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August 8, 2023
ITEM TITLE
Agreement: Approve an Amendment to an Agreement with Kleinfelder Construction Inc. for On-Call CIP Construction Management
Report Number: 23-0157
Location: No specific geographic location
Department: Engineering
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines.
Recommended Action
Adopt a resolution approving the first amendment to the consultant services agreement with Kleinfelder Construction Inc. for on-call CIP construction management to increase the maximum allowable payment for services performed through June 2024 to $4,000,000.
SUMMARY
The City of Chula Vista (“City”) and Kleinfelder Construction, Inc. (“Kleinfelder”) previously entered into an On-Call CIP Construction Management agreement on August 23 , 20 22 (the “ Agreement”). The City and Kleinfelder desire to amend the Agreement to continue the on-call construction management and inspection services for CIP projects, including Measure P funded projects, by increasing the maximum allowable payment amount for services performed through June 2024 to $4,000,000.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the state CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Notwithstanding the foregoing, it has also been determined that the act ivity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no environmental review is required.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The Department of Engineering and Capital Projects manages preliminary engineering, design, construction management, and inspection of the City’s CIP projects, including Measure P projects. Due to the increase in funding associated with Measure P, Gas Tax and Transnet, the current fiscal year’s CIP Program exceeds $66 million. Staff anticipates the increase in the number of CIP projects will continue for the next few years. The City made commitments to deliver improvements for infrastructure throughout C hula Vista which takes significant effort to plan, fund, and construct. Kleinfelder assists with the construction management and inspection of CIP projects, including Measure P funded projects, when workload exceeds the capacity of existing City staffing levels.
On August 23, 2022, by Resolution No. 2022-0193, Council approved the Agreement with Kleinfelder for On- Call CIP Construction Management (Attachment 1). The Agreement authorized payment to Kleinfelder through June 2024 in an amount not to exceed $2,000,000 with three additional options to extend for a total compensation amount not to exceed $5,000,000. Since then, Kleinfelder has managed and inspected construction of various CIP , Measure P and Developer funded projects for the Engineering and Capital Projects Department. Kleinfelder provides personnel that are experienced in a variety of construction methods, field inspection, construction management, and contract administration. Kleinfelder has performed satisfactorily and has provided wel l qualified staff with experience and expertise. City Staff recommends increasing the maximum allowable initial agreement term payment amount for Kleinfelder by $2,000,000, for a not to exceed compensation amount of $4,000,000 through June 2024, and a total not to exceed compensation amount of $7,000,000 if all three options to extend the agreement are exercised.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
All fees for Consultant's services will be paid from funds already allocated for CIP or develop er funded projects. The two-year contract is eligible for three one-year extensions upon mutual agreement. The costs associated with delivering a project, with the use of a consultant, may increase as staff’s oversight would be required, in addition to the consultant fees.
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ONGOING FISCAL IMPACT
There is no ongoing fiscal impact associated with the proposed action as consultant's services will be paid from funds already allocated for CIP or developer funded projects.
ATTACHMENTS
1. Original Consultant Services Agreement
2. First Amendment to the Consultant Services Agreement
Staff Contact: Chester Bautista, Associate Civil Engineer, Engineering and Capital Projects