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HomeMy WebLinkAbout2001-06-12; City Council; 16216; Agreement With Esgil CorporationAB# lb! a-lb MTG. b/a-o/ DEPT. BLD CITY OF CARLSBAD - AGENDA BILL TITLE. -- AMENDMENT OF CONTRACT FOR BUILDING PLAN CHECK SERVICES WITH ESGIL CORPORATION DEPT. HD. RECOMMENDED ACTION: ADOPT Resolution No. a-001-l baamending the contract for building plan check services. ITEM EXPLANATION: The City’s Building Department contracts with ESGIL Corporation for building plan checks. EsGil receives a share of plan check revenue collected from applicants. Late in 2000, Building Permit and plan check fees were reduced as part of an annual fee review process. The reduction in plan check fees resulted in a net loss in plan check revenue to EsGiI Corporation. This change was an unanticipated and unintended result of that fee reduction action, and EsGil Corporation has requested a contract amendment as either party is allowed in the contract. The work performed by the contractor has not diminished, and the contractor should not bear a loss of revenue associated with the City’s desire to charge applicants fair and reasonable fees. EsGil Corporation has been performing increasing more complex levels of plan review as the Codes have become more complex and detailed. In fact, the number of changes to the various Codes and State amendments thereof has consistently increased the complexity of plan checking, and EsGil’s rate charged to the City over the last 15 years has not changed. The overall building permit and plan check fee reduction to applicants was approximately 7%. Currently EsGil receives 52% of the building permit fee for plan checking. Therefore, EsGil is requesting the contract provide that their service fee be changed 56% of the building permit fee - this equates to a net 7% increase in their fee. No fee increase will be born by applicants for this contract amendment. FISCAL IMPACT: The average revenue provided to EsGil Corporation for services rendered to applicants has been approximately $35,000 per month over the last year. The fee reduction implemented by the City this fiscal year resulted in EsGil losing approximately $2,500 in revenue per month for providing the same services. This action will result in EsGil being restored to their previous contractual status. EXHIBITS: 1. City Council Resolution No. a00 \ -1 b & services contract approving amendment of plan check 2. Agreements 3. Fee Comparison Table 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2o01-162 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CARLSBAD AND ESGIL CORPORATION FOR BULDING PLAN CHECK SERVICES AND AUTHORIZING THE MAYOR TO EXECUTE SAID AMENDMENT. I WHEREAS, the Building Department of the Cityof Carlsbad is required to perform plan checks, and WHEREAS, the City contracts with EsGil Corporation to perform building plan checks, and WHEREAS, the City of Carlsbad receives revenues for plan check and EsGil receives a proportionate share of the revenue collected from applicants to cover the cost of providing this service; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the existing agreement between the City of Carlsbad and EsGil Corporation, allowed a fee paid to EsGil Corporation equal to 52% of the Building Permit Fee for plan check services rendered. 3. That the City recently reduced Building Permit Fees approximately 7%, thereby inadvertently causing a reduction of 7% in plan check revenue sent to EsGil Corporation for services rendered. 4. That this reduction in revenue sent to EsGil Corporation will be remedied by amending the contract between the City of Carlsbad and EsGil Corporation to allow that the fee paid to EsGil Corporation will be 56% of the Building Permit Fee thereby restoring EsGil Corporation to their previous contract status 4 8 9 10 11 12 13 14 15 16 17 18 19 20 (SEAL) / 21 22 23 24 25 26 27 28 5. That the Mayor of the City of Carlsbad is hereby authorized and directed to execute said agreement for and on behalf of the City of Carlsbad. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the 12th day of June , 2001 by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Finnila, Nygaard, and Hall. NOES: None. ABSENT: None. /I ATTEST: -2- AMENDMENT NO. 1 TO AGREEMENT This Amendment is entered into and effective as of the 20th day of June , 2001, amending the agreement dated June 9, 1999 by and between the City of Carlsbad, a municipal corporation, hereinafter referred to as “City”, and ESGIL Corporation, hereinafter referred to as, “Contractor” to provide the necessary plan review services for proposed construction projects. RECITALS WHEREAS, the initial agreement, dated June 9, 1999 identified a scope of work to perform traditional initial plan review of submitted plans to determine compliance with City adopted Uniform Building Code, Uniform Plumbing Code, Uniform Mechanical Code, National Electric Code, and California State Title 24 (Energy Conservation; Disabled Access; and Noise Attenuation); and WHEREAS, the parties to this aforementioned agreement desire to alter the way fees are to be paid to the contractor as follows: FEES TO BE PAID TO CONTRACTOR a. Compensation for each plan reviewed under Sections 1, a-e shall be 56% of the building permit fee calculated per Section 107 of the latest published edition of the Uniform Building Code as adopted by the City for each building plan checked. The construction valuation shall be based on the most recent valuation multiplier adopted by the City or on the architect’s estimated construction cost, or on the Building Official’s cost estimate. The Building Official shall have final decision authority over the value used. 212198 Plan check fee for repetitive identical buildings shall be 56% of the building permit fee as noted above for the first, or basic building, and 13% of the plan check fee as noted above for each additional building. The single fee includes all rechecks and there are no additional charges for preliminary plan check conferences at our office, expedited processing, checking plans that are eventually found to be incomplete or for the mailing of plans back to the jurisdiction; and WHEREAS, fee schedule have been negotiated and agreed to between the parties hereto; NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor hereby agree as follows: 1. Contractor shall provide services for plan review services on proposed construction on an as-needed basis. 2. City shall pay Contractor for all work associated with Paragraph 1 above. Contractor shall provide City on a monthly basis, copies of invoices sufficiently detailed to include hours performed, hourly rates, and related activities and costs for approval by City. 3. Contractor shall complete all work by expiration of the agreement amended hereby. 4. All other provisions of the aforementioned agreement entered into on June 9, 1999, by and between City and Contractor shall remain in full force and effect. 212198 5. All requisite insurance policies to be maintained by the Contractor shall include coverage for the amended assignment and scope of work. Acknowledged and Accepted: CONTRACTOR: \I'[ *pp‘;[ June 20, 2001 Y L DATE (Proper notarial acknowledgment of execution by Contractor must be attached. Chairman, president or vice-president and secretary, assistant secretary, CFO or assistant treasurer must sign for corporations. Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.) APPROV D AS TO FORM: RONALD a BALL, City Attorney 212198 State of /3/&7/&//~~ County of S)?/L’ i??Zi?CZ 6 On 4. before me, SA.6mfP AJ I ,flLdAh~+=$~~k$;<L$Y NAME, TITLE OF OFFICER - E.G., ‘JANE L&s+ a? L‘LG da= H personally known to me - OR - 0 proved to me on the basis of satisfactory evidence to be the personu whose name(sJ,@are subscribed to the within instrument and ac- knowledged to me that J&l&they executed the same in t$/Wtheir authorited capacity(ies), and that by Q&&&/their signature@ on the instrument the person.@, or the entitv uDon behalf of which the pm,+ the instrument. OPTIONAL BECTION - THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT p?T)/ &= / ‘h THE DOCUMENT DESCRIBED AT RIGHT: NUMBER OF PAGES ._ 3 DATE OF DOCUf Though the data requested here is not required by law. it could prevent fraudulent reattachment of this form. SIGNER(S) OTHER THAN NAMED ABOVE /&W~ ,’ -___------------ - OPTIONAL SECTION - CAPAQTY CLAIMED BY SIGNER Though s+aute doss not require the Notary to fill in the data below, doing so mav Drove CORPORATE OFFICER(s) so /y&.>y-? - , L ( j? y- 2 _ / f;“-#7&~ TITLE(S) q PARTNER(S) q LIMITED 0 GENERAI, 0 ATTORNEY-IN-FACT 0 TRUSTEE(S) 0 GUARDIAN/CONSERVATOR Cl OTHER: ~ SIGNER IS REPRESENT1 6: NAME OF PERSON@ OR EN-Ill-Y 2 &&ZL ‘ “&$yf&3,tpT&J 01992 NATIONAL NOTARY ASSOCIAIIUN l 6236 nemmel Ave., P.U. uox 7184 l r;anoga ram, GA YUUY-rlin EsGil CorDoration s In Partnership with ~ovmment fm !BdAing Safety March 20,200l Mr. Patrick Kelley City of Carlsbad 1635 Faraday Carlsbad, CA 92006 Re: Fee Change Dear Pat, Per your request, we have evaluated the new fee schedule in effect in Carlsbad. Per contract, the service fee we charge for plan reviews is a percentage of the Building Permit Fee collected by your staff. Initially, it appears that our fee will be reduced by twelve percent since your fee table has been reduced by that amount. Slightly offsetting that, though, is the increase in valuation multipliers being used in Carlsbad. On the following sheet, we have provided a summary of the value changes, and ultimately, the fee changes for some representative projects. We chose a consecutive series of plan reviews performed in December, 2000. As can be seen by the totals, the net effect on our service fee is a 7% decrease. In accordance with our contract, we are requesting an addendum to the contract, raising our service fee from 52% of your Building Permit Fee to 56% of your Building Permit Fee. We feel this will keep our fee at the same level as in the past, and is consistent with the intent of the contract. Please let me know if you would like any additional information regarding our summary, or if you would like to discuss our request. We have enjoyed a long and successful working relationship with the City of Carlsbad, and hope we can mutually find a way to remedy this fee disparity. Sincerely, R/chard Esgate u President 9320 Chesapeake Drive, Suite 208 + San Diego, California 92123 + (858) 560-1468 l Fax (858) 560-1576 Y