Agenda Item Wording:
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Authorize the City Manager to extend contract for Building Safety Plan Check and Related Services on an emergency basis to Interwest Consulting Group Inc, not to exceed $600,000 for one year ending October 7, 2025 and appropriate an additional $450,000 from the Building Safety Enterprise Fund.
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Deadline for Action: 11/4/2024
Submitting Department: Community Development
Contact Name and Phone Number: Jason Huckleberry, Engineering & Building Dept Director, jason.huckleberry@visalia.city, (559) 713-4495
Department Recommendation:
Staff recommends that Council authorize the City Manager to extend the contract for Building Safety Plan Check and Related Services on an emergency basis to Interwest Consulting Group Inc for one year, ending October 7, 2025, not to exceed $600,000 and appropriate an additional $450,000 from the Building Safety Enterprise Fund.
Background Discussion:
On September 16, 2019, the City Council approved and awarded Interwest Consulting Group an annual contract for Building Division Plan Check (including building inspection and permit technician services) not to exceed $100,000 annually. The contract was subsequently amended on September 21, 2020, to not exceed $300,000 annually, and then again amended on September 7, 2021, to not exceed $600,000. Staff is preparing a Request for Proposals to readvertise these services in 2025 but will need to extend the current contract that was originally approved in 2019 on an emergency basis for an additional 12-months to allow for time to advertise, review and award a new contract for these services.
Although used sparingly, the Building Safety Division staff continue to utilize Interwest Consulting Group for 3rd party plan check review services. The division is anticipating one retirement in 2025 from the plan review team. When operating with staffing shortages, this contract will play an important role in ensuring our ability to continue to meet and exceed established plan review timeframes for the community. When requested to perform plan check services, Interwest Consulting Group receives 65% of the total plan review fee charged by the City of Visalia. The City of Visalia retains the remaining 35% of the plan review fee. The fees are collected in the Building Safety Enterprise Fund and the vendor is paid from that fund.
In addition to plan check services, for the last several years the City has experienced a high volume of inspection requests, routinely exceeding the amount of inspections our staff are able to perform daily. Additionally, the last several years have brought several large industrial and commercial projects that require extensive inspection hours which impacts our ability to meet the needs of the community. As such, the contract with Interwest Consulting Group Inc has consistently been used for building inspection services and has been highly successful. This effort will continue under this contract extension until inspection volumes decrease and existing staffing levels are able to consistently meet the needs of the community.
Fiscal Impact:
The contract is paid for out of the Building Safety Enterprise Fund from fees paid through building permits obtained by developers, contractors, and property owners. Interwest Consulting Group is paid 65% of City Plan Check Review Fees for “standard” plan review. The current Professional and Specialized budget for this service is $150,000. Staff is requesting an additional appropriation of $450,000 to be able to fund the previous annual contract increase approved in 2021. If permit activity and/or inspection requests decrease, these funds will not be used and will return to fund balance.
Prior Council Action: On September 7, 2021 City Council approved an amendment to the contract with Interwest Consulting Group Inc in an amount not to exceed $600,000 for Building Safety Division Plan Review and Related Services.
On September 21, 2020 City Council amended the contract with Interwest Consulting Group Inc in an amount not to exceed $300,000 for Building Safety Division Plan Review and Related Services, including the addition of Building Inspection and Permit Technician Services.
On September 16, 2019 City Council awarded a contract to Interwest Consulting Group Inc in an amount not to exceed $100,000 (renewable for four more years) for Building Safety Division Plan Review and Related Services.
Other: None
Alternatives: City Council may elect to deny the request and direct staff to process a formal Request for Proposals (RFP) to obtain a new contract for these services. If this is the case, delays in permit processing and inspections may be experienced while the RFP is processed through the Purchasing processes.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to approve a 12-month extension of the annual contract with Interwest Consulting Group Inc for Building Safety Plan Check and Related Services in an amount not to exceed $600,000 and appropriate $450,000 from the Building Safety Enterprise Fund.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: 1. Copy of Service Contract with Interwest Consulting Group Inc
2. Updated Billing Rates