SR-400-000-01
PCD:BAS:TM:TM:F:\PCD\SHARE\ESGIL-2.doc
COUNCIL MEETING: March 7, 2000 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Negotiate,
Execute and Amend Professional Services Contracts for Plan
Review and Inspection Services for the Building and Safety
Division.
INTRODUCTION
This report recommends that the City Council authorize the City Manager to
approve an amendment to the existing contract with EsGil Corporation for plan
review services for the Building and Safety Division. The proposed amendment
will increase the maximum cost of services from $200,100 to $350,000.
This report also recommends that the City Council authorize the City Manager to
negotiate and execute a contract with JAS Pacific Corporation to provide
temporary inspection services for the Building and Safety Division. The contract
amount would not exceed $80,000.
BACKGROUND
The present rate of private construction continues to exceed budgetary
expectations and has increased the need for plan review and inspection services
in the Building and Safety Division. Pursuant to the City’s bid procedures for
professional services, the staff originally received proposals in June of 1999,
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from eleven firms specializing in plan review and/or inspection services for
municipalities. After staff evaluation of all proposals, the City Manager
authorized purchase orders to both EsGil Corporation and ICBO Plan Review
Services for plan review services and to JAS Pacific Inc. for temporary inspection
services in July of 1999.
On August 10,1999, the City Council authorized the City Manager to negotiate
and execute contracts with both ICBO Plan Review Services and Esgil
Corporation for plan review services in a cumulative amount not to exceed
$250,000. Esgil Corporation subsequently received a contract authorizing an
additional $150,101 in plan review services above their initial purchase order of
$49,999 for a total plan review service cost of $201,100.
On August 10,1999, the City Council also authorized the City Manager to
negotiate and execute a contract with Willdan & Associates in an amount not to
exceed $150,000 for temporary inspection and engineering staff for the Building
and Safety Division.
DISCUSSION
Based on mid-year analysis, the valuation of construction projects submitted for
plan review is expected to reach $180 million in lieu of the $150 million originally
estimated. This increase in submittal for plan review will require additional plan
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review services. The cost of plan review services provided by Esgil Corporation
is expected to increase from $200,100 to $350,000.
Last year’s record number of permit applications, with a total valuation of $322
million, continues to require a large number of construction-related inspections.
Inspection staff vacancies due to retirement, promotions and medical leaves
have also contributed to the need for additional inspection services. Both Willdan
& Associates and JAS Pacific Inc. have been providing inspection staff this fiscal
year. The cost for JAS Pacific to continue to provide this essential service is
estimated to exceed the limits of their purchase order for $49,999. The estimated
year-end cost for JAS Pacific is expected to be $80,000.
BUDGET/FINANCIAL IMPACT
Estimated actual revenues for the various Building and Safety fees are expected
to increase to $1,992,939 for this fiscal year. This represents an overall increase
of $380,000. The projected increase is based on average monthly revenues
through January 2000. The expected increase in revenue exceeds the expected
cost of additional services.
Funds are available for plan review services in account number 01321.555060
(professional services) and 03132.511000 (permanent employees) for inspection
services.
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Revenue Source FY 99/00 Estimated Variance
Adopted Budget Actual
Residential Building Records 23,100 35,004 11,904
Building Permits 725,000 1,139,592 414,592
Plan Checks 480,000 593,609 113,609
Electrical Permits 135,000 94,546 -40,454
Plumbing & Mechanical Permits 250,000 130,188 -119,812
Totals 1,613,100 1,992,939 379,839
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to:
1. Approve an amendment to contract # with EsGil Corporation for an additional
$200,100, resulting in a total amount not to exceed $ 350,000.
2. Negotiate and execute a contract with JAS Pacific Inc. for temporary
inspection services in a total amount not to exceed $80,000.
Prepared by: Suzanne Frick, Director of Planning & Community Development
Timothy P. McCormick, P.E., Building Officer
Manuel Mendizabal, S.E., Plan Check Supervisor
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