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AMENDMENTS TO PROFESSIONAL SERVICES MASTER CONTRACTS WITH 4LEAF, INC. AND CSG CONSULTANTS, INC. FOR BUILDING PLAN CHECK, INSPECTION, ENGINEERING SERVICES, AND FLOOD PLAIN MANAGEMENT
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RECOMMENDATION
It is recommended that the City Council authorize, by motion, the execution of amendments to the professional services master contracts with 4Leaf, Inc. ("4Leaf") and CSG Consultants, Inc. ("CSG") for the provision of plan check, inspection, engineering services, and flood plain management to the Building and Life Safety Division of the Community Development Department. Each contract will be amended to extend services for a two (2) year period. The 4Leaf contract amendment will be in the amount of $82,000 per year and the CSG contract amendment will be in the amount of $160,000 per year.
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Summary
Additional technical resources are needed to meet workload demands and it is premature to add staff as the Department is in the midst of implementing changes that will lead to operational efficiencies. Maintaining quality customer service and being responsive to project deadlines is extremely important. Supplementary temporary services are required to mitigate potential delays and avoid customer impacts. 4Leaf and CSG provide survey, engineering, plan check and inspection services, construction and flood plain management to private and public sector clients. The City contracted with 4Leaf and CSG for plan check, inspection services, and flood plain management in FY 2013-14. Both firms have licensed or certified staff to assist with the City's needs and both firms are on the City's master contract vendors list. Hence, contract amendments are attached for consideration and authorization by the City Council (Attachments A and B).
DISCUSSION
Background
In FY 2013-2014, Council approved and the Community Development Department implemented a reorganization and consolidation plan. The plan increased staffing levels (four new positions and three reclassified positions), made improvements to business systems and increased staff productivity. A key objective of that plan was to reduce turnaround times for plan check and inspection services for new construction and tenant improvements that require a Building Permit. Another objective was to generate a service system that fosters repeat customers rather than construction activities without the benefit of a permit.
Other objectives included reaching out to institutional and economic engines of the community, such as the Port of Stockton and the University of the Pacific to: 1) Establish value-added processes for their unique needs; 2) Reach out to customers desiring to "green-up" Stockton through investment in solar energy and heating systems; 3) Reach out to those property owners, investors, and developers with a desire to breathe new life into the Downtown area; and 4) Make preparations for an increased volume of customer inquiries and project applications as economic conditions gradually improve beyond the lingering effects of the Great Recession.
Senate Bill 5 (SB 5), Flood Plain Management, requires all new development, including small remodels, to be protected from significant flooding in the event of a 200-year flood. The current standard that has prevailed for several decades is the 100-year Flood Plain Zone. Absent 200-year flood protection, the only other option is to declare a building moratorium. At least one-third of the land area within the city limits would be subject to such a moratorium. The Building Official has been tasked with ensuring compliance with SB 5 mandates. Having access to flood plain management expertise is particularly appropriate given the evolving legal requirements and financial ramifications. Additional Building and Life Safety supplemental plan check and staffing are absolutely needed to address this critical matter and the implications it poses on staff's current capacity.
Present Situation
Plan check turnaround times improved to an average of 6-working days from the previous, 4-6 weeks. An E-Z Permit system was initiated, allowing for same day over-the-counter plan checking and permitting on small to medium sized additions or tenant improvements. Fax-Back Permits and E-Permits are now in place for simple, routine matters, such as a water heater or household electrical outlets. Photovoltaic solar systems on residential roofs are now plan checked and inspected for building and fire code compliance exclusively by the Building and Life Safety Division. By integrating the Fire Department's review and inspection portion into our process, the customer now benefits from reduced costs, time, paperwork, and handling.
This fiscal year to date, the building division has processed and issued 5,693 permits, an increase of 49% over last year. The Department anticipates the number of issued permits to continue to increase as the economy improves and the construction industry becomes more robust in San Joaquin County. Due to the cyclical nature of the construction industry, contracting with private firms helps to maintain high levels of customer service. It is premature to increase staffing because the Department is in the midst of implementing new business systems and tools to improve operational efficiency. The Department monitors workload on an ongoing basis to assess the proper balance of staff and contract services. The Department will reevaluate the current staffing levels after operational changes have been fully implemented and there has been enough time to determine what operational efficiencies have been achieved.
In October 2013, the Department entered into contracts with 4Leaf and CSG. Each contract term was for one year with two 6-month extensions. Both contract extensions were exercised and are about to expire. These recommended actions would allow services being rendered by 4Leaf and CSG to continue with no interruption in the workflow. By maintaining these consultants, the Department can also maintain focus on completing implementation of the reorganization and consolidation plan. In addition, contract services mitigate impacts that arise from vacancies, proactively manage fluctuating workload volumes, and provide flood management expertise to the Department. The amended contracts would ensure continued services and allow the aggressive turnaround times for plan check and inspections to be maintained and to meet SB 5 mandates.
Contract Details
The City routinely uses professional consulting services on an "as-needed" basis for specific programs and projects. In order to streamline the process of retaining a consultant, the City maintains a pool of vendors utilizing professional services master contracts. On July 13, 2010, the City Council adopted Resolution No. 10-0242 approving master contracts with qualified firms that provide planning, design, and construction expertise. These firms were identified through a Request for Qualifications (RFQ) process, wherein consultants were invited to submit details of their experience, staff resources, and capabilities.
The submittals were assessed by a selection committee, and 254 firms were found to be qualified in their respective fields. Master contracts were then authorized by the City Council for five year terms. When a firm is retained for a specific program or project, a contract amendment is issued which specifies the scope of services and the associated cost schedule for the project/services to be provided. If the cost of the contract exceeds the dollar limit for the City Manager spending authority as set by ordinance, then the contract amendment is submitted to the City Council for consideration and authorization.
4Leaf and CSG are uniquely qualified to provide the plan check, inspection, engineering services, and flood plain management to the Community Development Department. These firms are familiar to the City as well as the local development community. Both firms currently provide building plan check and inspection services to the Building and Life Safety Division. CSG also has a qualified flood plain management expert in their staffing pool that the Department is utilizing. In addition, both firms have worked on many private and public developments in and around Stockton. Consequently, these firms are on the Master Vendors Pool as they are uniquely qualified to deliver the needed services, they are familiar with the City's caseload and internal processes, and they have proven to perform effectively and efficiently, thus helping staff to improve turnaround times.
Exhibit A to Attachments A and B outline each vendors qualifications and the cost structure for providing their services. 4Leaf and CSG will provide services to the Community Development Department for a 2-year period on an as-needed basis with no extension clause, for a cost not to exceed $82,000 and $160,000 respectively. The contract can be terminated at any time by either party by providing a 30-day notice of intent to terminate. The Department anticipates revisiting the need for assistance at the end of the contract and will determine at that time whether to go out for a Request for Proposal for new services, if organization needs and operations merit.
FINANCIAL SUMMARY
Adequate funds have been encumbered in the FY 2014-2015 Budget, under 048-1830-530 and those purchase orders will be rolled into the FY 2015-16 budget to support the development services function. Costs are billed on a City-authorized time and materials basis and not-to-exceed costs are based on estimated caseload volumes that may or may not materialize over the course of the two-year term.
Specific "up-to" costs that are written into the respective contracts include: 4Leaf ($82,000 per fiscal year); CSG ($160,000 per fiscal year) for Building related work.
Attachment A - 4Leaf Contract Amendment
Attachment B - CSG Contract Amendment