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HomeMy WebLinkAbout5.3 Amendments to Consulting Services Agreements for On-Call Services for the Building and Safety and Code Enforcement Divisions STAFF REPORT CITY COUNCIL Page 1 of 3 Agenda Item 5.3 DATE: June 17, 2025 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: Amendments to Consulting Services Agreements for On-Call Services for the Building and Safety and Code Enforcement Divisions Prepared by: Gregory A. Shreeve Sr., Chief Building Official EXECUTIVE SUMMARY: The City Council will consider approving a fourth amendment to the agreement with 4Leaf, Inc. for on-call plan check and inspection services, and will consider a third amendment to the agreement with Civica Law Group, APC for special legal counsel related to code enforcement activities. STAFF RECOMMENDATION: Adopt the Resolution Approving a Fourth Amendment to the Consulting Services Agreement Between the City of Dublin and 4Leaf, Inc.; adopt the Resolution Approving a Third Amendment to the Agreement Between Civica Law Group, APC and the City of Dublin for Special Counsel Legal Services; and approve the budget change. FINANCIAL IMPACT: Approval of the recommended action will result in the need for an additional $200,000 in the current year for anticipated legal expenditures related to code enforcement, funded by the General Fund Undesignated Reserve. Adequate funds for the remainder of the costs are included in the Fiscal Year 2025-26 proposed budget. DESCRIPTION: Background The Building & Safety Division of the Community Development Department utilizes consultants on an on-call basis to assist Staff with specific areas of technical expertise and to assist with overflow work. This includes plan check, inspections, and building code compliance activities. Consultants are selected through open and competitive request for qualifications (RFQ) processes. 36 Page 2 of 3 Agreement with 4Leaf, Inc. On June 1, 2021, the City Council approved an agreement with 4Leaf, Inc. for services on an as-needed basis (Resolution No. 58-21). In 2024, the City Council extended the term of this agreement to June 30, 2026 (Resolution No. 48-24). The agreement allows 4Leaf, Inc. to request an annual rate increase – such increases were approved in 2022, 2023 and 2024. For the final year of the agreement, 4Leaf, Inc. has requested rate increases as follows: Table 1: 4Leaf Hourly Rates Consultant Position Current Rates Proposed Rates % Change Supervising Building Inspector $151 $156 3.3% Building Inspector III $132 $136 3.0% Building Inspector II $119 $123 3.4% Building Inspector I $99 $102 3.0% Building Inspector Trainee $76 $78 2.6% Plan Review (on or off -site) $170 $180 5.9% Permit Technician $86-$99 $89-$102 3.5%-3.0% Certified Access Specialist Inspector surcharge $7 $7 0.0% Overtime rate 150% 150% 0.0% Expediting plan check rate 150% 150% 0.0% Project Manager / Deputy Building Official $170 $180 5.9% Staff proposes to amend the agreement with 4Leaf, Inc. to incorporate the increased rates, and to increase the total not-to-exceed limit from $4,250,000 to $4,750,000 (an increase of $500,000). Agreement with Civica Law Group, APC The City has a current contract with Civica Law Group, APC to provide special legal counsel, representation, and assistance with Code Enforcement activities. The current not-to-exceed limit for July 1, 2024 to June 30, 2026, is $400,000. Staff is proposing to increase the total compensation to $800,000 to cover legal assistance with an increased level of code enforcement activity. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. 37 Page 3 of 3 ATTACHMENTS: 1) Resolution Approving a Fourth Amendment to the Consulting Services Agreement Between the City of Dublin and 4Leaf, Inc. 2) Exhibit A to the Resolution – Fourth Amendment to Consulting Services Agreement Between the City of Dublin and 4Leaf, Inc. 3) Agreement and First, Second and Third Amendments with 4Leaf, Inc. 4) Resolution Approving a Third Amendment to the Agreement Between Civica Law Group, APC and the City of Dublin for Special Counsel Legal Services 5) Exhibit A to the Resolution – Third Amendment to Agreement Between Civica Law Group, APC and the City of Dublin 6) Agreement and First and Second Amendments with Civica Law Group, APC 7) Budget Change Form 38 Attachment 1 Reso. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 1 of 1 RESOLUTION NO. XX – 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING A FOURTH AMENDMENT TO THE CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF DUBLIN AND 4LEAF, INC. WHEREAS, the City Council has approved Consulting Services Agreements with 4Leaf, Inc., (Consultant) to provide certain services to the Building and Safety Division on an as -needed basis; and WHEREAS, said Consultant was selected through a Request for Qualifications process; and WHEREAS, Staff proposes to increase the total compensation pa id during the term of the Agreement; and WHEREAS, the Consultants submitted a request to increase the hourly compensation in accordance with the terms of the Agreement. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the Fourth Amendment to the Consulting Services Agreement for On -Call Contract Building and Safety Services with 4Leaf, Inc. BE IT FURTHER RESOLVED that the City Manager is authorized to execute the amendment to the agreements, attached hereto as Exhibit A, and make any necessary, non- substantive changes to carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED this 17th day of June 2025, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 39 Page 1 of 4 FOURTH AMENDMENT TO CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF DUBLIN AND 4LEAF, INC. WHEREAS, on July 1, 2021, the City of Dublin (hereinafter referred to as "CITY") and 4Leaf, Inc. (hereinafter referred to as "CONSULTANT") entered into a Consulting Services Agreement for On-Call Building and Safety Services, which agreement was last amended on July 1,2024, services (hereinafter referred to as the “AGREEMENT”); and WHEREAS, in 2021, Staff prepared and initiated a Request for Qualifications (RFQ) for On-Call Building and Safety services; and WHEREAS, the City Council has directed Staff to process development projects expeditiously and to hire consultants when services are needed; and WHEREAS, the existing AGREEMENT is set to expire on June 30, 2026 and has a not to exceed sum of $4,250,000; and WHEREAS, the CITY and CONSULTANT now wish to amend the Agreement to increase the not to exceed amount to $4,750,000 and increase the reimbursable rates as provided in Exhibit B to the AGREEMENT. NOW THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the AGREEMENT is amended, effective July 1, 2025, as follows: 1) The not to exceed compensation, set forth in section 2.0 of the agreement, shall be increased to $4,750,000, following the reimbursement schedule set forth in Exhibit B. 2) Exhibit B shall be rescinded in its entirety and replaced with the attached revised exhibit. 3) Except to the extent inconsistent with this Fourth Amendment, the Parties ratify and confirm all of the terms and conditions of the AGREEMENT. 4) All requisite insurance policies to be maintained by the CONSULTANT pursuant to the AGREEMENT, as may have been amended from time to time, shall include coverage for the amended term, as described above. 5) The individuals executing this Fourth Amendment and the instruments referenced in it on behalf of CONSULTANT each represent and warrant that they have the legal power, right and actual authority to bind CONSULTANT to the terms and conditions of this Amendment. Attachment 2 Exhibit A to the Resolution 40 Page 2 of 4 IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be executed as of July 1, 2025, of the City Manager’s signature below. CITY OF DUBLIN 4LEAF, INC. By: _____________________________ By: _____________________________ Colleen Tribby, City Manager Kevin J. Duggan, President Dated: ATTEST: By: _____ Marsha Moore, City Clerk APPROVED AS TO FORM: By: _____________________________ City Attorney 41 Page 3 of 4 EXHIBIT B COMPENSATION SCHEDULE & REIMBURSABLE EXPENSES A. CITY shall pay CONSULTANT for services rendered in accordance with the hourly rates stated in section B. CONSULTANT shall submit invoices, not more often than once per month, based upon the work completed. At the sole discretion of the CITY, other payment schedules may be considered. Invoices shall include an accounting of all hours by classification and task. Invoices shall include the purchase order number, amount of purchase order, amount of purchase order remaining, and total hours of augmentation personnel assigned to the City covered by purchase order. The format documentation included on the invoice shall be subject to approval by the City Manager and / or designee. B. HOURLY RATES: The following rates include all reimbursable or indirect costs, including but not limited to business cards, all required code books and references, a vehicle, mileage and mobile field device (smart phone or laptop) compatible with the City’s permitting and plan storage systems. 1) Supervising Building Inspection $156.00 (Includes oversight of Contract Inspectors, monitoring of inspections Demand and a knowledge / certification in commercial / multi-family and single- family building systems. May include plan checking assignments) 2) Building Inspector III $136.00 (Includes knowledge / certification in commercial / multi-family and single-family building systems including structural. Mechanical, plumbing and electrical systems. May include plan checking of non-structural plans.) 3) Building Inspector II $123.00 (Includes knowledge / certification in residential building systems including structural, mechanical. Plumbing, and electrical systems. May included plan checking of non-structural plans.) 42 Page 4 of 4 4) Building Inspector I $102.00 Exhibit A section 1a) st of each year and if approved by the City Council would become effective July 1st of that year. 43 Attachment 3 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 Attachment 4 Reso. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 1 of 1 RESOLUTION NO. XX – 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING A THIRD AMENDMENT TO THE AGREEMENT BETWEEN CIVICA LAW GROUP, APC AND THE CITY OF DUBLIN FOR SPECIAL COUNSEL LEGAL SERVICES WHEREAS, the City of Dublin has an existing agreement with Civica Law Group for special counsel legal services, representation and assistance related to code enforcement; and WHEREAS, the City has a continued need for special counsel legal services; and WHEREAS, the current contract has a not-to-exceed amount for the period of July 1, 2024 to June 30, 2026 of $400,000; and WHEREAS, Staff proposes to amend the agreement to increase the not-to-exceed amount to $800,000 for the term. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the Third Amendment to the Agreement Between Civica Law Group, APC and the City of Dublin for Special Counsel Legal Services, attached he reto as Exhibit A. BE IT FURTHER RESOLVED that the City Manager is authorized to execute the amendments to the agreements, attached hereto as Exhibit A, and make any necessary, non- substantive changes to carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED this 17th day of June 2025, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 77 Attachment 5 THIRD AMENDMENT TO AGREEMENT BETWEEN CIVICA LAW GROUP, APC AND THE CITY OF DUBLIN FOR SPECIAL COUNSEL LEGAL SERVICES 1. PARTIES AND DATE. This Third Amendment to the agreement for services (“Amendment”) by and between the CITY OF DUBLIN (“City”), and CIVICA LAW GROUP, APC, a California Professional Corporation engaged in the practice of law in the State of California (“Law Firm”) is entered into as of July 1, 2025. Law Firm and the City are sometimes individually referred to herein as “Party” and collectively as “Parties.” In consideration of the mutual promises set forth herein, the parties agree to the terms of this Agreement as set forth herein. 2. RECITALS. 2.1 The City and Law Firm entered into an Agreement on March 1, 2023 (“Agreement”), whereby, Law Firm agreed to provide legal services to the City. 2.2 The City and Law Firm amended the Agreement on August 15, 2023, to increase the contract limit. 2.3 The City and Law Firm amended the Agreement on May 21, 2024, to increase the contract limit. 2.4 The City and Law Firm now desire to amend the Agreement to increase the contract limit. 3. TERMS. 3.1 Contract Changes. The Agreement is amended as provided herein. a. Section 3.3 is hereby amended in its entirety to read as follows: For all legal services provided in this Agreement, the City will compensate Law Firm at the blended rate of $309 per hour for attorney representation and $189 per hour for paralegals and law clerks, which fees shall increase by up to five percent on January 1 of each year, rounded up to the nearest dollar, to offset rising costs. The attorney’s fees to Law Firm beginning July 1, 2024, through June 30, 2026, shall not exceed $800,000 without approval of the City. 3.2 Continuing Effect of Agreement. Except as amended by this Amendment, all provisions of the Agreement and First Amendment shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by this Second Amendment to the Agreement. Said Agreement is and remains an effective, valid and binding obligation. Exhibit A to the Resolution 78 Page 2 of 2 [Signatures on following page.] CITY OF DUBLIN, a Municipal Corporation By: ____________________________ Colleen Tribby City Manager Approved as to form: a Professional Corporation By: ____________________________ John Bakker, Esq. City Attorney By: ____________________________ Matthew Silver, Esq. Managing Partner 79 AGREEMENT BETWEEN CIVICA LAW GROUP, APC AND THE CITY OF DUBLIN FOR SPECIAL COUNSEL LEGAL SERVICES 1.PARTIES AND DATE. Attachment 8 This agreement ("Agreement") is entered into and made effective on March 1, 2023 by and between the CITY OF DUBLIN ("City"), and CIVICA LAW GROUP, APC, a California Professional Corporation engaged in the practice of law in the State of California ("Law Firm"). Law Firm and the City are sometimes individually referred to herein as "Party" and collectively as "Parties." In consideration of the mutual promises set forth herein, the parties agree to the terms of this Agreement as set forth herein. 2.RECITALS. 2.1 The City wishes to engage the services of Law Firm to provide special counsel legal services as described in this Agreement. Law Firm wishes to provide all such services and has the necessary expertise and competency to provide such services. 3.TERMS. 3.1 Scope of Services. Law Firm shall provide legal advice, representation and assistance to the City on code enforcement matters as assigned to Law Firm. Law Firm shall report on a regular basis to the City and City Attorney regarding matters assigned to Law Firm, and shall handle matters subject to the input, oversight and direction of City staff and City Attorney. 3.2 Responsibilities of Attorneys and Client. Law Firm shall fully cooperate with the City and will keep the City and its staff informed of the status and progress of all pending matters and all legal matters of importance with which Law Firm is involved. Law Firm will manage and control the delivery of all legal services described hereunder in a professional, competent, and cost-effective manner. The City agrees to provide all information and documentation necessary for the attorneys at Law Firm to perform their obligations under this Agreement. 3.3 Compensation. For all legal services provided in this Agreement, the City will pay Law Firm at the blended rate of $285 per hour for attorney representation and $175 per hour for paralegals and law clerks. Attorney's fees shall not exceed $44,999 without written approval of the City. Fees shall increase by three percent annually on January I, to offset rising costs. 3.4 Cost Reimbursement. The City shall reimburse Law Firm for all out-of-pocket expenses incurred by Law Firm in providing legal services under this Agreement, including charges for printing and copying expenses at $.16 for black and white copies and $.60 for color copies, postage, research, litigation costs, courier and messenger services, travel and automobile mileage at the current IRS rate for travel on behalf of the City. No separate charge shall be made by Law Firm for secretarial or word processing services. 3.5 Statements and Billing. Law Firm shall submit monthly invoices to the City indicating attorney fees and costs incurred for the legal services provided under this Agreement. 1 80 81 82 83 84 85 86 Page 1 of 2 SECOND AMENDMENT TO AGREEMENT BETWEEN CIVICA LAW GROUP, APC AND THE CITY OF DUBLIN FOR SPECIAL COUNSEL LEGAL SERVICES 1. PARTIES AND DATE. This Second Amendment to the agreement for services (“Amendment”) by and between the CITY OF DUBLIN (“City”), and CIVICA LAW GROUP, APC, a California Professional Corporation engaged in the practice of law in the State of California (“Law Firm”) is entered into as of May 21, 2024. Law Firm and the City are sometimes individually referred to herein as Party” and collectively as “Parties.” In consideration of the mutual promises set forth herein, the parties agree to the terms of this Agreement as set forth herein. 2. RECITALS. 2.1 The City and Law Firm entered into an Agreement on March 1, 2023 Agreement”), whereby, Law Firm agreed to provide legal services to the City. 2.2 The City and Law Firm amended the Agreement on August 15, 2023 increase the contract limit. 2.3 The City and Law Firm now desire to amend the Agreement to provide for a contract limit for a two year contract period. 3. TERMS. 3.1 Contract Changes. The Agreement is amended as provided herein. a. Section 3.3 is hereby amended in its entirety to read as follows: For all legal services provided in this Agreement, the City will compensate Law Firm at the blended rate of 294 per hour for attorney representation and $180 per hour for paralegals and law clerks, which fees shall increase by up to five percent on January 1 of each year, rounded up to the nearest dollar, to offset rising costs. The attorney’s fees to Law Firm for fiscal year 2023-2024 shall be increased by $20,000 to a total of $205,000, and beginning July 1, 2024 through June 30, 2026, shall not exceed $400,000 without approval of the City. 3.2 Continuing Effect of Agreement. Except as amended by this Amendment, all provisions of the Agreement and First Amendment shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by this Second Amendment to the Agreement. Said Agreement is and remains an effective, valid and binding obligation. Signatures on following page.] DocuSign Envelope ID: DB763568-660A-46D1-A505-043AD730BF18 87 Page 2 of 2 CITY OF DUBLIN, a Municipal Corporation By: ____________________________ Linda Smith City Manager Approved as to form: REDWOOD PUBLIC LAW, LLP a Professional Corporation By: ____________________________ John Bakker, Esq. City Attorney CIVICA LAW GROUP, APC By: ____________________________ Matthew Silver, Esq. Managing Partner DocuSign Envelope ID: DB763568-660A-46D1-A505-043AD730BF18 88 Budget Change Reference #: From Un-Appropriated Reserves X Budget Transfer Between Funds From Designated Reserves Account Amount Account Amount 10018400.65101 $200,000 6/17/2025 Posted By:Date: **********Finance Use Only********** CITY OF DUBLIN Due to higher than anticipated legal expenditures related to code enforcement, Staff is requesting an additional $200,000 that will be funded through the unappropriated cashflow reserve. REASON FOR BUDGET CHANGE FISCAL YEAR 2024-25 BUDGET CHANGE FORM DECREASE BUDGET AMOUNT INCREASE BUDGET AMOUNT General Fund- Code Enforcement - Professional Services City Council's Approval Required Attachment 7 89