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Home My WebLink About25A - BUILDING PLAN CHECK & BUILDING INSPECTION SVCS REQUEST FOR COUNCIL ACTION ~ ~ CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: OCTOBER 17, 2005 TITLE: AGREEMENTS FOR CONTRACTED BUILDING PLAN CHECK AND BUILDING INSPECTION SERVICES AND APPROPRIATION ADJUSTMENTS APPROVED D As Recommended D As Amended D Ordinance on 151 Reading D Ordinance on 2nd Reading D Implementing Resolution D Set Public Hearing For At, 't1J ~~.~- _ G2- CITY MANAGER CONTINUED TO FILE NUMBER RECOMMENDED ACTION 1. Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute agreements with EsGil Corporation; SFA: Scott Fazekas and Associates, Inc.; Willdan; and Robert J. Tyler, in an aggregate total amount not to exceed $900,000. 2. Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an agreement with Vandorpe Chou Associates, Inc. for building inspection services in an amount not to exceed $50,000. 3. Approve appropriation adjustments recognizing aggregate total amounts not to exceed $900,000 in the 2005-2006 FY revenue account for building plan check (account no. 011-01-5401) and appropriating various amounts not to exceed $900,000 to the Planning and Building Agency 2005-2006 FY budget allocation in the account for contractual services (account no. 11-508-6291) for payments to the consultants contracted to complete building plan checks of various projects. 4. Approve an appropriation adjustment recognizing $80,000 in the 2005- 2006 FY revenue account for building permits(account no. 011-01- 5911) and appropriating $30,000 to the Planning and Building Agency 2005-2006 FY budget allocation in the account for overtime (account no. 11-507-6141) for overtime building inspections and $50,000 in the account for contractual services (account no. 11-507-6291) for contracted building inspection services. DISCUSSION The City has several years fiscal year. development experienced an upward trend in development over the last which is expected to continue to increase in the current Six maj or high-rise proj ects, alone, scheduled to begin in the next nine months are estimated to provide over 25A-1 Plan Check and Inspection Agreements and Appropriation Adjustments October 17, 2005 Page 2 $3,000,000 in permit and plan check fees to the City (Exhibit 1). Among these are three Nexus proj ects, which include two 23 -story residential towers at MacArthur Lake site, one 23-story residential tower at MacArthur Cinema site, and one four-story, 350 unit residential project at Main Street and MacArthur Boulevard. Also included are 240 live/work units at City Place, the Geneva Commons project, with one 8-story tower and a second l8-story tower of residential and commercial units, and the Santiago Street Lofts with 72 residential units. These and other major projects expected to enter plan check within the next twelve months will put a significant burden on the plan check staff to provide timely and accurate processing of plans. After these proj ects break ground, the building inspection staff will face the same challenge of providing timely service in order to keep all projects moving forward. The City is presently contracting for the plan check of one project, the Bowers Museum expansion, to ensure timely processing without other proj ects in the pipeline. In order to provide an acceptable service level for these major projects--a goal of a three-week turn-around time for all plan submittals--it is necessary to augment plan check resources. The use of contracted plan check services will address the peak workload demands more efficiently than permanent staffing. Additional full-time employees may not be required when these maj or proj ects are completed. While the plan check of these high-rise projects will be accomplished in- house by City staff, the structural plan checks may be assigned to contractors who will utilize computer assisted design (CAD) software to improve efficiency. Of the seven consulting firms that responded to the Request for a Proposal, four consulting firms meet the City's requirements for availability of qualified engineering staff, turn-around time, locale, and fees. The four recommended firms will provide necessary services at a rate of 65% of the City's plan check fee for each project they receive, as well as appropriate hourly rates for processing required plan revisions. All four firms have agreed that no other costs will be added. Similar to many cities, the City of Santa Ana has utilized contracted building inspection service for many years when service demands peak and when there are temporary staff shortages. The recommended firm, Vandorpe Chou Associates, Inc., has been utilized by the City in the past for contracted inspection services. Its staff was knowledgeable in the pertinent codes and quickly became familiar with City procedures. Of the four firms considered, Vandorpe Chow has staffing immediately available at a rate of $48 to $58 per hour based on the specific qualifications of the individual inspector. The rates of other firms considered have escalated 25A-2 Plan Check and Inspection Agreements and Appropriation Adjustments October 17, 2005 Page 3 to $80 per hour or more. In addition to contract staffing, use of City inspectors on an overtime basis will provide additional inspection service as needed to address unusually heavy daily workload. Use of overtime also will make available extended hours, which are often more desirable to the owner-builder on home improvement projects. FISCAL IMPACT A number of high-rise projects have been identified to begin development in the near future. Of these, six, alone, which either have begun the plan check process, or will begin shortly, will provide the City over $3,000,000 in revenue for building plan check fees and building permit fees in the current fiscal year. An estimated $1,812,775 of this revenue is above and beyond current year revenue proj ections. Further, this anticipated revenue does not include the permit and plan check fees for electrical, plumbing, mechanical, and grading, which also will show an increase above and beyond the amounts projected for FY 2005-06. Plan check fees paid to the City for each project will fund the cost of outside plan check consultants. Sixty-five percent of the plan check fee paid for each project assigned to a consultant will be recognized in the revenue account for building plan check (account no. 011-01-5401) and a like amount appropriated to the Planning and Building Agency account for contractual services (account no. 11-508-6291), not to exceed a total aggregate amount of $900,000. In addition, a total amount of $80,000 will be recognized in the 2005-2006 FY revenue account for building permits (account no. 011-01-5911) and $30,000 appropriated to the Planning and Building Agency 2005-2006 FY budget allocation in the account for overtime (account no. 11-507-6141), and $50,000 appropriated in the account for contractual services (account no. 11-507-6291) for contracted building inspection services. APPROVED AS TO FUNDS AND ACCOUNTS: . Trevino x utive Director Planning and Building Agency Francisco Executive Finance & h"'l-"~hL) \~<.~ Gutierrez Director Management Services Agenc~ SB:rb sb\rfcas\Plan Check & Insp-4Agrmts rev 25A-3 MAJOR HIGH-RISE DEVELOPMENTS ESTIMATED PERMIT AND PLAN CHECK FEES 1. Nexus Lake Towers: Two 23-story residential towers Plan Check Fees (actual) Permit Fees (estimated) 2. Nexus Cinema Tower: One 23-story residential tower Plan Check Fees (estimated) Permit Fees (estimated) 3. Nexus Main and MacArthur: Four levels of residential over two levels of parking garage Plan Check Fees (estimated) Permit Fees (estimated) 4. Geneva Commons: One 8-story tower, a second 18-story tower of residential and commercial units Plan Check Fees (estimated) Permit Fees (estimated) 5. City Place: 240 live/work units Plan Check Fees (estimated) Permit Fees (estimated) 6. Santiago Street Lofts: 72 residential units Plan Check Fees (estimated) Permit Fees (estimated) TOTAL ESTIMATED REVENUE EXHIBIT 1 25A-4 362,241 557,000 919,241 180,000 225,000 405,000 300,000 460,000 760,000 238,800 333,400 572,200 87,165 212,570 299,735 40,000 62,000 102,000 3,058,176