Agreement - 4Leaf, Inc. - On-Call Building and Fire Plan Check and Inspection Services - Signed 2021-07-15
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AGREEMENT FOR SERVICES
(For contracts over $5,000 - CONSULTANT)
This AGREEMENT made this 1st day of July, 2021, between:
CITY: City of Gilroy, having a principal place of business at
7351 Rosanna Street, Gilroy, California
and CONSULTANT: 4LEAF, Inc., having a principal place of business at 2126 Rheem Drive,
Pleasanton, CA 95488.
ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on 7/15/2021 and will continue in effect through
6/30/2024, with two, one-year extensions possible unless terminated in accordance with the
provisions of Article 7 of this Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall
terminate this Agreement regardless of any other provision stated herein. ______
Initial
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONSULTANT is an independent contractor and not
an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be
interpreted or construed as creating or establishing the relationship of employer and employee
between CITY and CONSULTANT or any employee or agent of CONSULTANT. Both parties
acknowledge that CONSULTANT is not an employee for state or federal tax purposes.
CONSULTANT shall not be entitled to any of the rights or benefits afforded to CITY’S
employees, including, without limitation, disability or unemployment insurance, workers’
compensation, medical insurance, sick leave, retirement benefits or any other employment
benefits. CONSULTANT shall retain the right to perform services for others during the term of
this Agreement.
ARTICLE 3. SERVICES TO BE PERFORMED BY CONSULTANT
A. Specific Services
CONSULTANT agrees to: Perform the services as outlined in Exhibit “A” (“Specific
Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in
Exhibit “C” (“Milestone Schedule”).
B. Method of Performing Services
CONSULTANT shall determine the method, details and means of performing the above -
described services. CITY shall have no right to, and shall not, control the manner or determine
the method of accomplishing CONSULTANT’S services.
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C. Employment of Assistants
CONSULTANT may, at the CONSULTANT’S own expense, employ such assistants as
CONSULTANT deems necessary to perform the services required of CONSULTANT by this
Agreement, subject to the prohibition against assignment and subcontracting contained in
Article 5 below. CITY may not control, direct, or supervise CONSULTANT’S assistants in the
performance of those services. CONSULTANT assumes full and sole responsibility for the
payment of all compensation and expenses of these assistants and for all state and federal income
tax, unemployment insurance, Social Security, disability insurance and other applicable
withholding.
D. Place of Work
CONSULTANT shall perform the services required by this Agreement at any place or location
and at such times as CONSULTANT shall determine is necessary to properly and timely perform
CONSULTANT’S services.
ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONSULTANT, CITY agrees to pay
CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event
however shall the total compensation paid to CONSULTANT exceed $1,715,800.
B. Invoices
CONSULTANT shall submit invoices for all services rendered.
C. Payment
Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment
will be made unless CONSULTANT has first provided City with a written receipt of invoice
describing the work performed and any approved direct expenses (as provided for in
Exhibit “A”, Section IV) incurred during the preceding period. If CITY objects to all or any
portion of any invoice, CITY shall notify CONSULTANT of the objection within thirty (30)
days from receipt of the invoice, give reasons for the objection, and pay that portion of the
invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not
to pay any invoiced amounts to which it has objected until the objection has been resolved by
mutual agreement of the parties.
D. Expenses
CONSULTANT shall be responsible for all costs and expenses incident to the performance of
services for CITY, including but not limited to, all costs of equipment used or provided by
CONSULTANT, all fees, fines, licenses, bonds or taxes required of or imposed against
CONSULTANT and all other of CONSULTANT’S costs of doing business. CITY shall not be
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responsible for any expenses incurred by CONSULTANT in performing services for CITY,
except for those expenses constituting “direct expenses” referenced on Exhibit “A.”
ARTICLE 5. OBLIGATIONS OF CONSULTANT
A. Tools and Instrumentalities
CONSULTANT shall supply all tools and instrumentalities required to perform the services
under this Agreement at its sole cost and expense. CONSULTANT is not required to purchase
or rent any tools, equipment or services from CITY.
B. Workers’ Compensation
CONSULTANT agrees to provide workers’ compensation insurance for CONSULTANT’S
employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and
indemnify CITY, its officers, representatives, agents and employees from and against any and all
claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses,
including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or
death of any of CONSULTANT’S employees.
C. Indemnification of Liability, Duty to Defend
1. As to professional liability, to the fullest extent permitted by law,
CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be
unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents
and employees against any and all suits, damages, costs, fees, claims, demands, causes of action,
losses, liabilities and expenses, including without limitation attorneys’ fees, to the extent arising
or resulting directly or indirectly from any willful or negligent acts, errors or omissions of
CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims
relating to the injury or death of any person or damage to any property.
2. As to other liability, to the fullest extent permitted by law, CONSULTANT shall
defend, through counsel approved by CITY (which approval shall not be unreasonably withheld),
indemnify and hold harmless CITY, its officers, representatives, agents and employees against
any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and
expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly
from any act or omission of CONSULTANT or CONSULTANT’S assistants, employees or
agents, including all claims relating to the injury or death of any person or damage to any
property.
D. Insurance
In addition to any other obligations under this Agreement, CONSULTANT shall, at no cost to
CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability
Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles,
with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages
due to bodily injury, sickness or disease, or death to any person, and damage to property,
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including the loss of use thereof; and (b) Professional Liability Insurance (Errors & Omissions)
with a minimum coverage of $1,000,000 per occurrence or claim, and $2,000,000 aggregate;
provided however, Professional Liability Insurance written on a claims made basis must comply
with the requirements set forth below. Professional Liability Insurance written on a claims made
basis (including without limitation the initial policy obtained and all subsequent policies
purchased as renewals or replacements) must show the retroactive date, and the retroactive date
must be before the earlier of the effective date of the contract or the beginning of the contract
work. Claims made Professional Liability Insurance must be maintained, and written evidence
of insurance must be provided, for at least five (5) years after the completion of the contract
work. If claims made coverage is canceled or non-renewed, and not replaced with another
claims-made policy form with a retroactive date prior to the earlier of the effective date of the
contract or the beginning of the contract work, CONSULTANT must purchase so called
“extended reporting” or “tail” coverage for a minimum of five (5) years after completion of
work, which must also show a retroactive date that is before the earlier of the effective date of
the contract or the beginning of the contract work. As a condition precedent to CITY’S
obligations under this Agreement, CONSULTANT shall furnish written evidence of such
coverage (naming CITY, its officers and employees as additional insureds on the Comprehensive
Liability insurance policy referred to in (a) immediately above via a specific endorsement) and
requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in
policy terms.
E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or
obligations of CONSULTANT under this Agreement may be assigned or subcontracted by
CONSULTANT without the prior written consent of CITY, which CITY may withhold in its
sole and absolute discretion.
F. State and Federal Taxes
As CONSULTANT is not CITY’S employee, CONSULTANT shall be responsible for paying
all required state and federal taxes. Without limiting the foregoing, CONSULTANT
acknowledges and agrees that:
• CITY will not withhold FICA (Social Security) from CONSULTANT’S
payments;
• CITY will not make state or federal unemployment insurance contributions on
CONSULTANT’S behalf;
• CITY will not withhold state or federal income tax from payment to
CONSULTANT;
• CITY will not make disability insurance contributions on behalf of
CONSULTANT;
• CITY will not obtain workers’ compensation insurance on behalf of
CONSULTANT.
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ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONSULTANT and provide access, at
reasonable times following receipt by CITY of reasonable notice, to all documents reasonably
necessary to the performance of CONSULTANT’S duties under this Agreement.
B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor
governmental entity without the consent of CONSULTANT. Such assignment shall not release
CONSULTANT from any of CONSULTANT’S duties or obligations under this Agreement.
ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of Consultant’s Business/ Death of Consultant.
CONSULTANT shall notify CITY of the proposed sale of CONSULTANT’s business no later
than thirty (30) days prior to any such sale. CITY shall have the option of ter minating this
Agreement within thirty (30) days after receiving such notice of sale. Any such CITY
termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to
CONSULTANT set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after
CITY’ receipt of such notice of sale.
If CONSULTANT is an individual, this Agreement shall be deemed automatically terminated
upon death of CONSULTANT.
B. Termination by City for Default of Consultant
Should CONSULTANT default in the performance of this Agreement or materially breach any
of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written
notification to CONSULTANT. For the purposes of this section, material breach of this
Agreement shall include, but not be limited to the following:
1. CONSULTANT’S failure to professionally and/or timely perform any of the
services contemplated by this Agreement.
2. CONSULTANT’S breach of any of its representations, warranties or covenants
contained in this Agreement.
CONSULTANT shall be entitled to payment only for work completed in accordance with the
terms of this Agreement through the date of the termination notice, as reasonably determined by
CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for
the tasks described on Exhibit C” which have been fully, competently and timely rendered by
CONSULTANT. Notwithstanding the foregoing, if CITY terminates this Agreement due to
CONSULTANT’S default in the performance of this Agreement or material breach by
CONSULTANT of any of its provisions, then in addition to any other rights and remedies CITY
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may have, CONSULTANT shall reimburse CITY, within ten (10) days after demand, for any
and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope
of work as described in this Agreement, to the extent such costs and expenses exceed the
amounts CITY would have been obligated to pay CONSULTANT for the performance of that
task pursuant to this Agreement.
C. Termination for Failure to Make Agreed-Upon Payments
Should CITY fail to pay CONSULTANT all or any part of the compensation set forth in Article
4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default
under this Agreement, CONSULTANT, at the CONSULTANT’S option, may terminate this
Agreement if such default is not remedied by CITY within thirty (30) days after demand for such
payment is given by CONSULTANT to CITY.
D. Transition after Termination
Upon termination, CONSULTANT shall immediately stop work, unless cessation could
potentially cause any damage or harm to person or property, in which case CONSULTANT shall
cease such work as soon as it is safe to do so. CONSULTANT shall incur no further expenses in
connection with this Agreement. CONSULTANT shall promptly deliver to CITY all work done
toward completion of the services required hereunder, and shall act in such a manner as to
facilitate any the assumption of CONSULTANT’s duties by any new consultant hired by th e
CITY to complete such services.
ARTICLE 8. GENERAL PROVISIONS
A. Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be
effective unless and until made in a writing signed by both parties hereto.
B. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONSULTANT shall comply fully with all
applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current
form and as it may be amended from time to time. CONSULTANT shall also require such
compliance of all subcontractors performing work under this Agreement, subject to the
prohibition against assignment and subcontracting contained in Article 5 above. The
CONSULTANT shall defend with counsel acceptable to CITY, indemnify and hold harmless the
CITY OF GILROY, its officers, employees, agents and representatives from and against all suits,
claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees,
including without limitation reasonable attorneys’ fees, that may arise out of any violations of
the Act by the CONSULTANT, its subcontractors, or the officers, employees, agents or
representatives of either.
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C. Attorneys’ Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce
or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable
attorneys’ fees, which may be set by the court in the same action or in a separate action brought
for that purpose, in addition to any other relief to which that party may be entitled.
D. Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the
Agreement are for convenience only and shall not be considered nor referred to for resolving
questions of interpretation.
E. Compliance with Laws
The CONSULTANT shall keep itself informed of all State and National laws and all municipal
ordinances and regulations of the CITY which in any manner affect those engaged or employed
in the work, or the materials used in the work, or which in any way affect the conduct of the
work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or
authority over the same. Without limiting the foregoing, CONSULTANT agrees to observe the
provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or
subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for
goods or services to refrain from discriminatory employment or subcontracting practices on the
basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant
for employment, or any potential subcontractor.
F. Conflict of Interest
CONSULTANT certifies that to the best of its knowledge, no CITY employee or office of any
public agency interested in this Agreement has any pecuniary interest in the business of
CONSULTANT and that no person associated with CONSULTANT has any interest that would
constitute a conflict of interest in any manner or degree as to the execution or performance of
this Agreement.
G. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the
parties hereto with respect to the rendering of services by CONSULTANT for CITY and
contains all the covenants and agreements between the parties with respect to the rendering of
such services in any manner whatsoever. Each party to this Agreement acknowledges that no
representations, inducements, promises or agreements, orally or otherwise, have been made by
any party, or anyone acting on behalf of any party, which are not embodied herein, and that no
other agreement, statement or promise not contained in this Agreement shall be valid or binding.
No other agreements or conversation with any officer, agent or employee of CITY prior to
execution of this Agreement shall affect or modify any of the terms or obligations contained in
any documents comprising this Agreement. Such other agreements or conversations shall be
considered as unofficial information and in no way binding upon CITY.
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H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of
California without regard to the conflict of laws provisions of any jurisdiction. The exclusive
jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and
federal courts located in Santa Clara County, California.
I. Notices
Any notice to be given hereunder by either party to the other may be effected either by personal
delivery in writing or by mail, registered or certified, postage prepaid with return receipt
requested. Mailed notices shall be addressed to the parties at the addresses appearing in
Exhibit “A”, Section V.H. but each party may change the address by written notice in
accordance with this paragraph. Notices delivered personally will be deemed delivered as of
actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.
J. Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remaining provisions will nevertheless continue in full force without being
impaired or invalidated in any way.
K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.
L. Waiver
CONSULTANT agrees that waiver by CITY of any one or more of the conditions of
performance under this Agreement shall not be construed as waiver(s) of any other condition of
performance under this Agreement.
Executed at Gilroy, California, on the date and year first above written.
CONSULTANT: CITY:
4LEAF, INC. CITY OF GILROY
By: By:
Name: Kevin Duggan Name: Jimmy Forbis
Title: President Title: City Administrator
Social Security or Taxpayer
Identification Number 94-3393574
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Approved as to Form ATTEST:
City Attorney City Clerk
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EXHIBIT “A”
SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of
Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To
accomplish that end, CONSULTANT agrees to assign Mike Leontiades, who will act in the
capacity of Project Manager, and who will personally direct such Services.
Except as may be specified elsewhere in this Agreement, CONSULTANT shall furnish all
technical and professional services including labor, material, equipment, transportation,
supervision and expertise to perform all operations necessary and required to complete the
Services in accordance with the terms of this Agreement.
II. NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONSULTANT shall commence the Services upon delivery to CONSULTANT of a written
“Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication
from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or
letter authorizing commencement of the Services. For purposes of this Agreement, Hipolito
Olmos shall be the designated City contact person(s). Notice to Proceed shall be deemed to have
been delivered upon actual receipt by CONSULTANT or if otherwise delivered as provided in
the Section V.H. (“Notices”) of this Exhibit “A”.
B. COMPLETION OF SERVICES
When CITY determines that CONSULTANT has completed all of the Services in accordance
with the terms of this Agreement, CITY shall give CONSULTANT written Notice of Final
Acceptance, and CONSULTANT shall not incur any further costs hereunder. CONSULTANT
may request this determination of completion when, in its opinion, it has completed all of the
Services as required by the terms of this Agreement and, if so requested, CITY shall make this
determination within two (2) weeks of such request, or if CITY determines that CONSULTANT
has not completed all of such Services as required by this Agreement, CITY shall so inform
CONSULTANT within this two (2) week period.
III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached
Exhibit “C”.
IV. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONSULTANT as provided for in Article 4 of this Agreement.
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Direct expenses are charges and fees not included in Exhibit “B”. CITY shall be obligated to
pay only for those direct expenses which have been previously approved in writing by CITY.
CONSULTANT shall obtain written approval from CITY prior to incurring or billing of direct
expenses.
Copies of pertinent financial records, including invoices, will be included with the submission of
billing(s) for all direct expenses.
V. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONSULTANT represents and warrants that it has the qualifications, skills and licenses
necessary to perform the Services, and its duties and obligations, expressed and implied,
contained herein, and CITY expressly relies upon CONSULTANT’S representations and
warranties regarding its skills, qualifications and licenses. CONSULTANT shall perform such
Services and duties in conformance to and consistent with the standards generally recognized as
being employed by professionals in the same discipline in the State of California.
Any plans, designs, specifications, estimates, calculations, reports and other documents furnished
under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for
acceptance shall be a product of neat appearance, well-organized, technically and grammatically
correct, checked and having the maker and checker identified. The minimum standard of
appearance, organization and content of the drawings shall be that used by CITY for similar
purposes.
B. RESPONSIBILITY OF CONSULTANT
CONSULTANT shall be responsible for the professional quality, technical accuracy, and the
coordination of the Services furnished by it under this Agreement. CONSULTANT shall not be
responsible for the accuracy of any project or technical information provided by the CITY. The
CITY’S review, acceptance or payment for any of the Services shall not be construed to operate
as a waiver of any rights under this Agreement or of any cause of action arising out of the
performance of this Agreement, and CONSULTANT shall be and remain liable to CITY in
accordance with applicable law for all damages to CITY caused by CONSULTANT’S negligent
performance of any of the services furnished under this Agreement.
C. RIGHT OF CITY TO INSPECT RECORDS OF CONSULTANT
CITY, through its authorized employees, representatives or agents, shall have the right, at any
and all reasonable times, to audit the books and records (including, but not limited to, invoices,
vouchers, canceled checks, time cards, etc.) of CONSULTANT for the purpose of verifying any
and all charges made by CONSULTANT in connection with this Agreement. CONSULTANT
shall maintain for a minimum period of three (3) years (from the date of final payment to
CONSULTANT), or for any longer period required by law, sufficient books and records in
accordance with standard California accounting practices to establish the correctness of all
charges submitted to CITY by CONSULTANT, all of which shall be made available to CITY at
the CITY’s offices within five (5) business days after CITY’s request.
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D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not
limited to, computer data and source code), drawings, descriptions, documents, discussions or
other information developed or received by or for CONSULTANT and all other written and oral
information developed or received by or for CONSULTANT and all other written and oral
information submitted to CONSULTANT in connection with the performance of this Agreement
shall be held confidential by CONSULTANT and shall not, without the prior written consent of
CITY, be used for any purposes other than the performance of the Services, nor be disclosed to
an entity not connected with the performance of the such Services. Nothing furnished to
CONSULTANT which is otherwise known to CONSULTANT or is or becomes generally
known to the related industry (other than that which becomes generally known as the result of
CONSULTANT’S disclosure thereof) shall be deemed confidential. CONSULTANT shall not
use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under
this Agreement in any magazine, trade paper, newspaper or other medium without the express
written consent of CITY.
E. NO PLEDGING OF CITY’S CREDIT.
Under no circumstances shall CONSULTANT have the authority or power to pledge the credit
of CITY or incur any obligation in the name of CITY.
F. OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches,
tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps,
calculations, photographs, reports and other material developed, collected, prepared (or caused to
be prepared) under this Agreement shall be the property of CITY, but CONSULTANT may
retain and use copies thereof subject to Section V.D of this Exhibit “A”.
CITY shall not be limited in any way in its use of said material at any time for any work,
whether or not associated with the City project for which the Services are performed. However,
CONSULTANT shall not be responsible for, and City shall indemnify CONSULTANT from,
damages resulting from the use of said material for work other than PROJECT, including, but
not limited to, the release of this material to third parties for work other than on PROJECT.
G. NO THIRD PARTY BENEFICIARY.
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third
party or parties, and no third party or parties shall have any claim or right of action hereunder for
any cause whatsoever.
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H. NOTICES.
Notices are to be sent as follows:
CITY: Hipolito Olmos
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONSULTANT: Mike Leontiades
4LEAF, Inc.
2126 Rheem Drive
Pleasanton, CA 94588
I. FEDERAL FUNDING REQUIREMENTS.
If the box to the left of this sentence is checked, this Agreement involves federal
funding and the requirements of this Section V.I. apply.
If the box to the left of this sentence is checked, this Agreement does not involve
federal funding and the requirements of this Section V.I. do not apply.
1. DBE Program
CONSULTANT shall comply with the requirements of Title 49, Part 26, Code of Federal
Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.
2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine th e allowable
cost for individual items.
3. Covenant against Contingent Fees
The CONSULTANT warrants that he/she has not employed or retained any company or person,
other than a bona fide employee working for the CONSULTANT, to solicit or secure this
Agreement, and that he/she has not paid or agreed to pay any company or person, other than a
bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other
consideration, contingent upon or resulting from the award or formation of this Agreement. For
breach or violation of this warranty, the Local Agency shall have the right to annul this
Agreement without liability or, at its discretion, to deduct from the agreement price or
consideration, or otherwise recover, the full amount of such fee, commission, percentage,
brokerage fee, gift or contingent fee.
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EXHIBIT “B”
SCOPE OF SERVICES
1. Commercial and industrial (structural and non - structural) building plans and fire
suppression, detection and alarm system plans.
2. Perform combination building and life safety inspections for residential, commercial,
and industrial in accordance with the approved documents, adopted codes and standards
amended by the City.
COMPLIANCE STANDARDS
3. Perform comprehensive plan review service including all trades; other functions
include but are not limited to: writing plan review reports, holding meetings, answering
inquiries and phone calls as needed.
4. Incorporated requirements from other City departments, divisions, regulating agencies
and jurisdictions, i.e., Planning, Engineering, Fire and Chemical Control, Health
Department, as they may apply to plan reviews and inspection services.
5. Process plan revisions and verify that corrections have been satisfactorily made in a
timely manner.
COMMUNICATION STANDARDS
6. Provide a 1-800-number for service calls from Building and Fire Divisions and permit
applicants.
7. Be available to confer with applicants and City staff at City Hall by telephone
conversations, e- mail and fax during all normal business hours.
8. Provide in-house plans examining services at City Hall when requested to do so.
9. Provide pick-up and delivery service to and from City Hall when necessary.
STAFF MEETING /PROFESSIONAL DEVELOPMENT
10. Meet with Building and Fire Marshal staff upon request.
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EXHIBIT “C”
MILESTONE SCHEDULE
All services within this agremeent will be conducted on an on-call basis whenever services are
requested by the CITY.
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EXHIBIT “D”
PAYMENT SCHEDULE
Plan Review Percentage Cost: 60%
*Fee includes initial review and two (2) rechecks
Plan Review Hourly Cost: $105 Non-Structural Review
$130 Structural Review
CASp Inspection and/or Review: $155/hour
Fire Review: $155/hour
Fee Structure for Building Personnel
Building Official $135/hour
Senior Combination Building Inspector (Building Inspector III) $115/hour
Commercial Building Inspector (Building Inspector II) $105/hour
Residential Building Inspector (Building Inspector I) $90/hour
Training Building Inspector $75/hour
Code Enforcement Officer $95/hour
CASp Review/Inspection $155/hour
Plans Examiner (Structural) $130/hour
Plans Examiner (Non-Structural) $105/hour
Senior Permit Technician $75/hour
Permit Technician $68/hour
Clerk/Administrator $60/hour
Project Inspector / Inspector of Record (including DSA or OSHPD) $135/hour
Project Manager $160/hour
Principal-in-Charge $185/hour
Hourly overtime charge per inspector 1.5 x hourly rate
Mileage (for inspections performed within the City) IRS Rate + 20%
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Fee Structure for Fire Personnel
Fire Protection Engineer (FPE) $155/hour
Fire Plans Examiner $110/hour
Fire Inspector $105/hour
Hazardous Materials Inspector $130/hour
Fire Chief $175/hour
Fire Marshal $155/hour
Fire Prevention Officer $130/hour
Project Manager $175/hour
Rates are inclusive of “tools of the trade” such as forms, telephones, and consumables.
- All invoicing will be submitted monthly.
- Staff Augmentation work (excluding plan review) is subject to 4-hour minimum
charges unless stated otherwise. Services billed in 4-hour increments.
- Most plan reviews will be done in 10 business days or less and 5 business days or
less for re-checks. This is not inclusive of holidays or the day of the pick-up of plans.
- Expedited reviews will be billed at 1.5x the plan review fee listed in the fee
proposal. Return time will be within seven (7) days of receipt of the plans from the
CITY.
- Plan review of deferred submittals & revisions will be billed at the hourly rates
listed in the Fee Schedule.
- All plan review services will be subject to a $250.00 minimum fee if percentage-
based fee or two (2) hour minimum charge if hourly rates apply.
- Large complex plan reviews can be negotiated to achieve the best possible pricing.
CONSULTANT has a track record of working with municipalities to provide
expedited reviews with discounted pricing when able.
- CONSULTANT assumes that these rates reflect the 2021-2022 contract period. 3%
escalation for 2023 and 2024 is negotiable per market conditions.
- Overtime and Premium time will be charged as follows:
- Regular time (work begun after 5AM or before 4PM) 1 x hourly rate
- Nighttime (work begun after 4PM or before 5AM) 1.125 x hourly rate
- Overtime (over 8-hour M-F or Saturdays) 1.5 x hourly rate
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- Overtime (over 8 hours Sat or 1st 8-hour Sun) 2 x hourly rate
- Overtime (over 8 hours Sun or Holidays) 3 x hourly rate
- Overtime will only be billed with prior authorization of the Director or other
designated CITY personnel.
- All work with less than 8 hours rest between shifts will be charged the appropriate
overtime rate.
- Mileage driven during the course of Inspections will be charged at cost plus 20%.
- Payment due on receipt. All payments over 30 days will be assessed a 1.5% interest
charge.
- CITY shall pay attorneys’ fees, or other costs incurred in collecting delinquent
amounts.
- CITY agrees that CONSULTANT'S liability will be limited to the value of services
provided.
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City of Gilroy
Agreement/Contract Tracking
Today’s Date:
July 13, 2021 Your Name: Robert Carrera
Contract
Type:
Services over $5k - Consultant Phone Number: 408-846-0254
Contract Effective Date:
(Date contract goes into effect)
7/15/2021
Contract Expiration Date: 6/30/2024
Contractor / Consultant Name:
(if an individual’s name, format as
last name, first name)
4LEAF, INC.
Contract Subject:
(no more than 100 characters)
On-Call Building and Fire Plan Check and Inspection Services
Contract Amount:
(Total Amount of contract. If no
amount, leave blank)
1715800
By submitting this form, I confirm
this information is complete:
Date of Contract
Contractor/Consultant name and complete address
Terms of the agreement (start date, completion date or “until
project completion”, cap of compensation to be paid)
Scope of Services, Terms of Payment, Milestone Schedule and
exhibit(s) attached
Taxpayer ID or Social Security # and Contractors License # if
applicable
Contractor/Consultant signer’s name and title
City Administrator or Department Head Name, City Clerk
(Attest), City Attorney (Approved as to Form)
Routing Steps for Electronic Signature
Risk Manager
City Attorney Approval As to Form
City Administrator or Department Head
City Clerk Attestation
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City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of Agreements with CSG Consultants and 4Leaf in the
Amount Not-To-Exceed $1,715,800 each and Bureau Veritas in the
Amount Not-To-Exceed $514,740 to Provide On-Call Building and
Fire Plan Check and Inspection Services for the Initial Period of
July 15, 2021 to June 30, 2024, with Two, One-Year Extensions
Possible.
Meeting Date: July 1, 2021
From: Jimmy Forbis, City Administrator
Department: Community Development Department
Submitted By: Karen Garner
Prepared By: Robert Carrera
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Approve agreements with CSG Consultants and 4Leaf in the amount not -to-exceed
$1,715,800 each and Bureau Veritas in the amount not-to-exceed $514,750 to provide
On-Call Building and Fire Plan Check and Inspection Services for the initial period of
July 15, 2021 to June 30, 2024, with two, one-year extensions possible, and authorize
the City Administrator to execute these agreements. (Roll Call Vote)
EXECUTIVE SUMMARY
The City of Gilroy’s Building Division and Fire Prevention/Hazmat Division rely on the
resources and expertise of consultants to provide plan check and inspection services to
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keep plan check turnaround times within expected timeframes and provide quality
customer service to our development applicants. The City’s current consultants have
been a partner with us since March of 2018. Based on the utilization of our current
consultants and the timeframe in which we reached contract capacity with these
consultants, staff issued a Request for Proposals (RFP) to replenish our on-call
consultant lists.
The City issued an RFP on May 7th, 2021 and received proposals from six consultants.
After a review and rating process, the review committee recommends the selection of
CSG Consultants and 4Leaf to provide all the requested on-call services, and Bureau
Veritas to provide on-call plan check services only. Staff is recommending that Council
approve entering into agreements with these consultants for an initial period of three
years, with two, one-year options available to exercise at the City’s discretion.
The contract amounts reflect expected permit activity over the next five years and costs
are fully recovered through the payment of permit and inspection fees by those
receiving the services. The City will not incur any costs not covered by permit and
inspection fees and retains between 40% to 45% of the permit and inspection fees to
cover staff costs. Staff costs include; reviewing the construction drawings and
application for completeness at intake, processing and packaging the plans for review,
inputting project information into the City’s database, invoice and payment processing,
stamp and sign the approved construction drawings, and sending approved drawings
and signed permit card to the applicant.
BACKGROUND
The City’s Building Division and Fire Prevention/Hazmat Division have historically relied
on consultants to supplement plan review and inspection services and assist with peak
demands related to construction activity. The use of consultants reduces the turnaround
time of plan checks as compared to only using in-house staff. Outside firms can
concentrate solely on plan review and have qualifications in different specialties,
providing the City with greater flexibility and depth of expertise. The outside plan review
consultants are primarily used for larger and more complex projects. Small projects,
such as water heaters, residential re-roof, furnace/air conditioner replacement,
residential photovoltaic systems, single family home remodels and single-family yard
patios will remain in house.
Currently, the City has agreements with CSG, 4 Leaf, Bureau Veritas, WCC, and TRB
Associates to provide plan check and inspection services. Those agreements have
provided needed resources to provide timely plan check reviews and inspection
services and maintain the level of services expected by the community. The current
agreements expired on March 19, 2021. Since these agreements reached their contract
capacities at a faster pace than anticipated staff decided to conduct another RFP for
these services to replenish its consultants for these on-call services to meet workload
expectations for the next three years. In the interim, the agreements were temporarily
extended until July 15, 2021 to allow time for the RFP process to be completed.
ANALYSIS
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On May 7th, 2021, the Community Development Department issued a n RFP for on-call
Building and Fire Plan Check and Inspection Services. The RFP was posted on the City
website and in the Mercury News. Six proposals were received by the June 3rd, 2021
deadline from the following consultants:
• 4Leaf
• Bureau Veritas
• CSG Consultants
• Interwest Consulting Group
• True North Compliance Services
• AOKA Engineering
The submittals were evaluated by the review committee based on the criteria listed in
the RFP. The review committee consisted of the Building Official, Deputy Fire Marshal,
Code Enforcement Officer, and Management Analyst. The criteria contained
qualifications, experience, references, scope of services matching the City’s needs, and
proposed fee structure. In addition, all these firms were interviewed by the review
committee from June 16th to June 18th. Based on the proposals and subsequent
interviews, the following consultants were selected to provide on-call building and fire
plan check and inspection services:
• CSG Consultants
• 4Leaf
• Bureau Veritas (Plan Check Services Only)
Contracting with three firms allows both flexibility and efficiency for the Building and Fire
Prevention Divisions when these additional services are necessary. Staff expects that
the selected consulting firms will continue to provide the needed coverage and expertise
to assist with both building and fire code plan review and inspection services. As all of
these firms are already working within the City’s permit review process, the current level
of responsiveness is expected to continue, ensuring timely plan check reviews and
inspection services.
ALTERNATIVES
Council may choose not to approve the selection of these consultants to provide on-call
building and fire plan check and inspection services. If that were the case, the
agreements with our current slate of on-call consultants will expire on July 15th. During
that interim period, staff would develop an alternative solution based on Council
feedback. This action could jeopardize plan review turn around times and the quality of
our customer services for our permitting services, given that there would be a lapse of
necessary resources to continue to meet our expectations. As such, this action is not
recommended.
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FISCAL IMPACT/FUNDING SOURCE
Funding for on-call building and fire plan check services for FY 2022 and FY 2023 totals
$343,160 each year among both the Building and Fire Prevention budgets for
contractual services. The total maximum amount over five years (three years for the
initial contract amount, with two, one-year options available) is $1,715,800. This
currently assumes the same budget for these on-call services beyond the FY 2022 and
FY 2023 budget. The contracts are structured to provide flexibility to the City to
encumber varying percentages of the annual budget towards the consultants where
there is the most need. For example, in FY 2022, the City may be able to encumber
50% of the budget towards CSG Consultants and 50% towards 4Leaf, while in FY 2023,
based on permit activity demand and the availability of consultant resources, the City
may budget 75% towards CSG Consultants, 15% towards 4Leaf, and 10% towards
Bureau Veritas. The way these contract capacities are structured gives the City the
flexibility to optimally utilize its resources for on-call building and fire plan check and
inspection services.
The two primary consultants (CSG Consultants and 4Leaf) will each have $1,715,800
as their not-to-exceed amount. Bureau Veritas, given its smaller capacity of conducting
on-call plan checks, will have a not-to-exceed budget of $514,740, or 30% of the budget
for these on-call services.
Costs are fully recovered through the payment of permit and inspection fees by those
receiving the services. If we utilize a consultant to conduct a plan check for a permit,
they receive a portion of the plan check fees collected for that permit application in
return for their services. This method of compensation has become standard among
plan check consultants. Inspectors and other staff provided are charged at an hourly
rate and recovered from the permit applicant.
NEXT STEPS
Upon approval, staff will proceed with entering into the agreements listed as
attachments in this staff report for the initial three-year period.
Attachments:
1. 21-RFP-CDD-453 - On-Call Standard and Expedited Building Fire Plan Check and
Inspection Services
2. DRAFT Agreement for Services - Bureau Veritas (On-Call Bldg and Fire Pln Check)
3. DRAFT Agreement for Services - 4Leaf (On-Call Bldg and Fire Pln Check and Insp)
4. DRAFT Agreement for Services - CSG Consultants (On-Call Bldg and Fire Pln
Check and Insp)
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