City Council Staff Report Page 1 of 3 September 23, 2025 Agenda Item No. 4.4
DATE: September 23, 2025
TO: Honorable Mayor and Members of the City Council
FROM: Jennifer Phan, Deputy City Manager
SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute the Third Amendment to the Consulting Services Agreement with 4Leaf, Inc., in the Amount of $100,000, for a Total Not-to-Exceed Amount of $274,950, for Encroachment Permit Inspection Services
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to execute the Third Amendment to the Consulting Services Agreement with 4Leaf, Inc., in the amount of $100,000, for a total not-to-exceed amount of $274,950, for Encroachment Permit Inspection Services.
STRATEGIC PLAN ALIGNMENT
This agenda item is in alignment with the following:
Goal D: Create a healthy, sustainable community and maintain and improve the City’s Infrastructure.
BACKGROUND
The inspection staff of the Public Works Engineering Division consists of a team of three employees: a Supervising Construction Inspector, a Lead Construction Inspector, and a Public Works Inspector. The Public Works inspection staff monitors construction of various projects to ensure they meet City engineering standards and are built to City specifications.
Additionally, the inspection staff oversees all the encroachment permit work done in the City. The City requires utility companies and development contractors who construct utility, traffic signal, roadway, or sidewalk improvements within the City’s public right of way to get an Encroachment Permit to ensure that proposed improvements meet the City’s design criteria and standard details. In the past three years, the City has issued over one thousand and eighty-eight (1,088) Encroachment Permits totaling over $1,293,000 in revenue. The significant revenues generated are deposited into the General Fund.
Agenda Item No. 4.4
City Council Staff Report Page 2 of 3 September 23, 2025 Because the combined number of projects in progress and the volume of encroachment permit inspections continually exceed the current capacity of in-house staff, on August 26, 2024, the City entered into a Consulting Services Agreement with 4Leaf, Inc. (“4Leaf”), in the amount of $74,950. On December 10, 2024, the City Council adopted Resolution No. 6413-24, approving the First Amendment to the Consulting Services Agreement to increase the agreement amount by $100,000. Subsequently, on July 1, 2025, the Second Amendment to the Consulting Services Agreement was executed to extend the term of the agreement to July 30, 2026.
DISCUSSION
There are currently several significant projects, including the following Capital Improvement Projects (CIP) and land development projects, in construction:
Union City Boulevard Bike Lanes Project
Annual Sidewalk, Curb & Gutter, and Ramp Repair Project Installation of Full Trash Capture Devices
Various City-Owned Building Repairs and Renovations (City Hall Workstation Modernization, Corp Yard Battery Electric Bus Charging Infrastructure, etc.) Staff are also continuing to conduct encroachment permit inspection work, including a major water main improvement project along H Street, G Street, and 13th Street by the Alameda County Water District.
Additionally, the following CIP projects are either due to begin construction or due to be sent out to bid soon:
Citywide Street Pavement Rehabilitation Project
Dyer Street Pavement Rehabilitation Phase II
Kennedy Park Improvement Project
Citywide LED Conversion Project
Holly Center Modernization
Staff is satisfied with the performance of 4Leaf and considers their role essential to maintaining the level of service that the Engineering Division needs to provide, especially given the currently increased volume of projects and encroachment permit inspection work.
FISCAL IMPACT
The Third Amendment to the Consulting Services Agreement with 4Leaf, Inc., in the amount of $100,000, will be funded with General Fund funds (Account Number 110- 33003-54110), as identified in the Biennial Budget for Fiscal Years 2025-2026 & 2026- 2027, adopted by the City Council on June 24, 2025.
RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to execute the Third Amendment to the Consulting Services Agreement with 4Leaf, Inc., in the amount of $100,000, for a total not-to-exceed amount of $274,950, for Encroachment Permit Inspection Services.
Agenda Item No. 4.4
City Council Staff Report Page 3 of 3 September 23, 2025 Prepared by: Jose Gutierrez, Supervising Construction Inspector Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Attachment 1 – Third Amendment
2. Draft Resolution