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HomeMy WebLinkAboutCSG Consultants, Inc. - 2021-09-21 ,'0S-�,d-0 2000 Main Street, t(`O< "" u, A Huntington Beach,CA 9° � City of Huntington Beach ig 92648 D 7_o ''" , ,a" ';'' �DUNTY tP�`• " File#: 23-157 MEETING DATE: 2/21/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Al Zelinka, City Manager VIA: Sunny Rief, Acting Chief Financial Officer PREPARED BY: Sunny Rief, Acting Chief Financial Officer Subject: Year-End Audit Results for the FY 2021/22 Annual Comprehensive Financial Report (ACFR), Fiscal Year 2022/23 Mid-Year Budget Adjustments, and Fiscal Year 2022/23 Budget Update and Fiscal Health Report Statement of Issue: Fiscal Year 2022/23 Budget Update and Fiscal Health Report On January 17, 2023, the City Council approved Mayor Pro Tern Van Der Mark's H-Item request for a comprehensive report on the state of the City's budget and financial health, as well as staffing levels, vacancies, the costs of filling vacancies, and any other aspect of citywide reorganization or planned increase in fiscal responsibility and economic efficiency. This Request for Council Action provides the information requested for City Council's consideration. Fiscal Year 2021/22 Year-End Audit Results The City received an Unmodified (Clean) Audit Opinion for the City's Fiscal Year (FY) 2021/22 Annual Comprehensive Financial Report (ACFR), which is the best highest audit result attainable. In addition, the Government Finance Officers Association awarded their Certificate of Achievement for Excellence in Financial Reporting to the City for the 36th consecutive year. Included as an attachment is the FY 2021/22 ACFR to receive and file. Fiscal Year 2022/23 Mid-Year Adjustments The Finance Department has also spent time recently performeding a mid-year budget review for the fiscal year that began on July 1, 2022. In interfacing with operating departments, budgetary requests have been assessed across all City departments, and certain adjustments are being recommended based on available resources in the General Fund, through grants and/or restricted funds. Financial Impact: City of Huntington Beach Page 1 of 21 Printed on 2/16/2023 poviere3Z$Legistar"' File #: 23-157 MEETING DATE: 2/21/2023 Fiscal Year 2022/23 Mid-Year Adjustments 1. General Fund (100) budget adjustments are requested as follows: a. Community & Library Services Department - funding for contract class instructors and increased printing costs for the spring and summer SANDS ($537,000) offset by additional recreation fee revenues for a net zero impact. b. Community Development Department - funding for increased building plan check services ($700,000) offset with plan check revenues for a net zero impact. c. Finance Department - funding for credit card processing fees arising from credit card payments made through the City's Enterprise Land Management System (ELM) ($115,000) d. Fire Department - funding for Fire Strike team reimbursement costs ($525,000) offset with strike team reimbursement revenues for a net zero impact and emergency medical supplies ($175,000) offset with emergency medical services revenue for a net zero impact. e. Police Department - funding for increased costs related to the County-wide 800MHz backbone cost sharing agreement ($189,000) f. Public Works Department - funding for increased fuel costs ($752,000) and increased vehicle maintenance and accident repair costs ($590,000) g. Non-Departmental - funding for increased natural gas costs ($250,000); a transfer to the Equipment Replacement Fund ($500,000 for item 5 below); a transfer to the Workers' Compensation Fund ($4,300,000 for item 4 below); and a transfer to the Section 115 Trust Fund ($2,000,000) to further protect the City from future pension cost increases. 2. The Police Department is requesting additional appropriations totaling $810,000, through the following sources: a. Narcotics Forfeiture - Federal Fund 212 ($60,000) b. Supplemental Law Enforcement Services Fund 984 ($750,000) 3. The Public Works Department is requesting additional appropriations of $531,000 in the Refuse Collection Fund 504 offset with refuse collection revenue for a net zero impact. 4. The Human Resources Department is requesting appropriations of $4,300,000 in the Workers' Compensation Fund 551 offset with transfers in from the General Fund for a net zero impact. 5. The Non-Departmental Department is requesting appropriations of $500,000 in the Equipment Replacement Fund 324 offset with transfers in from the General Fund for a net zero impact. 6. The Community Development Department is requesting to approve, accept and authorize execution of a grant agreement with the State of California Energy Commission and corresponding appropriations of $80,000 in a new CalAPP Grant Fund offset with grant revenues for a net zero impact. 7. The Community Development Department is requesting approval to amend a professional services contract with CSG Consultants, Inc. and corresponding increase in Professional Services Authority of $200,000 and to amend a professional services contract with True North Compliance Services, Inc. and corresponding increase in Professional Services Authority of$200,000. There are sufficient revenues, cash, and/or fund balances to support the above referenced City of Huntington Beach Page 2 of 21 Printed on 2/16/2023 poeier2q Legistar"' File #: 23-157 MEETING DATE: 2/21/2023 adjustments. Recommended Action: A) Receive and File the FY 2021/22 Annual Comprehensive Financial Report and other auditor- issued reports; and 'c B) Receive and file the FY 2022/23 Budget Update and Fiscal Health Report (Attachment 8); and, * i) Approve mid-year budget adjustments to the FY 2022/23 Revised Budget in the funds and by the amounts contained in Attachment 3; and, f2 lE k;') Authorize additional Professional Services authority in the Fiscal Year 2022/23 Revised Budget in the departments and by the amounts contained in Attachment 4; and, ,0) Approve and authorize the Mayor and City Clerk to execute "Amendment No. 1 to Agreement between the City of Huntington Beach and CSG Consultants, Inc. for On-Call Building Division Plan Review Services" (Attachment 5); and, * F E) Approve and authorize the Mayor and City Clerk to execute "Amendment No. 1 to Agreement between the City of Huntington Beach and True North Compliance Services, Inc. for On-Call Building Division Plan Review Services" (Attachment 6); and, ,PG) Accept, approve and authorize the City Manager to execute the grant agreement with the State of California E ergy Commission i the of$80,000 (Attachment 7). Alternative Action(s): Do not approve the recommended action(s) and direct staff accordingly. Denial of Mid-Year budget adjustment requests would result in insufficient funding for critical areas including Worker's Compensation, utilities, and other core services and potential loss of grant funding. Analysis: Fiscal Year 2021/22 Year-End Audit Results Auditing firm Davis Farr LLP (Auditors) audited the City's financial statements and internal control for the FY 2021/22. The City received an Unmodified (Clean) Audit Opinion for the FY 2021/22 Annual Comprehensive Financial Report (ACFR), which is the highest opinion possible (Attachment 1). In addition, the Auditors issued the following reports (Attachment 2): • AU-C 260 Letter: Auditor's Communications with Those Charged with Governance • Appropriations Limit Agreed-Upon Procedures • Air Quality Management District (AQMD) Report Fiscal Year 2022/23 Budget Update and Fiscal Health Report City of Huntington Beach Page 3 of 21 Printed on 2/16/2023 powere33q Legistar"' File #: 23-157 MEETING DATE: 2/21/2023 Fiscal Year 2022/23 Budget Update The City ended FY 2021/22 with a $3.4 million General Fund surplus, primarily due to stronger recovery in Sales Tax ($5.4M, or 12.1% increase from prior year) and Transient Occupancy Tax (TOT) ($5.4M, or 51.8% increase from prior year) than originally anticipated. General Fund revenues for FY 2022/23 remain strong, with Transient Occupancy Tax TOT expected to increase $1.7M, or 10.8% from the prior year. Additionally, Charges for Services revenues are also anticipated to increase ($4M, or 14% from prior year), primarily through increases in building and planning permit activity and demand for emergency medical services. However, inflationary pressures have impacted expenditures, with costs for construction, utilities, and contracted services coming in above budget. In spite of this challenge, the City is expected to end FY 2022/23 with a $3.8M surplus while still funding increased costs for planned expenditures. General Fund Five-Year Financial Forecast (in thousands): • '_ GeneratFund rive Year Forecast (in thousands) Actual Projected Projected Projected Projected Projected FY21/22 FY22/23 FY23/24 FY24/25 FY2S/26 FY26/27 Revenue(Recurring) 5256,246 $273,293 $276,763 $282,097 $287,695 5293,546 Revenue(One-Time) - 29,607 - - - - Total Revenues $256,246 $302,900 $276,763 $282,097 $287,695 $294,546 Expenditures Iess UAL 234,277 251,031 256,408 262,956 269,158 274,718 Cal PERSUAL 4,891 4,891 5,000 5,000 8,270 12,380 POB Payment 13,688 13,556 13,276 12,989 12,687 12,537 One-Time Expenditures - 16,135 - - - - Total Expenditures 252,856 285,613 274,684 280,945 290,115 299,635 HB Recovery Reserves - (13,472) - - - - Surplus/(Deficit) $3,390 $3,815 $2,078 $1,153 $ (2,421) $ (6,089) The Five-Year Financial Forecast above shows the balance of General Fund expenditures for five fiscal years following the audited fiscal year ended June 30, 2022. The revenue projections include updated assumptions based on economic trends and the most recent projections by sales tax and property tax experts. The expenditure projections include the future impacts of the FY 2021/22 CaIPERS investment return of-7.5 percent and assume a 6.8 percent rate of return thereafter (the CaIPERS discount rate). As CaIPERS investment gains and losses are amortized over 20 years with a five-year ramp up, only the first two years of the -7.5 percent return are shown in the Five-Year Forecast. The projections for future fiscal years also include increased expenditures for Worker's Compensation based on the increased cost of claims due to rising medical costs and an expanded list of injuries that are presumed to be work related under California law, as well as the increased cost for General Liability premiums based on the national trend of rising cyberthreats and natural disaster losses. City of Huntington Beach Page 4 of 21 Printed on 2/16/2023 powered/Legistar"' File #: 23-157 MEETING DATE: 2/21/2023 Historical Staffing Levels and Vacancies The City's Adopted Budget includes 815.8 full-time General Fund positions, which is a reduction of 36.4 fewer positions from the compared to the City's pre-pandemic total of 852.2 positions. Since the City's Reorganization Plan was approved by City Council on November 2, 2020, the number of positions has increased by 19. The City has had an average annual vacancy count of 60 positions over the past 10 fiscal years. Currently, the City has 82 vacancies: 25 sworn positions in Police, 9 sworn positions in Fire, and 48 non-sworn positions throughout the City's departments. Fiscal Health Report Financial Health Indicators (FHI) are a proactive approach to monitoring or assisting local governments in identifying early signs of fiscal stress and can be used to measure the fiscal health of the City. The report reviews 12 different aspects of the City's finances to see how Huntington Beach has been performing over the past five years and how the City compares to other Orange County cities. The comparative data is derived from the Annual Comprehensive Financial Report (ACFR) published by each City for the fiscal year ended June 30, 2022. The cities used for comparative purposes are: Anaheim, Costa Mesa, Fullerton, Garden Grove, Irvine, Newport Beach, Orange, and Santa Ana. The FHIs are separated into three broad categories that are generally described below: • Financial Position - Can the City Pay its Bills Now: The City's financial position is strong if it has plenty of cash and other liquid resources available. Without those resources, it will have to borrow money, delay payments, or liquidate some of its other assets, all of which carry significant financial costs. • Financial Performance - Can the City's Revenues Cover its Expenses: The City does not only need to pay bills now, but it needs to make sure that the money it brings in on an annual basis is sufficient to cover its annual expenses. Missing this mark can negatively affect service levels and the City's credit rating which is important for current loan covenants and any future potential debt financing. • Long-Term Solvency - Can the City Pay its Bills in the Future: The City will have bills in the future and its current financial condition will influence its ability to pay them. For the long-term future, the City needs to ensure that its revenue sources can cover long-term spending needs and provide services to a growing and changing population. Financial Position: Can the City Pay its Bills Now FHI #1 General Fund Reserve Ratio: This indicator identifies changes (increases or decreases) in General Fund reserves from the prior year to the current year and is useful in identifying if the City's fund balance reserve is deteriorating. A declining fund balance reserve can be a sign of fiscal stress. This indicator is important in identifying a trend of a deteriorating fund balance reserves as well as how rapidly it is deteriorating. A higher ratio suggests larger reserves for dealing with unexpected resource needs in the long run. City of Huntington Beach Page 5 of 21 Printed on 2/16/2023 powers 3$.Legistar'. File #: 23-157 MEETING DATE: 2/21/2023 FY 17-18 5-Year General Fund Reserve Ratio (9 mos) City of Huntington Beach 35% •NN • •� 0-21 Y 19- % ' 33% Y N. 2o34F022 FY 18-19 31% FY 21-22 General Fund Reserve Ratio- Comparable Cities Irvine, 95% Garden Grove,80% Santa Ana,43% Huntington Beach,33% Costa Mesa,34% Newport Beach,34% Orange,32% Anaheim, 31% Fullerton,21% The City's General Fund balance reserves increased from 33% to 34% of revenues in FY 2020/21, then decreased slightly to 33% in FY 2021/22. This is attributed in stronger revenue growth in FY 2021/22, which is used to calculate this ratio. The overall General Fund Balance increased by $3.39M in FY 2021/22. FHI #2 General Fund Liquidity Ratio: This indicator assesses changes (increases or decreases) in available cash and is useful in identifying the City's ability to pay bills on time by measuring readily available cash, such as unrestricted cash and investments. A declining ratio indicates that the City does not have sufficient cash available to meet its current obligations as they come due. This indicator is important in identifying a trend of deteriorating cash as well as how rapidly it is deteriorating. For this measure, a higher ratio suggests a greater capacity for paying off short-term obligations. City of Huntington Beach Page 6 of 21 Printed on 2/16/2023 powere3a4 Legistar " File #: 23-157 MEETING DATE: 2/21/2023 5-YearGeneral Fund Liquidity Ratio- City of Huntington Beach FY 18-19 8.52 FY 17-18 7.14 FY19-20 (9 mos) 6.55 FY 21-22 6.20 5.38 FY 21-22 Generat Fund Liquidity Ratio- Comparable Cities Garden Grove, 14,07 !wine, 8.25 Santa Ana,7.56 Newport Bead',,5.77 Huntington Beach,5,38 Costa Mesa,44.3E Orange, 3,29 Anaheim, 2.43 Fullerton,2,05 The City's liquidity ratio indicates that the City is able to pay its bills as payments are due by measuring readily available cash, such as unrestricted cash and investments, compared to the total liability obligations, such as payables and accrued payroll. The total liability obligations at year end will vary from year to year based on pay period end dates, timing of projects, and timing of invoices issued by suppliers. Financial Performance - Can the City's Revenues Cover its Expenses FHI#3 General Government Growth in Net Position Ratio: A growth in net position indicates that the City can pay its expenses with its revenue and is able to establish appropriate reserves for future allocation. Revenues from the City's programs ideally should cover the expenses that the City incurs for those programs, otherwise reserves may need to be used to meet the needs. A higher ratio suggests that annual costs are adequately funded, and the financial condition is improving. City of Huntington Beach Page 7 of 21 Printed on 2/16/2023 powere334 Legislar File #: 23-157 MEETING DATE: 2/21/2023 5-Year General Government Growth in Net Position- City of Huntington Beach e FY 21-22 FY 18-19 8.3% 4.6% FY 17-18 (9 mos) 5.1% FY 19-20 FY 20-21 0.8% 0.5% •oxisasorateisi FY 21-22 General Government Growth in Net Position-Comparable Cities Costa Mesa,28.2% Fullerton, 13.4% Santa Ana, 12.4% Anaheim, 12.3% Huntington Beach,8.3% Garden Grove,8.3% Orange,5.8% Newport Beach,3.1% Irvine, 0.1% This ratio measures the change in net position compared to the total General Government net position. When revenues exceed expenses and assets exceed liabilities, an increase in the ratio will be seen. The City has shown continued growth in net position. The 8.3% increase in FY 2021/22 is largely attributed to the 21.3% CaIPERS investment return, which eliminated the 15% unfunded pension liability remaining with CaJPERS after the FY 2020/21 Pension Obligation Bond refinancing of 85% of the City's unfunded pension liability. It is important to note that there will be a new unfunded pension liability created due to the -7.5% CaIPERS investment return in FY 2021/22 which will be reported on the City's FY 2022/23 ACFR. FHl#4 General Government Operating Margin Ratio: The City funds certain programs via grants and intergovernmental aid from other government agencies (e.g. Federal and State) and also charges for services that are offered to its residents. This measurement illustrates how much of the City expenditures are funded by charges, fees, and grants rather than general tax dollars to fund program expenditures. For this measure, a higher ratio suggests basic government services are more self- sufficient through charges, fees, and grants and less reliant on general tax dollars to fund program City of Huntington Beach Page 8 of 21 Printed on 2/16/2023 powere33§ LegistarT" File #: 23-157 MEETING DATE: 2/21/2023 expenditures. 5-Year General Government Operating Margin Ratio- City of Huntington Beach • FY 17-18 o FY 21-22 ( 41%5) FY 18-19 FY 19-2 • 38% 32% 31% FY 20-21 25% FY 21-22 General Government Operating Margin Ratio- Comparable Cities Anaheim, 65.3% Fullerton.54.1% Irvine,53.1% Santa Ana, 52.2% Garden Grove,44.4% Newport Beach,40.5% Huntington Beach,37.6% Orange,30.7% Costa Mesa,25.0% This ratio illustrates how much of the City's expenditures were funded by charges, fees, and grants (37.6%) rather than general tax dollars (62.4%) to fund program expenditures. The other cities appear to fund their operations more heavily by charges, fees, and grants. This could be attributed to the level of cost recovery implemented by each City. While there is no standard we know that most cities do not implement 100% cost recovery. FHI#5 General Government Own Source Revenue Ratio: The City receives grants and intergovernmental aid from other government agencies, such as the state and federal governments. While the City welcomes grants and aid to support City services, the less reliant the City is on money from those sources, the more independent the City's financial condition is. Revenues from grants are used to support some City functions. Other functions, such as public safety, are mainly funded by City of Huntington Beach Page 9 of 21 Printed on 2/16/2023 powere336r LegistarT" File #: 23-157 MEETING DATE: 2/21/2023 general tax dollars. This ratio illustrates the extent to which general government revenues were supported by grants. A lower ratio suggests that the City is not heavily reliant on grants and more reliant on general tax dollars and charges for services. 5-Year General Government Own Source Revenue Ratio- City of Huntington Beach F Y 19-20 FY17-18 FY 18-19 FY 20-21 FY 21-22 (9 Trios) 6% 6% 6% 5% FY 21-22 General Government Own Source Revenue Ratio-Comparable Cities Huntington Beach,6.0% Newport Beach,8.5% costa Mesa,10,9% Orange, 13,9% Fullerton,17.7% Garden Grove,25.1% Irvine,25.5% Santa Ana, 28.6% Anaheim, 36.6% This ratio explains how much of our revenues are from grants (6%) compared to general tax dollars and charges for services (94%). With the addition of the American Rescue Plan Act funding of$29.6 million, this ratio will be higher next year and is not indicative of an ongoing pattern as these funds are considered one-time funding only. Long-Term Solvency- Can the City Pay its Bills in the Future FHI#6 General Government Near-Term Solvency Ratio: The City has both short-term and long-term obligations that must be paid in the future. The fewer number of years of annual revenue needed to pay the City's obligations, the stronger the City's financial condition. This ratio demonstrates that the City is able to pay a larger portion of its debts with annual revenues. For this measure, a lower ratio City of Huntington Beach Page 10 of 21 Printed on 2/16/2023 porrerE333'Legistar"` File #: 23-157 MEETING DATE: 2/21/2023 indicates a stronger financial condition. 5-Year General Government Near-Term Solvency Ratio - City of Huntington Beach FY 17-1.8 � (9 mos) • ... ., 2.80 FY 18-1.9 FY 19-20 FY 20-2 • 1..93 1.98 1.92 FY 21-22 1.65 FY 21-22 General Government Near-Term Solvency Ratio- Comparable Cities Irvine,0.49 Newport Beach, 1.23 Fullerton, 1.47 Garden Grove, 1.57 Huntington Beach, 1.65 Anaheim, 1.78 Orange, 1,91 Costa Mesa, 2.01 Santa Ana,2.14 The City has both short-term and long-term obligations that must be paid in the future. The fewer number of years of annual revenue needed to pay obligations, the stronger the City's financial condition. The decrease of the City's long-term debt in FY 2020/21 is due to the refinancing of 85% of the City's pension liability with the issuance of Pension Obligation Bonds, as well as refinancing of two of the City's Lease Revenue Bonds (2010A and 2011A) to lower interest rates. The decrease in FY 2021/22 is largely attributed to the 21.3% CaIPERS investment return, which eliminated the 15% unfunded pension liability remaining with CaIPERS after the Pension Obligation Bond refinancing. It is important to note that there will be a new unfunded pension liability created due to the -7.5% CaIPERS investment return in FY 2021/22 which will be reported on the City's FY 2022/23 ACFR. FHI#7 General Government Debt, Pension Liability, and OPEB Burden per Resident Ratio: The City issues debt for a variety of reasons and pays for employees' pensions, including other post- City of Huntington Beach Page 11 of 21 Printed on 2/16/2023 powere3a$LegistarT" File #: 23-157 MEETING DATE: 2/21/2023 employment benefits. Having a low debt per capita would put the City in a stronger financial position. Lower bonded debts, pension liability, and other post-employment benefits (OPEB) per capita result in a smaller debt burden on taxpayers. For this measure, a lower ratio indicates a stronger financial condition. 5-Year General Government Bonded Debt, Pension Liability & OPEB Burden per Resident-City of Huntington Beach FY 17-18 FY 18-19 FY 19-20 FY 20-21 , (9 mos) 2,227 2,275 2,328 2,305 FY 21-22 1,439 FY 21-22 General Government Bonded Debt, Pension Liability&OPEB Burden per Resident-Comparable Cities ® Irvine, 144 Huntington Beach, 1,439 Garden Grove, 1,527 Orange, 1,624 Santa Ana, 1,986 Fullerton, 2,906 Costa Mesa, 2,932 Anaheim, 3,462 Newport Beach,3,466 As previously discussed, the sharp decrease in FY 2021/22 is largely attributed to the 21.3% CalPERS investment return, which eliminated the 15% unfunded pension liability remaining with CalPERS after the Pension Obligation Bond refinancing. It is important to note that there will be a new unfunded pension liability created due to the -7.5% CaIPERS investment return in FY 2021/22 which will be reported on the City's FY 2022/23 ACFR. FHI#8 Governmental Funds Coverage Ratio: If a large portion of the City's expenses go towards paying debt principal and interest, it shows that the City is less able to spend money on services and capital improvements. The City has principal and interest payments on debt. The lower the amount of these payments compared to all the other expenditures it has, the stronger its financial condition. City of Huntington Beach Page 12 of 21 Printed on 2/16/2023 potiver€33.9 Legistar''' File #: 23-157 MEETING DATE: 2/21/2023 For this measure, a lower ratio indicates a stronger financial condition. 5-Year Governmental Funds Coverage Ratio- City of Huntington Beach FY 21-22 9.1% FY 17-18 (9 mos) • .--IMMIM ,,,, 0.8% FY 18-19 FY 19-20 ° ° 2.9%, 2.7/0% FY 20-21 1.8% FY 21-22 Governmental Funds Coverage Ratio- Comparable Cities Irvine,0.01% 1 Fullerton,0.2% Garden Grove, 1.0% Costa Mesa,2.0% Santa Ana, 2.5% Newport Beach,4.9% Anaheim,8.0% Huntington Beach,9.1% Orange, 11.3% The City has a higher ratio than most of the comparative cities, implying the City has higher principal and interest payments and more overall long-term debt. The City did have more long-term debt than the comparative cities, primarily as a result of the issuance of a $363.6 million Pension Obligation Bond in FY 2021/22 of which $341.5 million was related to general government funds. However, it is important to note that when aggregating all of the City's bonded debt, pension, and OPEB liabilities as shown in FHI #7, Huntington Beach has one of the lowest debt burdens per resident to comparative cities. FHI #9 Enterprise Funds Coverage Ratio: This measure compares the interest expense owed on debts annually to the ongoing, typical operating revenues from which that expense will be paid. This is similar to a small business owner making sure that the interest payments on the mortgage for her office aren't too large compared to the revenues she brings in each year. Just like the City's governmental services need to pay their debts (e.g., bonds) in the long-term, the City's Enterprise Funds need to do so as well. The City's Enterprise Funds include Water, Sewer, Refuse, and Hazmat Service Funds. For this measure, a higher ratio indicates a stronger financial condition. City of Huntington Beach Page 13 of 21 Printed on 2/16/2023 powerc34q LegislarT" File #: 23-157 MEETING DATE: 2/21/2023 5-Year Enterprise Funds Coverage Ratio- City of Huntington Beach FY 20-21 509.63 • FY 21-22 128.01 FY 21.-22 Enterprise Funds Coverage Ratio- Comparable Cities Newport Beach,4,631.75 Fullerton,218.92 Huntington Beach,128.01 Santa Ana, 122.38 1 Orange,83.38 1 Garden Grove,60.74 Anaheim,18.17 Irvine,0.00 Costa Mesa,0.00 Note:No Enterprise Funds in the cities of Costa Mesa and Irvine. The City only shows two fiscal years of data as its Enterprise funds did not carry long-term debt prior to FY 2020/21, with the issuance of a $363.6 million Pension Obligation Bond in FY 2021/22 of which $22.1 million was related to Enterprise funds. FHI#10 General Government Capital Asset Value Ratio: A negative ratio indicates that the City's capital assets decreased in value- that is, the value at the end of the year was less than the value at the beginning of the year. This indicates that the depreciation of capital assets was greater than the value of capital assets added, and that some capital assets may need to be renovated or replaced. Most of the City's capital assets decrease in value over time due to depreciation. The City needs to make sure that as capital assets age, it is renovating or replacing them. Capital assets include land, buildings, vehicles, and public infrastructure. For this measure, a higher ratio indicates a stronger financial condition. City of Huntington Beach Page 14 of 21 Printed on 2/16/2023 powere34;1,'LegistarT" File #: 23-157 MEETING DATE: 2/21/2023 5-Year Governmental Capital Assets Value Ratio- City of Huntington Beach FY 20-21 3% a~""""- FY 8-19 ® FY 21-22 FY 17-18 1% FY 19-20 1% (9 mos) 1% 1% FY 21-22 Governmental Capital Assets Value Ratio.,Comparable Cities Fullerton,5% Orange, 3% Santa Ana, 2% Huntington Beach,1% INewport Beach,0.04% Garden Grove,0,03% Anaheim,0.4% - Costa Mesa,-1% Irvine, -1% The City showed an increase in FY 2020/21 primarily due to the purchase of land which is temporarily being used as the site for a 174-bed Navigation Center. FHI#11 Enterprise Funds Capital Asset Age Ratio: This ratio explains the percentage of Enterprise Funds capital assets that have been depreciated. Depreciable capital assets include buildings, vehicles, and public infrastructure. Assets are depreciated over their useful life as they age, and their value is reduced. A lower ratio indicates Enterprise Funds capital assets are newer and may not require as much replacement and/or maintenance costs compared to older capital assets. City of Huntington Beach Page 15 of 21 Printed on 2/16/2023 powere34'Legistar" File #: 23-157 MEETING DATE: 2/21/2023 5-Year Enterprise Funds Capital Asset Ratio-City of Huntington Beach FY 20 21 FY21-22 50% FY�° FY 19-20 50% 18-19 48% FY 17-18 47% (9 mos) 46% FY 21-22 Enterprise Funds Coverage Ratio- Comparable Cities Irvine, 0% Costa Mesa,0% Fullerton,37% Newport Beach,38% Anaheim, 40% Garden Grove, 45% Huntington Beach,50% Santa Ana, 52% Orange,63% Note:No Enterprise Funds in the cities of Costa Mesa and Irvine. This ratio explains the percentage of Enterprise Fund capital assets that have been depreciated. The City's Enterprise Funds capital assets have aged over the past five years which is evidenced by the annual increase in the ratio. While the ratio is higher when compared to a majority of its comparative cities, the increasing trend in this ratio could be indicative of other issues which require additional analysis. Indicator#12 General Fund Public Safety Costs Ratio: This ratio compares the total costs of the General Fund public safety, which includes police and fire, to the total General Fund expenditures. A higher ratio indicates more funds are dedicated to public safety. City of Huntington Beach Page 16 of 21 Printed on 2/16/2023 power6344 Legistar^' File #: 23-157 MEETING DATE: 2/21/2023 5-Year General Fund Public Safety Costs Ratio- City of Huntington Beach FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 17-18 60% 63% 65% 61% (9 mos) 52% FY 21-22 General Fund Public Safety Costs Ratio-Comparable Cities Irvine,40% Newport Beach,42% Anaheim, 49% Santa Ana,54% Costa Mesa,55% Orange,61% Huntington Beach,61% Fullerton,70% Garden Grove,70% The Public Safety costs ratio increased over the four fiscal years prior to FY 2021/22, then declining primarily due to the refinancing of 85% of the City's pension liability with the issuance of Pension Obligation Bonds in FY 2020/21, with cost savings first realized in the prior fiscal year. It is important to note that the remaining 15°lo pension liability held with CaIPERS may incur increasing annual UAL payments in the future due to the -7.5% CaIPERS investment return in FY 2021/22. Fiscal Year 2022/23 Mid-Year Adjustments The FY 2022/23 Budget was adopted by City Council on June 7, 2022, for the fiscal year beginning July 1, 2022. The Finance Department has compiled recommended budget adjustments to cover additional costs and/or provide appropriations necessary to expend funds that have been received for specific purposes. The City has received revenues or has set -aside prior year fund balances that will support the requested adjustments in the General Fund. The Other Funds adjustments will be funded by available revenue or fund balances within each distinct Fund. City of Huntington Beach Page 17 of 21 Printed on 2/16/2023 poererea4.4-LegislarT'' File#: 23-157 MEETING DATE: 2/21/2023 General Fund The Community & Library Services Department is requesting appropriations to meet increased demand for recreational and Art Center class contract instructors and increased costs to print the spring and summer editions of the SANDS ($537,000). These costs will be offset by additional recreation fee revenues, resulting in a net zero impact to the General Fund. The City received higher than anticipated requests for development services from multiple large projects, solar permits, accessory dwelling unit(ADU)permits and commercial construction and tenant improvements. The Community Development Department is requesting to increase its professional services appropriation for building plan check services by$700,000, which will be offset by permit fee revenues and result in a net neutral impact to the General Fund. The Community Development Department is also requesting to amend professional services agreements and corresponding professional services authority with CSG Consultants, Inc. and True North Compliance Services, Inc. for on-call building division plan review services. Each contract will be increased by $200,000 for a new not to exceed amount of$1,000,000. The Finance Department is requesting an appropriation of$115,000 to cover credit card fees for payments made through the City's ELM system. The City currently does not charge for use of credit cards, which has resulted in higher credit card fees being absorbed by the General Fund. The Fire Department participates in the California Fire and Rescue Emergency Mutual Aid System, and the department has responded to multiple mutual aid requests to assist in major fires over the past years. The State of California will fully reimburse Huntington Beach for all allowable Strike Team expenditures and will reimburse an additional 15.94% administrative rate applied to these allowable expenditures. The CAL FIRE 2023 Fire Season'Outlook states that the weather outlook for January through April calls for mixed temperature and precipitation anomalies, with some months being a bit wetter while others on the drier side. The Fire Department has incurred $525,000 in Strike Team expenditures for FY 22/23 so far. Since there is no annual appropriation for this business unit, given that Strike Team costs are unknown until costs are incurred, the Fire Department is requesting a budget appropriation of$525,000, which will be fully reimbursed by the State. To meet the operational demands of increased vendor prices and increased medical calls, the Fire Department is requesting a budget appropriation of$175,000 for emergency medical supplies. Additional emergency medical service revenues are anticipated to offset the added costs. The Police Department is requesting an appropriation of$189,000 to fund the City's portion of the 800MHz backbone cost sharing agreement that is managed by the Orange County Sheriff's Department. A new Joint Agreement, beginning July 1, 2022, has re-allocated each city's share based on radio count, removed the County's 40 percent share, and includes increased operational costs and capital project funding. City of Huntington Beach Page 18 of 21 Printed on 2/16/2023 powere34f LegistarTM File#: 23-157 MEETING DATE: 2/21/2023 The Public Works Department is requesting appropriations of$752,000 for increased citywide fuel costs and $590,000 for increased vehicle maintenance and accident repair costs. Inflationary pressures have significantly impacted fuel prices and costs for vehicle parts and repairs. Staff is requesting appropriations totaling $7,050,000 in the Non-Departmental Department to pay for increased utility bill costs due to the recent spike in natural gas prices ($250,000) and transfers to the Equipment Replacement Fund ($500,000), Workers' Compensation Fund ($4,300,000) and the Section 115 Trust ($2,000,000). Equipment Fund transfers are needed to ensure adequate funding for essential capital equipment needs and address rising equipment costs. The Workers' Compensation transfer is requested to pay for the increased cost of claims due to rising medical costs and an expanded list of injuries that are presumed to be work related under California law. Transfers to the Section 115 Trust are requested to further protect the City from future pension cost increases. Other Funds Narcotics Forfeiture - Federal (Fund 212) Federal narcotics forfeiture revenues are equitably shared federal financial assistance, used to supplement local law enforcement resources. An appropriation of$60,000 is needed in the Narcotics Forfeiture - Federal Fund for detective overtime costs arising from participation in the Orange County Regional Narcotics Suppression Program (OC RNSP). Equipment Replacement (Fund 324) This fund accounts for citywide vehicle and capital equipment purchases. An additional appropriation of$500,000 is requested to ensure adequate funding for essential capital equipment needs and address rising equipment costs. This appropriation is funded by the requested $500,000 transfer from the General Fund. Refuse Collection Service (Fund 504) The residential curbside collection rate increased by $1.92 effective July 1, 2022, based on the formula adopted in Resolution 2021-05, and is estimated to provide an additional $1,103,000 in revenues. Part of this increase was included in the FY 2022/23 Adopted Budget. However, due to higher than anticipated inflation and increased fuel costs, the Public Works Department is requesting an expenditure appropriation of$531,000 to fund the additional pass-thru costs associated with the Refuse Collection and Disposal Services contract. Based on current revenue collection amounts, these adjustments will have a net neutral impact. Workers' Compensation (Fund 551) California Workers' Compensation Law provides state mandated benefits to employees for work- related illness or injury. Benefits may include payments for medical treatment, salary continuation, Total Temporary Disability (TTD) benefits, and permanent disability benefits. The City is self-insured for its workers' compensation program and is liable for all costs up to $1 million dollars per claim. The costs related to claims are paid for by the City as the Employer. An appropriation of$4,300,000 is needed for increased costs of Workers' Compensation claims City of Huntington Beach Page 19 of 21 Printed on 2/16/2023 powere34$legistarT'a File #: 23-157 MEETING DATE: 2/21/2023 driven by rising medical costs and an expanded list of injuries that are presumed to be work related under California law, including cancer and post-traumatic stress. Supplemental Law Enforcement Services (Fund 984) Supplemental Law Enforcement Services Fund (SLESF) revenues are provided by the State of California to fund front line law enforcement activities. An appropriation of$600,000 is requested for temporary relocation of the 9-1-1 center to the Central Net facility at Gothard Fire Station. The current 9-1-1 center will undergo a remodel, expected to begin in the fall of 2023. Relocation of dispatch services requires the coordination and assistance of several vendors and stakeholders to move the Computer Aided Dispatch (CAD) and phone monitors, modems, desks and other computer accessories to Central Net. An appropriation of$150,000 is requested for the purchase of investigative software offered through Peregrine. This technology platform provides a single point of access to view and analyze large- scale and real-time data from various sources, streamlining criminal analysis and utilizing secure links to quickly share information and reports with other law enforcement agencies. There is sufficient fund balance in this fund to cover the requested appropriations. CalAPP Grant (new fund) The Community Development Department has been approved for a grant from the State of California Energy Commission for expenses associated with adopting an automated solar permit platform called SolarAPP+. The platform verifies code compliance and issues permits in real time to a licensed contractor for a solar energy system. The grant will reimburse software costs, staff time and other related expenses, up to $80,000. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Not applicable Strategic Plan Goal: Economic Development & Housing Infrastructure and Parks Fiscal Sustainability, Public Safety and other Attachment(s): 1. FY 2021/22 Annual Comprehensive Financial Report (ACFR) 2. Other Auditor Issued Reports 3. Fiscal Year 2022/23 Recommended Mid-Year Adjustments 4. Fiscal Year 2022/23 Recommended Mid-Year Professional Services Authority 5. Amendment No. 1 to Agreement between the City of Huntington Beach and CSG Consultants, Inc. for On-Call Building Division Plan Review Services 6. Amendment No. 1 to Agreement between the City of Huntington Beach and True North Compliance Services, Inc. for On-Call Building Division Plan Review Services City of Huntington Beach Page 20 of 21 Printed on 2/16/2023 powerea347i LegistarT" File#: 23-157 MEETING DATE: 2/21/2023 7. Grant Agreement with the State of California Energy Commission (Number APP-22-038) 8. City of Huntington Beach Financial Health Indicators Report 9. Financial Update & FY 2022/23 Mid-Year Budget Adjustments Presentation City of Huntington Beach Page 21 of 21 Printed on 2/16/2023 powere344 LegistarT" AMENDMENT NO. 1 TO AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND CSG CONSULTANTS, INC. FOR ON-CALL BUILDING DIVISION PLAN REVIEW SERVICES THIS AMENDMENT is made and entered into by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "City," and CSG CONSULTANTS, INC., hereinafter referred to as "Consultant." WHEREAS, City and Consultant are parties to that certain agreement, dated September 21, 2021, entitled "Professional Services Contract Between the City of Huntington Beach and CSG Consultants, Inc., for On-Call Building Division Plan Review Services" which agreement shall hereinafter be referred to as the "Original Agreement"; and City and Consultant wish to amend the Original Agreement to increase the amount of compensation to be paid to Consultant, NOW, THEREFORE, it is agreed by City and Consultant as follows: 1. SECTION 1 - SCOPE OF WORK Section 1, Scope of Work, of the Original Agreement is hereby amended to include an On-Site Associate Planner. 2. SECTION 4 - COMPENSATION Section 4, Compensation, Exhibit B, of the Original Agreement is hereby amended to include $150.00 hourly rate for On-Site Associate Planner. 3. SECTION 4 - ADDITIONAL COMPENSATION In consideration of the services to be performed under the Original Agreement, City agrees to pay Consultant at the rates specified in Exhibit B which is attached hereto and 22-12094/295674 1 incorporated by reference into this Agreement. City further agrees to pay Consultant an additional sum not to exceed Two Hundred Thousand Dollars ($200,000.00). The additional sum shall be added to the original sum of Eight Hundred Thousand Dollars ($800,000.00), for a new contract amount not to exceed One Million Dollars ($1,000,000.00). 4. REAFFIRMATION Except as specifically modified herein, all other terms and conditions for the Original Agreement shall remain in full force and effect. IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be executed by and through their authorized officers on B 215:r , 2023. CSG CONSULTANTS, INC. CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California By: C r. :fly•ter_ p 'name ITS: (circle one) -iIII• . "resident/Vic..Pics;detit Mayor AND j-- ....� City Clerk By: Nour� ay INITIATED AND APPROVED: print name ITS: (circle one)Secretary/Chicf Fivauc.ial Director of Community Development APPROVED AS TO FORM: City Attorney Ku 22-12094/295674 2 incorporated by reference into this Agreement. City further agrees to pay Consultant an additional sum not to exceed Two Hundred Thousand Dollars ($200,000.00). The additional sum shall be added to the original sum of Eight Hundred Thousand Dollars ($800,000.00), for a new contract amount not to exceed One Million Dollars ($1,000,000.00). 4. REAFFIRMATION Except as specifically modified herein, all other terms and conditions for the Original Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers on 32kyt-r21 21 sT , 2023. CSG CONSULTANTS, INC. CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California By: print name 44-4 laZ-D ITS: (circle one)Chairman/President/Vice President Mayor AND ( 2,110t, 9MieinZaetU) City Clerk By: INITIATED AND PROVED: print name ITS: (circle one) Secretary/Chief Financial (AAj2" c. _. Officer/Asst. Secretary-Treasurer Director of Community Development CO'7PT77; APPROVED AS T FORM: C. Attorney 22-12094/295674 2 �-"N CSGCONS-01 TWANG A4.---- CERTIFICATE OF LIABILITY INSURANCE DATE YY) �� 12/20/2022 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER License#0C36861 cugApCT Melissa Hill Alllant insurance Services,Inc. PHONE 1 FAX 560 Mission St 6th Fl (A/C,No,Eat): (A/C,No): San Francisco,CA 94105 Mass:Meiissa.Hili@alilant.com INSURER(SI AFFORDING COVERAGE NAIC# INSURER A:Fireman's Fund Insurance Company 21873 INSURED INSURER B:American Automobile Insurance Company 21849 CSG Consultants INSURER C:National Surety Corporation 21881 550 Pilgrim Dr INSURER D:Pacific insurance Company,Limited 10046 Foster City,CA 94404 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE SOUL SUER POLICY NUMBER POLICY EFF POLICY EXP LIMITS LTRINSD WVDIMMIDOIYYYYI (MMIDD/YYYY4 A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE n OCCUR X USC032768220 12/4/2022 12/4/2023 PREMSES(Ea occuEr ence) S 100,000 MED EXP(Any one person) $ 10,000 PERSONAL&ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIESPER: GENERAL AGGREGATE $ 2,000,000 POLICY X LOC PRODUCTS-COMPIOPAGG $ 2,000,000 OTHER: $ B AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT 1,000,000 (Ea accident) $ X ANY AUTO SCV013084-22-01 12/4/2022 12/4/2023 BODILY INJURY(Per person) $ — OWNED SCHEDULED AUTOS ONLY _ AUTOS TTOOS BODILY INJURY(Per accIdenl) $ — A JRPOS ONLY — AV70S ONLY P Oaa 1?AMAGE $ $ A X UMBRELLA LIAB X OCCUR EACH OCCURRENCE $ 5,000,000 EXCESS LIAB CLAIMS-MADE USCO29989221 12/412022 12/4/2023 AGGREGATE $ 5,000,000 • DED X RETENTIONS 10,000 S C WORKERS COMPENSATION X SEATUT£ OTH- ER AND EMPLOYERS'LIABILITY YIN SCW023953-22-01 12/4/2022 12/4/2023 1,000,000 ANY PROPRIETO FRt/PARTNERREEXCLUDED ECUTIVE NJA E.L.EACH ACCIDENT $ OFFICER/MEMBE(Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ 1'000'000 If yes,describe under 1,000,000 DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ p Professional Liab. 83 OH 0489503-22 12/412022 12/4/2023 Agg.$6,000,000 Ded. 10,000 D Retro Date:1/111991 83 OH 0489503-22 12/4/2022 12/4/2023 Occurrence: 5,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS 1 VEHICLES(ACORD 101,Additional Remarks Schedule,may be attached if more space Is required) Re: All operations of the Named Insured. Certholder In full: City of Huntington Beach,Its officers,elected or appointed officials,employees,agents and volunteers. 30 Day Notice of Cancellation on Professional per attached.Professional Liability endorsementts.PHUV p AS TO FO flYf MICHAEL E.GATES CITY ATTORNEY CITY OF HUNTINGTON BEACH CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED iN City of Huntington Beach ACCORDANCE WITH THE POLICY PROVISIONS. 2000 Main Street Huntington Beach,CA 92648 AUTHORIZED REPRESENTATIVE I ACORD 25(2016/03) ©1988-2016 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD I;il! K I'i,1t.-Ir ;1 (:1),/,!:),11i .i :•,!1l f/ �NTINGT 0 ``- " -~,;*•“2� City of Huntington Beach e 2000 Main Street ♦ Huntington Beach, CA 92648 _ _ • (714) 536-5227 • www.huntingtonbeachca.gov Ai C°UNTy �P i Office of the City Clerk ......... Robin Estanislau, City Clerk February 22, 2023 CSG Consultants, Inc. Attn: Khoa Duong 550 Pilgrim Drive Foster City, CA 94404 Mr. Duong: Enclosed is a fully executed copy of the Amendment No. 1 to Agreement between the City of Huntington Beach and CSG Consultants, Inc. for On-Call Building Division Plan Review Services, approved by City Council on February 21, 2023. Sincerely, ( 101411, 9'6/44.44'W Robin Estanislau, CMC City Clerk RE:ds Enclosure Sister City: Anjo, Japan f : . - >4`JfPPr2L)YL1D -D City of Huntington Beach File #: 21-681 MEETING DATE: 9/21/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Ursula Luna-Reynosa, Director of Community Development Subject: Approve and authorize execution of four Professional Services Contracts for On-Call Plan Check Services with CSG Consultants, West Coast Code Consultants, True North Compliance, and The Code Group. Inc. dba VCA Code Statement of Issue: The Community Development Department requires on-call plan check services for as-needed support staff to assist with private development plan check and general support services relating to the Permit Center. Financial Impact: Funding for the first year use of these three-year contracts is provided in the Fiscal Year (FY) 2021/22 budget in General Fund account 10060501 .69365. Subsequent funding will be requested as part of the annual budget submittal/approval process. No funds will be expended on these contracts unless they are approved in the City's annual budget. No additional funding is required by the recommended actions. These contracts will be controlled with task orders. Cumulative task orders will not exceed S800.000 during the three-year contract term unless on-call contract value is amended along with approved appropriations. Recommended Action: A) Approve and authorize the Mayor and City Clerk to execute $800,000 "Professional Services Contract Between the City of Huntington Beach and CSG Consultants, Inc. for On-Call Building Division Plan Review Services;" and, 'F B) Approve and authorize the Mayor and City Clerk to execute $800.000 "Professional Services Contract Between the City of Huntington Beach and West Cost Code Consultants, Inc. for On-Call Building Division Plan Review Services:" and, *C) Approve and authorize the Mayor and City Clerk to execute S800.000 "Professional Services Contract Between the City of Huntington Beach and True North Compliance Services, Inc. for On- Call Building Division Plan Review Services;" and, City of Huntington Beach Page 1 of 3 Pnrfed on 9 15 2021 51 File #: 21-681 MEETING DATE: 9/21/2021 * D) Approve and authorize the Mayor and City Clerk to execute $800,000 "Professional Services Contract Between the City of Huntington Beach and The Code Group, Inc. dba VCA Code for On-Call Building Division Plan Review Services." �e J",-A& ft&d-) Alternative Action(s): Do not authorize one or more contracts and direct staff accordingly. Plan check times are likely to increase and service levels are likely to decrease until new contracts are approved. Analysis: Applicants who desire to construct projects within the City must submit plans for review to ensure compliance with applicable City and state codes. Applicants who submit plans to the City pay fees for plan review and expect reasonable turnaround times. The City currently only has one in-house, full-time plan checker, which is not a sufficient level of staffing to respond to the volume of plan check submittals received by the City. In addition, the City receives structural plans and other specialized plan check submittals that require specific fields of expertise. Due to the cyclical nature of construction activity, demand for plan review services can fluctuate from year to year. As such, the City generally retains professional plan review firms to supplement plan review services in order to meet demand as well as provide specialized plan review. This approach is a cost-effective method of closing the gap between the demands for service and the ability of City staff to meet these demands. while maintaining high-quality customer service levels. Development activity and demand for plan review service is expected to increase in the coming years. In anticipation of this demand, on July 1 , 2021, the City advertised a Request for Qualifications (RFQ) for On-Call Building Division Plan Review Services. Proposals were requested and received in compliance with Chapter 3.03 of the Huntington Beach Municipal Code (HBMC), "Professional Services." The City received 12 proposals. In accordance with requisite government regulations, the Community Development Department established a three member review board to evaluate and rank these proposals. The proposals were generally quite impressive and the selection process very competitive. Following proposal evaluation, the review board then interviewed four of the six teams representing the six highest-ranking proposals (two teams are current consultants and did not need to be interviewed). Following this selection process, staff is recommending that on-call contracts be awarded to the top four firms. as follows: CSG Consultants, West Coast Code Consultants, True North Compliance Services, and VCA Code. Funding for professional plan review services is provided through the collection of plan check fees. The proposed on-call contracts will be used as necessary when the volume of applications exceeds City staff resources. The proposed contract amounts are a not-to-exceed amount for a three-year term. with no guarantee of work. Funding for these contract services is only through City Council authorization in the budget approval process. Environmental Status: Approval of professional services agreements for building plan review is a government fiscal activity, City of Huntington Beach Page 2 of 3 Pnnted on 9115 2021 fit ,-,.:,.-.. File #: 21-681 MEETING DATE: 9/21/2021 which does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. As such, the requested actions are not a project pursuant to Section 15378 of the CEQA Guidelines and no further CEQA review is required. Strategic Plan Goal: Economic Development & Housing Attachmen!ja 1. Professional Services Contract between the City of Huntington Beach and CSG Consultants, Inc., for On-Call Building Division Plan Review Services 2. Professional Services Contract between the City of Huntington Beach and West Coast Code Consultants for On-Call Development Review Engineering and Professional Consulting Services 3. Professional Services Contract between the City of Huntington Beach and True North Compliance Service, for On-Call Development Review Engineering and Professional Consulting Services 4. Professional Services Contract between the City of Huntington Beach and VCA Code for On- Call Building Division Plan Review Services 5. Professional Services Award Analysis City of Huntington Beach Page 3 of 3 Printed on 9/15/2021 oowerec53 Leg,stal'- PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND CSC; CONSULTANTS. INC. FOR ON-CALL BUILDING DIVISION PLAN REVIE\\/ SERVICES THIS AGREI-MENT ("Agreement") is made and entered into by and between the Cite of' Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY." and Advanced CSG Consultants. Inc... hereinafter referred to as "CONS ULTANT." WI-II-RI--'AS. CITY desires to engage the services of a consultant to provide on-call building division plan review services: and Pursuant to documentation on file in the ol'ticc of the City Clerk. the provisions of' the Huntington Bcach Municipal Code, Chapter 3.03, relating to procurement of' professional service contracts have been complied with. and CONSULTANT has been selected to perform these services. NOW. THEREFORE, it is agreed by CITY and CONSULTANT as follows: 1 . SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONSULTANT hereby designates Khoa Duong who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of'this Agreement. 2. CITY STAFF ASSISTANCE CITY shall assign a stall coordinator to work directly with CONSULTANT in the performance of'this Agreement. 21-102641266025 1 of I vi<>20aos2 3. TERM: TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence on jeXj0!,$22Z" 2021 (the "Commencement Date"). This Agreement shall automatically terminate three (3) years from the Commencement Date, unless extended or sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than three (3) years from the Commencement Date. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT. In the event the Commencement Date precedes the Effective Date, CONSULTANT shall be bound by all terms and conditions as provided herein. 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed Eight Hundred Thousand Dollars (5800,000.00). 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work only after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit "B." 21.10264/266025 2 of 11 5119-204082 7. DISPOSITION 017 PLANS,-1-STIMATES AND OTHER DOCUMENTS CONSULTANT agrees that title to all materials prepared hereunder, including. without limitation, all original drawings, designs, reports. both Field and office notices. calculations, computer code, language, data or programs, maps, memoranda. letters and other documents, shall belong to CITY. and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion. whichever shall occur first. These materials may be used by CITY as it sees fit. 8. HOLD I IARNILESS A. CONSULTANT hereby agrees to protect. defend, indenuiify and hold harmless CITY, its officers, elected or appointed officials. employees, agents and volunteers from and against any and all claims, damages. losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors, if any) negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONSULTANT, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY. CONSULTANT will conduct all defense at its sole cost and expense and CITY shall approve selection of CONSUL;fANf's counsel. "]'his indemnity shall apply to all claims and liability regardless of' whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULTANT. 13. -lo the extent that CONSULTANT performs "Design Professional Services' within the meaning of Civil Code Section 2782.8. then the tulloxving Hold Harmless provision applies in place of subsection A above: 21-1026Jn6602; 3 of 11 ;n9-2wo82 "CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless CITY and its officers. elected or appointed officials. employees. agents and volunteers, from and against any and all claims. damages, losses, expenses, demands and defense costs (including, without limitation, costs and fees of' litigationof every nature or liability of-any, kind or nature) to the extent that the claims against CONSULTANT arise out ol'. pertain to, or relate to the negligence, recklessness. or willful misconduct of CONSULTANT. In no event shall the cost to defend charged to CONSULTANT exceed CONSULTANT's proportionate percentage of fault. However, notwithstanding the previous sentence. in the event one or more other defendants to the claims and/or litigation is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, CONSULTANT shall meet and confer with CITY and other defendants regarding unpaid defense costs. The duty to indemnity, including the duty and the cost to defend, is limited as provided in California Civil Code Section 2782.8. C. Regardless of whether subparagraph A or B applies, CITY shall be reimbursed by CONSULTANT- Ibr all costs and attorneys I-ees incurred by CITY in enf-orcing this obligation. This indemnity shall apply to all claims and liability regardless of' whetherany insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONSULTANT. 9. PROFESSIONAL LIABILITY INSURANCL CONSULTANT shall obtain and furnish to CITY a professional liability insurance police covering the work perlbrmcd by it hereunder. This policy shall provide coverage for CONSUL.TANT's professional liability in an amount not less than One Million Dollars ($1.000.000.00) per occurrence and in the aggregate. The above-mentioned insurance shall not contain a self-insured retention without the express written consent of CITY; however an insurance 21-1026J266025 4 of 11 5/19-204082 policy "deductible" of Ten Thousand Dollars (510,000.00) or less is permitted. A claims-made police shall be acceptable if the policy further provides that: A. The policy retroactive date coincides with or precedes the initiation of the scope of work (including subsequent policies purchased as renewals or replacements). 13. CONSULTANT shall notify CITY of circumstances or incidents that might Live rise to tlnure claims. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage toltowing PRO.II:iCT completion. If insurance is terminated for any reason, CONSULTANT agrees to purchase an extended reporting provision of at least two (2) years to report claims arising from work performed in connection with this Agreement. If CONSULTANT fails or refuses to produce or maintain the insurance required by this section or tails or refuses to furnish the CITY with required proof' that insurance has been procured and is in force and paid for. the CITY shall have the right, at the CITY's election. to forthwith terminate this Agreement. Such termination shall not efTect Consultant's right to be paid for its time and materials expended prior to notification of termination. CONSULTANT waives the right to receive compensation and agrees to indemnif-y the CITY for any work performed prior to approval of-insurance by the CITY. 10. CFRTIFICATF.. OF INSURANCE Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY a certificate of- insurance subject to approval of' the City Attorney evidencing the foregoing insurance coverage as required by this Agreement: the certificate shall: A. provide the name and policy number of each carrier and policy; 13. state that the policy is currently in force: and 21-10204/166025 5 Of I I 5/19-204082 C. shall promise that such policy shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice; however. ten (10) days' prior written notice in the event of cancellation for nonpayment of premium. CONSULTANT shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverage shall not derogate from CONSULTANT's defense, hold harmless and indemnification obligations as set forth in this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. 11. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of- this Agreement as an independent contractor herein and not as an employee of CITY. CONSULTANT shall secure at its own cost and expense. and be responsible for am, and all payment of all taxes, social security. state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if anv, in connection with the PROJECT- and/or the services to be performed hereunder. 12. "TERiMIN'ATION OF AGREENIENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSUL TANI-'s services hereunder at any time with or without cause, and whether or not the PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. In the 21-10264066025 6 of 11 5/19-204082 event of termination, all finished and unfinished documents, exhibits. report, and evidence shall. at the option of'CITY, become its property and shall be promptly delivered to it by CONSULTANT. 13. ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the prior express written consent of CITY. 1f an assignment, delegation or subcontract is approved. all approved assignees, delegates and subconsultants nutst satish, the insurance requirements as set forth in Sections 9 and 10 hereinaboye. 14- COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work. item or material produced as a result of this Agreement. 15. CITY 1iN1PLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of' the applicable provisions of the California Government Code. 16. NOTICL'S Anv notices, certificates. or other communications hereunder shall be given either by personal delivery to CONS ULTANT's agent (as designated in Section I hereinaboye) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices. certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U. S. certified mail-return receipt requested: 21-101641166025 7 of 11 in<>2w0az TO CITY: TO CONSULTANT: Cite of I-luntington Beach CSCi Consultants. Inc. ATTN: Ursula Luna-Rcynosa Attn: Khoa Duong 2000 Main Street 550 Pilgrim Drive Huntington Beach, CA 92648 (roster City, CA 94404 17. CONSENT When CITY's consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 18. i9ODIFICATION No waiver or modification ofany language in this Agreement shall be valid unless in writing and duly executed by both parties. 19. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience ofrefercnce only and are not representative of matters included or excluded From such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 20. INTERPRETATION OF THIS AGREEHMENT The language of all parts of this .Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. 11' any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or 2i-ioa64n_a6o25 8 of, 1 1 5/19.2040,92 neuter gender and singular or plural number shall be deemed to include the other whenever the contest so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is anv conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the lacy. 21. DUPLICATE ORIGINAL 'File original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and deliver-, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 22. 1NlMIGRATI0N CONSULTANT shall be responsible for lull compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 23. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to 1ArwbWton Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY: and CITY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. . 2 1-10264/26602 5 901, 11 5/1)204082 24. ATFORNEY'S PEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof. each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 25. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 26. GOVERNING LAW "this Agreement shall be governed and construed in accordance with the laws of the State of California. 27. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power. authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY tLlly for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 28. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements. promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this 21-102(Arz66023 10 of 11 i/14 2040K Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 29. EFFECTIVE DATE This Agreement shall be effective on the date of its approval by the City Council. This Agreement shall expire when terminated as provided herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. CONSULTANT, CITY OF HUNTINGTON BEACH, a CSG CONSULTANTS, INC. municipal corporation of the State of 9 California By: 1► LA Mayor m name ITS: ictrdr one/ airman «siden ice President City Clerk N By: INITIATED AND APPROVED: kHOA �uorlls print name Director of Community Development ITS: lcirc(e Secreary/Chief Financial Officer/Asst. Secretary Qeasuv REVIEWED AND APPROVED: City Manager APPROVED AS TO FORM: City Attorney A41 COUNTERPART 21.10264/266025 11 m 11 5119-204082 Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 29. EFFECTIVE DATE This Agreement shall be effective on the date of its approval by the City Council. This Agreement shall expire when terminated as provided herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. CONSULTANT, CITY OF HUNTINGTON BEACH, a CSG CONSULTANTS, INC. municipal corpo tion of the State of Califo 'a ^ By: r 1—� Mavoz /' I ,',� /I,,, print name 4 w y`Z/�Kl�'T(� ITS: ldrede one/ChairmaNPresidenWice President (((iii666111/ AND City Clerk INITIATEED AN PPR ED: By. print name Director of Community Development ITS: (circle one)Secretary/Chief Financial Officer/Asst. Secretary-Treasurer REVIEWED ANI��APPROVED: ity Manager AOyED AS TO FORM: 4--.City Attorney A4/ COUNTERPART 2 1-1 02 6412660 2 5 I 1 of 11 5/19-204082 EXHIBIT "A" A. STATENJENT OF WORK: (Narrative of work to be performed) CONSULTANT shall provide consulting services on an "as-needed" basis for projects to be determined during the term of the agreement. During the term of the agreement, CITY shall issue task orders based upon scope of services, work schedule, and fee proposal submitted to City for its review and approval. Scope ol'services to be provided: • Plan Review Services for residential. commercial and other non-residential buildings and structures. • Typical plan review consists of the following: review of' structural calculations, verification of compliance with the most current adopted versions of the California Building Standards Code. City of Huntington Beach Municipal Code, all applicable and relevant State and Federal Laws, codes. and regulations, and coordination between City agencies, designers, consultants. and builders in the community. • The requested review services may also include an onsite Plan Reviewer on an as needed basis. B. CONSULTANT'S DUTIES AND RGSPONSIBILI'IIES: I. CSG shall pay all wages to its plan reviewers who are subject to this agreement C. CITY'S DUTIES AND RESPONSIBILITIES: I. CITY shall quality control calculations by CSG D. WORK PROGRAM/PROJECT SCHEDULE: l. CITY to provide plans for plan rcvie\y on an as needed basis. EXI-IIBIT A Payment Schedule (Hourly Payment) A. Hourly hate CONSULTANT'S fees for such services shall be based upon the following hourly rate and cost schedule: Pull Plan Review by Percentage 65%of Citv's Building Plan Check Fees Plumbing, Mechanical R Electrical Review by 40%of City's Building Plan Check Pees Percentage Or 65%of Citv's P/ ivt /E Plan Check Fees Structural "Oniv Plan Review by Percentage 40%of City's Buildin 4 Plan Check Fees Building Plan Review—Certified Plans Examiner S 105 /hr Building Plan Review— Professional Engineer S 125 /hr Building Plan Review— Professional Structural S 140/hr Engineer Grading Plan Review—Senior Engineer $155 /hr CASp Consultation S125 /hr Expedited Plan Review by Percentage 100%ofCitv's Building, Plan Check Fees Building Of licial S 145 /hr Permit Technician S75 /hr Overtime R Expedited Ilourly Rates 1,5 x I lourly Rate Additional terms detailed in Attached Fee Proposal. B. Travel. Charges for time during travel are not reimbursable C. Billim, I. All billing shall be done monthly in fifteen (I5) minute increments and matched to an appropriate breakdown of the time that was taken to perform that work and who performed it. 2. Each month's bill should include a total to date. That total should provide, at a glance, the total fees and costs incurred to date for the project. J. A copy of memoranda. letters, reports. calculations and other documentation prepared by CONSULTANT may be required to be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product. CITY shall identity specific requirements for satisfactory completion. 4. CONSULTANT shall submit to CITY an invoice for each monthly payment due. Such invoice shall: A) Relerence this Agreement: B) Describe the services performed; C) Show the total amount of the payment due: I Exhibit B D) Include a certification by a principal member of CONS UL:fANf's firm that the work has been performed in accordance with the provisions of this Agreement: and I,- all payments include an estimate of the percentage of work completed. Upon submission of any such invoice. if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days ol'receipt of' the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice. CITY shall notify CONSULTANT in writing of' the reasons for non-approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 5. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of'such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. Exhibit 8 CSG SOQ TO THE CRY OF HUNTINGTON BEACH ON-CALL BUILDING DIVISION PUN REVIEW SERVICES Fee Proposal �0 Fees for plan review performed off-site are based on a percentage of the City's established plan check fees or the appropriate hourly rate listed below. Reviews of revisions to approved plans and services provided on-site will be charged the hourly rate. When plans are not submitted electronically, CSG will coordinate the pickup and return of all paper plans (hard copies) via staff or a licensed courier service. This service is provided at no additional cost. REVIEW TYPE / • HOURLY Full Plan Review by Percentage 65%of City's Building Plan Check Fees 40%of City's Building Plan Check Fees Plumbing, Mechanical & Electrical Plan Review by Percentage or 65%ofCity's P/M/E Plan Check Fees Structural "Only' Plan Review by Percentage 40%of City's Building Plan Check Fees Building Plan Review -Certified Plans Examiner $10S Building Plan Review - Professional Engineer $125 Building Plan Review - Professional Structural Engineer $140 Grading Plan Review-Senior Engineer $155 CASIO Consultation $125 Expedited Plan Review by Percentage 100%of City's Building Plan Check Fees Expedited& Overtime Hourly Rates 1.5 x Hourly Rate Additional Building Official $145 Permit Technician $75 Overtime & Expedited Hourly Rates 1.5 x Hourly Rate All hourly rates include overhead costs including, but not limited to, salaries, benefits, Workers Compensation Insurance, travel and office expenses. Should the scope of work change, or circumstances develop which necessitate special handling, CSG will notify the City prior to proceeding. CSG will mail an invoice at the beginning of every month for services rendered during the previous month. On each anniversary of the contract start date, CSG will initiate a rate increase based on change in CPI for the applicable region. For percentage-based plan check fees, CSG will not charge for rechecks unless the plans are incomplete or revised for which the City would collect additional fees from the applicant. Additional services outside the main scope of review would be charged at an hourly rate as agreed upon by the City. 11ROI-'FSSIONAL SLRVICLS CONTRACT BETWEEN THE CITY OF HUNIINGI'ON BEACH AND FOR Table of Contents 1 Scopeof'Scrvices.....................................................................................................I 2 Cite Staff Assistance................................................................................................2 3 Term: Time oC Performancc........._..........................................................................2 4 Compensation ..........................................................................................................2 5 L'atra Work...............................................................................................................2 6 Method of Pavment........................................................................................I.........3 7 Disposition of Plans. Estimates and Other Documents ...........................................3 8 Hold Harmless ....... .................................................................................................. 9 Professional Liability Insurancc.............................................................................4 10 Certificate 01 Insurance............................................................................................5 11 Independent Contractor............................................................................................6 12 Termination of Aareement.......................................................................................6 1 3 Assignment and Delegation......................................................................................6 14 Copyrights/Patents...................................................................................................7 15 Cite Employees and Officials..................................................................................7 16 Notices.........................................................................................7 17 Consent ....................................................................................................................8 18 Modification.............................................................................................................8 19 Section Headinas .....................................................................................................8 20 Interpretation of this Agreement................................................_............................8 21 Duplicate Original........................................................................_..........................9 22 Immieration........_.....................................................................................................9 23 Legal Services SUbcontracting Prohibited................................................................9 24 Attorney's Fees..........................................................................................................10 25 Survival.....................................................................................................................10 26 Governine Law .........................................................................................................10 27 Signatories.................................................................................................................10 28 I ntiretv......................................................................................................................10 29 Effective Date................................................................................. I I CSGGONS-01 KCROSS_ AcoRo' CERTIFICATE OF LIABILITY INSURANCE DAT118/UDIYYYY) all elzozl THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the forme and conditions of the policy,certain policies may require an endorsement. A statement on INS certificate does not center rights to the canifleato holder In Ilou of such endorsements. PRODUCER C N ,CT Melissa Hill Alllant Insurance Services,Inc. PHONE FAX 675 Market St Ste 3600 .LAIC,No E"I: (416)946-7500 INC.Nol: San Francisco,CA 94105 k$$,Melissa.H1l11l alllant.com INSURER(S)AFFORDING COVERAGE NAIC0 WSURERA,Travoiors Property Casually Comps of Amorlca 25674 _ INSURED INSURER a:Travelers Indemnity Company of America 25666 CSG Consultants,Inc.,Precision Inspection WsuREgc:Arch Insurance Company 11150 Company,Inc. 550 Pllgrlm Drive INSURER D: Fostor City,CA 94404 INSURER E: INSURER F; COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF: INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMEDABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOROTHER DOCUMENTVATH RESPECTTO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAD CLAIMS. ASH AM BURR POLICY EFF POLICY EXP Try TYPE OF WSDRANCE -yYYO POLICY NUMBER LIMITS A X COMMERCIAL GENERAL LIABILITY FACHOCCURRENCE $ 1,000,000 _1 CLAJMSMAOE EX I OCCUR 660-5Rt43841-TIL-20 121412020 12/4/2021 DAMAGE TORENIED _$ 1,000,000 PRFMISFS IF occL rvnl _ L1 Exa L"T ono po•soms 10,000 PERSONAL&ADVINJURY S 1,000100 GENL AOGRE�GAIE LIgqNIi MP��LIEII ALS PER. G N R GGREQ_ATF 2,000,000 __$,__-______ POLICY`^1 JELPT u LOC PR2fri1C75_COMP/OP AGG _$ 2,000,000 A AUTOMOBILE DAflILIIY--- — —�- --_ _ --- COMBINEDSTNGLE LIMIT 1,000,000 X ANY AUTO 810-SRiI 49576-20-43-G 12/4/2020 12/412021 BODILY IN jEqrperrwnL 5 OWTED SCHEDULED _ AAHU�pT�CpG OWY _ AUTOS V r.�p DOOHN INJURY We,ncUdeM)- AUTOSONLY AUTOS bNLV (PerOPeEwR'[m:� $ X �O"ed Avas ) Comp/Coll Ded. s 2.000 B X UMBRELLA UAe X OCCUR 1,000.000 _ EACH OccuRRENCE s EXCESS LA CLAWS IMDE ZUP-61 N34906-20-NF 12/412020 12/4/2021 AGGREGATE s 1,000,000 DED NET ENTION$ S A WORKERS COMPENSATION X PF:R OTM- ANDEMPLOYERS'LIABIUTY YIN 41IE_ ANY PROPRIETOWARTNEI'UEXECUTNE UB-SR147167-20-43-G 12/412020 12/412021 1,000,000 pF d oivFIABER E%CIUDF.D'1 N N I A E.I.EACHA DENT $ 'AtanW Dry In Nll7¶) EL INSFssE-EgEMP O 5 1,000,000 s YYes,describe under 1,000,000 OEW10PI ION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT C. P-rofessi_onal.Llab. PAAEP0008806 12/412020 12/412021 Each Claim $5,000,000 Aggregate $5,000,000 Deductible $10,000 DESCRIPTION OF OPERATIONS!LOCATIONS)VEHICLES IACORD 101.AddlllorD I Remake Schedule,may m"'.ched llmerospaee le requlndtl ro: All operatlous of the Named Insured. Ce"holder in lull: City of Huntington BoaCll,Its officers,elected or appoi rl�etl L11�:IaIs,employees,agents and volunteers, 30 Day Notice of Cancellation on Professional par attached. APPROVED A TO�UKM By: MICHAEL E. GATES CITY ATTORNEY CITY OF HUNTINGTON BEACH CERTIFICATE OLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE Cityof Huntington Beach THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 9 ACCORDANCE WITH THE POLICY PROVISIONS. 2000 Main Street Huntington Beach,CA 92648 AUTHORIZED REPRESENTATIVE I JQ, ACORD 25(2016103) ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD City of Huntington Beach Business License P.O Box 190 (714) 536-5267 FAX (714) 536-5934 Huntington Beach, CA 92648-2702 Dahle Bulosan Chief Financial Officer C S G CONSULTANTS INC 550 PILGRAM DRIVE FOSTER CITY, CA 94404 Dear Business Owner. Thank you for your payment Attached is your City of Huntington Beach Business License certificate. Please note that approximately one month prior to the license expiration date, you will be mailed a renewal notice for the upcoming year. If for any reason your renewal notice does not arrive, you are still responsible for renewing and paying your business license prior to the expiration date Penalties will be incurred if the payment is not received by the expiration date Please post the business license in public view If you do not transact business from a fixed location within the City. you must carry this license with you at all times If a vehicle license plate number is displayed on the Business License certificate below, you must carry a copy of the certificate in that vehicle Please contact the Business License office if there are any changes to ownership, address, business name, business vehicle, or type of business conducted Additionally, please notify our office if you discontinue your business The Gender Tax Repeal Act of 1995(Act)prohibits a business from discriminating based on a persons gender for prices of similar or like-kind goods and services However, the Act does not prohibit price differences based on the amount of time. difficulty,or cost of providing the services. In addition to prohibiting discrimination based on a person gender, the Act requires certain businesses to clearly and conspicuously disclose to customers in writing the pricing for each standard service provided The posting requirement applies to barbers and hair salons. tailors or businesses providing ahermarket clothing alterations,dry cleaners, and laundries providing services to individuals. To access the Department of Consumer Affairs publication, please use the following webpage htlps//www barbercosmo ca gov/consumers/gender policy pdf To access the publication in Korean. Spanish, Vietnamese, Traditional Chinese, Simplified Chinese. or Tagalog. please use the following webpage hnps 8www dca ca gov/publicatrons/index shtml There are many resources available to our business owners Listed below are a few that might be of interest and assistance to you Office of Business Development- (714) 536-5582 Service Corps of Retired Executives-(714)550-7369 Huntington Beach Chamber of Commerce-(714)536-8888 Fictitious Business Name Information -(714) 834-2889 CA Department of Tax and Fee Administration-(949)440-3473 Community Development-(714)536-5271 If you have any questions, please call a Business License representative at(714) 536-5267. City of Huntington Beach Business License License Number Business Name/Service Address POST IN PUBLIC VIEW A239806 C S G CONSULTANTS INC Effective Date 06/01/2021 Owner/Corporation Expiration Date C S G CONSULTANTS INC 05/31/2022 License Type Amount Paid PROFESSIONAL SERVICES $105.50 THIS LICENSE 15 ONLY FOR THE BUSINESS AND TYPE SHOWN. IT IS FOR THE PERSON TO WHOM ISSUED AND IS NON-TRANSFERABLE. RENEWAL IS DUE ON OR BEFORE THE EXPIRATION DATE. PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: On-Call Development Review Engineering & Prof. Consulting Services SERVICE DESCRIPTION: Review construction documents for compliance with the California Building Code VENDOR: CSG Consultants OVERALL RANKING: 1 SUBJECT MATTER EXPERTS/RATERS: 1. Managerial Specialist 2. Deputy Director 3. Principal Civil Engineer I. MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: 1117.00 VENDOR NAME—Minimum Qualifications Review Total Weighted Maximum Criteria Score Score Compliance with RFP 125 150 Technical Approach 280 375 Qualifications 312.5 375 Clarity 101 150 Cost 237.5 375 References and Background 61 75 Total 1117 H. DUE DILIGENCE REVIEW • Interview Ranking: N/A CSG Consultants—Summary of Review • CSG Consultants is an active consultant with the Community Development Department for several years, in the previous 3 years under the existing contract, their commitment to timely and accurate performance is recognized. CSG Consultants— Pricing • Low end: S105/hr • High end: S145/hr 132 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: On-Call Development Review Engineering & Prof. Consulting Services SERVICE DESCRIPTION: Review construction documents for compliance with the California Building Code VENDOR: West Coast Code Consultants (WC3) OVERALL RANKING: 2 SUBJECT MATTER EXPERTS/RATERS: 1. Managerial Specialist 2. Deputy Director 3. Principal Civil Engineer I. MINIMUM QUALIFICATIONS REVIEW Written Proposal Score: 1029.5 VENDOR NAME — Minimum Qualifications Review Total Weighted Maximum Criteria Score Score Compliance with RFP 102 150 Technical Approach 252.5 375 Qualifications 282.5 375 Clarity 100 150 Cost 237.5 375 References and Background 55 75 Total 1029 II. DUE DILIGENCE REVIEW • Interview Ranking: N/A WC3—Summary of Review • WC3 is an active consultant with the Community Development Department. In the previous 3 years under the existing contract, their commitment to working with the City is present and valued. WC3— Pricing • Low end: $110/hr High end: $150/hr 133 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: On-Call Development Review Engineering & Prof. Consulting Services SERVICE DESCRIPTION: Review construction documents for compliance with the California Building Code VENDOR: True North Compliance Services OVERALL RANKING: 3 SUBJECT MATTER EXPERTS/RATERS: 1. Managerial Specialist 2. Deputy Director 3. Principal Civil Engineer I. MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: 1097.5 VENDOR NAME—Minimum Qualifications Review Total Weiqhted Maximum Criteria Score Score Compliance with RFP 110 150 Technical Approach 275 375 Qualifications 275 375 Clarity 105 150 Cost 287.5 375 References and Background 45 75 Total 1097.5 ll. DUE DILIGENCE REVIEW Interview Ranking: 1 True North Compliance Services—Summary of Review • True North is a new consultant to work with the Community Development Department. The expertise of this consultant's leadership and staff resembles a highly qualified consultant that is eager and ready to provide exceptional service to the City. True North Compliance Services — Pricing Low end: $105ihr • High end: $140/hr 134 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: On-Call Development Review Engineering & Prof. Consulting Services SERVICE DESCRIPTION: Review construction documents for compliance with the California Building Code VENDOR: VCA Code OVERALL RANKING: 4 SUBJECT MATTER EXPERTS/RATERS: 1. Managerial Specialist 2. Deputy Director 3. Principal Civil Engineer I. MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: 1008 VENDOR NAME— Minimum Qualifications Review Total Weighted Maximum Criteria Score Score Compliance with RFP 95 150 Technical Approach 255 375 Qualifications 282.5 375 Clarity 103 150 Cost 225 375 References and Background 47.5 75 Total 1008 it. DUE DILIGENCE REVIEW • Interview Ranking: 2 VCA Code— Summary of Review • VCA Code is a new consultant to provide service to the Community Development Department. This firm has extensive experience providing similar services to other municipalities and is comprised of an experienced staff with a wide range of knowledge. VCA Code— Pricing • Low end: $115/hr • High end: $150/hr 135 City of Huntington Beach _rF . 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov Office of the City Clerk Robin Estanislau, City Clerk September 28, 2021 CSG Consultants, Inc. Attn: Khoa Duong 550 Pilgrim Drive Foster City, CA 94404 Dear Mr. Duong: Enclosed is a fully executed copy of the "Professional Services Contract between the City of Huntington Beach and CSG Consultants, Inc. for On-Call Building Division Plan Review Services" approved by the Huntington Beach City Council on September 21, 2021. Sincerely, �, 4& anzdj4j Robin Estanislau, CIVIC City Clerk RE:ds Enclosure Sister Cities: Anjo, Japan • Waitakere, New Zealand