HomeMy WebLinkAboutItem 7.3 Bldg Law Enforcement Contract Review (2) CITY OF DUBLIN
AGENDA STATEMENT `
C"IT.'Y COUNCIL MEETING DATE: JUNE 9, 1992
SUBJECT: Building Law Enforcement Contract Services Review
and Agreement Amendment (Taugher & Associates,
Inc. ) Report Prepared by: Lou Ann Riera-Texeira,
Assistant to the City Manager and Paul Rankin,
Assistant City Manager)
EXHIBITS: 1. Sample Customer Service Survey
2 . Summary of Survey Responses �.
3 . Workload Projections
4 . Resolution Approving Proposed Agreement
5 . May 20, 1992 Memo to City Manager from Assistant
City Manager regarding Errors & Ommissions
Insurance
RECOMMENDATION: Review services and provide input on performance:.
Approve and authorize the Mayor to execute the
Proposed Agreement.
FINANCIAL The proposed 1992-93 budget includes funding in
STATEMENT: accordance with the terms and conditions of the
attached agreement. The agreement proposes no
increases in rates and a 33% ($3 ,000) reduction in
the insurance surcharge.
DESCRIPTION: The City of Dublin has utilized professional
Building Inspection and Plan Checking Services provided by the firm
of Taugher & Associates since 1983. The services provided are those
which are typical of a Municipal Building and Safety Department.
Current services provided include: Plan Checking; Inspection of
Building Construction; Housing Code Enforcement; and Administration
of the Building and Safety Department. The City provides secretarial
support for the department with a City employee. Also, in the past,
the City has provided an Intern to assist on special projects under
the direction of the Building Official.
Staffing Levels
Mr. Taugher serves as the City' s Building Official and it is
anticipated that in Fiscal Year 1991-92 that he will provide a total
of approximately 1,006 hours of service. _ This service level equals
approximately one half time position ( . 48 Full Time Equivalent) . Mr.
Taugher provides general administration of the Building and Safety
function, as well as conducting the initial Plan Review prior to
issuance of permits.
Mr. Taugher personally holds a certification as a licensed structural
engineer. This allows the City to offer full service plan checking
through one point of contact. In addition, Mr. Taugher has been
active in the International Conference of Building Officials (ICBO) ,
which is responsible for developing the uniform building code. Mr.
Taugher has also provided expert witness testimony for clients
outside the City of Dublin. In the event of an absence, Mr. Taugher
arranges for a qualified replacement to serve as Building Official.
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COPIES TO:
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ITEM NO CITY CLERK
FILE 1 4
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The availability of knowledgeable code enforcement personnel is
important in protecting the safety of individuals who occupy
buildings in the community and also in insuring that applicable codes
and ordinances are adhered to. Staff feels confident that the level
of services performed during the past year have been at an acceptable
level. It is also clear that the credentials of the personnel
providing Building Official services are at a superior level.
In addition to Mr. Taugher' s personal services, his firm also
provides personnel to conduct building inspections. In Fiscal Year
. 1991-92, Mr. Taugher estimates that the City will receive a total of
2 ,117 hours of inspection services. This equates to approximately
one full time Building Inspector position (1.02 FTE) .
Staff believes that the current contract with Taugher & Associates
provides the City staffing flexibility :which has allowed the City to
respond to fluctuations in the building industry. The following
chart identifies changes in the number of hours of service provided:
HOURS OF SERVICE
FY 1990-91 FY 1991-92 FY 1991-92 FY 1992-93
(Actual) (Budget) (Estimated) (Proposed)
Building Official 1,255 1,100 1,006 1,000
Building Inspectors) 3,657 2,300 2,117 2,000
Total 4,912 3,400 3,123 3,000
As shown above, it is estimated that Taugher & Associates will
provide approximately 36 . 4% fewer hours in Fiscal Year 1991-92 than
were provided in Fiscal Year 1990-91. Further, it is projected that
Taugher & Associates will provide approximately 4% fewer hours in
Fiscal Year 1992-93 than are estimated for Fiscal Year 1991-92. The
reasons for the reduced staffing levels are explained later in this
report.
Staff believes that the current contract has allowed the City to
retain highly qualified individuals. Mr. Taugher' s involvement, with
ICBO and his status as a Registered Engineer, provides the City with
complete plan checking services on complex projects along with senior
level inspection services.
Office Availability
The Building & Safety Office maintains the same hours as other City
departments. The regular business hours are Monday through Friday,
8 : 00 a.m. to 5: 00 p.m. . The Building Official is typically available
in the office between 8: 00 a.m. and 12:00 noon each weekday.
Inspection staff members are available in the office between the
hours of 8: 00 and 10: 00 a.m. each weekday. In addition, Mr. Taugher
and his staff are available at other times to meet with members of -
the public by special appointment.
Page 3
City personnel provide staffing at the public counter throughout the
workday. This includes- an Administrative Secretary assigned to the
Building & Safety Department. This individual has been trained and
is capable of processing applications and answering general questions
regarding the business permit process. In the Secretary' s absence,
other clerical staff have been cross-trained to provide general
Building support services. Staff has been unable to identify any
indicators that would support the need to modify the hours in.. which
services are available at the public counter.
Business License Activity;
The City' s Business License program was implemented in October,
1990. The program requires that businesses be inspected for
compliance with City codes including the Building Code. Conformance
with Building and Safety Codes is important to protect the safety of
those who enter these buildings. This includes the safety of
emergency personnel responding to an incident. For example, an
illegal mezzanine constructed in an industrial building would pose a
safety threat in the event of a fire to firefighting personnel.
Advance inspections of commercial buildings for new tenants can also
save businesses money by reducing the potential of occupying the
building premises which may require costly modification to accomodate
their use. The following breakdown shows the workload impacts of the
Business License Inspection program on the Building & Safety
Department:
FY 1991-92 FY 1992-93
(Estimated) (Projected)
Rate Rate
Hrs Per Hr Cost* Hrs Per Hr Cost*
Building Official 38 $85. 00 $ 3,230 50 $85. 00 $ 4,250
Building Inspector 340 $54.00 .. $18,360 400 $54.00 $21,600
Total Hrs/Costs 378 $21,590 450 $25,850
Total * of Inspections 120 300**
* Cost does not include Insurance Surcharge of $4.00/hour,
which is added to the first 3,000 hours of service.
** Business license inspections to be conducted in Fiscal Year
1992-93 will involve re-inspections of industrial businesses and
first time inspections of 25% of the commercial businesses in the
City.
This function accounted for 12.1% of the total estimated hours of
service provided by Taugher & Associates during Fiscal Year 1991-92 .
It is anticipated that this will increase to 15. 0% of the total hours
during Fiscal Year 1992-93 . Business license activities completed in
Fiscal Year 1991-92 included primarily follow-up inspections on
original business license applications where problems arose.
Business inspection activity planned for Fiscal Year 1992-93 will
involve re-inspections of industrial businesses and first time .:
inspections of 25% of the commercial businesses in the City. Thus,
an increase in the number of hours is anticipated.
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The Business License Inspection has been useful in identifying code
violations and working with business to obtain compliance. Once the
City has knowledge of violations, it is important to obtain the
correction in order to protect public safety. Staff does, not
recommend any reduction in the hours associated with this ;activity,
since it is directly related to public safety.
Public Education Program
As part of the 1991 Goals & Objectives, Mr. Taugher proposed a pilot
education program for residents. The intent was to develop workshops
which would be presented to residents considering homeowner improve-
ments. Sessions would be held either in the evening or on the week-
end to maximize participation.
The first workshop was presented in January of 1992 and eight
residents attended. The workshop was 'advertised in the Recreation
Department' s quarterly brochure which is mailed to all residents and
property owners in the City. The brochure included information
regarding the workshop and a sign-up card. In addition, two press
releases were issued, advertising the workshops.
Participants were asked to provide comments following the session.
The comments received included the following:
- "Very interesting. Would like to see more seminars, including
other areas besides additions. "
- "This was great and very helpful - My only suggestion would be to
have some [typical] plot plans, sections and floor plan drawings
in your handouts. Thanks again! "
- "Vic did a good job. We learned alot. Dublin seems pro-active
with homeowners regarding additions. etc. Thank you. "
- "Good idea. I was pleased to see it offered. It cleared up many
questions. Suggest covering examples like decks, gazebos, etc. "
- "Informative, but very basic. Questions & answers very good. "
A total of 8 hours is estimated for Fiscal Year 1991-92; with an
associated cost of $712. The eight hours included workshop hours in
addition to initial program development and preparation time. Mr.
Taugher proposes to conduct two similar sessions in Fiscal Year
1992-93 . Accordingly, he estimates approximately 10 hours of staff
time. The associated costs are estimated at $850. As the initial
program development is now complete, the upcoming two sessions will
involve workshop hours and minimal preparation time only. ,
Another component of the Public Education Program involves "one free
hour" of building inspector services. The program is designed to
assist homeowners who undertake projects without the assistance of a
building contractor. The Building Inspector offers one "free hour"
of service to the homeowner to provide technical assistance. When a
permit is issued to an owner/builder (dwelling unit improvements
only) , the Building Department presents the homeowner with an infor-
mational flyer regarding the "one free hour of service". Mr. Taugher
projects that a total of 30 hours for this program is estimated for
Fiscal Year 1991-92; with an associated cost of $1,740. 1This
represents only six months as this program was not :initiated until
January of 1992. Mr. Taugher proposes approximately 60 hours
( $3, 240) in Fiscal Year 1992-93; this represents a full 12 months.
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Both programs were implemented as a pilot programs, to be -evaluated
at its conclusion. These types of programs cannot be expected to
have a positive cost/benefit ratio. Further, it is difficult to
measure savings/benefits to the homeowner. It is also diffi`cult to
gauge how much time may have been saved by the City for inspections
or plan checking. However, these programs do have a positive
customer service impact. Further, the total cost of both programs
represents approximately 20 of the total Building & Safety contract
budget. Staff recommends reviewing the impact of these programs
during future contract reviews.
Customer Service Activities
In keeping with the City' s ongoing commitment to customer service,
the Building & Safety Department staff members completed the City' s
customer service training during Fiscal Year 1991-92. The training
was comprised of two 4-hour workshops plus one 2-hour follow-up
session. The sessions focused on customer service image, attitude
and responsibilities; effective communication skills; dealing with
the difficult customer, etc.
In addition, the City Manager' s Office, conducted a random customer
service survey. The City randomly surveyed 200 ( 168) of those who
obtained building permits during Calendar Year 1991 (see Exhibits 1
and 2) . Surveys were sent to: property owners and contractors
performing both residential as well as non-residential work. Survey
questions measured service in the area of application and/or plan
check (office services) as well as building inspection (field
services) .
The survey recipients were provided with a postage paid return
envelope. A totalof 42 completed surveys ( 25%) were returned.
Respondents were asked to categorize the type of project as well as
their relationship to the project. A breakdown of the respondents is
shown below:
SUMMARY OF TYPE OF RESPONDENTS
of Those % of Those
Type of Project Returned Relationship Returned
Residential - 22 52. 4% Property Owner - 11 26. 20
Non-residential - 9 21 . 4% Contractor - 19 45. 2%
Not Indicated - 11 26. 2% Other - 3 7. 1%
Did Not Indicate - 9 21 . 4%
Staff also analyzed the survey responses by the type of respondent
( i.e. , property owner vs. contractor) . There appears to be greater
variances in comparing property owner with contractor responses as
opposed to fewer variances noted in comparing residential to non-
residential project customers. For example, in response to question
1 . a) "My application was processed in a timely manner" - on a scale
of 1 to 5 ( 1 representing "Disagree" and 5 representing "Strongly
Agree" ) the average contractor score was 3 .50 (with 15 of the 19
contractors responding) ; while the average property owner score was
more favorable with at 4. 22 (with 9 of the 11 responding) . -
Page 6
Due to the relatively small sample and the close ranking, staff
focused on the total average for all respondents. One of the most
important questions "I am satisfied with the overall service I
received from the City Building Inspection and P1an 'Check department"
showed an average score of 4.05 for all respondents. As shown lin
Exhibit 2, the average response was overwhelmingly positive.
In addition to a number of quantitative questions, the survey also
included several open-ended questions along with a section for
comments and suggestions for improving the Building Department. Some
of the most common remarks included:
- "Good cooperation and services. "
- "Courteous and helpful counter service."
- "Need faster plan check/permit services."
- "Organized and efficient."
- "Knowledgeable staff."
Of the 42 survey responses received, 31 respondents provided
additional comments. Of the comments received, 68% were positive,
and the remaining 32% provided suggestions for improvement and/or
negative comments. Suggestions for improvements, along with staff' s
responses are shown below:
1. Concern: Issue over-the-counter permits for small jobs
Response: Permits for minor work such as termite repairs,
re-roofing, and replacing furnaces and water heaters are issued
over the counter. Permits altering the building footprint or
exterior elevation and location of spas, exterior air conditioning
units and similar items require review by th�lanning Department
2. Concern: Update your Building and Electrical codes
Response: Codes are updated every three years and will be updated
again in July 1992.
3 Concern: Inspectors should schedule specific appointment times -
not estimated appointments (e.g. between 10:00 a.m. and 1:00 p.m.
or between 1:00 and 5:00 p.m. )
Response: Due to staffing, scheduling and workload fluctuations,
it is difficult to schedule specific times for inspections. A
three hour window in the morning and a similar window in the
afternoon seems reasonable.
4. Concern: Would be helpful if someone in the Dept. spoke Spanish.
Response: Spanish speaking personnel would be an asset to the City
operation. Staff will evaluate the background of City personnel
to assess bi-lingual skills of employees.
S. Concern: Hire more inspectors
Response: Currently, the workload indicators do not warrant
additional staffing.
6. Concern: Faster plan checking
Response: Constant efforts are made to expedite the plan checking
process. The plan review process involves not only the Building
Department, but all departments in Development Services along with
Police and outside agencies including the Dougherty Regional Fire
Authority and the Dublin San Ramon Services District. If the
applicant has not submitted complete. information for any one of
these entities to respond, the final-approval can be delayed.
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Page 7
Good customer service promotes excellent public relations and
cooperation from those served by the City. Staff will continue to
evaluate the services provided to Dublin customers and implement
changes as appropriate.
Proposed Building & Safety Service Levels for 1992-93
Due to the steady decline in the residential building industry .'and
the build out of large available sites within the City, the proposed
service level for Fiscal Year 1992-93 is consistent with the
estimated service level for Fiscal Year 1991-92. The following chart
compares the proposed levels of 'service for Fiscal Year 1992-93 with
the estimated levels of service for Fiscal Year 1991-92:
# OF HOURS OF CONTRACT SERVICE
Prior Yr Proposed
Estimate 1992-93
1991-92 # Hours
Building Official
Plan Checking and Administration 960 940
Business License 38 50
Homeowner Education Program 8 10
Total Hours 1,006 1,000
Building Inspector
Code Inspection 1,747 1,540
Business License 340 400
Homeowner Education Program 30 60
Total Hours 2,117 2,000
Total Contract Hours 3 ,123 3 ,000
This analysis is based upon the workload projections developed by Mr.
Taugher (Exhibit 3) . This schedule attempts to project when
construction activity will be occurring on some of the more
significant projects in the City. The primary advantage of
contracting this service is the ability to obtain less than full-time
services during periods of low construction activity. Staff
concludes that the estimated construction schedule represents this
scenario. As identified in the workload projections the number of
projects currently underway and the number projected results in a
slightly reduced workload.
Cost Per Inspection
The City has also utilized the cost per inspection as an indicator of
services rendered pursuant to the Taugher & Associates agreement.
Data related to this measurement are shown below:
Cost Per Inspection
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Actual Actual Actual Estimated Projected
1988-89 1989-901990-91 1991-92 11992-93
Contract Cost $257,576 $281,337 $299,013 $212,300 $202,000
# of Inspections 7, 354 5,500 5,941 4,150 _ 4,000
$ Per Inspection $35. 02 $51.15 $50. 33 $51.16 $50. 50
Page 8
As shown above, the cost per inspection has increased slightly since
1990-91 . One reason for this is that the need for increased Building
Official hours to address inspections and corrections required-as a
result of the City' s Business License Ordinance. Also, the field
workload has declined, this results in a higher proportion of the
inspector' s time being office related. The projected 1992-93 cost
per inspection is lower than the estimated cost for 1991-92 for the
reasons previously discussed.
Cost of Services
The cost of providing Building & Safety services is directly affected
by the level of construction activity within the City. As the number
of inspections performed declines, the per unit cost will increase
due to the fact that there is a built-in cost in providing these
types of services. The use of contract personnel, instead of City
personnel, for this service allows the City to adjust the service
levels based upon construction activity. In addition, once the
larger projects within the City' s existing boundaries are underway
and under construction, the need for regular full-time personnel may
be required. Thus, at that time it may be more cost effective to
consider the use of an in-house Building & Safety staff.
The cost of the Building & Safety activity is partially offset
through building permit fees collected by the City. The City is
currently utilizing a fee structure which was in place when the
County had jurisdiction over this area in 1982. The City Council
adopted a goal in 1991 directing staff to review the current building
fee schedule and identify recommendations for appropriate fee
adjustments. The review is currently underway and staff is planning
to bring the recommended adjustments to the City Council for
consideration in July of 1992.
In reviewing building inspection revenue it is important to note that
receipt of revenue does not always correspond with the time period in
which the expense is incurred. For example, a developer may pay for
the building permits in one fiscal year and construction and
inspection activities may actually take place in the next fiscal
year. A recent example would be Brighton Meadows which paid for 7
single family permits in April of 1992 and the construction is
anticipated to extend beyond July 1, 1992 into Fiscal Year 1992-93.
The revenue is recorded in Fiscal Year 1991-92 although the City will
also incur expenses in Fiscal Year 1992-93 .
In order to fully understand the cost of building inspection
services, it is important to consider both the contract costs
provided by Taugher & Associates and the City support costs (i.e. ,
secretarial and office costs) . The following identifies the combined
costs for the Building Inspection Services:
Actual Actual Actual Estimated Projected
1988-89 1989-90 1990-91 1991-92 1992-93
Taugher & Associates $257,576 $281, 337 $299,013 $212,300 $202,000,
City Support 42 , 878 44, 520 1153 , 426 48,448 56,739
Total Cost $300, 454 $325,857 ,$,352, 439 $260,748 ; $258,739
Total Revenue $289,959 $302,818 $170,780 $193,000 $152,000
Page 9
COST VS. REVENUE
Combined Effect. of Revenue vs. Costs Over %__ciple Years
Fiscal Year 1988-89 to 1991-92
Projected Cost (Contract and City Support)* $1,239,498
Projected Revenue $ 956,557
i;
Net Difference = Direct City costs not i
covered by building permit revenue $ 282,941 (Cost to City)
* Does riot include any City overhead costs.
For the purpose of this analysis, staff only compared the years .which
did not require a substantial reliance upon budget estimates. The :
Fiscal Year 1992-93 projection is an estimate which may be substan-
tially impacted by economic conditions. Inclusion of the 1992-93
projected figures would affect the reliability of the multi-year
analysis. For this reason, the analysis only compares data through
Fiscal Year 1991-92. The City support cost only includes salaries,
benefits, services and supplies related to Building & Safety. The
City also incurs certain overhead costs for administration, legal
counsel, office space, personnel, etc. Therefore, the deficit shown
is actually understated when City overhead costs are taken into I
account. As shown in the multi-year analysis, the City's general'
Fund is funding approximately 30% of the costs of these services.
Financial Comparison of In-House Building & Safety Department
In considering the potential for utilizing an in-house Building &
Safety function, several factors need to be considered. Given the
limited size of a City department, it would most likely require, a con-
tinuation of limited contract services. For example, it might be
necessary to contract for coverage during vacations and other absences.
It is also important to note that the success of an in-house program
depends on the quality and background of the individuals the City is
able to attract. Mr. Taugher is a registered engineer providing the
credentials necessary to complete plan checking on complex projects.
If the Building Official selected by the City did not meet this
standard, the City may continue to rely upon contractual plan
checking of complex projects. These qualitative issues identified
above must be considered when comparing the financial impacts between
in-house and contract building inspection services.
The chart below outlines the estimated costs associated with
providing in-house building inspection and plan checking services:
ESTIMATED COST OF BUILDING & SAFETY IN-HOUSE SERVICES
(EXCLUDING CITY SUPPORT)
# hours Estimated Cost (1)
Sr. Bldg. Inspector 1,992 $ 75,204
Contract Fill in Inspector ( 2) 160 8,640
Building Official 1,992 102,600
Contract Bldg Official Coverage (3) 200 17,000
Misc. Contract Plan Checking estimate 10,000
Supplemental Contract Inspection
time necessary to achieve an
annual total of 2, 250 hours of
service ( 5) 98 5,292
TOTAL ESTIMATED COST OF
IN-HOUSE BUILDING & SAFETY DEPT. $ 218,736
Page 10
NOTES:
( 1) Estimated cost of personnel includes salary (based on a market
survey) , current City of Dublin health & welfare benefits and.
`
car allowance. Estimated costs do not include an increase to ';
the City' s liability insurance coverage.
( 2) Estimated contract hours for an Inspector are based upon
coverage for 20 days of general leave.
( 3 ) Estimated contract hours for a Building Official are based upon
5 weeks ( 20 days general leave plus one week conferences/training)
( 4) A contingency has been included in the event that plan checking
of complex contracts was contracted.
( 5) In order to directly compare an in-house service with the
proposal from Taugher & Associates, additional contract
Inspector hours must be accounted for to provide a total of
2, 250 hours.
Proposed 1992-93 Taugher & Associates Contract Costs
Building Official Hours 1,000
Building Inspector Hours 2,000
Total Projected Contract Cost
Including Insurance Surcharge $202,000
Estimated In-House Cost 218,736
Cost Increase for In-House Services (16,736)
As shown above, the use of contractual services provided by Taugher &
Associates results in a savings to the City of approximately
$16,736. Also, as indicated above, the in-house estimate does not
account for additional costs associated with an increase in City
liability insurance coverage. It should also be noted that the
estimated personnel costs are based on a market salary survey. Of
the six agencies surveyed with regard to the Building Official, only
two City Building Officials are Registered Engineers, as is Mr.
Taugher.
Staff does not anticipate a significant increase in the staffing for
the Building & Safety department until such time as development
occurs in the Extended Planning Areas (Eastern and Western Dublin) .
Without this additional level of activity, it does not appear that it
would be cost effective to bring the Building and Safety function
in-house. In fact, if building activity continues to decrease, it
would be in the best interest of the City to continue to contract for
Building & Safety services. The contract arrangement provides more
flexibility to reduce staffing in conjunction with the level of
building activity.
Proposed 1992-93 Agreement Modifications
The following section discusses proposed changes to the Fiscal Year
1992-93 agreement(Exhibit 4) :
Page 11
Format - Staff recor ds that the City Council a a new agreement
which conforms to th -ity's standard agreement f, ,ontractual
services.
Contract Term - The termination provisions' remain the same in the
proposed agreement as in the current agreement. However, Mr. Taugher
has requested that the agreement reflect the City's Fiscal Year for
the purpose of considering rate adjustments.
Rates - The current agreement with Taugher & Associates identifies
the rate schedule as a separate exhibit. The agreement provides for
two rates: Building Official and Building Inspector. In addition,
the agreement provides for a separate surcharge for liability
insurance. The current rates are effective through July 31, 1992.
Mr. Taugher proposes no increase to the hourly rates for Fiscal Year
1992-93. Thus, the hourly rates will remain as follows:
Current Rate Proposed Rate Difference
Building Official $85.00 $85.00 0
Building Inspector $54.00 $54.00 0
The rates shown include salary, benefits, vehicles, liability
insurance and the contractor's overhead. The proposed rates would be
effective July 1, 1992 through June 30, 1993.
Insurance - Attached as Exhibit 5 is a detailed memorandum which
addresses issues related to insurance coverage carried by Taugher &
Associates, Inc. Mr. Taugher has received preliminary indications
from his broker regarding the cost of Errors & Omissions Insurance.
Because his policy does not terminate until July 31st, the Broker
could not provide a firm quotation for coverage. The following shows
the projected cost compared to the previous year:
Errors and Omissions Insurance
Total Premium Maximum Amount Paid
by City Surcharge
Actual 1991-92 $33,540 $12,000
Projected 1992-93 $27,500 $ 9,000 (proposed)
The City surcharge is billed at the rate of $4.00 per hour until the
maximum cap is reached. The firm absorbs those costs not covered by
the surcharge through their base rates.
As discussed in Exhibit 5, staff has recommended that the proposed
agreement address the issue of Errors & Omissions coverage after the
firm is no longer performing services. Staff recommends that given
the apparent low risk, the City assume liability for the for the
defense of such claims. In return, Taugher & Associates has reduced
the total surcharge to be collected from the City. The action by the
City may impact future liability insurance coverage costs in the
event the City incurs losses from this change. The language
addressing this issue has been incorporated into Exhibit D (Special
Provisions) of the proposed agreement (Exhibit 4) .
Conclusion
Staff recommends that the City Council review the level of services
provided and offer comments. Staff also recommends that the City I
Council approve the resolution approving the agreement between
Taugher & Associates and the City of Dublin. I
CITY OF DUBLIN "Celebrating 10 Years Of Cityhood 1982-1992"
� /ll
P0. Box 2340, Dublin, California 94568 City Offices, 100 Civic Plaza, Dublin, California 94568
March 31, 1992
Dear Customer:
In keeping with the City of Dublin's commitment to Customer Service, our goal is
to provide you the best service we can. As a recent customer of the City's
Building department, your comments will greatly assist the City in its ongoing
effort to improve and enhance the City's Building Inspection and Plan Check
services.
Please take a few moments to complete the attached card and return it to the
City of Dublin. Your comments will be reviewed directly by me and are
confidential.
Please return the survey card by April 13, 1992. Thank you in advance for your
assistance.
Sincerely,
RICHARD C. ANIBRO
CITY MANAGER
EXIMP"'IT I
Administration (510) 833-6650• City Council (510) 833-6605• Finance(510)833-6640• Building Inspection (510) 833-6620
Code Enforcement (510) 833-6620 • Engineering (510) 833-6630 • Planning (510) 833-6610
Police (510)833-6670 • Public Works(510) 833-6630 • Recreation (510)833-6645
EMIT TEO
D V \�y OF 1J��� 0
H E L P U S S E R V E Y O U B E T T E R !
19 62
Type of Project: _ Residential Are you the: _ Property Owner
_ Non-Residential _ Contractor/Builder 'ITY`'�P
Other
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1. PLEASE EVALUATE THE QUALITY OF THE CITY BUILDING INSPECTION AND PLAN CHECK
SERVICES YOU HAVE USED IN DUBLIN.
Strongly Disagree
Agree
a) Application and/or plan check process (office visit)
• My application was processed in a timely manner. 5 4 3 2 1
• The Building Department representative explained the
application and/or plan check process adequately. 5 4 3 2 1
• The Building Department representative offered me 5 4 3 2 1
suggestions or alternatives when difficulties arose. 5 4 3 2 1
• The Building Department representative was courteous. 5 4 3 2- 1
• The Building Department representative was professional. 5 4 3 2 1
• The Building Department representative was knowledgeable. 5 4 3 2 1
b) Building Inspection (on-site)
• The building inspection was made when promised. 5 4 3 2 1
• The Building Department representative explained the 5 4 3 2 1
building inspection process adequately.
• The Building Department representative offered me 5 4 3 2 1
suggestions or alternatives when difficulties arose. 5 4 3 2 1
• The Building Department representative was courteous. 5 4 3 2 1
• The Building Department representative was professional. 5 4 3 2 1
• The Building Department representative was knowledgeable. 5 4 3 2 1
c) The City Building Inspection and Plan Check department 5 4 3 2 1
assisted me in attaining an acceptable finished product. 5 4 3 2 1
d) I am satisfied with the overall service I received from
the City Building Inspection and Plan Check department. 5 4 3 2 1
---------------------------------------------------------------------------------
2. WHAT DID YOU LIRE ABOUT THE BUILDING SERVICES?
3_ COMMENTS OR SUGGESTIONS FOR IMPROVING THE BUILDING SERVICES.
4. ARE YOU EXPERIENCING ANY PROBLEMS WITH THE DELIVERY OF BUILDING SERVICES AT THIS
TIME? _ YES _ NO IF YOU ARE, AND WOULD LIRE TO BE CONTACTED IN PERSON,
PLEASE INCLUDE YOUR NAME AND PHONE # BELOW.
5. NAME AND PHONE #
(Optional)
PLEASE RETURN IN THE SELF ADDRESSED STAMPED ENVELOPE BY APRIL 13, 1992. THANK YOU
FOR YOUR ASSISTANCE!
11F. LP OS SERVE YOU BE R ! 7SUMMARY
Type of Project: _ Residential Are you the: _ Property Owner
_ Non-Residential _ Contractor/Builder
_ Other
1. PLEASE EVALUATE THE WALITY OF THE CITY BUILDING INSPECTION Affil PLAN CAECg
SERVICES YOU HAVE USED IN DUBLIN.
Strongly Disagree Average
Agree
a) Application and/or plan check process (office visit)
• My application was processed in a timely manner. 5 4 3 2 1 3.97
• The Building Department representative explained the
application and/or plan check process adequately. 4.11
• The Building Department representative offered me 5 4 3 2 1 3.65
suggestions or alternatives when difficulties arose.
• The Building Department representative was courteous. 5 4 3 2 1 4.19
• The Building Department representative was professional. 5 4 3 2 1 4.19
• The Building Department representative was knowledgeable. 5 4 3 2 1 4.25
b) Building Inspection (on-site)
• The building inspection was made when promised. 5 4 3 2 1 4.41
• The Building Department representative explained the
building inspection process adequately. 5 4 3 2 1 4.28
• The Building Department representative offered me 5 4- 3 2 1 3.92
suggestions or alternatives when difficulties arose.
• The Building Department representative was courteous. 5 4 3 2 1 4.45
• The Building Department representative was professional. 5 4 3 2 1 4.41
• The Building Department representative was knowledgeable. 5 4 3 2 1 4.25
c) The City Building Inspection and Plan Check department
assisted me in attaining an acceptable finished product. 5 4 3 2 1 3.79
d) I am satisfied with the overall service I received from
the City Building Inspection and Plan Check department. 5 4 3 2 1 4.05
2. WHAT DID YOU LIKE ABOUT THE BUILDING SERVICES?
3. COMMERTS OR SUGGESTIDRS FOR IMPROVING THE BUILDING SERVICES.
4. ARE YOU EXPERIENCING ANY PROBLEMS WITH THE DELIVERY OF BUILDING SERVICES AT THIS Yes No No
TIME? _ YES _ NO IF YOU ARE, AND WOULD LIKE TO BE CONTACTED IN PERSON, Response
PLEASE INCLUDE YOUR NAME AND PHONE # BELOW. 1 31 10
5. NAME AND PHONE #
(Optima)
PLEASE RETURN IN THE SELF ADDRESSED STAMPED ENVELOPE BY APRIL 13, 1992. THANK YOU FOR YOUR ASSISTANCE!
`
EXHIBIT
BUILDING' 3TRUCTI0tJ PROJECTIONS P.X'L'1::C1121:1)
--------- ' -- -..._..- ------9 -
,'a�/ Yg a a 1953
Bordeaux Estates ( 9 vacant lots) �
Ahmanson (41 vacant lots)
; Creekside ( 3 vacant lots)
iBloomington' ( 1 vacant lot)
Brighton Meadows (17 lots)
Kildara (174 total)
Standard Pacific Phase 1 57 -/ do
Phase 2 60
Models 18
Parkwood 224 2;2 IV
Dublin Meadows 206 �`��`""` "��� �OZ� r
Hansen 100 iYo�rv��.:•, 7A /0
Donlon 700 f
(17 custom lots)
Dubney Office Building
Office Club
D.S.R.S.D. Admin. Building
Kaleidoscope f--�
BP Gas Station. F-- �---�F
Dublin Honda
Enea Tenant Improvements ---- -
Fire station
John Knox Church Addition / r �
Dublin Mini Storage Addition r'
U-Haul Mini Storage Addition
+ St. Phillip's Church Additi0h /
Amador Valley/Dougherty COMM,
Stroud Plaza + i
Chevron
Vacant Lots J
Starward Dr. (2 lots)
See's
Old Dutch Pride Dairy
Inea (2 lots)
Dublin Court !J. Patrick Land -
Behind U-Haul
Fear of Hayward Fishery
I Rear of Nichandros
' Rear of Two Pesos Restaurant
Possible Additional Construct.l�?_a
! Hexcel
' valley Christian Center.
+
RESOLUTION NO. - 92
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING THE AGREEMENT BETWEEN
THE CITY OF DUBLIN AND TAUGHER & ASSOCIATES, INC.
FOR BUILDING LAW ENFORCEMENT SERVICES
WHEREAS, Taugher & Associates, Inc. first entered into an
agreement on August 1, 1983, to provide Building Law Enforcement
Services to the City of Dublin; and
WHEREAS, the agreement identifies the fees to be charged in
Exhibit "B" ; and
WHEREAS, the agreement allows an annual review and adjustment of
fees charged by Taugher & Associates, Inc. and mutually agreed upon by
the City; and
WHEREAS, the City wishes to continue contracting for services
from Building Official.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City
of Dublin does hereby approve the agreement by and between the City of
Dublin and Taugher & Associates, Inc. as described in Exhibit 1
attached hereto and by reference made a part hereof.
BE IT FURTHER RESOLVED that the Mayor shall be authorized to
execute the agreement on behalf of the City.
PASSED, APPROVED AND ADOPTED this 9th day of June, 1992.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
is
Ct.,a.!'RACTUAL SERVICES AGREEME14
BUILDING & SAFETY SERVICES
TAUGHER' & ASSOCIATES
THIS AGREEMENT is made \%,at Dublin, California, as of July 1, 1992, by
and between the CITY OF DUBLIN, a municipal corporation ("CITY") , and
Taugher & Associates, ("CONTRACTOR") , who agree as follows:
1. SERVICES. Subject to the terms and conditions set forth in this
Agreement, CONTRACTOR shall provide to CITY the services described in
Exhibit A. CONTRACTOR shall; provide said services at the time, place and
in the manner specified in Exhibit A.
2 . PAYMENT. CITY shall pay CONTRACTOR for services rendered
pursuant to this Agreement at the time and in the manner set forth in
Exhibit B. The payments specified in Exhibit B shall be the only payments
to be made to CONTRACTOR for services rendered pursuant to this Agreement.
CONTRACTOR shall submit all billings for said services to CITY in the
manner specified in Exhibit !B; or, if no manner be specified in Exhibit B,
then according to the usual and customary procedures and practices which
CONTRACTOR uses for billing clients similar to CITY.
3 . FACILITIES, EQUIPMENT AND CLERICAL SUPPORT. Except as set forth
in Exhibit C, CONTRACTOR shall, at its sole cost and expense, furnish all
facilities and equipment which may be required for furnishing services
pursuant to this Agreement. CITY shall furnish to CONTRACTOR only the
facilities and equipment listed in Exhibit C according to the terms and
conditions set forth in Exhibit C.
4 . GENERAL PROVISIONS. The general provisions set forth in Exhibit
D are part of this Agreement. In the event of any inconsistency between
said general provisions and any other terms or conditions of this
Agreement, the other term or condition shall control insofar as it is
inconsistent with the general provisions.
5. SPECIAL PROVISIONS. The special provisions set forth in Exhibit
E are part of this Agreement.
6. EXHIBITS. All exhibits referred to herein are .attached hereto
and are by this reference incorporated herein.
7 . CONTRACT ADMINISTRATION. This Agreement shall be administered by
the CITY MANAGER. All correspondence shall be directed to or through the
CITY MANAGER or his or her designee.
8 . TERM OF AGREEMENT. This Agreement shall be effective until
terminated. This Agreement may be cancelled by the City, upon thirty (30)
days advance written notice. This Agreement may be cancelled by CONTRACTOR
upon ninety (90) days advance written notice.
i
AGREEMENT
Page 1 of 2
7/1/92
9. NOTICES. Any written notice to CONTRACTOR shall be sent to:
Taugher and Associates, Inc.
18681 Vineyard Road
Castro Valley„ CA 94546
Any written notice to CITY shall be sent to:
City of Dublin
Attention: City Manager
100 Civic Plaza
Dublin, CA 94568
.Executed as of the 'day first above stated:
For: CITY OF DUBLIN
a municipal corporation
By
Peter W. Snyder, Mayor
Attest: /
City Clerk /
Approved as to form:
City Attorney
For: Taugher & Associates
By
Victor L. Taugher, Contractor
i
AGREEMENT
Page 2 of 2
7/1/92
EXHIBIT A
SCOPE OF SERVICES
1. Building Official. The individual directly responsible for the
performance of the duties of Building Official as -set forth in this
agreement shall be ', Victor L. Taugher, a California Registered Civil
Engineer, License #9556, and Fire Protection Engineer License #911. Upon
mutual agreement and at the sole discretion of the City Manager, CONTRACTOR
may substitute other : individuals in the above capacity as responsible
individual. The designation as Building Official shall include all duties
and responsibilities assigned to this position through State and local laws
and ordinances.
2 . Building Inspection Services. CONTRACTOR shall enforce the
provisions of the City's Building, Electrical, Plumbing, Mechanical and
Housing Codes; the City's Zoning Ordinance; and related State laws.
CONTRACTOR shall make such inspections and investigations as may be
required to effect such enforcement and issue permits as are required by
City's Ordinances and Codes. Such enforcement shall include the duties as
set forth in the Municipal Code of the City related to the Building
Official and in the performance of such work, the Contractor shall do the
following:
a. Plan Review. Review the plans prepared by or on behalf of
applicants for compliance with applicable Federal, State, and City
ordinances and regulations. Building Official shall maintain close liaison
with City's Planning Director in order that the appropriate requirements of
the Zoning Ordinance are incorporated within such building plans. Building
Official shall arrange review by other appropriate agencies having
jurisdiction in such matters relative to enforcement of fire codes,
sanitation codes and health codes, and other regulatory agencies. When
satisfied that the appropriate requirements of the City's codes have been
met, Building Official shall issue permits as set forth in such codes.
b. Building Inspection. Provide building inspection service during
the course of construction of facilities to enforce compliance with the
provisions of the applicable laws including State and City ordinances and
regulations set forth on the plans for which the permit is issued. In the
performance of such duties, CONTRACTOR shall provide prompt inspection for
each project at the completion of the various stages of construction to
determine compliance.
C. Housing Code Enforcement. Building Official shall enforce the
City's Housing Code by investigation of complaints regarding sub-standard
housing conditions and when necessary, prepare cases for citation hearings,
criminal proceedings in municipal court, and/or civil abatement
proceedings.
d. Zoning Enforcement. Building Official shall provide enforcement
of related aspects of the City's Zoning Ordinance. Upon request by CITY,
CONTRACTOR will make all necessary •• investigations and follow-up
inspections to assure compliance with the Zoning Ordinance and the
conditions of approval of various variances, conditional use permits, site
reviews and other zoning approvals. Enforcement will include preparation
of cases for citation hearings and criminal proceedings in municipal court.
Exhibit A
Page 1 of 2
7/1/92
e. Building Official shall perform other related activities as
requested by the City.
3 . Collection. of Fees. All fees to be collected in connection with the
carrying out of `the functions set forth above, shall be collected by the
CITY. CONTRACTOR shall review the appropriate ordinances and fee schedules
in approved by the CITY, and shall compute the amount of such fees to be
collected by the CITY. CONTRACTOR may submit information and
recommendations on adjustments to adopted fee schedules.
4 . Limitations : (Avoidance of Conflicts). During the term of this
Agreement, CONTRACTOR shall not provide services to any client for a
project which requires any permit. or approval from the CITY.
l
Exhibit A
Page 2 of 2
7/1/92
EXHIBIT B
RATE SCHEDULE
A. BASE HOURLY RATE.
FEE RATE PER HOUR
Building Inspector
Inspection 54.00
Plan Checking (Residential & Non-Structural
Commercial & Industrial Plan Checking) 54.00
Principal Building Official
Inspection 54.00
Plan Checking (Complex Residential, Commercial
and Industrial Buildings) 85.00
Supervision and Administration 85.00**
This rate will be effective for the period beginning on July 1, 1992. The
rates may be adjusted thereafter annually, as mutually agreed upon in
writing by the CONTRACTOR and the CITY of Dublin.
** Supervision duties include review and coordination of work performed
by Inspectors and clerical support staff.
Administrative duties include City Council and Planning Commission
meeting attendance when requested, meetings with applicants and
developers, inter-agency coordination and coordination with Staff,
development of office procedures, operations, etc.
B. OVERTIME RATE.
In the event that the Contractor is requested to perform services whereby
an employee must work in excess of forty (40) hours in any one (1) week,
the Contractor shall be compensated at 1 - 1/2 times the above hourly rates.
for each hour worked over forty. This shall include in the event that
there is an emergency requiring the services of the .Building Official and
the CITY is reimbursed for said services. Standard rates shall apply for
CONTRACTOR attendance at Planning Commission and City Council Meetings.
C. INSURANCE SURCHARGE.
In addition to the hourly rates noted in Section (A) above, an insurance
surcharge of $4 . 00 (four dollars) per hour shall ;be added to each hour of
service rendered pursuant to this agreement. • The cumulative total
surcharge paid during the period from July 1st through June 30th shall not
exceed $9, 000. 00 (nine thousand dollars) . Once this limit is reached
Contractor is entitled only to the base hourly rate.
D. FREQUENCY OF BILLING/PAYMENTS.
Contractor shall submit invoices on a monthly basis. At the sole
discretion of CITY, other payment schedules may be considered.
Exhibit B
Page 1 of 1
7/1/92
EXHIBIT C
1. Facilities for Records. The City shall provide an office for
conducting the duties set forth in this Agreement, and shall provide
necessary furnishings, telephone, permit forms and codes. Within this
office, . Building Official shall assemble such records customarily
maintained by a city Building Department. Such records shall, at all
times, be the property of the City of Dublin.
2 . Clerical Support. City agrees to provide adequate clerical support to
the Building Department function as mutually agreed upon by CITY and
CONTRACTOR.
1
I
i
Exhibit C
Page 1 of 1
7/1/92
EXHIBIT D
GENERAL PROVISIONS
1. INDEPENDENT CONTRACTOR. At all times during the term of this
; Agreement, CONTRACTOR shall be an independent contractor and shall not be
' an employee of CITY. CITY shall have the right to control CONTRACTOR only
insofar as the results of CONTRACTOR'S services rendered pursuant to this
Agreement; however, CITY shall not have the right to control the means of
which CONTRACTOR accomplishes services rendered pursuant to this Agreement.
2 . LICENSES; PERMITS; ETC. CONTRACTOR represents and warrants to
;CITY that he has all licenses, permits, qualifications and approvals of
whatsoever nature which are legally required for CONTRACTOR to practice his
profession. CONTRACTOR represents and warrants to CITY that CONTRACTOR
shall, at his sole cost and expense, keep in effect at all times during the
term of this Agreement any licenses, permits, and approvals which are
legally required for CONTRACTOR to practice his profession.
3 . TIME. CONTRACTOR shall devote such time to the performance of
services pursuant to this Agreement as may be reasonably necessary for
satisfactory performance of CONTRACTOR'S obligations pursuant to this
Agreement.
4 . INSURANCE REQUIREMENTS. CONTRACTOR shall procure and maintain
for the duration of the contract insurance against claims for injuries to
persons or damages to property which may arise from or in connection with
the performance of the work hereunder by the CONTRACTOR, his agents,
representatives, employees or subcontractors. The cost of such insurance
shall be included in the CONTRACTOR'S rates as described in Exhibit B.
(a) Minimum Scope of Insurance. Coverage shall be at least as broad
as:
1. Insurance Services Office form number GL 0002 (Ed. 1/73)
covering comprehensive General Liability and Insurance
Services Office form number GL 0404 covering Broad Form
Comprehensive General Liability; or Insurance Services
Office Commercial General Liability coverage ("occurrence"
form CG 0001. )
2 . Insurance Services Office form number CA 0001 (Ed. 1/78)
covering Automobile Liability, code 1 " "any auto" and
endorsement CA 0025.
3 . Workers' Compensation Insurance as required by the Labor
Code of the State of California and Employers Liability
Insurance.
(b) Minimum Limits of Insurance. CONTRACTOR shall maintain limits no
less than:
1. General Liability: $1, 000, 000 combined single limit per
occurrence for bodily injury, personal injury and property
damage. If commercial General Liability Insurance or other
Exhibit D
Page 1 of 5
7/1/92
form witn a general aggregate limit is used, either the
general aggregate limit shall apply separately to this
project/location or the general aggregate limit shall be
twice the required occurrence limit.
2 . Automobile Liability: $1,000, 000 combined single limit per
accident for bodily injury and accidental death and property
damage per occurrence combined single limit.
3 . Workers' Compensation and Employers Liability: Workers'
Compensation limits as required by the Labor -.Code of the
State of California and Employers Liability limits of
$1, 000, 000 per accident.
(c) Deductibles and Self-Insured Retentions. Any deductibles or
self-insured retentions must be declared to and approved by the
CITY Manager of City of Dublin. At the option of the CITY
Manager or his/her designee either the insurer shall reduce or
eliminate such deductibles or self-insured retentions as respects
the CITY, its officers, officials and employees; or the
CONTRACTOR shall procure a bond guaranteeing payment of losses
and related investigations, claim administration and defense
expenses.
(d) Other Insurance Provisions. The policies are to contain, or be
endorsed to contain, the following provisions:
1. General Liability and Automobile Liability Coverages.
a. The CITY, its officers, officials, employees and
volunteers are to be covered as insureds as respects:
liability arising out of activities performed by or on
behalf of the CONTRACTOR; products and completed
operations of the CONTRACTOR, premises owned, occupied
or used by the CONTRACTOR, or automobiles owned,
leased, hired or borrowed by the CONTRACTOR. The
coverage shall contain no special limitations on the
scope of the protection afforded to the CITY, its
, officers, officials, employees or volunteers.
b. The CONTRACTOR'S insurance coverage shall be primary
insurance as respects the CITY, its officers,
officials, employees and volunteers. Any insurance or
self-insurance maintained by the CITY, its officers,
officials, employees or volunteers shall be excess of
the CONTRACTOR'S insurance and shall not contribute
with it.
C. Any failure to comply with reporting provisions of the
policies shall not affect coverage provided to the
CITY, its officers, officials, employees or volunteers.
d. The CONTRACTOR'S insurance shall apply separately to
each insured against whom claim is made or suit is
Exhibit D
Page 2 of 5
7/1/92
brouynt, except with respect to she limits of the
insurer's liability.
2 . Workers' Compensation and Employers Liability Coverage.
The insurer shall agree to waive all rights of subrogation
against the CITY, its officers, officials, employees and
volunteers for losses arising from work performed by the
CONTRACTOR for the CITY.
3 . Professional Liability.
CONTRACTOR shall carry professional liability 'insurance in
an amount deemed by the CITY to adequately protect the
CONTRACTOR against liability caused by negligent acts,
errors or omissions on the part of the CONTRACTOR in the
course of performance of the services specified in this
Agreement. Said coverage may be provided on a "claims made"
basis at the discretion of the City Manager or his/her
designee. In the event Services pursuant to this agreement
are terminated by either party, Contractor hereby agrees to
maintain Professional Liability Insurance through July 31st,
following the date upon which notice of termination is
provided. Further obligations of the parties related to
Professional Liability are described in Exhibit E (Special
Provisions. )
4 . All Coverages.
Each insurance policy required by this clause shall be
endorsed to state that coverage shall not be cancelled by
either party, reduced in coverage or in limits except after
thirty (30) days' prior written notice by mail, has been
given to the CITY.
(e) Acceptability of Insurers. Insurance is to be placed with
insurers with a Bests' rating of no less than A:VII. , except for
professional liability.
(f) Verification of Coverage. CONTRACTOR shall furnish CITY with
certificates insurance and with original endorsements effecting
coverage required by this clause. The certificates and
endorsements for each insurance policy are to be signed by a
person authorized by that insurer to bind coverage on its behalf.
The certificates and endorsements are to be received and approved
by the CITY before work commences. The CITY reserves the right
to require complete, certified copies of all required insurance
policies, at any time.
(g) Subcontractors. CONTRACTOR shall include all subcontractors as
insureds under its policies or shall furnish separate
certificates and endorsements for each subcontractor. All
coverages for subcontractors shall be subject to all of the
`requirements stated herein.
(h) The City Manager or his/her designee may approve a variation in
those insurance requirements upon a determination that the
Exhibit D
Page 3 of 5
7/1/92
coverages, scope, limits and forms of such insurance are either
not commercially available or That the CITY's interests are
otherwise fully protected. Said approval of variation must be in
writing.
5. CONTRACTOR NO AGENT. Except as CITY may specify in writing,
CONTRACTOR shall have no authority, express or implied, to act on
behalf of CITY in any capacity whatsoever as an agent. CONTRACTOR
shall have no authority, express or implied, pursuant to this
Agreement to bind CITY to any obligation whatsoever.
6. ASSIGNMENT PROHIBITED. No party to this Agreement may assign any
right or obligation pursuant to this Agreement. Any attempted or
purported assignment of any right or obligation pursuant to this
Agreement shall be void and of no effect, unless said assignment is
approved in writing by CITY.
7. PERSONNEL. CONTRACTOR shall assign only competent personnel to
perform services pursuant to this Agreement. In the event that CITY,
in its sole discretion, at any time during the term of this Agreement,
desires the removal of any such person(s) , CONTRACTOR shall,
immediately upon receiving notice from CITY of such desire of CITY,
cause the removal of such person or persons.
8 . STANDARD OF PERFORMANCE. CONTRACTOR shall perform all services
required pursuant to this Agreement in the manner and according to the
standards observed by a competent practitioner of the profession in
which CONTRACTOR is engaged in the geographical area in which
CONTRACTOR practices his profession. All instruments of service of
whatsoever nature which CONTRACTOR delivers to CITY pursuant to this
Agreement shall be prepared in a substantial, first class and
workmanlike manner and conform to the standards of quality normally
observed by a person practicing in CONTRACTOR's profession.
9 . HOLD HARMLESS AND RESPONSIBILITY OF CONTRACTORS. CONTRACTOR shall
take all responsibility for the work, shall bear all losses and
damages directly or indirectly resulting to him, to any subcontractor,
to the CITY, to CITY officers and employees, or to parties designated
by the CITY, on account of the performance or character of the work,
unforeseen difficulties, accidents, occurrences or other causes to the
extent they are predicated on active or passive negligence of the
CONTRACTOR or any subcontractor. CONTRACTOR shall indemnify, defend
and hold harmless the CITY, its officers, officials, directors,
employees and agents from and against any or all loss, liability,
expense, claim, costs (including costs of defense) , suits, and damages
of every kind, nature and description directly or indirectly arising
from the performance of the work to the extent they are covered by the
negligent acts, errors, or omissions of CONTRACTOR. This paragraph
shall not be construed to exempt the CITY, its employees and officers
from its own fraud, willful injury or violation of law whether willful
of negligent. For purposes of Section 2782 of the Civil Code the
parties hereto recognize and agree that this agreement is not a
construction contract. By execution of this agreement CONTRACTOR
Exhibit D
Page 4 of 5
7/1/92
acknowledges and agrees that he has read and understands the
provisions hereof and that . this paragraph is a material element of
consideration. Approval of the insurance contracts does not relieve
the CONTRACTOR or subcontractors from liability under this paragraph.
10. GOVERNMENTAL REGULATIONS. To the extent that this Agreement may be
funded by fiscal assistance from another governmental entity,
CONTRACTOR shall comply with all applicable rules and regulations to
which CITY is bound by the terms of such fiscal assistance program.
Also, in performing the services to be provided pursuant to this
Agreement, Contractor shall comply with all applicable State and
Federal laws and regulations, including but not limited to laws and
regulations relating to discrimination and laws requiring injury and
illness prevention programs.
11. DOCUMENTS. All reports, data, maps, models, charts, studies, surveys,
photographs, memoranda or other written documents or materials
prepared by CONTRACTOR pursuant to this Agreement shall become the
property of CITY upon completion of the work to be performed hereunder
or upon termination of the Agreement.
t
Exhibit D
Page 5 of 5
7/1/92
EXHIBIT E
SPECIAL PROVISIONS
The following provisions are hereby incorporated in the agreement by and
between Taugher & Associates (CONTRACTOR) and City of Dublin (CITY) :
1. Professional Liability Insurance Coverage. As provided in Exhibit D,
CONTRACTOR shall provide Professional Liability Insurance coverage to
adequately protect the CONTRACTOR against liability caused by negligent
acts, errors or omissions on the part of the CONTRACTOR in the course of
performance of the services specified in this agreement. Upon termination
of this agreement, and upon termination of the Professional Liability
Insurance as provided for in paragraph 4 (d) (3) of Exhibit D, CITY shall
assume responsibility of claims investigations, administration, defense and
payment of any claims, settlements or judgements which would otherwise have
been the liability of CONTRACTOR pursuant to Exhibit D, paragraph 9. In
consideration of CITY assuming this potential obligation CONTRACTOR has
adjusted fees charged as shown in Exhibit B.
2 . Subcontractor(s) .
The following terms and conditions are hereby agreed to by CONTRACTOR prior
to the use by CONTRACTOR of subcontractors.
a. Submittal to City Manager. The name, background and experience
of any and every firm or individual to which any work outlined in this
agreement is to be sub-contracted by CONTRACTOR must be submitted to
the"City Manager for his/her prior approval.
b. CONTRACTOR Liable for Work of Subcontractors. Approval by the
City Manager of a subcontractor shall not relieve CONTRACTOR of any
liability for the work to be performed pursuant to this agreement, nor
shall such approval infer any contractual relationship between CITY
and any subcontractor.
Exhibit E
Page 1 of 1
7/1/92
CITY OF DUBLIN
MEMORANDUM
TO: A Richard C. Ambrose, City Manager
F
FROM:''. Paul S . Rankin, Assistant City Manager
RE: Errors & Omissions Insurance - Taugher & Associates, Inc.
DATE: May 20, 1992
The following information discusses issues involving the provision of
insurance by Taugher & Associates. This memorandum outlines the issue
in detail and provides a recommended course of action. The
recommendations have been incorporated into the proposed agreement
with Taugher & Associates, Inc.
Errors & Omissions (E&0) Insurance Surcharge
One component of the agreement is a surcharge for the provision of
Errors and Omissions (E&O) Insurance. Taugher & Associates currently
assess a surcharge which covers a portion of this insurance cost. The
terms of both the current and the proposed agreement provide for the
payment of the surcharge on the same basis. Taugher & Associates adds
$4. 00 per hour to their regular billing rate. However, the total
surcharges to be paid are capped at a maximum amount.
The following table shows the actual cost to Taugher & Associates for
E&O Insurance and the maximum surcharge billed to the City:
1988-89 1989-90 1990-91 1991 -92
Annual Cost of Insurance $56, 119 $38, 085 $38, 085 $33, 540
Maximum City Surcharge 16, 000 12, 000 12, 000 12, 000
For example, in the years when the City paid a maximum of $12, 000, the
$4 . 00 per hour surcharge was levied on only the first 3, 000 hours of
service.
Request to Consider Long Term Provision of Insurance
During the 1992 contract review, Mr. Taugher indicated to Staff that
the firm had an obligation to begin to prudently plan for the future,
when the City may elect to utilize in-house services. Taugher &
Associates, Inc. has always carried E & 0 Insurance coverage, which is
written on a "claims made basis. " This means that coverage is only
provided for the period in which the policy is in effect. If Taugher
& Associates were no longer providing the service and the firm did not
have other clients requiring the insurance, future claims may be
impacted. For example, a claim related to a project which was plan
checked or inspected by the firm may be submitted at some time in the
future.
EX22rg
T 5
1
In order to protect against such claims, one option is to require
through the agreement that the Contractor provide "tail insurance."
This refers to insurance covering future claims which evolved from
past actions covered by a claims made policy. The terms of the
agreement typically specify the number of years which the "tail
insurance" is required.
Taugher & Associates, Inc. discussed with their Insurance Broker the
cost of providing tail coverage. As with most coverage, it is
impossible to obtain a firm quote unless you are prepared to have the
insurance put into effect. The Broker indicated that the coverage
would be 100% of the current years premium. This rate would be
charged for the first three years of tail coverage. Thereafter,
premiums would decline. Based on the firm's estimated 1992/93
premiums, the cost of tail insurance for a three-year period would
exceed $80, 000 .
Taugher & Associates Proposed Increase to Provide Extended Coverage
Taugher & Associates, Inc. indicated that, since the firm could
potentially be facing a significant future liability, they would be
requesting an adjustment to the Insurance Surcharge provided for in
their agreement. In addition, Mr. Taugher indicated that the
agreement should specify the length of tail coverage required.
Mr. Taugher indicated that in the event that a three year tail were
required, he would request an increase in the maximum 1992-93
Insurance Surcharge to $18, 000 . In order to collect the total amount
in a one-year period, the hourly rate collection would be increased to
at least $6 . 00 per hour. These costs were considered by the firm to
be necessary to begin reserving for the future financial cost of
providing insurance after services were no longer provided to the City
of Dublin.
Staff Review of Insurance Options
City Staff in conjunction with the City Attorney's Office and the
City' s Liability Insurance Provider reviewed the various issues to
identify options. The findings of this review indicated the
following:
■ The statute of limitations for potential claims from this service
could extend as long as 10 years.
■ The incidence of claims involving plan checking and inspection
services in public agencies is extremely low.
■ The City' s Liability insurance coverage explicitly excludes
providing direct coverage to an independent Contractor.
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■ The City of Dublin experience with Taugher & Associates, Inc. has
been very good, with no incurred losses related to this service.
Also, the City is not aware of any owner/developer legal actions
related to construction defects.
■ State Law provides the City with certain immunities in the area
of claims alleging improper code compliance inspections.
Based upon the information obtained, Staff considered the financial
cost of tail insurance compared to the potential risk. Given that the
City would be funding significant portions of the cost of tail
insurance through an increased surcharge, Staff focused on means by
which the City could reduce its financial exposure. The following
recommendations have been discussed with Mr. Taugher and he concurs
with their incorporation in the proposed agreement.
Recommendations
1 . The agreement shall be amended to state that in the event that
the agreement is terminated, Taugher & Associates shall maintain
i their E & 0 coverage through the following July 31st. This is
addressed in Section 3 of Exhibit D to the proposed agreement.
This provides the City with limited tail coverage. For example,
if the City terminated the agreement on January 1st, the City
would continue to have coverage for any claims received in the
following seven months. Without this provision, Taugher &
Associates could cancel their coverage immediately upon
termination of their services. The exact length of coverage
provided by this change would vary depending on when the services
were terminated.
2 . The agreement will state that upon termination of services, the
City will assume responsibility for all claims for which the firm
does not have E & 0 coverage. The City would have a contractual
obligation to defend and provide coverage for such claims. This
is addressed in Section 1 of Exhibit E.
3 . Taugher & Associates shall reduce the amount of the total
insurance surcharge collected. In the event that the City
Council accepts these recommendations, the firm has indicated
that a surcharge of $9, 000 would be sufficient if the City agreed
to explicitly delete any requirement for tail insurance. This
represents both a reduction in the amount originally proposed for
1992/93, as well as a reduction over the prior year.
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Potential Impact to City
Staff has been advised by the ABAG PLAN Risk Manager that the proposed
arrangement, where the City assumes liability through a contractual
obligation, would be covered under our policy. It should be noted
that the City' s liability insurance premium is impacted whenever there
are changes to the following factors:
(a) City Population
(b) Payroll for City Staff
(c) History of Losses Paid by City
(d) History of Losses by Other Members of the Insurance Pool
(e) Administrative Costs
If the City provided the service in-house, this would increase the
City' s payroll and in turn its cost of liability insurance. In
addition, the City could experience increases in liability insurance
premiums in the future, in the event that as a result of our agreement
with Taugher & Associates, Inc. , losses were incurred. It may work
out that the premium collected already reflects assumed losses as a
result of increased staff.
As previously indicated based on information available, Staff does not
believe this presents a significant exposure.
If you have any questions, please let me know.
cc: Libby Silver, City Attorney
Albert Fierro, ABAG PLAN Risk Manager
a: 513taug.psr#10
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