a three (3) year contract. Year one, FY18/19 - $262,500 will be funded by a combination of $150,000 from the FY18/19 Community Development approved budget, account 10060401.69365 and projected salary savings of $112,500, account 10060501.51110. Year two, FY19/20 - $150,000 will be funded from FY19/20 Community Development proposed budget. Year three, FY20/21 - $150,000 will be funded from the FY20/21 proposed budget
Recommended Action:
recommendation
A) Approve the increase in the Community Development Department’s professional services listing authority by $112,500 for Building Staffing Services to ensure compliance with Administrative Regulation Number 228, Section 7.1; and,
B) Approve and authorize the Mayor and City Clerk to execute a Three (3) Year “Professional Services Contract between the City of Huntington Beach and CSG Consultants, Inc. for Building Staffing Services” in the amount of Five Hundred, Sixty Two Thousand, Five Hundred Dollars ($562,500), as prepared and approved by the City Attorney.
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Alternative Action(s):
1. Deny the Contract between the City and CSG Consultants, Inc.
2. Continue the item and direct staff accordingly
Analysis:
Applicants who submit projects to the City pay fees for these services and expect reasonable service levels. When City staff can no longer meet the demands of increase development activity, these services have historically been supplemented with professional services provided by engineering consultants. This approach is a cost effective method of closing the gap between the demands for building inspection services and the ability of City staff to meet this demand.
On July 6, 2015, the City of Huntington Beach approved a three-year, three hundred thousand dollar ($300,000) contract with CSG Consultants, Inc. for Building Staffing Services. Subsequently, the contract was amended one time to increase the limit of the contract not to exceed $500,000. That contract has expired and it is necessary to enter into a new contract in order to meet the expected demand for building inspection services. The demand for inspection service and the revenue generated from development support the request.
Since 2008, the Building Division has had a base of nine permanent Building Inspectors. Prior to 2008, there were twelve (12) permanent Building Inspectors. Based on the economy and the volume of work since 2010, the Building Division made an organizational decision to use contract Building Inspectors instead of hiring permanent Building Inspectors. On all projects (large and small), applicants pay building inspection fees at permit issuance. Inspection requests for a project can last 12-24 months after building permit fees have been paid. With the fluctuation (increase) in building activity over the last 12 months, staff could not keep up with the requests for inspection services. When this happened, all projects suffered; small home additions, new residential homes, and the large projects where the City has collected substantial building fees. Historically, the City’s standard for providing inspection service for an inspection request has been less than 48 hours. In times of increased development activity the waiting period for an inspection can be up to two weeks.
Consultant Selection Process
Utilizing City procurement procedures, Staff solicited proposals for this project. Eleven (11) bid responses were received. Proposals were then evaluated and ranked by three (3) staff members within the Community Development Department and the Public Works Department. The top firm, CSG Consultants, Inc. was selected.
CSG Consultants, Inc., has supplied building staffing services to the City of Huntington Beach over the past eight years, is well respected in the industry, and has a proven track record of providing exceptional services for the City of Huntington Beach. CSG works exclusively for government agencies, thus they avoid having a conflict of interest with private developers. Lastly, CSG was the least expensive of the eleven firms for the level of experience necessary to perform the scope of work. Staff recommends the City Council approve the contract with CSG Consultants, Inc., in the amount of $562,500, and authorize the Mayor and City Clerk to execute the documents.
Environmental Status:
The request is exempt pursuant to Section 15061(b) (3) of the California Environmental Quality Act.
Strategic Plan Goal:
Improve quality of life
Attachment(s):
1. Professional Services Contract between the City of Huntington Beach and CSG Consultants, Inc.
for Building Staffing Services
2. Insurance Certificate
3. CSG’s Huntington Beach Business License
4. Bid summary; list of responses