TRUE NORTH COMPLIANCE SERVICES, INC.

Page 2 of 5 agreements) and authorize the City Manager to modify the annual aggregate amount as needed during the term of the agreements without exceeding the total contract amount. 3. Authorize the Director of Community Development to approve allocation of the aggregate across the five agreements, and reallocation as necessary, provided the aggregate of all agreements is equal to the amount approved by the City Council, or the amount as modified by the City Manager. BACKGROUND The City has historically utilized multiple firms for on-call contract services to review plans and building permit documentation for compliance with the provisions of the City’s building, residential, fire, electrical, plumbing, mechanical, green building and housing codes, related Building Division policies, and state and local laws. In addition, these consultants may provide backup Permit Center counter coverage (for example, assisting with “over the counter” permit review and issuance), inspections and investigations as required by the City’s ordinances and adopted policies to help facilitate plan review and building permit processes. Existing on-call agreements are due to expire at the end of June 2025, providing an opportunity to reassess and enter into new agreements with selected consultants for on-call plan review, inspection, and counter services. The new agreements would authorize payment to a selected roster of consultants for up to a maximum of five fiscal years. DISCUSSION Contract plan review provides flexible service levels to handle variations in construction activity and plan review workload, as well as expertise in a wide variety of construction specialties, including projects ranging from multi-story residential developments and high-tech commercial offices to remodeling of historic structures. The use of multiple firms allows the City flexibility to distribute the workload among various consultants based on capacity and specific project needs, to meet targeted due dates and maintain a high level of customer service. The on-call agreements are fully funded through applicant fees collected for building permits and plan review. The City collects fees from applicants which are then used to cover the cost of the consultant service to perform the work, and the City’s administration of that service. Applicants pay the full plan review fee when building plans are submitted for review. When plan reviews are assigned to consultants, the consultants charge an hourly rate with a maximum percentage cap ranging from 30-65 percent of the City fee depending on the type of review, such that the City retains 35 to 70 percent of the plan review fee, which covers the cost of administering the consultant work, peer reviewing if needed, and any supplemental in-house review or direct service to an applicant that may be required. If revisions and/or additional reviews are required, beyond the cap, the applicant is billed at an hourly rate. Fire permit plan review services are also administered through these agreements and thus included in the annual aggregate amount, but are funded by Livermore-Pleasanton Fire Department (LPFD) plan review fee revenue using LPFD expense accounts. In addition to plan check services, inspection and permit center counter coverage by consultants is requested as needed. These services are utilized to backfill in-house position vacancies and staff absences during scheduled time off and are also funded by building permit fee revenue. These types of consultant costs represent approximately three percent of building Docusign Envelope ID: 3A7963A8-840B-46FD-938C-873D645F7FB4