HomeMy WebLinkAbout2001-06-12; City Council; 16216; Agreement With Esgil CorporationAB# lb! a-lb
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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
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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
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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
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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
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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