Agenda Item Wording:
title
Amend annual contract with Interwest Consulting Group to increase annual not to exceed amount to $600,000 for the Building Safety Division Plan Review and Related Services and appropriate an additional $565,000 from the Building Safety Enterprise Fund.
body
Deadline for Action: 9/7/2021
Submitting Department: Community Development
Contact Name and Phone Number:
Paul Bernal, Interim Director / City Planner, 713-4025, paul.bernal@visalia.city <mailto:paul.bernal@visalia.city>
Department Recommendation:
Staff recommends that Council amend the annual contract awarded to Interwest Consulting Group not to exceed $600,000 for Building Safety Division Plan Review and Related Services and appropriate an additional $565,000 from the Building Safety Enterprise Fund. The current Professional and Specialized budget for this service is $35,000. Staff is requesting an additional appropriation of $565,000 to be able to fund the annual contract increase. While the contract has been amended with Council approval twice (one to $100,00 and once to $300,00), additional money was not appropriated. This action both increases the contract and appropriates the correct funding amount. The contract is renewable annually for a total of five years (first year plus four additional years). The Building Safety Division is currently in year two of the contract. The renewal date for this contract is October 06, 2021.
Summary:
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.
The Community Development Department continues to see an increase in permit activity, including large complex commercial, industrial, and residential permits that have been recently submitted. Examples include two large industrial buildings in excess of two million square feet, a 219-unit multi-story/multi-family development, 81-unit mixed use project and a 69-unit senior housing development. Due to current building permit activity, applicants for these projects are requesting 3rd party plan check review services to meet their project deadlines. As result, staff continues to utilize Interwest Consulting Group for 3rd party plan check review services. The 3rd party consulting firm, 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.
It is important that the Community Development Department continue to provide efficient building plan review and related services in a reasonable timeframe. The Building Safety Division has continually utilized the services of a third-party consulting firm to augment internal plan review. Utilizing a 3rd party plan review provider allows the Building Safety Division to be responsive to the development community and the public by ensuring that plan check review is being done in an efficient manner with minimal delays while also providing the following:
• Timely specialized plan review service when specialty projects are submitted, such as complex structural plan review, review of intricate racking systems, processing or storage of hazardous materials, etc. The skill level required to complete a timely plan check review for these complex projects are limited by in-house staff.
• Consultant can augment plan review services during times of peak workload or short staffing.
The request to amend the contract to not exceed $600,000 dollars establishes a budget that provides both staff and the development community the necessary plan check services to ensure permits are issued with minimal delays and reflects the complexities associated with these large projects. Currently, the Building Division is not fully staffed with vacancies at various levels within the Building Safety Division. However, progress has been made with potentially backfilling the vacant building inspector position, while the other positions continue to be advertised.
The Building Safety Division staff continues to process permits that do not have an aggressive timeline and has done a commendable job meeting those permit review timelines of 30 days for commercial plan check and 20 days for residential plan check. However, having the ability to use a 3rd party contract service helps in managing the workload during these busy times.
Fiscal Impact:
The contract is paid for out of the Building Safety Enterprise Fund from fees paid by developers. Interwest Consulting Group is paid 65% of City Plan Check Review Fees for “standard” plan review. Currently Interwest Consulting Group is not providing “expedited” plan check review services at this time but continues to provide the timelines as agreed to in the contract. The current Professional and Specialized budget for this service is $35,000. Staff is requesting an additional appropriation of $565,000 to be able to fund the annual contract increase. If development decreases these funds will not be used and will return to fund balance.
Prior Council Action:
On September 21, 2020, City Council amended the contract with Interwest Consulting Group 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 to improve turnaround time and reduce processing delays.
On September 16, 2019, City Council awarded a contract to Interwest Consulting Group not to exceed $100,000 (renewable for four more years) for Building Safety Plan Review and related services. The contract was executed October 7, 2019 and expires October 7, 2024.
Other: None.
Committee/Commission Review and Action:
None.
Alternatives:
The City Council may, in lieu of the departments recommendation, deny the request and retain the budgeted amount to not exceed $300,000 for Building and Safety Division Plan Review and Related Services, as originally amended.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to approve the amendment of the annual contract not to exceed to $600,000 for Building and Safety Plan Check Review and Related Services to Interwest Consulting Group, and to appropriate an additional $565,000 from the Building Safety Fund.
end
Environmental Assessment Status: N/A
CEQA Review: None.
Attachments:
None