SR-416-000-01 (4)
PCD:BLDG &SAFETY:TM:TM F:\PCD\Share\Plan Check-2.wpd
COUNCIL MEETING: February 13, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Amend the Contract
with Esgil Corporation in the Amount Not to Exceed $260,000 for the
Purpose of Plan Check Services
INTRODUCTION
This staff report recommends that the City Council authorize the City Manager to
negotiate and execute an amendment to contract CCS 7561 with Esgil Corporation to
provide plan review services for the Building and Safety Division. Due to the increase in
construction activity, staff recommends the existing contract be increased by $130,000
for a total of $260,000.
BACKGROUND
The regional increase in building construction activity continues to affect the Building
and Safety Division. To manage the additional workload and maintain acceptable levels
of service to the public, the Building and Safety Division must contract for assistance
with plan review and related professional services. Analysis of mid-year activity shows
an unexpected increase in the number and valuation of construction plan submittals and
the related need for professional services.
The following table shows the correlation between the increase in construction activity
and the increased demand for plan review services.
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Fiscal YearPlan Check Valuation, Professional
millionsServices
FY 96/97$ 70$ 10,753
FY 97/98$276$303,201
FY 98/99$353$560,600
FY 99/00$181$303,924
FY 00/01 Budget Estimate$180$277,000
FY 00/01 Mid-year Revised Estimate$250$407,000
DISCUSSION
For FY 99/00, the valuation of construction projects submitted for plan review was $180
million. It was estimated this number would remain constant in FY 00/01. It also was
expected that Division plan review costs would be further reduced by the early addition
of in-house plan check staff. Valuation for plan review services for FY 00/01 are now
estimated to reach $250 million dollars, and plan review staff vacancies were only
recently filled.
At the current rate of plan check activity, the cost for outside plan review services would
be expected to reach $360,000. However, the recent filling of the staff vacancies is
expected to result in savings in professional services for plan review of some $100,000
for the balance of FY 00/01. Therefore, the total cost for outside plan review services,
after considering the savings, is now estimated at $260,000.
BUDGET/ FINANCIAL IMPACT
Building and Safety Division collects fees to reimburse the General Fund for
expenditures for plan check services. This increase in plan check activity will also result
in additional revenue collected. Because current fees are inadequate to obtain full cost
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recovery, a fee study was commissioned and is expected to be complete this month.
There will be a net cost for plan review services until the Council establishes new fees.
Currently, Building and Safety has sufficient budget authority in account #01321.555060
to cover the expenses.
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to amend the
professional service contract (CCS 7561) for Esgil Corporation in an amount not to
exceed $260,000.
Prepared by: Suzanne Frick, Director, Planning and Community Development
Timothy P. McCormick, P.E., Building Officer
Manuel M. Mendizabal, S.E., Plan Check Supervisor
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