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2. Approve a $1.4 million annual aggregate in compensation (cumulative across the five agreements) and authorize the City Manager to modify the annual aggregate amount as needed during the term of the agreements. 3. Authorize the Director of Community Development to approve allocation of the aggregate across the five agreements, and reallocation as necessary, provided the aggregate of all aggrements is equal to the amount approved by Council, or the amount as modified by the City Manager. FISCAL IMPACT The $1.4 million annual aggregate associated with these agreements is fully covered by revenue associated with plan review, building permit, and fire plan review applicant fees. Any future City Manager-authorized adjustments to the aggregate would be based on a proportional increase in fee revenue, as increased applicant activity may necessitate an increase in consultant services. BACKGROUND The City has historically utilized multiple firms for on-call contract services to review plans and building permit documentation for compliance with the provisions of the City's Building, Residential, Fire, Electrical, Plumbing, Mechanical, Green Building and Housing Codes; related Building Division policies; and state and local laws. In addition, these consultants may provide backup Permit Center counter coverage (for example, assisting with "over the counter" permit review and issuance), inspections and investigations as required by the City's ordinances and duly adopted policies to help facilitate plan review and building permit processes. These agreements would authorize payment to a selected roster of consultants for on-call plan review, inspection, and counter services for up to five fiscal years. DISCUSSION Contract plan review provides flexible service levels to handle variations in construction activity and plan review workload, as well as expertise in a wide variety of construction specialties, including projects ranging from multi-story residential developments and high-tech commercial offices to remodeling of historic structures. The use of multiple firms allows the City flexibility to distribute the workload amongst multiple consultants to meet targeted due dates and maintain a high level of customer service. The on-call agreements are fully funded through applicant fees collected for building permits and plan review. The consultant plan review fee is a "pass-through," meaning the City collects fees from applicants which are then used to cover the cost of the consultant service to perform the work, and the City's administration of that service. Applicants pay the full plan review fee when building plans are submitted for review. When plan reviews are assigned to consultants, the City retains 35 to 60 percent of the plan review fee, and the remaining 40 to 65 percent is allocated to the consultants. When revisions and/or additional reviews are required, the applicant is then billed at an hourly rate. Fire permit plan review services are also administered through these Page 2 of 4