TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director
1. Subject
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First Amendment to Agreement with 4Leaf, Inc. for supplemental code enforcement services.
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2. Summary
First Amendment to the Agreement with 4Leaf, Inc. to increase the contract amount by $180,000 to cover the cost of supplemental code enforcement services incurred through March 16, 2024. Should the City Council desire the same level of services through June 30, 2024, the cost would be an additional $105,000.
3. Recommended Action
recommendation
1. Approve the amendment to the agreement with 4Leaf, Inc. to increase compensation by $180,000 using department salary savings for supplemental code enforcement services through March 16, 2024, and authorize the Mayor and City Clerk to execute on behalf of the city; OR
2. Authorize and approve the revision to the First Amendment with 4Leaf, Inc to increase compensation by $285,000, of which $180,000 is from department salary savings and $105,000 is from the unreserved General Fund balance for supplemental code enforcement services through June 30, 2024, and authorize the Mayor and City Clerk to execute on behalf of the city; and authorize the appropriation of $105,000 from the General Fund (100) unreserved fund balance to expenditure account 100.6032.51780.00000 - Other Contractual Services.
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4. Fiscal Impact
To cover the cost incurred through March 16, 2024, the total expenditure for this amendment is $180,000 and will be funded by salary savings from the Fiscal Year 23-24 adopted budget in the General Fund (100). If services are continued through June 30, 2024, the total expenditure for this amendment is $285,000, of which $180,000 is from the current approved department General Fund budget (100) and $105,000 is from the unreserved General Fund (100) balance. Upon approval of this appropriation, the estimated fund balance for the General Fund at June 30, 2024 will be ($2,455,495).
5. Strategic Plan Goals
Goal 3: Enhance and promote quality of life in the community
c: Support and enhance attractive, diverse living environments.
6. Discussion and Background
Over the course of the last year, the desire for enhanced Code Enforcement services has intensified due to unpermitted sidewalk vendors, food trucks, short-term rentals, flower vendors, political signs, and a myriad of other standard Code Enforcement tasks.
In effort to keep up with the demand to remediate violations and address complaints throughout the City in a timely manner on weekdays, evenings, and weekends, the City entered into an Agreement with 4Leaf, Inc. for additional Code Enforcement staffing.
The approval of the Amendment to the Agreement to increase the contract services by $180,000 (to be paid from department salary savings) will cover the cost of supplemental Code Enforcement services through March 16, 2024.
If the City Council desires to continue the same level of service utilizing 4Leaf, Inc. services through June 30, 2024, the First Amendment to the Agreement would need to be increased by an additional $105,000 ($30,000 per month from March 17, 2024, to June 30, 2024).
To reduce the cost of augmented staffing in Fiscal Year 2025 and continue the level of service and responsiveness currently being facilitated by the Agreement with 4Leaf, staff is proposing to hire two new 30-hour benefited code enforcement positions through the mid-year adjustments (Item 7.1). The approval of the positions will allow the City to phase out the services currently being provided by 4Leaf with part-time city staff, which results in a difference of approximately $210,000 less annually and maintain the same level of augmented Code Enforcement services.
Background on Growing Need for Code Enforcement Services
The City’s Sidewalk Vending Permit program was adopted on April 11, 2023, under Ordinance No. 03-23, which implemented sidewalk vending regulations to provide a licensing and permitting process and establish operational requirements for sidewalk vendors. The adoption of this ordinance brought the Orange Municipal Code into alignment with Senate Bill (SB) 946 with the objective of protecting the health, safety, and welfare of the community.
On July 25, 2023, the City Council adopted Ordinance No. 09-23, providing for the legal authority to impound items related to unpermitted sidewalk vendors who failed or refused to comply with the sidewalk vending regulations. The implementation of this ordinance provided for both individual and joint enforcement operations between city and contract staff to contact unpermitted sidewalk vendors and initiate impoundment actions.
On August 24, 2023, the City Council adopted a Mobile Vending Vehicle Permit program to regulate food trucks and trailers operators on public and private property in response to the increasing number of illegal food vehicle operators competing with illegal sidewalk vendors citywide.
Lastly, in July and August of 2023, the city began receiving hundreds of public complaints regarding illegal short-term rental operators violating the city’s Short-Term Rental (STR) program which only allowed for 125 STR permit holders to legally operate citywide.
Approval of the proposed contract amendment would result in citywide staffing coverage of one daytime Code Officer for STR enforcement and three evenings per week for sidewalk vending enforcement. By being more consistent and having more Code Enforcement Officers, a significant reduction in the number of unpermitted and unlicensed sidewalk, mobile vehicle vendors, and STRs is expected.
7. ATTACHMENTS
• First Amendment to Agreement with 4Leaf, Inc.