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HomeMy WebLinkAbout2026-01-13; City Council; 09; Amendment to the Professional Services Agreement with True North Compliance Services for Building Official and Inspection ServicesCA Review CDS Meeting Date: Jan. 13, 2026 To: Mayor and City Council From: Geoff Patnoe, City Manager Staff Contact: Mike Strong, Community Development Director mike.strong@carlsbadca.gov, 442-339-2721 Subject: Amendment to the Professional Services Agreement with True North Compliance Services for Building Official and Inspection Services Districts: All Recommended Actions Adopt a resolution approving Amendment No. 1 to the Professional Services Agreement with True North Consulting Services for Building Official services in an amount not to exceed $200,000 and amending the operating budget to appropriate $105,000 to the Community Development Department (Exhibit 1). Executive Summary This is a request to increase the current contract amount with True North Compliance Services to continue to provide temporary Building Official functions and services until the department can fill the vacant Building Official position. Finding a candidate to fill the vacant position has taken longer than expected and additional funding is needed to ensure continuity of service while recruitment continues. Once the position is filled, contract services for Building Official will no longer be required. The action before the City Council is a request to increase the contract amount by $105,000, for a not-to-exceed total fee of $200,000. Procurement of professional services that cost the city more than $100,000 per agreement year requires the City Council’s approval under Carlsbad Municipal Code Section 3.28.060(D)(5). While funding for this request will come from the General Fund, it is expected that budgetary savings will be accrued from the unused full-time salary allotted to the Building Official position. It is anticipated that city staff would reconcile actual year-end employee expenses (salaries, benefits, overtime) and other year-end costs against the adopted budget to offset impacts to the General Fund. Jan. 13, 2026 Item #9 Page 1 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 Explanation & Analysis The Building Division in the Community Development Department consists of the Building Official, one Senior Building Inspector, three Building Inspector II positions, one Senior Office Specialist and three Building Technicians. Current staffing levels are designed to support the Building Division’s typical workload. Hiring new staff quickly when there is a vacancy is critical to maintain essential operations, but it has been challenging lately due to various complications. Temporary staffing and/or consultant services mitigate the effects of unexpected staff vacancies. The city currently contracts with True North Compliance Services for temporary building official and building inspection services. True North Compliance Services has extensive experience providing Building Division services and their staff is familiar with the city’s processes, procedures, and the local building code. Outsourcing this service to the contractor has been necessary because every local building department in the State of California is required to have a designated building official to organize, manage and coordinate the enforcement of building codes.1 The contractor also gives the city access to specialized technical expertise to ensure that new construction is professionally reviewed for compliance with all state and local codes, including seismic, accessibility, plumbing, mechanical, electrical and life safety provisions. The city’s contract with True North Compliance Services was approved under the City Manager’s authority on Aug. 14, 2025, after a request for proposals was posted and eight bids were received and evaluated in July 2025. (Exhibit 2) The scope of the current contract covers a wide range of building-related services, designed to be accommodated and support any function of the Building Division. Contractor work is authorized as needed by the city subject to funding and budget availability. Based on the invoice totals for the existing contract, monthly billing was on average approximately $16,000. Under the existing contract, the contractor is not obligated to continue work or services under this contract or otherwise incur costs in excess of $95,000. Although it was anticipated that the Building Official position would be filled by now, the position remains vacant and unfilled, and staff anticipate the contractor will reach the estimated limit of the current contract by the end of January. Staff expect the demand for building services to remain at current levels for the remainder of fiscal year 2025-26. As a result, the city must continue to rely upon contracted services at a level higher than anticipated. Staff are therefore requesting the City Council’s approval of a contract amendment to increase the not-to-exceed limit by $105,000, resulting in a total not-to-exceed amount of $200,000 per contract year. Under the proposed contract amendment, the contractor would only provide a certified Building Official up to two and a half days per week to provide technical assistance in building-related matters. If additional services are needed that are provided for under the Agreement, beyond Building Official services, the City Manager has authority under Carlsbad Municipal Code Section 3.28.040(C) to amend the contract to include those services, so long as 1 In accordance with the California Building Code, only a “Building Official” is delegated the specific authority to make interpretations of building codes, adopt rules, and enforce guidelines to safeguard life, health and property. Jan. 13, 2026 Item #9 Page 2 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 any applicable 45-day noticing requirements are complied with under Assembly Bill 339 (2025), effective Jan. 1, 2026, and other applicable requirements under the Meyers-Milias-Brown Act contained in Government Code Section 3500 et. seq. An off-cycle budget appropriation of General Funds is needed to cover the remaining expenses anticipated for fiscal year 2025-26 and amounts in the next four fiscal years would be determined and budgeted each following fiscal year. Fiscal Analysis The fiscal impact of extending the contract for fiscal year 2025-26 would be $105,000, to be funded by the General Fund. Budgetary savings will be accrued in the General Fund from the unused full-time salaries allotted to the Building Division. It is anticipated that city staff would reconcile actual year-end employee expenses (salaries, benefits, overtime) and other year-end costs against the adopted budget to offset impacts to the General Fund. Future allocations for the 2026-27 to 2029-30 fiscal years may fluctuate from year to year depending on workload and staffing needs. Fiscal impacts in future years will be forecasted and included in subsequent budgets. Next Steps With the City Council’s approval, city staff will execute the amendment with True North Compliance Services Inc. Environmental Evaluation This action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment. Exhibits 1. City Council resolution 2. Aug. 14, 2025 professional services agreement Jan. 13, 2026 Item #9 Page 3 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 Exhibit 1 RESOLUTION NO. 2026-006 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH TRUE NORTH COMPLIANCE SERVICES FOR BUILDING OFFICIAL SERVICES IN AN AMOUNT NOT TO EXCEED $200,000 AND AMENDING THE OPERATING BUDGET TO APPROPRIATE $105,000 TO THE COMMUNITY DEVELOPMENT DEPARTMENT WHEREAS, the City Council of the City of Carlsbad, California has determined that the City of Carlsbad requires the services of outside consultants for building-related services; and WHEREAS, on August 14, 2025, the city executed a professional services agreement with True North Compliance Services as authorized by the City Manager, for an amount of $95,000 per contract year; and WHEREAS, the professional services agreement established an estimate of total cost and establishes a maximum award amount, conditioned upon the availability of funds; and WHEREAS, an additional $105,000 for building official and inspection services with True North Compliance Services is needed on an annual basis to address current and future shifts in workload and unscheduled vacancies; and WHEREAS, only the City Council can authorize the procurement of services that will cost the city more than $100,000 per agreement year, as is expected with this amended agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.This action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment. 3.That Amendment No. 1 to the Agreement with True North Compliance Services Inc. for Building Official services is hereby approved and the City Manager is hereby authorized and directed to execute Amendment No. 1, subject to review and approval as to form by the City Attorney’s Office. The City Manager maintains the authority for future contract amendments under Carlsbad Municipal Code Section 3.28.040(C) subject to Jan. 13, 2026 Item #9 Page 4 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 any applicable 45-day noticing requirements under Assembly Bill 339 (2025) and other applicable requirements under the Meyers-Milias-Brown Act contained in Government Code Section 3500 et. seq. 4.That the City Council amends the current FY 2026 Operating Budget and the City Manager or designee is authorized to appropriate $105,000 from the General Fund to the Community Development Department upon execution of Amendment No. 1 to the Agreement with True North Compliance Services Inc. for Building Official services. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 13th day of January, 2026, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None. _____________________________________ KEITH BLACKBURN, Mayor ______________________________________ SHERRY FREISINGER, City Clerk (SEAL) Jan. 13, 2026 Item #9 Page 5 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 Page 1 City Attorney Approved Version 5/30/2025 AGREEMENT FOR AS-NEEDED BUILDING AND INSPECTION SERVICES TRUE NORTH COMPLIANCE SERVICES, INC. THIS AGREEMENT (“Agreement”) is made and entered into as of the _______ day of _________________, 2025, by and between the City of Carlsbad, California, a municipal corporation ("City") and True North Compliance Services Inc., a California corporation, ("Contractor"). RECITALS A.City requires the professional services of a consultant who is experienced in providing as- needed building and inspection services. B.Contractor has the necessary experience in providing professional services and advice related to as-needed Building Official Services, Building Inspection Services, and CASp. C.Contractor has submitted a proposal to City and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained in this Agreement, City and Contractor agree as follows: 1.SCOPE OF WORK City retains Contractor to perform, and Contractor agrees to render, those services ("Services") that are defined in attached Exhibit "A," which is incorporated by this reference in accordance with this Agreement’s terms and conditions. The Contractor, including its employees, subcontractors, or agents, shall not perform any services without the City’s prior written consent. 2.STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California area and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3.TERM The term of this Agreement will be effective for a period of five (5) years from the date first above written. 4.TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. 5.COMPENSATION The total fee payable for the Services to be performed during the Agreement term shall not exceed ninety-five thousand dollars ($95,000) per Agreement year. No extensions to this Agreement are permitted, and no other compensation for the Services will be allowed. Payment terms are Net 30 unless otherwise provided in Exhibit “A” or agreed to in writing by the parties. City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or Services specified in Exhibit "A." Incremental payments, if applicable, should be made as outlined in attached Exhibit "A." Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 August 14th Exhibit 2 Jan. 13, 2026 Item #9 Page 6 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 Page 2 City Attorney Approved Version 5/30/2025 6.STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be under the control of City only as to the result to be accomplished but will consult with City as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to Contractor pursuant to this Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At City’s election, City may deduct the indemnification amount from any balance owing to Contractor. 7.SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of City. If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City. 8.OTHER CONTRACTORS City reserves the right to employ other Contractors in connection with the Services. 9.INDEMNIFICATION Contractor agrees to defend (with counsel approved by City), indemnify, and hold harmless the City and its officers, elected and appointed officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described in this Agreement caused by any negligence, recklessness, or willful misconduct of Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. If Contractor’s obligation to defend, indemnify, and/or hold harmless arises out of Contractor’s performance as a “design professional” (as that term is defined under California Civil Code Section 2782.8), then, and only to the extent required by California Civil Code Section 2782.8, which is fully incorporated in this Agreement, Contractor’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Contractor, and, upon Contractor obtaining a final adjudication by a court of competent jurisdiction. Contractor’s liability for such claim, including the cost to defend, shall not exceed Contractor’s proportionate percentage of fault. Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 Jan. 13, 2026 Item #9 Page 7 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 Page 3 City Attorney Approved Version 5/30/2025 The parties expressly agree that any payment, attorneys fee, costs or expense City incurs or makes to or on behalf of an injured employee under City’s self-administered workers’ compensation program is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10.INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor’s agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VII"; OR with a surplus line insurer on the State of California’s List of Approved Surplus Line Insurers (LASLI) with a rating in the latest Best’s Key Rating Guide of at least “A:X”; OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest quarterly listings report. 10.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless Risk Manager or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. The full limits available to the named insured shall also be available and applicable to City as an additional insured. 10.1.1 Commercial General Liability (CGL) Insurance. Insurance written on an “occurrence” basis, including personal and advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 10.1.2 Automobile Liability. (if the use of an automobile is involved for Contractor's work for City). $2,000,000 combined single-limit per accident for bodily injury and property damage. 10.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this. 10.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor’s profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. 10.2 Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 City will be named as an additional insured on Commercial General Liability which shall provide primary coverage to City. Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 Jan. 13, 2026 Item #9 Page 8 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 Page 4 City Attorney Approved Version 5/30/2025 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 If Contractor maintains higher limits than the minimums shown above, City requires and will be entitled to coverage for the higher limits maintained by Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage will be available to City. 10.2.4 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 10.5 Submission of Insurance Policies. City reserves the right to require, at any time, complete and certified copies of any or all required insurance policies and endorsements. 11.BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 12.ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of four (4) years from the date of final payment under this Agreement. 13.OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of City. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to City. Contractor will have the right to make one (1) copy of the work product for Contractor’s records. 14.COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in City and Contractor relinquishes all claims to the copyrights in favor of City. Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 Jan. 13, 2026 Item #9 Page 9 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 Page 5 City Attorney Approved Version 5/30/2025 15.NOTICES The name of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of Contractor under this Agreement are: For City: For Contractor: Name Laureen Ryan Name Isam Hasenin Title Senior Management Analyst Title President and CEO Dept Community Development Address 3355 E. Spring Street, #302 CITY OF CARLSBAD Long Beach, CA 90806 Address 1635 Faraday Avenue Phone (858) 260-0495 Carlsbad, CA 92008 Email isam@tncservices.com Phone (442) 339-2615 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16.CONFLICT OF INTEREST Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the requirements of the City of Carlsbad Conflict of Interest Code. Contractor shall report investments or interests as required in the City of Carlsbad Conflict of Interest Code. Yes ☐ No ☒ If yes, list the contact information below for all individuals required to file: Name Email Phone Number 17.GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants whose services are required by this Agreement. 18.CALIFORNIA AIR RESOURCES BOARD (CARB) ADVANCED CLEAN FLEETS REGULATIONS Contractor’s vehicles with a gross vehicle weight rating greater than 8,500 lbs. and light-duty package delivery vehicles operated in California may be subject to the California Air Resources Board (CARB) Advanced Clean Fleets regulations. Such vehicles may therefore be subject to requirements to reduce Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 Jan. 13, 2026 Item #9 Page 10 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 City Attorney Approved Version 5/30/2025 Page 6 emissions of air pollutants. For more information, please visit the CARB Advanced Clean Fleets webpage at https://ww2.arb.ca.gov/our-work/programs/advanced-clean-fleets. 19.DISCRIMINATION, HARASSMENT, AND RETALIATIONPROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination, harassment, and retaliation. 20.DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 21.TERMINATION In the event of Contractor's failure to prosecute, deliver, or perform the Services, City may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. City may terminate this Agreement by tendering thirty (30) days written notice to Contractor. Contractor may terminate this Agreement by tendering thirty (30) days written notice to City. In the event of termination of this Agreement by either party and upon request of City, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made. 22.COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 Jan. 13, 2026 Item #9 Page 11 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 City Attorney Approved Version 5/30/2025 Page 7 23.CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code Sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement. 24.JURISDICTION AND VENUE This Agreement shall be interpreted in accordance with the laws of the State of California without regard to, or application of, choice of law rules or principles. Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 25.SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement nor any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of City, which shall not be unreasonably withheld. 26.THIRD PARTY RIGHTS Nothing in this Agreement should be construed to give any rights or benefits to any party other than City and Contractor. 27.ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. This Agreement may be executed in counterparts. Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 Jan. 13, 2026 Item #9 Page 12 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 City Attorney Approved Version 5/30/2025 Page 8 28.AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. Executed by Contractor this________ day of __________________, 2025. TRUE NORTH COMPLIANCE SERVICES, INC., a California corporation CITY OF CARLSBAD, a municipal corporation of the State of California By: By: (sign here) Sheila Cobian Assistant City Manager Isam Hasenin – CEO (print name/title) ATTEST: By: SHERRY FREISINGER, City Clerk (sign here) By: Amar Isam Hasenin - CFO Morgen Fry Assistant City Clerk (print name/title) If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups. Group A Group B Chairman, Secretary, President, or Assistant Secretary, Vice-President CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CINDIE K. McMAHON, City Attorney BY: _____________________________ C. Dalton SorichAssistant City Attorney August Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 13 Jan. 13, 2026 Item #9 Page 13 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 City Attorney Approved Version 5/30/2025 Page 9 EXHIBIT ‘A’ Scope of Services We offer a full range of development review & inspection services including Building & Safety services ranging from plan review to inspection and permit technician services and other related services. We have the depth and breadth of resources to perform any and all of the following services: a. Building Official Services: True North Compliance will provide a qualified certified and experienced Building Official. The individual will report to the Community Development Director and provide supervision and direction to the Building & Safety Division staff, code administration and interpretations, develop policies and ordinances, interface with customers, City staff and elected officials, and perform related administrative functions as assigned. b. Inspection Services: True North Compliance has the capabilities to provide inspection and reinspection for compliance with all applicable codes, standards and regulations including: California Building Code; California Residential Code; California Plumbing Code; California Mechanical Code; California Electrical Code; California Fire Code; California Energy Code; California Green Building Standards Code; California Disabled Access Regulations; California Title 25, Mobile Home Parks, as locally adopted and amended. Our inspection staff is certified by the International Code Council or other appropriate entities in accordance with AB717 and possess many years of building code inspection experience with a municipality or a private municipal consultant. Our inspectors have extensive construction and trade experience in addition to their Code knowledge, allowing for a practical approach to applying Code provisions during the inspection process. c. Counter & Administrative Services: True North Compliance has the capabilities to provide counter and administrative services as needed by the city. Our staff will provide technical support and application of City policies, methods and practices to support professional engineering, plan review, planning, and building and safety staff. Our Counter Technician has knowledge of construction terms and operations, development and building codes required to process plans and permits along with government functions and processes. Review permit application for completeness, perform fee calculations, route plans, verify approvals and conditions and issue permits. Use the City’s permitting system to file permit applications, calculate fees, research zoning and planning requirements, enter approvals and route plans to appropriate divisions and departments. Maintain communications with applicants, interested parties, property owners, homeowner associations, various governmental agencies, and other City departments. Respond to inquiries about projects from residents and applicants. d. Code Enforcement Services: True North Compliance has the capabilities to provide Code Enforcement and Housing services and assist the City of Carlsbad in the enforcement of applicable Zoning codes, Building codes, Housing codes, public nuisance codes and State health & safety codes. Our Code Enforcement Officers have extensive experience and capabilities in the following areas: Code enforcement program review and analysis; Code enforcement inspections; Preparing administrative remedies including administrative citations; Conducting Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 Jan. 13, 2026 Item #9 Page 14 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 City Attorney Approved Version 5/30/2025 Page 10 administrative hearings; Preparing program documentation and staff reports as well as committee or Council presentations; Testifying on behalf of clients in criminal court; License and permit application review and processing; Coordination of activities with multiple departments including Building, Planning, Community Development, Police and City Attorney; Providing information on municipal regulations to property owners, residents, businesses, the general public, as well as to other departments and divisions. e. Special Projects- Our management team and staff can participate in a variety of special projects, as needed. These projects may include, but not limited to, analysis of processes and procedures; Business process re-engineering, fee studies; Review and recommendations of permitting software; Preparation of engineered plan details; Conducting training on a variety of code- related topics; Interim or permanent Building Official duties; Preparation of documents/handouts; Public presentation to community groups, City Committees or Council. Customer Service Commitment Our singular focus on our motto “personal attentive service and excellence in the delivery of our services” allowed us to become the go-to provider for most of our clients. The common denominator for our success serving our clients is the absolute focus on delivering high quality, responsive and timely services. We will partner with city staff, applicants and designers to come up with practical common-sense solutions to difficult code compliance challenges. Our team is available to handle questions and issues raised by City staff and/or the applicants throughout the day. Our managers are available around the clock to handle whatever needs our clients might have. We keep an open line of communications with staff and applicants to streamline and expedite the review and approval of projects being reviewed. Our customer service commitment includes the following elements: 1.Application of the code in a reasonable practical yet safe manner and understanding and apply the spirit and intent of the code whenever needed. 2.Open lines of communication with the Community Development Assistant Director and other city managers and staff to ensure an efficient and high level of customer service. 3.Our designated building official will use a practical common-sense approach to code compliance and look for creative ways to resolve field inspection challenges. 4.Office hours: our staff are available Monday through Friday from 8:00 am- 5:00 pm to respond to phone calls and email inquiries. 5.We respond to phone calls and emails no later than the next business day and in most cases on the same business day. 6.Our staff is available, during regular business hours, to discuss and clarify plan check issues with applicants, designers, owners and consultants. Resolution of code issues may be performed by telephone, or meetings, prior to resubmitting corrected plans and documents. Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 Jan. 13, 2026 Item #9 Page 15 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 City Attorney Approved Version 5/30/2025 Page 11 Organization and Team Members Principal/Project Leader For this contract, Isam Hasenin, P.E., C.B.O., will serve as Principal/Team Lead and will serve as the main point of contact of True North Compliance Services, Inc. staff and the City of Carlsbad. Isam will ensure that services are delivered in accordance with the Scope of Services established by the City and the Consultant Services Agreement. Isam will maintain an open line of communications with City of Carlsbad’s Community Development Assistant Director and other managers as well as project applicants and design teams. He will provide oversight and management of all True North’s staff assigned to City projects. Isam will be available for meetings at the city office. He will be available to discuss complex code compliance/interpretation questions or process/procedural issues with the Building Official and design team members as the needs arise. Isam has 30 years of experience in code enforcement and building department administration and technical review and inspections. Mr. Hasenin has the perfect mix of public sector experience and private sector experience managing both small and large operations. He has deep understanding and appreciation for the challenges and demands of local municipalities in meeting the needs and expectations of their citizens and applicants for building permits. Project Manager/Director of Operations Amar Hasenin, Director of Operations for True North, will serve as the day-to-day operational and technical manager for the City of Carlsbad projects. He will assign and monitor the workload of staff, quality of reviews and timeliness of the review process. He will be available to discuss code compliance/interpretation questions or process/procedural issues with our designated Building Official and city staff as the needs arise. He will provide technical and administrative training and participate in any special assignments or meetings at City manager’s direction. Amar has over 10 years of experience as a design engineer, plan check engineer, and regional manager in Southern California. He served as the Bay Area Regional Manager for a third-party building department services provider prior to joining True North. He is a highly competent plan review engineer and technical expert in the application of the California Codes and a certified Plans Examiner and Inspector by ICC. Designated Building Official Jesse Sanchez will serve as the Designated Building Official. Jesse has over 20 years of experience in all aspects of building & Safety operations from the front counter to plan review, inspections, code enforcement and building official duties. Jesse served as the building official for multiple cities in Southern California. He excels at providing practical solutions to code compliance challenges. Jesse has a calm demeanor and works very well with other city managers, his staff and the public. Jesse will work at City Hall two days a week and provide remote support to the Building & Safety team for the rest of the week. Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 Jan. 13, 2026 Item #9 Page 16 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 City Attorney Approved Version 5/30/2025 Page 12 Methodology & Work Approach Our established internal procedures and policies will ensure that we provide the City of Carlsbad with the highest quality, accurate, timely, and responsive service. Our goal is to provide consistent and uniform service, eliminate errors and confusion and ensure compliance with the City’s standards, policies, interpretations, and procedures. To that end, we have the following established procedures for each of the services we offer: Building Inspection Services True North Compliance Services, Inc. is pleased to offer excellent on-call Building Inspection Services to the City of Carlsbad. Our inspectors have extensive construction and trade experience in addition to their Code knowledge, allowing for a practical approach to applying Code provisions during the inspection process. Similar to our Plan Review process, our inspectors employ the following procedures to maximize project success. These procedures may be adjusted to better accommodate your jurisdiction. 1.Become familiar with the inspection style and requirements of the City of Carlsbad. 2.Provide inspection services and assure that construction complies with plans and is in compliance with the most recently adopted codes, policies, and procedures.3.Perform inspections on construction projects to verify compliance with City of Carlsbad Municipal Code and State codes and regulations: California Building Code, Residential Code, Plumbing Code, Mechanical Code, Electrical Code, Fire Code, Energy Code, Green Building Standards Code, Disabled Access Regulations, and Title 25; Mobile Home Parks regulations; State Water Resource Control Board regulations related to storm water pollution prevention; Sound Transmission Control regulations; and, locally adopted building ordinances and amendments thereof.4.Inspect for compliance with applicable conditions of approval set forth by the City's Carlsbad Department, Planning Commission, and/or City Council. 5.Inspectors will possess and maintain necessary certifications required to perform inspections.6.Be equipped with all necessary tools needed to perform inspections, including a complete set of current code books. 7.Assist in the coordination of job site conferences with technical consultants, engineers, architects, representatives of the owner, equipment manufacturers, and subcontractors to review project requirements, and clarify or resolving any questions or problems prior to commencing work.8.Prepare inspection notices of noncompliance on incorrect construction methods or material found during inspection; confer with contractor or representative regarding construction methods and procedures as they relate to compliance with plans and specifications.9.Maintain a record of non-complying items and follow up to achieve resolution of such items. Record all significant construction-related activities and events such as work completed to provide a chronological and factual history of inspection on assigned construction projects. 10.Engage with Building & Safety Division staff to understand the City’s permitting process, forms, policies, and clients. 11.Adapt to the City’s needs to allow for easy integration into the day-to-day inspection operations. 12.Communicate daily with the City’s Principals Building Inspector for assignments and to Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 Jan. 13, 2026 Item #9 Page 17 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 City Attorney Approved Version 5/30/2025 Page 13 identify potential issues. 13.Coordinate with various City and County agencies and departments and other governmental agencies providing services, and/or having jurisdiction over any aspect of a development project. 14.Maintain contact while in the field to answer questions, reschedule inspections, and support City staff.15.Serve as a resource and provide information on City regulations to property owners, residents, businesses, the general public and other City departments. 16.Build a rapport with frequent contractors and teams on continuing projects. 17.Update the City’s permit tracking software as necessary, including transferring all applicable field notes.18.Perform and/or attend on-site and in-office preconstruction meetings as required. 19.Communicate and/or meet with applicants, contractors, engineers, architects, etc., as necessary to assist with corrections and general project questions. Permit Processing Services True North Compliance Services, Inc. believes that the permit technician position is one of the toughest positions in the Building & Safety Division. Being at the counter all day long handling customer contacts, questions and issues is challenging, especially as we experience the high volume of work and high customer traffic at the public counter. That’s why we believe it takes a certain type of personality to be successful at the position. It’s someone who is pleasant, calm, patient, has excellent interpersonal skills and ability to use automation systems. We are pleased to offer staff who meet these criteria and qualifications. More specifically, the permit technician will: 1.Enter permit data into the automated database. 2.Research, compile and prepare various limited reports and presentation graphics. 3.Assist the general public at the front counter or by phone regarding building, planning and engineering permit requirements, plan check fees, plan check filing procedures and processing, and permit status. 4.Research information for the public.5.Accept permit applications and collect permit fees. 6.Review and evaluate plans for completeness and for conformance with ordinances and department standards, policies and guidelines. 7.Review plans for conditions of prior approval.8.Route plans to other city departments for review.9.Approve minor permits. 10.Research and respond to public inquiries. 11.Build and maintain positive working relationships with co-workers, City employees and the public using principles of good customer service.12.Perform related duties as assigned.13.Utilize City electronic and paper files to research previous and/or related permits.14.Review permit application for completeness, perform fee calculations, route plans, verify approvals and conditions and issue permits. 15.Provide excellent service to all customers from a homeowner to large developers and designers. 16.Have excellent interpersonal skills, calm demeanor, patience and be a good listener. Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 Jan. 13, 2026 Item #9 Page 18 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 City Attorney Approved Version 5/30/2025 Page 14 Quality Control Program True North Compliance’s core values in delivering municipal services are: Ethics, Transparency, Collaboration, Empathy, Customer-Centric service, Communications, and Fiscal Prudence. High quality service, professionalism and excellence in the delivery of municipal services are at the core of what True North Compliance stands for. We share the City’s commitment to delivering responsive and timely service without compromising the quality of the service. To that end, we developed and implemented a rigorous internal quality control and assurance program for all of our services. Here are the major components of our quality control program: Inspection Services Similar to our plan check quality control program, we have a rigorous internal quality control and assurance program for our inspection services. Main elements of our program include: 1.Rigorous hiring program to ensure that we only hire highly competent professional and friendly inspectors who believe in True North’s core values and guiding principles. 2.Thorough on-boarding and training program for our team. 3.On-going technical training on the latest codes, interpretations, technology and construction methods and techniques.4.Regular staff meetings to communicate policies and procedures and provide directions. 5.Regular feedback on staff performance. 6.Announced and un-announced audits of inspectors by our Chief of Inspections. 7.Regular feedback meetings with City’s Building Official and staff to obtain feedback and input on our staff’s performance.8.Periodic calls to contractors to seek feedback on the performance of our inspection staff. 9.Regular meetings with our inspectors to evaluate performance, offer critique and corrective actions if necessary. Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 Jan. 13, 2026 Item #9 Page 19 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55 City Attorney Approved Version 5/30/2025 Page 15 Fee Schedule True North Compliance Services is pleased to propose the following competitive fees for the services listed. Additional services not listed below may be negotiated. Our hourly rates are all-inclusive and include salaries, overhead, benefits, PTO, etc. Hourly Rates for Services -Overtime for on-site staffing will be charged at 140% of the rates above. -Mileage for tasks related to requested scope such as inspections or site visits will be charged at the current IRS mileage rate measured from City Hall. -Inspections outside of the City’s business hours will be charged at 140% of rates above with a 3- hour minimum. Position Hourly Rate Interim Certified Building Official $145.00 Building/Housing Inspector $95.00 Senior Building/Housing Inspector $110.00 CASp Plan Reviewer/Inspector $125.00 Permit Technician I 75.00 Permit Technician II $85.00 Administrative Assistant $65.00 Docusign Envelope ID: 09A1EBEC-AACD-4A4D-AE69-73A3A69060B8 Jan. 13, 2026 Item #9 Page 20 of 20 Docusign Envelope ID: 673F4921-EC0B-447F-AE67-58DE9D139D55