CITY COUNCIL STAFF REPORT
Meeting: July 19, 2022
Subject
Consider a Third Amendment to Agreement 149, a Master Agreement between the City of Cupertino and CSG Consultants, Inc. for consultant construction management services for various capital improvement projects.
Recommended Action
Authorize the City Manager to execute the Third Amendment to Agreement 149, a Master Agreement between the City of Cupertino and CSG Consultants, Inc., increasing the appropriation by $200,000, for a total appropriation of $938,045 and extending the Term of the Agreement to end on December 31, 2023.
Background
In October 2020, the City entered into a Master Agreement with CSG Consultants, Inc. to provide construction management services for various capital projects for approximately two years. That Master Agreement included a fiscal cap of $500,000, requiring Service Orders issued for individual Capital Improvement Programs (CIP) projects to cumulatively total no more than that amount.
On June 1, 2021, City Council authorized the First Amendment to the Master Agreement, which provided an increase of $38,045 to fund higher than expected needs of the Regnart Creek Trail Project, resulting in a revised fiscal cap of $538,045.
On December 7, 2021, City Council authorized the Second Amendment to the Master Agreement, which provided an increase of $200,000 to fund Construction Management services for current and upcoming CIP projects, resulting in a revised fiscal cap of $738,045.
Discussion
Construction management oversight is essential in ensuring a project is completed to the standards and quality expected of City initiated construction. Therefore, the City has historically contracted for Construction Management services to:
Reduce workloads on project managers to provide them the ability to handle multiple projects Help with construction quality assurance and compliance Minimize the need to hire internal construction manager(s) The contractor, CSG Consultants, Inc. has provided construction management support for several projects that have been successfully completed including the Stevens Creek Boulevard Bike Lane Improvements-Phase 1, Regnart Creek Trail, and Bubb Road Separated Bikeway Improvements projects. They continue to deliver construction management services for the Regnart Creek Privacy Fencing Project, as well as the Memorial Park Ponds Repurposing and Homestead-De Anza Traffic Signal Modification projects. Service Orders for these projects have nearly exhausted the current fiscal capacity of the Master Agreement.
CSG Consultants, Inc. has performed well and has been an important part of the City’s project teams for numerous CIP projects. The Master Agreement expires in December 2022, and an increase in the Master Agreement compensation cap and a one-year extension to the term of their agreement will allow the City to continue to utilize CSG Consultants Inc.’s construction management services for current and upcoming CIP projects.
Approval of this amendment will provide the additional contract authority and increased term length to support timely and efficient delivery of ongoing and new capital projects. The cost to provide construction management services is included in authorized CIP project budgets. No new appropriations are required to approve this amendment.
Sustainability Impact
There are no direct sustainability impacts. Organizational capacity to handle multiple projects in the Capital Improvement Program is critical to execute planned sustainability improvements to City facilities, such as improving energy efficiency and reducing greenhouse gas emissions.
Fiscal Impact
No appropriation is required for this action. The necessary funds will be encumbered from each CIP project budget. There is no additional fiscal impact caused by approving this Third Amendment. _____________________________________
Prepared by: John Raaymakers, Project Manager
Reviewed by: Susan Michael, Capital Improvements Program Manager Reviewed by: Chad Mosley, Acting Director of Public Works Reviewed and Approved for Submission by: Dianne Thompson, Acting City Manager A – Draft Amendment