TO: ADAM PIRRIE, CITY MANAGER
FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR
DATE: SEPTEMBER 9, 2025
Reviewed by:
City Manager: AP
SUBJECT:
Title
AUTHORIZATION TO AMEND THE PROFESSIONAL SERVICES AGREEMENT WITH 4LEAF, INC. FOR PROFESSIONAL BUILDING DIVISION SERVICES (FUNDING SOURCE: GENERAL FUND)
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SUMMARY
On August 14, 2023, staff entered into a professional services agreement with 4LEAF for an amount not to exceed $25,000 for plan review and contract building staff services. In November 2023, due to the City's Building Official vacancy, the City Council approved an additional $180,000 in compensation for a total contract amount of $205,000. In July 2024, due to the continued vacancy of the Building Official, the City Council authorized an additional $75,000 in compensation for a total contract amount of $280,000.
The City hired a full-time Building Official in August 2024. Since then, consultant services have primarily supported plan checks, inspections, and administrative tasks. In December 2024, due to the Claremont Police Department Women's Locker Room Project and other private development projects, the City executed a new $50,000 agreement with 4LEAF for continued Building Division support.
In May 2025, the City Council authorized an increase in compensation for a different consulting firm, BPR Consulting Group, increasing the agreement to $400,000 in total compensation. Following this, the Building Division transitioned to using BPR as its primary consultant. However, some projects previously reviewed by 4LEAF required additional review to be performed by 4LEAF. Additionally, revised plans for projects initially reviewed by 4LEAF must return to them; otherwise, a full re-check by BPR would be required at a higher cost to the City and project applicants.
RECOMMENDATION
Recommended Action
Staff recommends the City Council authorize the City Manager to execute an amendment to the existing professional services agreement with 4LEAF, Inc. extending the term to June 30, 2026, and increasing compensation by $40,000 for a total contract amount of $90,000.
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. Request additional information from staff.
B. Do not authorize the amendment.
FINANCIAL REVIEW
The cost for contract building services provided by 4LEAF from December 2024 to August 2025 is estimated at $40,000 based on reviews conducted to date and anticipated additional plan reviews. The building plan check fee revenue budgeted in 2025-26 is $680,000, which is collected to recover the costs for staff and contracted services to review building plans for the year. These fees are paid in full by applicants through plan check fees.
The Building Division also charges an hourly fee of $210.45 for additional reviews beyond the second plan check. Because the projects being returned to 4LEAF have already undergone multiple reviews, these costs are recoverable through applicant fees.
The staff cost to prepare this report and administer this contract is estimated at $750 and is included in the operating budget of the Community Development Department.
ANALYSIS
The Building Division is responsible for reviewing and implementing building standards for all residential and commercial improvements to ensure compliance with all applicable codes.
The City's $50,000 agreement with 4LEAF, executed in December 2024, reached its funding limit in April 2025. Since then, 4LEAF has continued to invoice the City for follow-up reviews on projects they had previously reviewed. Because 4LEAF completed the original plan reviews, they are only required to look at the revised portions of the plans. If the plans were sent to the Building Division's primary consultant, BPR, a full review would be required, resulting in duplicative costs. Applicants have already paid the City for the initial 4LEAF review, and the City would not be able to recover the cost of a new first review by BPR.
Staff estimates the cost of pending additional reviews by 4LEAF at $15,000, which is less than the cost of sending the same plans to BPR for a full review. The City also has unpaid invoices with 4LEAF totaling $24,744.37. Of this amount, $5,506.50 is being funded by the American Rescue Plan Act (ARPA) Fund, as they relate to the Police Department female locker room addition project. The remaining $19,237.87 is connected to private development projects and would be funded through the General Fund. The Community Development Department has 2024-25 savings from appropriations for contracted services costs, which will be carried forward through a budget amendment to the new fiscal year. These additional costs will not have a budgetary impact on the General Fund in 2025-26 or future years as a result.
The City has continued to see an increase in private development, which has driven demand for building plan checks. Larger projects reviewed by 4LEAF this year include the 15-unit RNLA Permanent Supportive and Affordable Housing project, the 56-unit Olson Homes Descanso Walk project, the 33-unit Jamboree Housing Larkin Place project, and the rebuild of Walters Restaurant. 4LEAF has also reviewed several City projects, including the Police Department female locker room addition and solar installations at the Police Department and Alexander Hughes Community Center. Projects of this size often go through multiple rounds of plan review to ensure they meet all building and safety requirements.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City's strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Economic Sustainability Plan, General Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk's Office.
Submitted by: Prepared by:
Brad Johnson Alex Cousins
Community Development Director Senior Management Analyst