DATE: JUNE 18, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: FRANCISCO BRAMBILA, ACTING PLANNING MANAGER
BY: LUIS OCHOA, SR. COMMUNITY DEVELOPMENT ANALYST
TITLE: AMENDMENT NO. 3 TO THE MASTER SERVICE AGREEMENT FOR PROFESSIONAL SERVICES WITH CSG CONSULTANTS, INC.
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing:
the approval of Amendment No. 3 to the Master Service Agreement for Professional Services between the City of Salinas and CSG Consultants, Inc. in the amount not to exceed $1,150,696.50 to provide design, inspection, project management, construction management, labor compliance and environmental services for various Capital Improvement Projects (CIPs); and the City Manager to execute Amendment No. 3 to the Master Service Agreement for Professional Services with CSG Consultants, Inc and any modifications or amendments necessary to support the completion of identified CIPs; and the Community Development Director to approve CSG Consultants Inc.’s on-going performance of services without the need for subsequent Professional Service Agreements provided CSG Consultants Inc. is, at all times throughout the term thereof, in compliance with the terms and conditions of the Master Service Agreement for Professional Services, Amendment No. 1, Amendment No. 2, and Amendment No. 3.
EXECUTIVE SUMMARY:
On February 7, 2023, City Council approved a Master Service Agreement for Professional Services (Agreement) between the City of Salinas (City) and CSG Consultants, Inc. (CSG), through Resolution No. 22588, to provide design, inspection, project management, construction management, labor compliance, and environmental services for four capital improvements projects managed by the Community Development Department (CDD). The approval of Amendment No. 3 to the Agreement would adjust the compensation amounts for Sherwood Recreation Center – Phase IV, Natividad Creek Park Restroom Rehabilitation, and Chinatown Navigation Center Building Improvements and Shower Trailer Installation Capital Improvement Projects (CIPs) to increase total not to exceed compensation amount under the Agreement to $1,150,696.50.
BACKGROUND:
On February 7, 2023, after an RFQ process, City Council approved a Master Services Agreement between the City and CSG to provide design, inspection, project management, construction management, labor compliance, and environmental services to comply with the California Environmental Quality Act (CEQA) and/or the National Environmental Policy Act (NEPA), for the following four capital improvement projects: Natividad Creek Park Restroom Rehabilitation, Sherwood Recreation Center – Phase IV, Chinatown Navigation Center Building Improvements and Shower Trailer Installation, and Chinatown Neighborhood Improvements projects. The following is a chronology of CIP scope and budget adjustments and amendments to the Agreement.
On July 20, 2023, CDD approved proposals for Natividad Creek Park Restroom Rehabilitation, Sherwood Recreation Center – Phase IV, and Chinatown Navigation Center Building Improvements and Shower Trailer Installation projects, and CSG started to perform work on these three projects.
On November 14, 2023. Amendment No. 1 adjusted the Agreement to further clarifying the scope of services and define the roles and responsibilities between the City and CSG. Additionally, a clause for compensation to stipulate a not to exceed amount of $882,042 for the three previously referenced CIP projects.
On January 2024, CSG submitted their proposal for the Chinatown Neighborhood Improvements in the amount of $250,280. Also, City staff requested several Change Orders for Sherwood Recreation Center – Phase IV Project resulting in additional development cost for the project. After review of the proposals, staff recommended further increasing the not to exceed amount to $1,054,420. Amendment No. 2 was approved by City Council on March 12, 2024.
After completing fifty percent (50%) of the design for the Sherwood Recreation Center Phase IV project, an engineer’s cost estimate was completed, and it showed that that the project was overbudget. The project had to be re-engineered to bring it under budget and this generated several change orders which requires City Council approval to increase the not to exceed amount for this project.
The Natividad Creek Park Restroom Rehabilitation project has also faced delays, the City will need to incur additional cost for construction management and inspections services from CSG and its subconsultants.
The Chinatown Navigation Center Building Improvements and Shower Trailer Installation Project will also need to account for the temporary installation of a shower/restroom trailer within the design of the project so that the Chinatown Navigation Center and Sprung Structure can continue to be on operations while the renovation activities are undergoing. Due to this design change, the City will incur additional expenditures from CSG and its subconsultants. The existing not to exceed amount specified in the Agreement is not sufficient in these three CIPs to compensate CSG for all the services requested, therefore, Amendment No. 3 is needed.
The table below illustrates the received and pending change orders from CSG regarding the Sherwood Recreation Center Phase IV, Natividad Creek Park Restroom Rehabilitation, and Chinatown Navigation Center Building Improvements and Shower Trailer Installation projects. Sherwood Recreation Center Phase IV and Natividad Creek Park Restroom Rehabilitation projects are funded with Community Development Block Grant (CDBG) funds which were previously approved by City Council through the City’s Annual Action Plans to HUD. The Chinatown Navigation Center Building Improvements and Shower Trailer Installation Project is funded through CIP 9125 which has been previously approved by City Council.
Project
Original Proposal + Change Orders
Contingency
Total
Amount
Funding Source
Natividad Creek Park Restroom Rehabilitation Project
$221,360.00*
$22,136.00*
$243,496.00*
CDBG
Sherwood Recreation Center – Phase IV Project
$411,428.50*
$41,142.00*
$452,570.50*
CDBG
Chinatown Navigation Center Building Improvements and Shower Trailer Installation Project $128,891.00*
$12,889.00*
$141,780.00*
CIP 9125
Chinatown Neighborhood Improvements Project
$250,280.00
$62,570.00
$312,850.00
CDBG
CIP 9070
Totals
$1,011,959.50*
$138,737.00*
$1,150,696.50*
* Revised Amounts.
Amendment No. 3 will enable the City to continue with the design development and specifications of the projects. The goal is to have the Recreation Center Phase IV and the Chinatown Navigation Center Building Improvements projects approved by City Council in the next couple of months and subsequently release for Call for Bids and start construction before the end of the year.
DEPARMENT COORDINATION:
Internal department coordination on this item involved the CDD Housing and Community Development Division, Library and Community Services Department, Public Works Department, Finances, and the City Attorney’s Office.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
Amendment No. 3 to the Agreement will support capital improvement projects that further current City of Salinas Strategic Plan 2022-2025 goals and strategies related to Infrastructure and Environmental Sustainability, Public Safety, and Youth and Seniors and will facilitate the efficient completion of current CIPs in the pipeline benefitting the entire community.
FISCAL AND SUSTAINABILITY IMPACT:
There is no General Fund fiscal impact associated with the approval of Amendment No. 3 to the Master Services Agreement with CSG as the associated costs will be realized on a project-by-project basis and compensated using previously approved Community Development Block Grant (CDBG), CIP 9125, and CIP 9070 funds.
ATTACHMENTS:
Resolution
Amendment No. 3 to the Master Services Agreement with CSG CSG Master Services Agreement and Amendments 1 & 2
Sherwood Recreation Center – Phase IV – Change Orders
Natividad Creek Park Restroom Rehabilitation Project – Change Orders Page | 3
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