Report to Mayor and City Council
Wednesday, March 06, 2024
Consent
SUBJECT:
Title
CONSIDER ADOPTION OF RESOLUTION NO. 24-029, A RESOLUTION OF THE CARSON CITY COUNCIL APPROVING A BUDGET TRANSFER IN FISCAL YEAR 2023-24 FROM THE GENERAL FUND TO INCREASE THE TRANSTECH ENGINEERS, INC. CONTRACT BUDGET FOR THE FISCAL YEAR AND APPROVAL OF PROPOSED AMENDMENT NO. 1 TO THE AGREEMENT WITH TRANSTECH ENGINEERS, INC. TO PROVIDE BUILDING AND SAFETY SERVICES FOR THE CITY OF CARSON (CITY COUNCIL)
Body
I. SUMMARY
In July 2023, the City of Carson transitioned from utilizing Los Angeles County to Transtech Engineering, Inc. (Transtech) for building and safety services. Shortly after this transition, the City experienced an increase in building permit activity. This increase caused the cost to provide building and safety services to increase well beyond those anticipated when the City entered into the original agreement with Transtech. The original contract sum was for $3,900,000 over three (3) years with two, optional one-year extensions.
This amendment proposes to increase the maximum contract amount from $3,900,000 to $8,0000,000 over the same three-year period. Since the compensation to Transtech is largely based on a percentage of building permit activity (and not necessarily based on consultant hours), this increase is based on increased building permit activity, which volume increased independently of the contract. As a result, Transtech's invoices have been significantly larger than expected, totaling approximately $3,211,000 for the first six (6) months of the contract, leaving approximately $689,000 for the remaining two and half years.
Based on the level of permit activity, it appears the contract sum should be approximately $2,667,000 per year, or $8,000,000 over the three years. The entire cost for Transtech's contract is paid by developers, residents, and contractors, through the remittance of permit and plan check fees; calculated by the valuation of applic...
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