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SR-400-009 (11) PCD:BLDG&SAFETY:TM:TM F:\PCD\Share\Staff Report COUNCIL MEETING: October 22, 2002 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Contract with Bing Yen and Associates in the Amount Not to Exceed $440,000 for Geotechnical and Engineering Report Review and Related Services. Contract with Esgil Corporation in the Amount Not to Exceed $600,000 for the Purpose of Plan Check Services. Contract with Jas Pacific for Outside Temporary Agency Employees in Code Enforcement, Construction Inspection Services and Plan Check Administration and Review in the Amount Not to Exceed $300,000 INTRODUCTION This staff report recommends that the City Council authorize the City Manager to negotiate and amend two contracts: an amendment of $190,000 for Contract No. 7742 (CCS) with Bing Yen and Associates for the review of geotechnical and engineering geology reports for the Building and Safety Division and an amendment of $300,000 for Contract No. 7740 (CCS) with Esgil Corporation to provide plan and report review services for the Building and Safety Division. This staff report also recommends that the City Council authorize the City Manager to negotiate and execute one contract with JAS Pacific in the amount not to exceed $300,000 for temporary staffing for code enforcement, inspection services and plan check administration and review for the Building and Safety Division. BACKGROUND -1- Due to liquefaction potential and other geologic hazards, state law mandates that the City require and review and approve geotechnical and/or engineering geologist reports prior to construction permitting on most major projects. The reports must demonstrate geotechnical feasibility and appropriate mitigation of any seismic related hazards. By law, the City must use licensed geotechnical engineers and engineering geologists to review and approve the feasibility and mitigation reports. Bing Yen & Associates has provided these review services during the previous and current fiscal year. Staff originally requested qualifications from five geotechnical engineering firms for review of geotechnical reports. On June 27, 2000, Council authorized a contract for geotechnical services with Bing Yen and Associates in the amount of $60,000. On July 24, 2001, Council authorized an amendment to the contract for $60,000 for fiscal year 01/02. On January 22, 2002 Council further authorized $130,000 for a total contract amount of $250,000. Santa Monica construction activity continues to exceed the staffing capacity of 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. Staff originally requested qualifications from seven firms that specialize in construction plan review services for municipalities. On June 27, 2000, Council authorized a contract for construction plan review services with Esgil Corporation in the amount of $130,000. On February 13, 2001, Council authorized an amendment to the contract of $130,000 for fiscal year 00/01 for a total contract amount of $260,000. On July 24, 2001 Council further authorized another amendment to the -2- contract of $130,000 for fiscal year 01/02 for a total contract amount of $390,000. JAS Pacific Corporation has provided services throughout the FY 01/02 for both code enforcement, inspection services and plan check review. They have demonstrated the capacity to provide the service promptly, within the time specified, and without delay; they have the ability to provide such future service as may be needed; and the price for their services is fair, reasonable and competitive. DISCUSSION These contract amendments and executed contract will enable the City to provide required geotechnical review services, plan review services and temporary staffing in code enforcement, construction inspection services and plan check administration and review through June 30, 2003. For FY 01/02, the valuation of construction projects submitted for plan review was $146 million. The valuation for plan review services for FY 02/03 is estimated to be $170 million dollars, and there are currently three related staff vacancies. Current recruitment efforts may result in hiring of permanent staff by February 2003; however, difficulties with recruitment for these positions may necessitate additional professional services for plan review services throughout the remainder of the fiscal year. Four vacancies currently exist in the code enforcement function. These are: two Senior -3- Code Compliance Officers, one Code Compliance Officer and one Senior Administrative Analyst position. Recruitment is under way for these positions and will end in December 2002 at the earliest. In the interim, the substantial and continuing demand for code enforcement efforts requires the use of contract staff to timely respond to citizen concerns and this need may continue throughout fiscal year 02/03. BUDGET/ FINANCIAL IMPACT Funds for the amended Bing Yen and Associates contract are available in account number 01321.555060 in the amount of $190,000. The Building and Safety Division collects user fees that reimburse the General Fund expenditures for review of geotechnical and engineering geology reports. On April 24, 2001, Council passed new user fees for the review of engineering reports. Pursuant to state law, these new fees became effective June 25, 2001, and cover the cost of providing these services. As a result, there will be no net impact to the general fund. Funds for the amended Esgil Corporation contract are budgeted for this fiscal year and are available in account number 01321.555060 to cover the expenses in the amount of $105,000. In addition, sufficient salary savings exist due to staff vacancies in account number 01321.511690 to cover an additional $105,000 for a total contract amendment of $210,000. The Building and Safety Division collects fees to reimburse the general fund expenditures for plan check services. Because current fees are inadequate to obtain full cost recovery, staff is actively engaged in developing a new fee structure that will be -4- presented at the fiscal year end report. These new fees are expected to result in full cost recovery. Funds for the executed contract with JAS Pacific are available in account number 01321.511690 as a result of salary savings from vacancies in the Building and Safety Division. RECOMMENDATION Staff recommends that the City Council authorize the City Manager to negotiate and execute an amendment to Contract No.7742 (CCS) with Bing Yen & Associates for $190,000, for an amount not to exceed total amount of $440,000 and amend the professional service contract with Esgil Corporation in an amount not to exceed total amount of $600,000. Staff also recommends that the City Council authorize the City Manager to negotiate and execute a contract with JAS Pacific for outside temporary agency employee services for code enforcement, inspection services and plan check administration and review in the amount not to exceed $300,000. Amount Not Contract Services Provided to Exceed Bing Yen & Geotechnical and Engineering Report Review and $440,000 Associates Related Services Esgil Plan Check Services $600,000 Corporation Outside Temporary Agency Employees in Code $300,000 JAS Pacific Enforcement, Construction Inspection Services and Plan Check Administration and Review -5- Prepared by: Suzanne Frick, Director, Planning and Community Development Tim McCormick, Building Official Paul Christman, Supervising Inspector Manuel Mendizabal, Plan Check Supervisor Keith Young, Code Compliance Supervisor Jeanine Plute, Permit Specialist -6-