The Community and Economic Development Department (CEDD) has historically augmented service delivery with third party contract services to assist with streamlining response times and enhance customer service by supplementing in-house staff with contractual services on an “as-needed” basis in the areas of plan check services for high-profile projects and/or additional Building & Safety positions. Positions include but are not limited to: building inspection, code enforcement, permit counter operations, and other related services as needed.

Over the past three (3) years, the Building & Safety Division has seen high levels of activity through various economic cycles with several major development projects at different stages in the pipeline alongside increased applicants for accessory dwelling units.  A general summary of permits issued, building inspection volume, code compliance cases, and permit counter activity are provided below:

Periodically, the City receives applications for development projects, for which the volume and requests for expedited timelines exceed what can be provided by in-house staff.  Recently, the City was faced with a challenging situation in which third party services were utilized to address building inspection backlog.  Moving forward, it is recommended that qualified “third party” vendors be available on an "on-call basis" in order to maintain high level of customer service delivery and ensure the safety of the residents and the community.

In addition, over the next five (5) years, the City will also need specialized services related to high-profile projects including the Brookhurst Triangle Phases 3, 4, and 5, Site “B2” Hotel, and Site “C” Hotel. The City recognizes the necessity for third party assistance in performing services when these applications arise so that Building & Safety is able to respond effectively during peak periods.

CEDD launched an extensive RFP process to seek out experienced firms interested in providing on-call plan review and/or building contractual services. Eight (8) prospective firms were invited, and eight (8) proposers submitted formal responses.  A comprehensive selection panel consisting of five (5) key members from Building, Planning, Office of Economic Development, City Manager’s Office, and Real Property rated the proposals on the basis of experience, qualifications, technology, customer service, references, oral interviews, and the ability to provide in-house contractual services and/or availability to attend internal meetings and assist City staff as needed.

Based on the evaluation results, staff discovered strengths in two (2) separate areas offered by the top four (4) ranking firms. BV and VCA were the highest in plan review and contractual related services, SFA was rated the highest in complex construction plan review services, and CSG uniquely offered a wide range of community development and public works-related contractual services.  Based on the City’s future needs for services for the projects slated, staff is recommending contracts with four (4) of the eight (8) consultants.

The proposed contracts for BV and VCA include separate agreements for building Plan Review services and Contractual Services. The purpose of establishing separate contracts is to distinguish work under a deposit-based reimbursement agreement paid for by the developer, which is recorded separately from the use of City operational funds.

The following is a summary of the ratings:

CONCLUSION

In summary, Bureau Veritas North America, Inc. (BV) is the largest plan review firm in the United States, with 38 years of combined experience, and two local offices operating out of Santa Ana and Irvine.  The firm’s range of experience includes not only plan review but also a strong code enforcement and counter operations staffing team.  

Scott Fazekas & Associates, Inc. (SFA) is an Irvine based company with over 40 years of experience exclusive to municipal building departments to ensure zero conflict of interest.   It specializes in operations tailored to the exact needs for high-profile projects, and offers accommodations for expediting plan review and turn-around times.

VCA Code (VCA) has over 30 years of industry experience operating from its regional office located in the City of Orange, and currently serves 33 cities in Southern California. The firm offers plan review and specialized on-call staff augmentation services which includes a skilled building inspection team.

CSG Consultants, Inc. has over 36 years of municipal experience and currently has a team of 300+ individuals who have worked in public agency services throughout their entire careers.  They operate locally in the City of Orange. In addition to the minimum requirement, the firm provides services for other community and economic development and public works related disciplines.

City reference checks for all four (4) firms confirmed positive feedback, with excellent marks in areas of responsiveness, problem solving, customer service and knowledge, which is consistent in their staffing, reliability, and exceptional communication skills.

It is anticipated that the Plan Review contracts will be established in the not-to-exceed amount of $250,000 per year with the option to extend the agreement in one (1) year increments, for a total performance period of five (5) years.  These services will be on a separate deposit based reimbursement agreement funded by the developers, and therefore will not impact the General Fund.

Funding for the contracts specific to Contractual Services will also be established in the not-to-exceed amount of $250,000 per year with the option to extend the agreement in one (1) year increments, for a total performance period of five (5) years.  Funding for contractual services is provided by the General Fund, and is currently included in the Building & Safety Division’s operational budget: no additional appropriation is necessary.

It is recommended that the City Council:

• Award contracts for on-call Plan Review Services to 1) Bureau Veritas North America, Inc., 2) Scott Fazekas & Associates, Inc., and 3) VCA Code in the not-to-exceed amount of $250,000 per contract per year, with the option to extend the agreement in one (1) year increments, for a total performance period of five (5) years, on an “as-needed” basis;

• Award contracts for on-call Building Contractual Services to 1) Bureau Veritas North America, Inc., 2) VCA Code, and 3) CSG Consultants Inc. in the not-to-exceed amount of $250,000 per contract per year, with the option to extend the agreement in one (1) year increments, for a total performance period of five (5) years, on an “as-needed” basis;

• Authorize the City Manager, or his designees, to execute the agreement, and make minor modifications as appropriate thereto, on behalf of the City; and

• Authorize the City Manager, or his designees, to exercise option year terms and sign the option year amendments.

By: Alana Cheng, Administrative Officer