For City Council Meeting [June 26, 2018]
TO: Honorable Mayor and City Council
FROM: Robb R. Steel, Interim City Administrator
Title
Request City Council to Approve a Third Amendment with Interwest Consulting Group to increase their contract amount by $20,000 from $130,000 to $150,000 for the remainder of Fiscal Year 2017/18 to PO 2018-0585.
(ACTION)
Body
BACKGROUND:
On July 25, 2017, the City Council approved a First Amendment to the Professional Service Agreement with Interwest to increase its contract amount by $50,000 to a total of $130,000 for fiscal year 2017/18.
ANALYSIS/DISCUSSION:
The Development Services Department requests an increase to the contract authorization for Interwest for the Building Division.
Although the Building Division has exhausted the Purchase Order authorization for FY17/18, the need for additional inspection and plan check services remains. The Purchase Order increases are primarily pass-thru fees paid by the developer, so this action will not have a negative effect on the General Fund; in fact, the revenue from development covers the associated third party contract costs, and contributes toward the City’s fixed overhead costs.
ENVIRONMENTAL IMPACT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW:
The City Attorney has reviewed and approved the staff report.
FINANCIAL IMPACT:
Operating Budget Impact
For FY17/18, the Building Division has experienced an increase in revenue due to increased construction activity. These expected revenues were included in the Mid-Year Budget Adjustments. The developers pay these pass through fees, and the City receives some revenue overages to cover fixed operating costs.
Funds in the amount of $20,000 are budgeted and available for the Interwest Purchase Order (2018-0585) in the General Fund Account No. 010-500-4261-2011.
Capital Budget Impact
There is no impact upon the capital improvement budget.
RECOMMENDATION:
Staff recommends that City Council Approve a Third Amendment with Interwest Consulting Group to increase their contract amount by $20,000 to $150,000 for the remainder of Fiscal Year 2017/18 to PO 2018-0585.