HomeMy WebLinkAboutCC AG PKT 2003-09-22 #L •
AGENDA REPORT
DATE: September 22, 2003
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Lee Whittenberg, Director of Development Services
SUBJECT: APPROVAL OF CONTRACT MODIFICATION -
BUILDING DEPARTMENT CONTRACT SERVICES,
CHARLES ABBOTT ASSOCIATES, INC.
SUMMARY OF REQUEST:
Approve proposed contract modification Option 1 for Building Inspection and Plan
Check services with Charles Abbott Associates, Inc. and authorize the City Manager to
execute - the contract modification documents upon acceptance as to form by the City
Attorney. Approval of this recommendation will result in an approximate savings to the
City of between $18,000 to $25,000 per year.
BACKGROUND:
The Senior Building Inspector has retired, and staff has re- evaluated the costs and
benefits of maintaining a full -time Senior Building Inspector versus contracting for that
level of service with our current firm, Charles Abbott Associates, Inc. The City needs to
refill this position in order to maintain the appropriate staffing levels to respond to the
current and near -term anticipated demands for building inspection services within the
community.
Staff is considering the remaining larger -scale developments listed below as projects that
could impact building plan check and inspection service demands:
❑ The DWP property at the southwest corner of First and Marina;
❑ The Chevron/Texaco property at the north -east corner of First and Marina;
❑ Revitalization of the Rossmoor Center;
❑ Revitalization of the Pavilion's center at Pacific Coast Highway and Bolsa
Avenue;
❑ Boeing Integrated Defense Systems Specific Plan build -out, including business
park, hotel, and retail development;
❑ Continued renovation at the Boeing Integrated Defense Systems existing campus
facility to respond to contract procurement requirements; and
AGENDA ITEM L
Z:\My Documents \BUILDING\2003 Contract Services.CC Staff Report.doc \LW\09 -09 -03
•
Approval of Modification to Agreement for
Building Inspection and Plan Check Contract Services Agreement
City Council Staff Report
September 22, 2003
❑ Construction of the 64 -home Heron Pointe development by John Laing Homes.
Depending on the final outcome of the various discretionary land use entitlements
requested for the DWP property, development could be anticipated in the late -2004 to
early -2006 time frame.
The above anticipated construction projects and schedule may result in some extreme
fluctuations in the necessary service levels of the Building Department. Contracting for
these services allows the City the future flexibility to adjust staff as the demand for
services either increases or decreases.
Projected Costs of Hiring a Full - Time Senior Building Inspector:
Based on the current salary level and fringe benefit package of the City, it is estimated
that the direct costs of hiring a full -time senior building inspector would be as follows:
❑ Estimated salary costs: $ 60,000 — 77,000
❑ Estimated fringe benefit costs: $ 11,000 — 13,000
Total estimated costs $ 71,000 — 90,000
In addition to these costs, the costs of providing a city vehicle for a full -time city
employee and ongoing retirement benefits have not been projected, as they would be too
speculative at this time.
As with any employee hired by the City, training and other indirect costs will be incurred
by the City. In addition, there is no assurance that a future full -time city employee in this
position would be a resident of the City, and the City cannot require residency as a result
of an offer of employment.
Overview of Contract Services with Abbott and Proposed Modification:
In January and February of 2002 the City Council considered and approved a contract
with Charles Abbott Associates, Inc. ( "Abbott ") to provide contract building department
services for the City. At that time the Building Inspector and Permit Technician within
the Building Department had retired and the City was desirous of providing those
services through a contractual arrangement that would provide greater flexibility in
responding to future building and engineering workloads anticipated over the next three
to five years. At that time staff also indicated "The Senior Building Inspector will remain
a City position."
Staff is clearly aware of the concerns of the City Council and the community in general
regarding this issue that was raised in early 2002. However, the community has now had
approximately 18 months of experience in working with the contract personnel provided
by Charles Abbott and Associates. It is believed that the community, contractors, and
2003 Contract Services CC Staff Report 2
Approval of Modification to Agreement for
Building Inspection and Plan Check Contract Services Agreement
City Council Staff Report
September 22, 2003
other individuals and groups that have dealings with these personnel have had positive
experiences with the current contractual staff, based on Staff's perception.
As discussed in the 2002 City Council staff reports on this issue:
"CAA personnel have multiple job performance capabilities that the other
responding firms could not provide. Among those deemed most important
are:
❑ Permit Technician has ability to also perform minor project plan
check services, reducing plan check times during periods of slow
counter activity. May also be a certified Building Inspector to
provide inspection services if necessary.
❑ Building Inspector is also a certified Combination Building
Inspector.
❑ Code compliance officer is also a certified building inspector,
allowing additional inspection capability if necessary.
In addition, CAA will provide, at 110 additional cost, the hardware and
software for a computerized permit issuance and tracking system which
will be fully integrated with the City Public Works permit tracking system.
In addition, all CAA personnel will be provided cell phones, vehicles, code
books, reference materials, and any additional work - related items at no
cost to the City. The provision of these items by CAA will result in
additional substantial cost savings to the City beyond the salary savings
realized by not rehiring full -time city personnel. The City will realize
additional cost savings by reducing the number of City vehicles, computer
workstations, cell phones and other office supplies.
Contracting services will allow the City to expand or contract its
inspection and plan check services based on future building permit
requests. Retaining two, full -time city employees as building inspectors
does not provide that flexibility."
"Contracting for these services allows the City the future flexibility to
adjust staff as the demand for services either increases or decreases."
The City has contracted with Abbott since February 2002 for all building department
services with the exception of the Senior Building Inspector. During that time the
operations of the department have been excellent, and the service level to the community
has been maintained. There have been no major complaints received by the City
Manager or the Director of Development Services regarding the professional demeanor,
ability to answer questions, quality and timeliness of plan check and inspection services,
or the timeliness of responses requested to code - related construction questions by the
Abbott personnel.
2003 Contract Services.CC Staff' Report 3
Approval of Modification to Agreement for
Building Inspection and Plan Check Contract Services Agreement
City Council Staff Report
September 22, 2003
The City requested proposals from Abbott to address the contract modification, and a
copy of the August 21, 2003 proposal is provided as Attachment 1. The Abbott proposal
consist of two different alternative, Option 1 and 2. A summary of the two proposals is
presented below, and a mo detailed financial analysis is provided in Attachment 2.
Both proposals include provision of the following staffing levels for the Building
Department:
❑ Proposed Staffing Levels:
❑ As- needed Building Official
❑ Full -time Senior Building Inspector (40 hours /week)
❑ Full -time Building Inspector (40 hours /week)
❑ Full -time Permit Technician (40 hours /week)
❑ Part-time Code Compliance Officer (20 hours /week)
❑ Option 1 Alternative: Abbott will provide the above staffing levels and all plan
review and building inspection services at the following payment schedule:
❑ Monthly Building and Plan Check Fees up to $50,000 70% of fees
❑ Monthly Building and Plan Check Fees between $50,000
Up to an annual aggregate of $400,000 in permit fees 55% of fees
❑ Monthly Building and Plan Check Fees between $50,000
Up to an annual aggregate of between $400,000
and $700,000 in permit fees 45% of fees
❑ Monthly Building and Plan Check Fees between $50,000
After permit fees exceed an annual aggregate of $700,000 40% of fees
❑ Option 2 Alternative:
❑ Monthly Building and Plan Check Fees Collected 65% of fees
Staff has prepared an analysis of the proposed payment schedule for both Option 1 and
Option 2, and compared those costs for the last fiscal year to the costs incurred under the
current contract with Abbott and the cost of the City Senior Building Inspector. That
analysis is provided as Attachment 2.
In reviewing the analysis presented in Attachment 2, staff recommends that the City
Council accept the Option 1 fee schedule, as it allows for a reasonable rate of return to
Abbott when fees collected are low, and retains additional funds to the City when fees
collected exceed $50,000 a month and exceed the total aggregate levels set forth in the
Option 1 proposal.
The proposed modifications to the Agreement have been reviewed by the City Attorney
and approved as to form.
2003 Contract Services.CC Staff Report 4
Approval of Modification to Agreement for
Building Inspection and Plan Check Contract Services Agreement
City Council Staff Report
September 22, 2003
FISCAL IMPACT:
Costs of the contractual services are offset by the collection of Building Permit issuance
fees and Building Plan Check fees. The contractor will retain either:
❑ Option 1: 70% of the first $50,000 in monthly building permit and plan
check fees, 55% of monthly amounts over $50,000 up to an annual aggregate of
permit fees of $400,000, 45% of monthly amounts over $40,000 when permit fees
exceed an annual aggregate of between $400,000 and $700,000, and 40% of
monthly amounts over $50,000 after permit fees exceed an annual aggregate of
$700,000. City will retain all other fees.
❑ Option 2: 65% of all building permit and plan check fees. City will retain all
other fees
For examples of how the proposed fee structure would compare to actual staffing costs
during Fiscal Year 2002 -2203, please refer to Attachment 2. The proposal by Abbott
would result in an approximate overall staffing cost reduction of the Department of
between $18,000 to $25,000 per year, or approximately 4 %, assuming similar Building
Department activity in future years. Fiscal Year 2002 -2003 fees were approximately
1.9% above the three -year average, and are a good comparison year to utilize in the
financial analysis.
For an overview of how Building Department Plan Check and Permit fees have
fluctuated over the past three fiscal years, please refer to Attachment 3.
RECOMMENDATION:
Approve proposed contract modification Option 1 for Building Inspection and Plan
Check services with Charles Abbott Associates, Inc. and authorize the City Manager to
execute the contract modification documents upon acceptance as to form by the City
Attorney.
NOTED ' 1 1 APPRO D
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Attachments: (3)
2003 Contract Services.CC Staff Report 5
Approval of Mothfication to Agreement for
Building Inspection and Plan Check Contract Services Agreement
City Council Staff Report
September 22, 2003
Attachment 1: Contract Modifications to Agreement for Building Plan
Check and Inspection Services, Charles Abbott Associates,
Inc., dated August 21, 2003
Attachment 2: Comparison of Building Permit Fees - Contract v. City
Services, Fiscal Year 2002 -2003
Attachment 3: Monthly Building Permit and Plan Check Fees — Fiscal
Years 2000 -2001, 2001 -2002, and 2002 -2003
2003 Contract Services.CC Staff Report 6
III CHARLES ABBOTT ASSOCIATES, INC. •
Options 1 and 2
PROPOSALS FOR BACKFILLING SENIOR BUILDING INSPECTOR
POSITION
August 21, 2003
Mr. Lee Whittenberg
Director of Development Services
211 Eighth Street
Seal Beach, CA 90740
Dear Mr. Whittenberg:
Please consider two approaches identified below as Option 1 and Option 2. With both Options,
CAA will provide an as- needed building official, a full -time senior building inspector, a full -time
• building inspector, a full -time permit technician, and a part-time (20 hours/week) code
compliance officer, all plan review staffing, and any additional staffing as required by increased
workloads. Under Option 1, CAA can provide these three full -time positions and two part-time
positions along with all necessary back -up staffing at the rate of 70% for the first $50,000
collected each month and then pro -rated thereafter as described below. Under Option 2, CAA
can provide these three full -time positions and two part-time positions along with all necessary
back -up staffing for 65% of fees collected.
CAA is dedicated to tailoring our services and compensation to best meet the needs of the City
of Seal Beach. We are open to discussion of these or any other options the City may want to
consider.
Sincerely,
Buster Scholl, CBO
Regional Director
• Charles Abbott Assocuxtes, Inc.
371 Van Ness Wary, Suite 200, Torrance, G4 90501 -
(310) 212-5778 y FAX (310) 212-0993
CAA CHARLES ABBOTT ASSOCIATES, INC. •
Option 1
Modify existing contract EXHIBIT A by adding a new sub - section:
1.3.4 Senior Building Inspector.
a. Position would be a 40 -hour per week position, working Tuesday through Friday
from 7:00 AM to 6:00 PM.
b. Is also to be a Certified Combination Inspector and Certified Plans Examiner, in
order to possess the credentials and experience to perform any duty in a Building and
Safety Department/Division
Modify existing contract EXHIBIT B, PAYMENT SCHEDULE, as shown below:
EXHIBIT B
Regular Building Plan Check and Inspection:
The following fee schedule will apply for Consultant providing an on -call Certified
Building Official, a full -time Senior Building Inspector, a full -time, certified Building
Inspector, a part-time Code Compliance Officer, a, full -time Permit Technician and •
additional building and safety staffing as the workload' may dictate as set forth Exhibit A,
Section 1, and for the provision of all services, permit tracking systems, equipment and
material as set forth in Exhibit A.
Monthly Fees Collected Consultant % of Fees
Amounts up to $50,000 70%
Amounts over $50,000 a) 55% of monthly amounts over
$50,000 up to annual aggregate of permit fees
of $400,000
b) 45% of monthly amounts over
$50,000 after when permit fees reach an
annual aggregate of between $400,000
and $700,000
c) 40% of monthly amounts over
$50,000 after permit fees exceed an
annual aggregate of $700,000
I • Char / =s Abbott Associates, Inc.
371 Van Ness Way, Suite 200, Torrance, CA 90501
(310) 212-5778 * FAX (310) 212 -0993
• CHARLES ABBOTT ASSOCIATES, INC.
Note: The City must collect a minimum of $400,000 per year in building fees. If Tess
than the minimum amount is collected, the percentage of fees or staff, commitments will
be adjusted per negotiation.
Accelerated Plan Review:
Consultant will provide 48 -hour plan review at the regular rate plus 1.5 times the hourly
rate (hourly rate schedule) for the plan review personnel performing the work.
Option 2
Modify existing contract EXHIBIT A by adding a new sub - section:
1.3.4 Senior Building Inspector.
a. Position would be a 40 -hour per week position, working Tuesday through Friday
from 7:00 AM to 6:00 PM.
b. Is also to be a Certified Combination Inspector and Certified Plans Examiner, in
• order to possess the credentials and experience to perform any duty in a Building and
Safety Deparanent/Division
Modify existing contract EXHIBIT B, PAYMENT SCHEDULE, as shown below:
EXHIBIT B
Regular Building Plan Check and Inspection:
The following fee schedule will apply for Consultant providing an on -call Certified
Building Official, a full -time Senior Building Inspector, a full -time, certified Building
Inspector, a part-time Code Compliance Officer, a full -time Permit Technician and
additional building and safety staffing as the workload may dictate as set forth Exhibit A,
Section 1, and for the provision of all services, permit tracking systems, equipment and
material as set forth in Exhibit A.
Monthly Fees Collected Consultant % of Fees
Fees Collected 65%
• Charles Abbott Associates, Inc.
371 Van Ness Way, Suite 200, Torrance, C4 90501
(310) 212 -5778 * FAX (310) 212 -0993
C J •
CHARLES ABBOTT ASSOCIATES, INC.
Note: The City must collect a minimum of $400,000 per year in building fees. If Tess
than the minimum amount is collected, the percentage of fees or staff commitments will
be adjusted per negotiation.
Accelerated Plan Review:
Consultant will provide 48 -hour plan review at the regular rate plus 1.5 times the hourly
rate (hourly rate schedule) for the plan review personnel performing the work.
Charles Abbott Associates, Inc. •
371 Van Ness Way, Suite 200, Torrance, C4 90501
(310) 212 -5778 "FAX (310) 212-0993
•
CITY OF SEAL BEACH
COMPARISON OF ACTUAL vs. PROPOSED COMPENSATION OPTIONS
CITY FEES CAA'S ACTUAL OPTION #1 OPTION #2
COLLECTED COMPENSATION 70% 65%
JULY 67,708 40,070 44,739 44,010
AUGUST 92,689 49,091 58,479 60,248
SEPT 44,272 28,300 30,990 28,777
OCT 169,811 78,368 100,896 110,377
NOV 38,206 25,368 26,744 24,834
DEC 58,203 33,847 38,691 37,832
JAN 44,189 28,032 30,932 28,723
FEB 26,326 17,824 18,428 17,112
MARCH 39,372 26,749 27,560 25,592
APRIL 83,697 48,739 50,163 54,403
• MAY 31,737 20,807 22,216 20,629
JUNE 53,935 34,124 36,770 35,058
TOTAL 750,145 431,319 486,608 487,595
•
Approval of Modification to Agreement for
Building Inspection and Plan Check Contract Services Agreement
City Council Staff Report
• September 22, 2003
ATTACHMENT 2
COMPARISON OF BUILDING PERMIT
FEES - CONTRACT V. CITY SERVICES,
FISCAL YEAR 2002 -2003
1111
•
2003 Contract Services.CC Staff Report 8
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Approval of Modification to Agreement for
Building Inspection and Plan Check Contract Services Agreement
City Council Staff Report
• September 22, 2003
ATTACHMENT 3
MONTHLY BUILDING PERMIT AND PLAN
CHECK FEES - FISCAL YEARS 2000 -2001,
2001 -2002, AND 2002 -2003
•
111
2003 Contract Services.CC Staff Report
Approval of Modification to Agreement for '
Building Inspection and Plan Check Contract Services Agreement
City Council Staff Report • September 22, 2003
MONTHLY BUILDING FEES COLLECTED
FY 2000 -2001, 2001 -2002, and 2002 -2003
MONTH FISCAL YEAR FISCAL YEAR FISCAL YEAR 3 YEAR
2000 -2001 2001 -2002 2002 -2003 AVERAGE
JULY 36,861 55,461 67,708 53,343
AUGUST 103,190 82,996 92,689 92,958
SEPTEMBER 52,025 99,218 44,272 65,172
OCTOBER 43,692 60,049 169,811 91,184
NOVEMBER 36,080 22,234 38,206 32,173
DECEMBER 41,393 29,060 58,203 42,885
JANUARY 51,624 32,217 44,189 42,677
• FEBRUARY 54,676 52,295 26,326 45,099
MARCH 70,030 62,531 39,372 57,311
APRIL 71,029 46,711 83,697 67,146
MAY 31,830 64,529 31,737 42,699
JUNE 206,168 51,121 53,935 103,741
TOTAL 798,598 658,422 750,145 735,722
III
2003 Contract Services.CC Staff Report 11