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HomeMy WebLinkAbout1998-05-12 - AGENDA REPORTS - MOD PROFESSIONAL SERV AGMT (2)CITY OF SANTA CLARITA AGENDA REPORT City Manager Approva Item to be presented by: Kevin Tonoian CONSENTCALENDAR DATE: May 12, 1998 SUBJECT: MODIFICATION OF PROFESSIONAL SERVICES AGREEMENT FOR PLAN REVIEW SERVICES DEPARTMENT: Planning and Building Services RECOMMENDED ACTION City Council approve and authorize the City Manager to 1) amend the Agreement for Professional Services with EsGil Corporation for a total contract value for Fiscal Year 1997/98 not to exceed $130,000, subject to City Attorney approval and; 2) transfer $50,000 from the City's Contingency Fund Account (1240-7401) to the Building & Safety Division's Contractual Services Account (3710-8001). BACKGROUND During the past several years, the City's Building and Safety Division has utilized contractual plan review services to supplement City staff in the review of large commercial projects. As the workload associated with this type of service depends upon the activity of commercial development, the City has chosen to rely upon contractual assistance to complete these important functions in lieu of hiring additional staff. Since 1995; staff has utilized the services of the EsGil Corporation for the majority of the City's plan review needs. After considering several other firms, in May of 1996, the City executed a formal Agreement for Professional Services with the EsGil Corporation for contractual plan review assistance. The initial Professional Service Agreement with EsGil was administratively executed, as the total did not exceed the City Manager's approval authority. Due to an anticipated increase in the demand for plan review services by the public, $80,000 in contractual services funding for these types of services were allocated to the Building & Safety Division during the FY 1997/98 budget process. In October of 1997, the City Council authorized the City Manager to execute a Professional Services Agreement with EsGil in an amount not to exceed $80,000, for plan review services. During the past year, construction activity (both at a local level and statewide) have increased as a result of the resurgence of the local and state economy. This strong economic climate has directly resulted in an increased demand for plan review related services that have surpassed staffs initial projected level for the present fiscal year. This demand exceeds the City's current staff and contractual resources available, and has resulted in a backlog that extends weeks '`'°' Agenda Item:. Modification of Professional Services. Agreement for Plan Review Services May 12, 1998 Page 2 beyond Building & Safety's normal turnaround time for construction related projects. Staff is extremely sensitive of their customers, and recognizes that even short delays create potential monetary impacts for all applicants, especially to those within the small business community. To address this concern, and to continue to provide outstanding customer service for the City's residents, staff is requesting that the City Council direct the City Manager to amend the Professional Services Agreement previously executed with the EsGil Corporation. Specifically, staff is requesting that the City Council authorize an increase to the Professional Services Agreement with EsGil from $80,000 to an amount not to exceed a total contract value for Fiscal Year 1997/98 of $130,000. This requested $50,000 increase to the existing Professional Services Agreement with EsGil will allow staff to expedite the City's current project backlog by the end of the current fiscal year, and will be 100% offset by permit fees received for these projects. ALTERNATIVE ACTIONS Other direction as determined by the City Council. FISCAL IMPACT All building permit related costs, including plan review services that will be conducted by EsGil, are anticipated to be 100% offset by permit fees received during FY 1997/98 for all projects. GAC:KMT:lep h:\kmt\divhead\esg1agn2.doc