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Home My WebLink AboutItem 08d - Plan Review Services STAFF REPORT DEVELOPMENT SERVICES DEPARTMENT DATE: April 7, 2026 TO: Honorable Mayor and City Council FROM: Lisa Flores, Interim Development Services Director By: Ken Fields, Building Official SUBJECT: RESOLUTION NO. 7681 AMENDING THE FISCAL YEAR 2025-26 GENERAL FUND OPERATING BUDGET, AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION FOR PLAN CHECK SERVICES IN THE AMOUNT OF $435,000, OFFSET BY AN INCREASE IN PLAN CHECK REVENUE; AND AMENDING THE PROFESSIONAL SERVICES AGREEMENTS WITH SCOTT FAZEKAS & ASSOCIATES, INC. AND VCA CODE GROUP FOR ADDITIONAL PLAN REVIEW SERVICES IN THE AMOUNT OF $435,000 CEQA: Not a Project Recommendation: Adopt and Approve SUMMARY On June 21, 2022, the City Council approved Professional Services Agreements (“Agreements”) with Scott Fazekas & Associates, Inc. (“SFA”) and VCA Code Group (“VCA”) to provide professional plan review services for the City’s Building Division, within the Development Services Department. Due to increased development activity in Fiscal Year 2025-26, the budget for plan check services in the Building Services Division was fully expended in January 2026. The Agreements for these services require an increase to the Agreements in the amount of $140,000 for SFA and $295,000 for VCA, for the remainder of Fiscal Year 2025-26. The additional costs will be fully offset by the corresponding revenue generated through applicant-paid plan- check fees. It is recommended that the City Council adopt Resolution No. 7681 amending the Fiscal Year 2025-26 General Fund Operating Budget, authorizing a supplemental budget appropriation for plan check services in the amount of $435,000, offset by increased plan check revenue; and authorize the City Manager to execute Resolution No. 7681 for Building Plan Check Services April 7, 2026 Page 2 of 4 amendments to the Professional Services Agreements with Scott Fazekas & Associates, Inc. and VCA Code Group, in the amounts of $140,000 and $295,000, respectively, for a total increase of $435,000, for additional plan review services. BACKGROUND Since 2022, Arcadia’s Building Services Division has contracted with SFA and VCA to provide plan review services. These services involve reviewing construction plans and supporting documentation before a building permit is issued. The consultants evaluate proposed projects to ensure compliance with California Building and Fire Codes, fire safety requirements, accessibility standards, and other applicable regulations. The review covers structural, mechanical, electrical, and plumbing systems, as well as overall code compliance. For Fiscal Year 2025–26, a $385,000 purchase order was opened with SFA, and a $200,000 purchase order was opened with VCA. The purchase order amounts reflected a modest increase in development activity compared to the prior year, as well as the anticipated submittal of a large mixed-use project, the Arcadia Town Center, located at 25–75 N. Santa Anita Avenue. In November 2025, the City approved a $115,000 increase to the VCA purchase order to support ongoing plan check services. However, the budgeted funds remain insufficient to cover these services, as several projects that had been on-hold were unexpectedly submitted for plan check by the property owners. DISCUSSION As of December 2025, $248,091 has been expended on contract plan review services. January invoices total $434,337, which will exceed the remaining budget for Fiscal Year 2025-26. The requested additional contract limits of $435,000 will cover the outstanding invoices and provide sufficient funding to maintain plan review services through the end of the Fiscal Year. The plan review services are funded on a pass-through basis. Applicants pay plan check fees at the time of submittal, and consultants are paid after services are rendered. The City retains approximately 40% of plan check fees for projects valued under $2 million and 50% for projects valued over $2 million. Arcadia collects these fees to cover the administrative costs of providing this service, with the remaining Resolution No. 7681 for Building Plan Check Services April 7, 2026 Page 3 of 4 balance paid to the consultants. The fees are collected when a building permit is issued and the revenue received fully offsets the additional expense. Approval of the additional contract limitations will ensure timely review of construction plans for compliance with the California Building Codes and other applicable regulations and will not negatively impact the General Fund. As a result, approval of additional professional service agreement limitations in the amount of $140,000 for SFA and $295,000 for VCA is necessary to cover plan-check services for the remainder of Fiscal Year 2025–26, for total amended agreement amounts of $525,000 for SFA and $610,000 for VCA. ENVIRONMENTAL ANALYSIS This proposed action is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3), as it can be seen with certainty that there is no possibility that the approval of the amended agreements for administrative services will have a significant effect on the environment. FISCAL IMPACT The increase to the budget for plan check services will have a positive impact on General Fund revenue in Fiscal Year 2025-26. Plan check services are funded on a pass-through basis, where applicants pay consultants for their project work, and the remaining revenue is remitted to the City. For each plan check referred to a consultant, the City retains 40% of the fee for projects valued at less than $2 million and 50% for projects valued greater than $2 million, to cover administrative costs. The original FY 2025-26 revenue projection was $1.48 million. With the proposed adjustments, plan check revenue is expected to increase by approximately $725,000, resulting in a revised total projected revenue budget of $2.2 million. RECOMMENDATION It is recommended that the City Council determine that this action is not a project under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7681 amending the Fiscal Year 2025-26 General Fund Operating Budget, authorizing a supplemental budget appropriation for plan check services in the amount of Resolution No. 7681 for Building Plan Check Services April 7, 2026 Page 4 of 4 $435,000, offset by an increase in plan check revenue; and authorize the City Manager to execute amendments to the Professional Services Agreements with Scott Fazekas & Associates, Inc. and VCA Code Group, in the amounts of $140,000 and $295,000, respectively, for a total increase of $435,000, for additional plan review services. Attachments: Resolution No. 7681 Proposed Amendment No. 2 to Professional Services Agreement with Scott Fazekas & Associates Proposed Amendment No. 2 to Professional Services Agreement with VCA Code Group 1 RESOLUTION NO. 7681 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA AMENDING THE FISCAL YEAR 2025-26 GENERAL FUND OPERATING BUDGET, AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION FOR PLAN CHECK SERVICES IN THE AMOUNT OF $435,000, OFFSET BY AN INCREASE IN PLAN CHECK REVENUE WHEREAS, the Development Services Department has relied on outside plan review consultants for many years to review construction plans for compliance with City codes and standards; and WHEREAS, plan check services are funded on a pass-through basis, where applicants pay consultants for their project work, and the remaining revenue is remitted to the City; and WHEREAS, increased development activity in Fiscal Year 2025-26, has resulted in the budget for plan check services in the Building Services Division being fully expended in January 2026; and WHEREAS, an amendment to the Fiscal Year 2025-26 General Fund Operating Budget authorizing a supplemental budget appropriation in the amount of $435,000 is needed to maintain plan review services through the end of the Fiscal Year; and WHEREAS, the supplemental budget appropriation will be offset by an increase in the General Fund Revenue in the amount of $725,000. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES FIND, DETERMINE AND RESOLVE AS FOLLOWS: 2 SECTION 1. The sum of Four Hundred Thirty-Five Thousand Dollars ($435,000) is hereby appropriated in the Development Services Department Budget for the forgoing purposes, offset with an increase in General Fund Revenue in the amount of Seven Hundred Twenty-Five Thousand Dollars ($725,000). SECTION 2. The City Clerk shall certify to the adoption of this Resolution. [SIGNATURES ON THE NEXT PAGE] AMENDMENT NO. 2 TO AGREEMENT REGARDING PROFESSIONAL BUILDING PLAN REVIEW AND RELATED SERVICES WITH SCOTT FAZEKAS & ASSOCIATES, INC. This Amendment No. 2 (“Amendment No. 2”) is hereby entered into by and between the City of Arcadia, a charter city organized under the Constitution and laws of the State of California, and Scott Fazekas and Associates, Inc., a California corporation, with respect to that certain Professional Services Agreement between the parties dated June 29, 2022 as amended by Amendment No. 1 dated July 9, 2025, and Amendment No. 2 dated _____________, 2026 (“Agreement”). The parties agree as follows: 1. Pursuant to Section 2(b) of the “Agreement”, the Compensation is hereby amended such that in no event shall the total amount paid for services rendered by the Consultant under this Agreement exceed the sum of five hundred twenty- five thousand dollars ($525,000) annually without written approval of the City Manager. 2. All of the remaining terms and provisions of the Agreement are hereby reaffirmed. In witness whereof the parties have executed this Amendment No. 2 on the date set forth below. CITY OF ARCADIA SCOTT FAZEKAS & ASSOCIATES INC By By ____________________________ Dominic Lazzaretto Signature City Manager Date: ______________________ ______________________________ Print Name and Title ATTEST: Date: _________________________ ___________________________ By____________________________ City Clerk Signature APPROVED AS TO FORM: ______________________________ Print Name and Title ___________________________ Date: _________________________ Michael J. Maurer City Attorney CONCUR: ______________________________ Lisa Flores Interim Development Services Director AMENDMENT NO. 2 TO AGREEMENT REGARDING PROFESSIONAL BUILDING PLAN REVIEW AND RELATED SERVICES WITH THE CODE GROUP, INC. This Amendment No. 2 (“Amendment No. 2”) is hereby entered into by and between the City of Arcadia, a charter city organized under the Constitution and laws of the State of California, and The Code Group, Inc. dba VCA Code, a California corporation, with respect to that certain Professional Services Agreement between the parties dated June 22, 2022 as amended by Amendment No. 1 dated July 9, 2025, and Amendment No. 2 dated _____________, 2026 (“Agreement”). The parties agree as follows: 1. Pursuant to Section 2(b) of the “Agreement”, the Compensation is hereby amended such that in no event shall the total amount paid for services rendered by the Consultant under this Agreement exceed the sum of six hundred ten thousand dollars ($610,000) annually without written approval of the City Manager. 2. All of the remaining terms and provisions of the Agreement are hereby reaffirmed. In witness whereof the parties have executed this Amendment No. 2 on the date set forth below. CITY OF ARCADIA THE CODE GROUP, INC. By By ____________________________ Dominic Lazzaretto Signature City Manager Date: ______________________ ______________________________ Print Name and Title ATTEST: Date: _________________________ ___________________________ By____________________________ City Clerk Signature APPROVED AS TO FORM: ______________________________ Print Name and Title ___________________________ Date: _________________________ Michael J. Maurer City Attorney CONCUR: ______________________________ Lisa Flores Interim Development Services Director