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February 20, 2024
ITEM TITLE
Agreement Amendment: Approve the Second Amendment to the Consultant Services Agreement with Kleinfelder Construction Services, Inc. to Provide On-Call Capital Improvement Program (CIP) Construction Management Services
Report Number: 23-0322
Location: No specific geographic location
Department: Engineering
G.C. § 84308: Yes
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 second amendment to the consultant services agreement with Kleinfelder Construction Services, Inc. for On -Call CIP Construction Management Services to increase the maximum amount to be paid for consultant services.
SUMMARY
The City of Chula Vista (“City”) and Kleinfelder Construction Services, Inc. (“Kleinfelder”) entered into an On- Call CIP Construction Management consult ant services agreement on August 23, 2022 (“Agreement”) to provide construction management and inspection services for various permits, CIP and Developer -funded projects. The City and Kleinfelder entered into a First Amendment to the Agreement on August 8, 2023. The City and Kleinfelder desire to further amend the Agreement by increasing the maximum compensation limit for services performed through June 2024 to $7,000,000 , increasing the maximum compensation limit for Option Year 1 (through June 2025) to $4,000,000, and increasing the total contract maximum compensation limit to $13,000,000.
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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 activity qualifies for an Exempti on pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The Department of Engineering and Capital Proj ects manages the preliminary engineering, design, construction management, and inspection of the City’s capital improvement program (CIP) projects, and construction oversight and inspection of various permits including developer constructed roadway improvements and grading permits, and utility and telecommunication facility permits. The significant increase in telecommunications facility permits associated with fiber network expansion projects has been a heavily impacting construction management and inspection workload for several years. Kleinfelder assists with the construction management and inspection when workload exceeds the capacity of existing City staffing levels.
The CIP Program budgets in fiscal years 2022-23 and 2023-24 amounted to $117.1 million, with allocations of $50.5 million and $66.6 million, respectively. The primary funding sources supporting the CIP program are Measure P, Gas Tax, TransNet, and various grants . During this time, Kleinfelder also prov ided construction management and inspection services for multiple CIP paving, traffic signal, sewer , and bridge replacement projects.
Developer-funded and utility and telecommunication permitted projects constructed in the City’s public right of way include the ongoing multi-year fiber optic system buildouts by Verizon/MCI, AT&T, Crown Castle and Wyyerd. The City’s construction oversight and inspection of developer-funded and utility and telecommunication projects does not impact the City’s General F und. Instead, Developer deposit accounts are created, and City and Consultant staff charges are billed to the deposit accounts and reimbursed by the Developers and telecommunication companies.
The fiber optic telecommunication companies pursued aggressive construction schedules which initially caused damage to private sewer laterals, inadequate public street trench repairs, and substandard work practices. As a result of these impacts , the City increased its oversight and inspection of the fiber optic permits by using a dedicated Kleinfelder resident engineer and inspectors for all these permits. The increased oversight ensures contractor accountability and responsiveness, minimizing impacts to private residents and the City’s assets and infrastr ucture. Kleinfelder has provided well qualified staff with experience and expertise and the City would like to maintain this level of consistent oversight and inspection for the duration of the various telecom companies’ fiber optic system buildouts, whic h is now expected to continue through 2026.
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On August 23, 2022, via Resolution No. 2022-0193, Council approved the Agreement with Kleinfelder for On- Call CIP Construction Management services (Attachment 1). On August 8, 2023, via Resolution No. 2023 - 0115, Council approved the First Amendment to the Agreement (Attachment 2). The First Amendment increased the maximum compensation limit from $2,000,000 to $4,000,000 for services performed between August 2022 and June 2024 and increased the maximum compensation limit for services performed through June 30, 2027 to $7,000,000.
Updated project and permit workload estimates indicate a need to increase the maximum compensation limit to sustain required contract administration and inspection responsibiliti es. City staff recommends Council approve the Second Amendment to the Agreement (Attachment 3) , increasing the maximum compensation limit from $4,000,000 to $7,000,000 for services performed between August 2022 and June 2024, increasing the maximum compensation limit from $1,000,000 to $4,000,000 f or services performed between July 2024 and June 2025 , and increas ing the total contract maximum compensation limit to $13,000,000.
This amendment would also provide project continuity since Kleinfelder is currently providing construction contract administration and inspection for the G Street Sewer Pump Station/Force Main, CVEATC Bridge Replacement, Bayfront Phase 1A, Salt Creek Siphon, two pavement rehabilitation projects and dozens of fiber optic telecommunication permits. Kleinfelder has performed satisfactorily and provides quality personnel that are experienced in a variety of construction methods, field inspection, construction management, and contract administration.
DECISION-MAKER CONFLICT
City 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.).
City 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
Approval of this resolution approves the second amendment to the Agreement with Kleinfelder Construction Services, Inc. to provide On-Call CIP Construction Management Services to the City. All fees for Consultant's services will be paid from existing CIP project appropriations or reimbursed through developer-funded and utility/telecommunication permit-funded projects. The Agreement is eligible for three one-year extensions upon mutual agreement. There is no additional fiscal impact anticipated as a result of this action.
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 s, d eveloper-funded projects , and utility/telecommunication permit - funded projects.
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ATTACHMENTS
1. Original Consultant Services Agreement
2. First Amendment to the Consultant Services Agreement
3. Second Amendment to the Consultant Services Agreement
Staff Contact: Chester Bautista, Associate Civil Engineer, Engineering and Capital Projects.