Title
[Contract Supplement] Master Services Agreement with 4Leaf, Inc.
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FileID
File ID: 2026-01421
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion: 1) authorizing the City Manager or designee to execute Supplemental Agreement No. 2 to City Agreement No. 2023-1638 with 4 Leaf, Inc. in an amount not-to-exceed $800,000, for a new not-to-exceed amount of $2,000,000; 2) extending the expiration date of City Agreement No. 2023-1638 to December 31, 2028; and 3) resetting City Manager or designee’s authority to issue supplemental agreements for City Agreement No. 2023-1638.
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Contact
Contact: Chad Copeman, Supervising Engineer, (916) 808-1158, ccopeman@cityofsacramento.org; Ofelia Avalos, Engineering Services Division Manager, (916) 808-5054, oavalos@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Professional Services Agreement
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Description/Analysis
IssueDetail
Issue Detail: Due to the surge in the number of proposed private development projects, the Department of Public Works (PW) utilizes on-call third-party professional consultants to assist with essential tasks within the Development Engineering Section (DE). The core responsibilities of DE staff encompass map review, plan review, and on-call construction inspection services. The implementation of this Professional Services Agreement will empower staff to achieve service level goals such as timely construction plan reviews and permit issuance for the customers in these support activities when demand is at peak.
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PolicyConsiderations
Policy Considerations: The recommendation in this report is consistent with economic development objectives and established level of service expectations by the development community. Further, additional resources are needed to meet the plan review and map review timelines for private development projects. The action requested supports sustainable budget goals to address peak workload needs and is consistent with Chapter 3.04 of the Sacramento City Code which requires City Council approval of contracts for professional services in an amount of $250,000 or more and the existing administrative policy regarding professional service agreements.
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EconomicImpacts
Economic Impacts: Not applicable.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): This report concerns administrative activities and government fiscal activities that do not constitute a “project” as defined by CEQA Guidelines Sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA (CEQA Guidelines15060(c)(3)).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: Development Engineering is responsible for the timely review of building permit applications, encroachment permit applications, public improvement plans, subdivision maps, and construction inspection services associated with private development. The volume, timing, and complexity of private development projects fluctuate significantly and can create periods when workload exceeds the capacity of existing City staff. The proposed supplemental agreement will provide additional resources needed to maintain established service levels, avoid review backlogs, and prevent unnecessary delays in permitting and construction.
The use of on-call consultant services is intended to supplement, not replace, City Development Engineering staff. Permanent staffing levels are established to support the ongoing and sustainable workload of the section. Staffing permanently for peak development activity would require adding positions and associated ongoing personnel costs that may not be supported when development activity declines. An on-call agreement provides a flexible and scalable approach that allows the City to add capacity when workload demands require it without creating a long-term staffing obligation.
City staff will continue to provide oversight, technical direction, quality control, and final City decisions. Consultant staff will perform defined plan review, map review, permit review, and inspection functions in accordance with City standards and under the direction of City staff. This approach allows Development Engineering to respond to temporary increases in workload while maintaining established review timelines and service expectations for the development community.
Consultant services will be used only as needed based on workload and available funding. The services are funded through applicable plan review and inspection fees associated with the development activity generating the workload. No General Fund resources are planned or allocated for these services.
The Professional Services On-Call Agreement was initially approved by Council for a not-to-exceed amount of $1,200,000 for an initial three-year term, with an option to extend the agreement for an additional two years. Approval of Supplemental Agreement No. 2 will increase the agreement by $800,000, for a new not-to-exceed amount of $2,000,000, and extend the agreement through December 31, 2028. The additional contract capacity and term will allow the City to continue utilizing 4Leaf, Inc. on an as-needed basis to address workload demands, maintain established service levels, and minimize delays in the review, permitting, and construction of private development projects.
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FinancialConsiderations
Financial Considerations: Purchase orders encumbering funds under this agreement will be created based on need (number and timing of projects and available funding for those projects). Funding for services will come from plan review and inspection fees collected from carriers for these services.
There are no General Funds planned or allocated for this effort.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): 4Leaf, Inc is an LBE.
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