City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01389 8/26/2025
Supplemental Agreement #2 for Labor Compliance Consulting Services File ID: 2025-01389
Location: Citywide
Recommendation: Pass a Motion authorizing the Interim City Manager or designee to execute a supplemental agreement with S&H Consulting, LLC, exercising the City’s options to extend the term for the remaining three years and increasing the not to exceed amount by $400,000, for a total contract amount of $649,000.
Contact: Rachel Trujillo, Contract & Compliance Specialist, (916) 808-6040, [email protected]; Jason Wiesemann, Park Planning and Development Services Manager; (916) 808-7634, [email protected], Department of Youth, Parks, & Community Enrichment
Presenter: None
Attachments:
1-Description/Analysis
2-Supplemental #2 Agreement
Description/Analysis
Issue Detail: Approval of Supplemental Agreement # 2 is required to assist the contract administration staff in the Department of Youth, Parks, & Community Enrichment’s, Park Planning, Design and Development Services Division to provide the required labor compliance monitoring services for City construction projects and certain professional services.
The Department of Industrial Relations (DIR), State of California Labor Code Section 1771.5, Department of Labor (DOL), and City Code 3.60.180 require specific labor compliance monitoring and administrative services for City construction projects and some professional services subject to State or federal prevailing wage laws and apprenticeship standards. Activities include but are not limited to field interviews with employees at the project job site, review of certified payroll and apprenticeship documents, investigation of prevailing wage violation complaints, processing and reconciliation of contractor pay request applications, facilitating the project closeout process and providing technical assistance and administrative support to staff, and contractors related to labor
File ID: 2025-01389 8/26/2025
compliance.
Policy Considerations: The recommendations in this report are consistent with section 3.04.020 of the Sacramento City Code requiring approval of any contract amendment exceeding $250,000, as well as Chapter 3.56 of the Sacramento City Code and the City’s administrative policy related to the procurement of professional services.
Economic Impacts: None.
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a "project" as defined by the California Environmental Quality Act (CEQA) [CEQA Guidelines Sections 15061(b)(3); 15378(b)(2)].
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: A request for proposal (RFP) was advertised on January 6, 2023, and proposals were due on February 3, 2023. Four firms responded and were determined to be fully responsive to RFP requirements.
A panel of City staff reviewed and evaluated the consultant team’s written proposals based upon experience, qualifications, labor compliance understanding, and work plan among other factors. All consultant teams were deemed qualified responders to the proposal solicitation process. All four were short-listed after a scoring and ranking process.
S&H Consultants, LLC was selected as one of four top-ranked consultant firms by a multi- departmental review panel and was recommended and awarded contract 2023-1433.
The original contract was a 2-year contract with a not-to-exceed (NTE) amount of $225,000, with three one-year options to extend. One prior supplement was executed to add $24,000. At this time, staff recommend further supplementing the contract to extend the term through the remaining three years and to increase the NTE amount by $400,000 for labor compliance services through October 30, 2028. Extending the term and increasing the NTE amount allows the City to utilize the existing contract to continue to provide on-time labor compliance monitoring services for City construction projects and certain professional services.
Financial Considerations: Purchase orders encumbering funds under this agreement will not be created until projects and funding are identified. Funding for each purchase order will be provided through capital improvement project budgets.
File ID: 2025-01389 8/26/2025
Local Business Enterprise (LBE): Not applicable.
(Rev. 11-1-19)
SUPPLEMENTAL CONTRACT
Project Title and Job Number: Labor Compliance Consulting Services, P23151921013 Purchase Order Number: Multiple
Date: 07/11/2025
Supplemental Contract No.: 2
The City of Sacramento ("City") and S&H Consultants, Inc. "Contractor"), as parties to that certain Professional Services Agreement designated as Contract Number C2023-1433 , including any and all prior supplemental contracts modifying the contract (the contract and all supplemental contracts are hereafter collectively referred to as the "Contract") , hereby supplement and modify the Contract a s follows:
1. The Time of Performance specified in Exhibit A of the Contract is amended as follows:
This contract will be extended for 3 years to expire on October 30, 2028 to complete the 5-year term.
2. In consideration of the additional and/or revised services described in section 1, above, the maximum not-to-exceed amount that i s specified in Exhibit B of the Contract for payment of Contractor's fees and expenses, is increased by $400,000.00, and the Contract’s maximum not-to-exceed amount is amended as follows:
Agreement's original not-to-exceed amount:
$649,000.00
Net change by previous supplemental contracts: $24,000.00 Not-to-exceed amount prior to this supplemental contract: $249,000.00 Increase by this supplemental contract:
New not-to exceed amount including all supplemental contracts:
3. Contractor agrees that the amoun
t of increase or decrease in the not-to-exceed amount specified in section 2, above, shall constitute full compensation for the additional and/or revised services specified in section 1, above, and shall fully compensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection with such additional and/or revised services, including costs associated with any changes and/or delays in schedules or in the delivery of other services by Contractor.
4. Contractor warrants
and represents that the person or persons executing this supplemental contract on behalf of Contractor has or have been duly authorized by Contractor to sign this supplemental contract and bind Contractor to the terms hereof.
5. Except as specifically revise
d herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions required under the Contract, as supplemented and modified by this supplemental contract. [SIGNATURES ON FOLLOWING
PAGE]
$225,000.00
$400,000.00
SUPPLEMENTAL CONTRACT
(Rev. 11-1-19)
Approval R
ecommended By: Approved As To Form By:
Project Manag er City Attorney
Approved By: At
test:
____________________________________
Contractor City Cle rk
Approved By:
Ryan Moore, Assistant City
Manager
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PF-47725 (03/16) Page 1 of 1
Other Insurance Amended: Primary and Non-Contributory Where Required By Contract .
Named Insured
S & H Consultants, LLC
Endorsement Number
PF477250316
Policy Symbol
MLB
Policy Number
MLBCAF155770832
-006
Policy Period
02-05-2025 to 02-05-2026
Effective Date of Endorsement
02-05-2025
Issued By (Name of Insurance Company)
ACE Fire Underwriters Insurance Company
Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
It is agreed that Section VI, Conditions, subsection C, Other Insurance, is amended by adding the following paragraph at its end:
The preceding Other Insurance paragraph shall not apply where the Insured is required by contract to provide insurance on a primary and non-contributory basis. Under such circumstances, if Damages or Claims Expenses covered under this Policy are covered under any other valid and collectible insurance, this Policy shall cover Damages and Claims Expenses , subject to the Policy terms and conditions, on a primary basis.
All other terms and conditions of this Policy remain unchanged.
Authorized Representative
________________________________________
Authorized Representative
PF-38972 (08/12) Page 1 of 1
EO
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
Named Insured
S & H Consultants, LLC
Endorsement Number
PF389720812
Policy Symbol
MLB
Policy Number
MLBCAF15577083
2-006
Policy Period
02-05-2025 to 02-05-2026
Effective Date of Endorsement
02-05-2025
Issued By (Name of Insurance Company)
ACE Fire Underwriters Insurance Company
Subrogation (Contractual Waiver) - Blanket
It is agreed that Section VI, Conditions, subsection G, Subrogation, is amended by adding the following:
• Notwithstanding the above, if the Insured enters into a written contract which requires the Insured to waive its rights of recovery against another party to the contract, and such waiver reduces or eliminates the Company’s subrogation rights under this Policy , such waiver shall not constitute a violation of thi s section provided that such contract was entered into by the Insured and effective prior to commission of any Wrongful Act that would otherwise give rise to the Insurer’s subrogation right.
All other terms and conditions of this Policy remain unchanged. ________________________________________
Authorized Representative
PF-19806 (02/06) EO Page 1 of 1
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
Named Insured
S & H Consultants, LLC
Endorsement Number
PF198060206
Policy Symbol
MLB
Policy Number
MLBCAF155770832-
006
Policy Period
02-05-2025
to
02-05-2026
Effective Date of Endorsement
02-05-2025
Issued By (Name of Insurance Company)
ACE Fire Underwriters Insurance Company
Additional Insured (Automatic Pursuant to Contract)
It is agreed that:
1. Section II, Definitions, subsection I, the definition of Insured , is amended by adding the following:
Insured also means any client or customer of the Named Insured , but only if a written contract entered into by the Named Insured specifically requires that such client or customer be added as an additional Insured for professional liability or errors and omissions insurance, a nd only for Claims (i) first made on or after the effective date of this endorsement and (ii) for vicarious or imputed liability of such client or customer which results from Wrongful Acts committed solely by the Named Insured .
The Policy will not provide coverage for any Wrongful Act committed by such client or customer referenced above which is added to this Policy as an additional Insured .
2. Section III, Exclusions, is amended by deleting exclusion E, but solely with respect to Claims asserted by such client or customer referenced above for Wrongful Acts actually or allegedly committed by an Insured in the performance of or failure to perform Professional Services .
All other terms and conditions of this Policy remain unchanged.
POLICY NUMBER: BUSINESSOWNERS
BP 04 04 01 10
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BP 04 04 01 10 © Insurance Services Office, Inc., 2009 Page 1 of 2
HIRED AUTO AND NON-OWNED AUTO LIABILITY
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
SCHEDULE
Coverage Additional Premium
A. Hired Auto Liability $
B. Non-owned Auto Liability $
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
A. Insurance is provided only for those coverages for
which a specific premium charge is shown in the
Declarations or in the Schedule.
1. Hired Auto Liability
The insurance provided under Paragraph A.1.
Business Liability in Section II – Liability
applies to "bodily injury" or "property damage"
arising out of the maintenance or use of a
"hired auto" by you or your "employees" in the
course of your business.
2. Non-owned Auto Liability
The insurance provided under Paragraph A.1.
Business Liability in Section II – Liability
applies to "bodily injury" or "property damage"
arising out of the use of any "non-owned auto"
in your business by any person.
B. For insurance provided by this endorsement only:
1. The exclusions under Paragraph B.1. Appli-
cable To Business Liability Coverage in
Section II – Liability, other than Exclusions a.,
b., d., f. and i. and the Nuclear Energy Liabil-
ity Exclusion, are deleted and replaced by the
following:
a. "Bodily injury" to:
(1) An "employee" of the insured arising out
of and in the course of:
(a) Employment by the insured; or
(b) Performing duties related to the
conduct of the insured's business; or
(2) The spouse, child, parent, brother or
sister of that "employee" as a conse-
quence of Paragraph (1) above.
This exclusion applies:
(1) Whether the insured may be liable as an
employer or in any other capacity; and
(2) To any obligation to share damages with
or repay someone else who must pay
damages because of injury.
This exclusion does not apply to:
(1) Liability assumed by the insured under
an "insured contract"; or
(2) "Bodily injury" arising out of and in the
course of domestic employment by the
insured unless benefits for such injury
are in whole or in part either payable or
required to be provided under any work-
ers' compensation law.
b. "Property damage" to:
(1) Property owned or being transported by,
or rented or loaned to the insured; or
(2) Property in the care, custody or control
of the insured.
MLBCAF155770832-006
2. Paragraph C. Who Is An Insured in Section II
– Liability is replaced by the following:
1. Each of the following is an insured under
this endorsement to the extent set forth be-
low:
a. You;
b. Any other person using a "hired auto"
with your permission;
c. For a "non-owned auto":
(1) Any partner or "executive officer" of
yours; or
(2) Any "employee" of yours;
but only while such "non-owned auto" is
being used in your business; and
d. Any other person or organization, but
only for their liability because of acts or
omissions of an insured under a., b. or
c. above.
2. None of the following is an insured:
a. Any person engaged in the business of
his or her employer for "bodily injury" to
any co-"employee" of such person in-
jured in the course of employment, or to
the spouse, child, parent, brother or sis-
ter of that co-"employee" as a conse-
quence of such "bodily injury", or for any
obligation to share damages with or re-
pay someone else who must pay dam-
ages because of the injury;
b. Any partner or "executive officer" for any
"auto" owned by such partner or officer
or a member of his or her household;
c. Any person while employed in or other-
wise engaged in duties in connection
with an "auto business", other than an
"auto business" you operate;
d. The owner or lessee (of whom you are a
sublessee) of a "hired auto" or the
owner of a "non-owned auto" or any
agent or "employee" of any such owner
or lessee; or
e. Any person or organization for the con-
duct of any current or past partnership
or joint venture that is not shown as a
Named Insured in the Declarations.
C. For the purposes of this endorsement only, Para-
graph H. Other Insurance in Section III – Com-
mon Policy Conditions is replaced by the follow-
ing:
This insurance is excess over any primary insur-
ance covering the "hired auto" or "non-owned
auto".
D. The following additional definitions apply:
1. "Auto business" means the business or occu-
pation of selling, repairing, servicing, storing or
parking "autos".
2. "Hired auto" means any "auto" you lease, hire,
rent or borrow. This does not include any
"auto" you lease, hire, rent or borrow from any
of your "employees", your partners or your "ex-
ecutive officers" or members of their house-
hold s.
3. "Non -owned auto" means any "auto" you do
not own, lease, hire, rent or borrow which is
used in connection with your business. This in-
cludes "autos" owned by your "employees",
your partners or your "executive officers", or
members of their households, but only while
used in your business or your personal affairs.
POLICY NUMBER: BUSINESSOWNERS
BP 04 48 07 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BP 04 48 07 13 © Insurance Services Office, Inc., 2012 Page 1 of 1 ADDITIONAL INSURED – DESIGNATED PERSON
OR ORGANIZATION
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
SCHEDULE
Name Of Additional Insured Person(s) Or Organization(s):
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
Section II – Liability is amended as follows:
A. The following is added to Paragraph C. Who Is An
Insured:
3. Any person(s) or organization(s) shown in the
Schedule is also an additional insured, but only
with respect to liability for "bodily injury",
"property damage" or "personal and advertising
injury" caused, in whole or in part, by your acts
or omissions or the acts or omissions of those
acting on your behalf in the performance of
your ongoing operations or in connection with
your premises owned by or rented to you.
However:
a. The insurance afforded to such additional
insured only applies to the extent permitted
by law; and
b. If coverage provided to the additional
insured is required by a contract or
agreement, the insurance afforded to such
additional insured will not be broader than
that which you are required by the contract
or agreement to provide for such additional
insured.
B. With respect to the insurance afforded to these
additional insureds, the following is added to
Paragraph D. Liability And Medical Expenses
Limits Of Insurance:
If coverage provided to the additional insured is
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:
1. Required by the contract or agreement; or
2. Available under the applicable Limits Of
Insurance shown in the Declarations;
whichever is less.
This endorsement shall not increase the
applicable Limits Of Insurance shown in the
Declarations.
MLBCAF155770832-006
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BUSINESSOWNERS
BP 14 88 07 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BP 14 88 07 13 © Insurance Services Office, Inc., 2012 Page 1 of 1 PRIMARY AND NONCONTRIBUTORY –
OTHER INSURANCE CONDITION
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
The following is added to Paragraph H. Other
Insurance of Section III – Common Policy
Conditions and supersedes any provision to the
contrary:
Primary And Noncontributory Insurance
This insurance is primary to and will not seek
contribution from any other insurance available to
an additional insured under your policy provided
that:
1. The additional insured is a Named Insured
under such other insurance; and
2. You have agreed in writing in a contract or
agreement that this insurance would be
primary and would not seek contribution from
any other insurance available to the additional
insured.
5, 2026
5, 2025