CA Review GH
Meeting Date: March 4, 2025
To: Mayor and City Council
From: Geoff Patnoe, City Manager
Staff Contact: Steven Didier, Municipal Projects Manager [email protected]
Emily Hasegawa, Engineering Manager
[email protected]
Subject: Amendment No. 1 to an Agreement with Reddy Engineering Services, Inc. to provide construction management and inspection services for the 2023 Slurry Seal Project
Districts: All
Recommended Action
Adopt a resolution authorizing Amendment No. 1 to an agreement with Reddy Engineering Services, Inc. to provide construction management, inspection and materials testing services for the 2023 Slurry Seal Project, Capital Improvement Program Project No. 6001-23SS, in an amount not to exceed $211,990.
Executive Summary
The City Council is being asked to approve an agreement amendment to extend the construction management, inspection and materials testing services the city has under contract with Reddy Engineering Services, Inc., for the 2023 Slurry Seal Project, Capital Improvement Program, Project No. 6001-23SS. The additional time and funding for these services will allow a change in the project’s schedule because recent the weather conditions have not been warm enough to apply slurry seal under the contract requirements.
The City Council’s approval is required under Carlsbad Municipal Code Section 3.28.060 - Procurement of Professional Services and Services because this agreement will cost the city more than $100,000 per agreement year.
Discussion
The city’s Pavement Management Program assesses the city’s roadway pavement conditions and resurfaces and restripes Carlsbad roads. This program extends the useful life of city streets and saves money in the long run.
The 2023 Slurry Seal Project is included in the program and will resurface approximately 37.7 miles of streets across the city. Specifically, 27.7 miles will be residential streets and approximately 10 miles will be arterial and collector streets, as shown in Exhibit 2. While the streets are being resurfaced, the city also restripes and realigns the roadways to provide March 4, 2025
Item #2 Page 1 of 12
additional traffic safety benefits, including helping to address speeding and to better support all modes of travel. These changes also reduce long-term maintenance costs.
The city’s contractor, VSS International, commenced preparatory work on Oct. 28, 2024, including crack sealing, weed abatement and asphalt patch repairs. These activities are typically followed immediately by a slurry seal application and striping in a concurrent work pattern, in which preparatory work moves to another neighborhood and slurry sealing and striping follow.
However, as 2024 ended, the contractor expressed significant quality control concerns about applying slurry seal during the winter months, with average overnight and morning ambient temperatures and humidity levels that are suboptimal for slurry seal application and curing.
The contractor requested to delay slurry seal application until the beginning of March 2025, while preparatory work already underway continued. Staff accepted the Contractor’s request to ensure the best result, which is consistent with the contract specifications for slurry seal application during the warmer spring season.
Changing from the original concurrent, or rolling, construction plan to the revised model extends the overall length of the project’s schedule from five months to approximately nine months. Despite slurry seal application and final striping now estimated into late spring 2025, staff do not anticipate any change to the cost of construction for the baseline work with the contractor. However, additional resources are required to extend Reddy’s services for construction management, inspection and materials testing services because of the longer overall project duration and post-construction administration.
Despite a delay to the slurry seal application, there has been a benefit to the community with fewer construction crews in the same or adjacent neighborhoods at the same time.
The City Council authorizing an agreement with Reddy for $415,379 for construction management, inspection and materials testing services on July 16, 2024. (Resolution No. 2024- 173) Staff solicited a proposal from Reddy to extend its current agreement and continue services based on the new construction schedule into late spring and until the project is completed.
The proposed amendment to the agreement with Reddy will increase the cost of the agreement to an amount not to exceed $627,369 and extend it through Jan. 14, 2026, which requires City Council authorization in accordance with Carlsbad Municipal Code Section
3.28.060(D).
Fiscal An
alysis
Sufficient funding is available in the account for the Pavement Management Program, Capital Improvement Program Project No. 6001, to complete the project and cover the cost for additional services with Reddy. The program funding sources include fees generated from trash haulers and proceeds from the gas tax and the TransNet countywide sales tax, which is collected to fund regional transportation projects.
March 4, 2025
Item #2 Page 2 of 12
The available funds and estimated construction costs are shown in the following table:
Pavement Management Program
Capital Improvement Program Project No. 6001
Total appropriation to date $68,349,889
Total expenditures and encumbrances to date -60,556,305 Total available funding $7,793,584
2023 Slurry Seal Project
Capital Improvement Program Project No. 6001-23SS
Amendment No. 1 to Agreement for construction and management services (Reddy) -$211,990
Other internal construction management costs -$109,621
Remaining balance $7,471,973
Additional appropriation needed $0
Next Steps
Upon the City Council’s approval, staff will process Amendment No. 1 to an Agreement with Reddy to continue construction management, inspection and materials testing services based on the new construction schedule with the Contractor and update the existing purchase order.
Staff will continue to report to the City Council periodically on construction progress and maintain the project website for public review.
Environmental E valuation
The City Planner, through the process outlined in Carlsbad Municipal Code Section 19.04.060, determined that the 2023 Slurry Seal Project (Capital Improvement Program Project No. 6001- 23SS), including Amendment No. 1 to the Agreement with Reddy Engineering Services, Inc., is exempt pursuant to California Code of Regulations Section 15301 (the CEQA Guidelines). This exemption applies because the project consists of maintenance and repair of existing public roadways, with no expansion of use, consistent with the scope of CEQA Guidelines Section 15301(c) – Existing Facilities. A notice of intended decision regarding the environmental determination for this project was advertised and posted on the city's web site. No comment letters or appeals were received and, consistent with Carlsbad Municipal Code Chapter 21.54 - Procedures, Hearing s, Notices, and Fees, the City Planner's written decision is final.
Exhibits
1. City Council resolution
2. Location map
March 4, 2025
Item #2 Page 3 of 12
uocus 1gn 1::nve1ope 1u: tti4A4JUJ-t-t::t;Z-4t::lo-AALC-t-JUA1Al 1414:, RESOLUTION NO. 2025-056
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING AMENDMENT NO. 1 TO AN AGREEMENT WITH REDDY ENGINEERING SERVICES, INC. TO PROVIDE CONSTRUCTION
MANAGEMENT, INSPECTION AND MATERIALS TESTING SERVICES FOR THE 2023 SLURRY SEAL PROJECT, CAPITAL IMPROVEMENT PROGRAM PROJECT NO. 6001-23SS, IN AN AMOUNT NOT TO EXCEED $211,990
WHEREAS, on July 16, 2024, the City Council adopted Resolution No. 2024-173, authorizing Reddy Engineering Services, Inc. to provide construction management, inspection and materials testing services for the 2023 Slurry Seal Project; and
WHEREAS, the Mayor executed an agreement with Reddy to provide these services for the Project in an amount not to exceed $415,379; and
WHEREAS, the City Council of the City of Carlsbad, California has determined that it is necessary to amend the agreement to add additional time and funding to account for the change in construction schedule to shift slurry seal application to the warmer spring months, consistent with the specified quality control requirements for the project; and
WHEREAS, Reddy has tendered a proposal for a time extension through Jan. 14, 2026, for construction management, inspection and materials testing services in an amount not to exceed $211,990; and
WHEREAS, the total value of the contract with Reddy as amended requires the City Council's approval; and
WHEREAS, the City Planner determined on Feb. 3, 2025, that Amendment No. 1 to the Agreement with Reddy Engineering Services, Inc., is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c) - Existing Facilities, which applies to the maintenance and repair of existing public roadways with no expansion of use. A notice of intended decision regarding the environmental determination for this project was advertised and posted on the city's web site. No comment letters or appeals were received and, consistent with Carlsbad Municipal Code Chapter 21.54 - Procedures, Hearing s, Notices, and Fees, the City Planner's written decision is final.
uocus1gn t: nve lope IU : /b4A4jUj-t-t:(..;L-4t:1 b-AAL(..;-1-jLJA lA 1 / 414b 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. That the Mayor is authorized and directed to execute Amendment No. 1 to an Agreement with Reddy Engineering Services, Inc., provided as Attachment A, to increase the Agreement by $211,990 and to extend the term through Jan. 14, 2026, for construction management, inspection and materials testing services in support of the 2023 Slurry Seal Project, Capital Improvement Program Project No. 6001-2355.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 4th day of March 2025, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
None.
None.
None.
I~
KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk
(SEAL)
u ocus1gn ~nvelope IU: /b4 A4JUj - \-~(.;Z -4 ~lo-AALC-t <:lUA1Al /4140 PSA24-3473CMI
AMENDMENT NO. 1 TO THE AGREEMENT FOR CONSTRUCTION MANAGEMENT, INSPECTION, AND MATERIALS TESTING SERVICES FOR THE 2023 SLURRY SEAL, PROJECT NO. 6001-23SS REDDY ENGINEERING SERVICES, INC.
6 This Amendment No. 1 is entered into and effective as of the ___ day of March 2025, amending the agreement dated July 17, 2024 (the "Agreement"), by and between the City of Carlsbad, California, a municipal corporation ("City") , and Reddy Engineering Services, Inc., a California corporation ("Contractor") (collectively, the "Parties" ) for Construction Management, Inspection, and Materials Testing Services for the 2023 Slurry Seal project.
RECITALS
A. The Parties desire to alter the Agreement's scope of work to add additional inspections and oversight needed due to the prolonged contract timeline ; and B. The Parties now desire to extend the Agreement for a period of six (6) months ; and C. The Parties have negotiated and agreed to a supplemental scope of work and fee schedule, which is attached to and incorporated by this reference as Exhibit "A", Scope of Services and Fee (Supplemental), and increases the Agreement amount by $211,990.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows :
1. In addition to those services contained in the Agreement, as may have been amended from t ime to time, Contractor will provide those services described in Exhibit "A." With this Amendment, the total allowable Agreement amount shall not exceed six hundred twenty -seven thousand three hundred sixty-nine dollars ($627,369).
2. The Scope of Services described in Exhibit "A" of the Agreement is hereby amended as set forth in Exhibit "A" Scope of Services and Fee Schedule (Supplemental), attached to this Amendment No.
1. 3. Section 5 of the Agreement is amended to increase the total amount paid to Contractor for Services by $211,990, from the previous amount of $415,379 to $627,369 .
4. Contractor will complete all work described in Exhibit "A" by January 14, 2026.
5. All other provisions of the Agreement, as may have been amended from time to time, will remain in full force and effect.
6. All requisite insurance policies to be maintained by Contractor pursuant to the Agreement , as may have been amended from time to time, will include coverage for this Amendment.
7. The individuals executing this Amendment 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 Amendment .
City Attorn ey Approved Version 5/22/202 4
3 uocusIgn t:nveIope Iu: /ti4A4;:! UcH-t:C:.:'.-4t:lo-AALl.A -;:suA1A1 /4140
CONTRACTOR
Reddy Engineering Services, Inc.,
a California corporation
By:
l
(sign here)
Vinay Reddy,
President and Chief Financial Officer
(print name/title)
By:
(sign here)
(print name/title)
PSA24-3473CMI
CITY OF CARLSBAD, a municipal corporation of
the State of California
By:
I~
Keith Blackburn, Mayor
ATTEST:
j~ R... "'MJ,,~
for SHERRY FREISINGER, City Clerk
If required by City, proper notarial acknowledgment of execution by Contractor must be attached . lf--2 corporation, Agreement must be signed by one corporate officer from each of the following two groups:
Group A
Chairman,
President, or
Vice-President
Group B
Secretary,
Assistant Secretary,
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: bll,,\A, fu,wu,IA,
Assistant City Attorney
City Attorney Approved Version 5/22/2024
4 uocus,gn t::nveIope Iu: /b4A4JUJ-t-t::G :l-4t::1!>-AALG-t-JUA1Al /414!> PSA24-3473CMI
EXHIBIT"A"
SCOPE OF SERVICES AND FEE (Supplemental)
l. Extended Construction Duration - Additional inspection and oversight needed due to the prolonged contract timeline . Refer to Weekly Statement of Working Days and/or Project Change Order Log for additional information.
2. Increased Inspection and Documentation Efforts - Ensuring compliance with City requirements, Department of Industrial Relations requirements , contractor operations, and necessary reporting.
3. Continued Coordination for Project Closeout - Support for final reporting, punch list completion , and contractor compliance verification.
City Attorney Approved Version 5/22/2024
5 uocus 1gn t::nv e top e 1u: /b4 A4 j Uj-t-t::G:.1-4t::lo-AALG-t <:lUA1 A l / 4 140 RE
SERVICES
CONSTRUCTION MANAGEMENT
5 LANDSCAPE ARCHITECTURE
January 28, 2025
PSA24-3473CMI Amend No. 1
Exhibit "A" (Cont.)
RE: PSA24-3473CMI AMENDMENT 01 REQUEST- INSPECTION AND MATERIALS TESTING SERVICES FOR THE 2023 SLURRY SEAL PROJECT NO. 6001-23SS
Dear Mr. Didier,
Reddy Engineering Services, Inc. (RE Services) appreciates the opportunity to cont inue supporting the City of Carlsbad on the 2023 Slurry Seal Project (PSA24-3473CMI).
Due to the extended duration of the project and additional inspection requirements, we are requesting Amendment #01 to the existing Task Order for an additional $211,990.00 to cover the necessary scope adjustments . This amendment reflects additional time required for construction management, inspection, and documentation efforts , ensuring that the project continues to meet quality and compliance standards.
Scope and Justification for Amendment:
The requested amendment accounts for the following:
1. Extended Construction Duration - Additional inspection and oversight needed due to the prolonged contract timeline . Refer to Weekly Statement of Working Days and/or Project Change Order Log for additional informat ion.
2. Increased Inspection and Documentation Efforts - Ensuring compliance with City requirements, Department of Industrial Relations requirements, contractor operations, and necessary reporting.
Attached is the updated fee proposal detailing the breakdown of costs associated with this amendment.
We appreciate your consideration of this request and look forward to your feedback. Please let us know if you require any further information or discussion regarding this amendment. 3160 CAMINO DEL RIO SOUTH, SUITE 217 I SAN DIEGO, CA 92108 I REDDYENGINEERING.COM I DBE MBE ELBE SB-MICRO-PW uoc us1gn t:nve1ope 1u: /ti4A4JUJ-t- t::t.;L-4t:7 ::i-AALt.; -t-JUA lA 1 / 414!:l PSA24-3473CMI Amend No. 1 Exhibit "A" (Cont.)
If you have any questions or need additional information, please do not hesitate to contact us. Our contact information is below.
Sincerely,
Project Manager
P: 510-409-2640
E: [email protected]
Enter Document No. via Document Properties 2
uoc u s1g n t::n ve1oµ e 1u: 1 O'IA'l -'U.l-r-t::1..,.l-'lt:: 1 o-AA.l1..,- r- .)UA I A 11,; 1,;o PSA24-3473CMI Amend No. 1 Exhibit "A" (Cont.)
TASK: CM and Inspection I RATE:
1.1 REVIEW CONTRACT DOCUMENTS/ ROAD REVIEWS
1.2 PREPARE/ CONDUCT PRE-CONSTRUCTION MEETING
1.3 PERFORM CONSTRUCTION MANAGEMENT AND
2 PERFORM FIELD INSPECTION AND DOCUMENTATION
2.1 INSPECTION
2.2 PUBLIC INTERFACE
2.3 DOCUMENTATION
2.4 PUNCH LIST
3. MATERIALS SAMPLING AND TESTING
3.1 FIELD SAMPLING AND TESTING
3.2 LAB TESTING
4. COMPLETE REPORTS AND JOB CLOSEOUT
4.1 FINAL REPORTS AND JOB CLOSEOUT
CM and Inspection Services Total HRS
CM and Inspection Services Total Amount
CITY OF CARLSBAD
Constructi on Management and Inspection Services for 2023 Slurry Seal Project (PSA24-3438CMI) Reddy Engineering Services, Inc. (RE Services) AMENDMENT #01
CLASS/FICA T/ON
PROJECT CONSTRUCTION TECHICAL MANAGER/ SR. INSPECTOR· PINCIPAL-IN- ADVISOR (AS· STORMWATER OUTREACH MATERIALS PREVAILING CHARGE PROJECT NEEDED) WAGE(NIGHT SPECIALIST COORDINATOR TESTING
INSPECTOR WORK)
$225.00 $215.00 $230.00 $215.00 $215.00 $155.00 $0.00
616 306 64
0 616 0 306 64 0 0
s s 132,440.00 s s 65,790.00 $ 13,760.00 $ $
LABOR
COMPLIANCE/ FEE PROJECT
CONTROLS
$80.00
0 $ $211,990.00
Notes: Excluslons: Add1t1onal effort past planned completion date of June 17, 2025 {refer to VSS Preliminary Jan '25 Update Schedule); add1t1onal effort m the form of longer shifts requmng overtime, extension of proJect duration due to issues such as problems with contract documents, right-of-way delays, permits, utility conflicts, unsuitable materials, or unreasonable inefficiencies with the Contractor's operations are not considered within this estimate, and may require an amendment to the estimated budget.
Contract Value: CM&I Estimate: % of Contract:
6,640,120.00 627,366.00 9.4%
OLIVENHAIN RD
EL
COCHES
DE LOS
ACERVO
BARCE
LONA
IO DR
CALLE TIMITEO
PALOMARAIRPORTRD
LA COSTA AV
PO INSE TTIA LN
MELRO
SE
D
R
CARLSBAD
BL
CARLSBADVILLAGEDR
RANCHO
SANTA
FE
RD
AVIARA PY
COLLEGE
BL
ALGA RD
CANNON RD
XANA WY
MICA RD
PAL AC
PASEO DEL NORTE
REAL
LA GOLONDRINA ST
A VENIDA
CIRUELA
LEVANTE ST
GALIC IA WY
CALLE
EL FUERTE ST
EL FUERTE ST
CADENCIA ST
TAMARACK AV
BATIQUITOS DR
FARADAY AV
HARDING ST
CALLE
THE CROSSINGS DR
CAMINO
SEGOVIA WY
BRESSI RANCH WY
EL CAMINO
COLIBRI LN
CAMINO REAL
PASEO DEL NORTE
RANCHO SANTA FE RD
LOC ATIO N M AP
PROJECT NAME PROJECT
NUMBER
6001-23SS
EXHIBIT
22023 Slurry Seal Project
Created By: Andy Chang 4/8/2024 J:\AC_Customers\Eric_Zielke\Pavement\CIP6001_Webapp\LocationMap_Slurry2023_Revised_04-08-24.mxd $!Å
NOT TO
SCALE
Legend
Resurfacing Limits
Reconfigure Limits
Exhibit 2
March 4, 2025
Item #2 Page 12 of 12