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HomeMy WebLinkAboutStaff Report 2506-4872CITY OF PALO ALTO CITY COUNCIL Tuesday, June 17, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     15.Approval of Seven (7) On-Call Consulting Contracts to Provide Planning Application Processing and Supplemental Staffing for the Planning and Development Services Department over a Five-Year Term, as needed: 1) Arnold Mammarella, Architecture + Consulting, 2) CTC Media Group INC., 3) Good City Company 4) Metropolitan Planning Group, 5) Michael Baker International Inc., 6) Stantec Consulting Services, Inc., 7) Urban Planning Partners Inc. in the Amount not to exceed $2,000,000 ; CEQA Status: Not a Project. Public Comment, At Places Memo Item No. 15. Page 1 of 2 7 6 3 3 City Council At Places Memo From: Jonathan Lait, Planning and Development Services Director Meeting Date: June 17, 2025 Item Number: 15 Report #:2506-4872 TITLE Approval of Seven (7) On-Call Consulting Contracts to Provide Planning Application Processing and Supplemental Staffing for the Planning and Development Services Department over a Five- Year Term, as needed: 1) Arnold Mammarella, Architecture + Consulting, 2) CTC Media Group INC., 3) Good City Company 4) Metropolitan Planning Group, 5) Michael Baker International Inc., 6) Stantec Consulting Services, Inc., 7) Urban Planning Partners Inc. in the Amount not to exceed $2,000,000 ; CEQA Status: Not a Project. BACKGROUND Staff would like to provide additional information regarding the planning on-call consultant contracts for Council consideration. The use of on call professional services offers a flexible solution to the highly variable demand for processing planning applications. Approval of these contracts will ensure continuity of services and allow the City to efficiently adjust staffing levels based on fluctuating workload, current staffing levels, economic conditions, and required technical expertise. Through the use of professional consultants, the Planning and Development Services Department balances the organization’s financial health and operational flexibility to avoid overstaffing for variable application volume and specialized technical needs. Currently, the use of these contracts serves two main purposes for the Current Planning program: Supplemental Staffing In FY2026, the Current Planning program includes funding for seven planner positions and approximately $200K for consultant planners for application processing. As of this report, the team has a vacancy rate of 43%, with 3 out of the 7 positions vacant. While the Department is actively recruiting, consultant planners are critical to maintaining timely application processing to meet state mandated deadlines for housing and other applications and provide full-time counter services. Examples of projects that are supported by consultant planners include Major Architectural reviews, Stanford Shopping Center and Town and Country applications, Individual Review (IR) applications, building permitting processing support, and counter services. When vacancies occur, the Department may request salary savings and use additional contract capacity to augment staffing levels for continuity of business. Item No. 15. Page 2 of 2 7 6 3 3 Technical Expertise/Lack of In-House Experts Rather than staffing for specialized planning expertise, the City relies on outside technical experts – such as architects and Radio Frequency analysis engineering – to provide these services because it is cost effective and scalable. The FY2026 Current Planning program budget also includes approximately $200K for technical services, with the majority dedicated to staff support and consultation provided by Arnold Mammarella for individual review application processing. Staff plan to use CTC and Stantec to provide wireless expertise for radio frequency analysis to analyze wireless communication facilities applications. If the contracts are not approved, beginning July 1st, both staff and applicants will be significantly impacted, resulting in application processing delays and further strain on in-house staffing capacity. Additional impacts include: •Individual review applications will not be processed as the City lacks an in-house architect to evaluate for consistency with IR guidelines and provide guidance to applicants on design modifications to meet the IR guidelines. •Planning will need to reduce counter services to meet with applicants. •Timelines from request to completion of final inspections will increase. •Timely completion of building permit review, particularly for single family homes and retail uses. Lastly, from a contract capacity perspective, approximately $400K is budgeted annually between supplemental staffing and specialized expertise. The recommended contracts therefore reflect a $2.0M contract capacity over a five-year term. Staff intends to return to Council for additional authorization if and when the contract needs exceed this initial estimate. It is also notable that the $2.0M request does not account for potential annual cost increases or the possible further usage of consultants to support staffing vacancies. Overall Consultant Management Beyond this specific set of contracts, staff has initiated an overall review of consultant management practices. An initial discussion with the City Council’s Policy and Services Committee occurred in May, and the City Manager intends to bring this issue to the full City Council for discussion in August. If Council subsequently determines that changes are needed in some or all of the contracts, the contract terms will allow the City to accommodate that direction. APPROVED BY: Jonathan Lait, Planning and Development Services Director