AGENDA TITLE:
title
Adopt a Resolution Authorizing the City Manager to Execute Amendment No. 1 to Increase the Contract Amount for the Professional Services Agreements with 1) 4 Leaf, Inc., 2) Interwest Consulting Group, Inc., 3) Bureau Veritas North America, Inc., 4) BPR Consulting Group, LLC, and 5) CSG Consultants, Inc. for Building Codes Plans Examining, Building Codes Inspection, Fire Codes Plans Examining, Fire Codes Inspection, and Code Enforcement Services by $867,000, for a Total Amount Not to Exceed $2,067,000 and Authorizing the City Manager to Approve Change Orders Related to the Services Provided in an Amount Not to Exceed $867,000 (CD)end
MEETING DATE:
May 7, 2025
PREPARED BY:
Lorie Waters, Administrative Analyst
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Authorizing the City Manager to Execute Amendment No. 1 to Increase the Contract Amount for the Professional Services Agreements with 1) 4 Leaf, Inc., 2) Interwest Consulting Group, Inc., 3) Bureau Veritas North America, Inc., 4) BPR Consulting Group, LLC, and 5) CSG Consultants, Inc. for Building Codes Plans Examining, Building Codes Inspection, Fire Codes Plans Examining, Fire Codes Inspection, and Code Enforcement Services by $867,000, for a Total Amount Not to Exceed $2,067,000 and Authorizing the City Manager to Approve Change Orders Related to the Services Provided in an Amount Not to Exceed $867,000
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BACKGROUND INFORMATION:
In October 2022, City Council adopted Resolution No. 2022-252 authorizing the City Manager to execute two-year Professional Services Agreements with 1) 4 Leaf, Inc., 2) Interwest Consulting Group, Inc., 3) Bureau Veritas North America, Inc., 4) BPR Consulting Group, LLC, and 5) CSG Consultants, Inc. for building codes plans examining, building codes inspection, fire codes plans examining, fire codes inspection, and code enforcement services on an as-needed basis; and further authorized the City Manager to execute two 2-year extension options with each consultant, with the total contracts not to exceed six years or $1,200,000. The first two-year option to extend the agreements was utilized and executed in August 2024, extending the term of the agreements through October 31, 2026.
Between September 2016 and October 2022, the Community Development Department spent an average of less than $11,000 per month on building contract services. While preparing for the agreements that would be effective in November 2022, the department was staffed with three Building Inspector IIs, an Assistant Engineer/Plans Examiner, and a Chief Building Official. Based on this, management projected that $1,200,000 would be enough to cover any expected contract service needs over the next six years. Since the adoption and execution of the contract, one Building Inspector II resigned and another retired, the Assistant Engineer / Plans Examiner position remained vacant for nearly eight months, and the Chief Building Official resigned earlier this year.
The white cells in Table 1 below demonstrate the timing of vacancies in these positions over the past four years.
Table 1
To provide the consistent level of service that our building community requires, it is imperative that the City maintain a staff with qualified and experienced level II Building Inspectors, as also directed by City Council. In the past, the Community Development Department has hired entry-level Building Inspectors but experienced turnover within 1 - 1 ½ years to other agencies. Although the City of Lodi now offers competitive benefits and pay in comparison to surrounding areas, there is an overall decline in professionals entering these physically demanding positions of the construction industry as a career. Additionally, qualified candidates may experience more flexible work schedules as contract employees. Despite ongoing job postings since January 2024, the City is not receiving applications from qualified candidates, highlighting a long-standing staffing issue in building inspection that necessitates the use of contract professional services. The City of Lodi is not alone in experiencing these challenges in successfully recruiting for these positions.
Table 2 below displays the actual costs that the Community Development Department has incurred for contracted Building Inspection, Plan Review, Building Official, and administrative support services since the start of the professional services agreements in November 2022. The remaining contract balance of $159,968 will only suffice for the City to pay for services incurred through May 2025.
Table 2
Through one minor adjustment replacing one contract to a staffed position, the Community Development Department will realize a reduction in expenses of $10,000 a month. Vacant positions are anticipated to cost an average of $51,000 per month beginning in June 2025. This could change if the City is able to hire a qualified Building Official and/or level II Building Inspectors.
Table 3 below demonstrates a comparison of the top step for the regular employee salary of the Chief Building Official position and the costs to maintain Building Official contract services for 3 days per week and a comparison to maintain three contract Building Inspectors verses three staff positions.
Table 3
To ensure an adequate contract amount is available from June 2025 through October 2026, the Community Development Department is requesting that City Council adopt a resolution authorizing the City Manager to execute Amendment No. 1 to increase the contract amount by $867,000 for the Professional Services Agreements with 1) 4 Leaf, Inc., 2) Interwest Consulting Group, Inc., 3) Bureau Veritas North America, Inc., 4) BPR Consulting Group, LLC, and 5) CSG Consultants, Inc. for Building Codes Plans Examining, Building Codes Inspection, Fire Codes Plans Examining, Fire Codes Inspection, and Code Enforcement Services, for a total amount not to exceed $2,067,000.
Staff will continue to look for the best qualified contract employees to temporarily service the various needs of the department, and the current rates reflect available staff at each level of service. The projected allocations for all five vendors shown below in Table 4 may require modifications as time passes. Estimates are based on current usage and availability of qualified contract staff.
Table 4
|
|
Current Allocation ($1,200,000) |
Amendment No. 1 (+$867,000) |
Percent of Allocation for Amendment No. 1 |
Total Recommended Allocation ($2,067,000) |
|
4 Leaf, Inc. |
$700,000.00 |
$435,000.00 |
≈50% |
$1,135,000.00 |
|
BPR Consulting |
$300,000.00 |
$260,000.00 |
≈30% |
$560,000.00 |
|
CSG Consulting |
$200,000.00 |
$152,000.00 |
≈17.5% |
$352,000.00 |
|
Bureau Veritas |
$0.00 |
$10,000.00 |
≈1.2% |
$10,000.00 |
|
Interwest Consulting |
$0.00 |
$10,000.00 |
≈1.2% |
$10,000.00 |
Staff will continue to keep City management informed as vacancies are filled, and in June 2026, Staff will reevaluate the costs needed to maintain contract services for the next optional extension through October 2028.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
As this request is for a change in the contracted amount only, there will be no additional impact on the budget for this fiscal year, as City staff have already appropriated sufficient funding through regular employee salary savings and mid-year appropriations. The Community Development Department will be requesting a budget of $650,000 for Building’s Miscellaneous Professional Services account (27081000.72450) in the Fiscal Year 2025-26.
FUNDING AVAILABLE:
At the beginning of Fiscal Year 2024-25, Community Development Staff received direction from Administration to work with the Budget and Finance Departments during the course of the year to appropriate funds on an as-needed basis for Building contract services from regular salary savings (27081000.71001) due to the vacant positions. In December 2024, an amount of $260,000 was appropriated to the Building Division’s Miscellaneous Professional Services account (27081000.72450). An additional $107,000 has been requested from salary savings in March 2025, and an appropriation adjustment for $260,000 was approved by City Council on April 2, 2025 during the mid-year adjustments.
_______________________________________
John Della Monica
Community Development Director
_______________________________________
Christina Jaromay
Acting City Manager