TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Amber Shah, Parks & Public Works Director/City Engineer DATE: March 28, 2025
SUBJECT: APPROVAL OF CONTRACT AMENDMENT NO. 1 TO THE
PROFESSIONAL SERVICES AGREEMENT WITH Z&K
CONSULTANTS IN THE NOT TO EXCEED AMOUNT OF
$80,268
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government
Safe Community
Well-Maintained Infrastructure
BACKGROUND
On July 26, 2024, the City Council awarded a contract to Onyx Paving Company, Inc. for Street Rehabilitation Project No. 22-9271 and 23-9271 in the amount of $7,171,000. As part of this award of contract, the City Council also authorized the Public Works Director/City Engineer to approve contract change orders and other contingencies in an amount not to exceed $358,500.
These contingencies are commonplace for larger construction projects such as this, as it enables the City to cover costs due to unforeseen conditions or to request additional work. Contingency funds are only utilized if the fully contracted amount is on track to be spent. The current Street Rehabilitation Project is on schedule to be complete next month with cost savings remaining that can be utilized to complete additional streets and associated concrete repairs under the current project that were not included in the original scope of work due to budget constraints. Proceeding with the additional streets now allows the City to utilize the unit bid prices for the current project to complete the additional work.
Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
DISCUSSION
The City’s Street Rehabilitation Project with Onyx Paving is currently ongoing and nearing completion. The City has been in consistent communication with Onyx and the City’s construction manager, Z&K Consultants, regarding the budget to track the project’s remaining funds projections consisting of cost savings of approximately $1.2 million plus the project contingency of $358,500 that can be utilized to complete additional streets that were not included in the original scope of work. Completing the additional streets now allows the City to utilize the unit bid prices for the current project to complete the additional work and accelerate the schedule for the rehabilitation of more streets with the budget appropriated for this project. Based upon the projected remaining funds for the project, staff is working with Onyx to complete rehabilitation of the following additional streets:
• Del Mar Boulevard – Lorain Road to Huntington Drive
• Old Mill Road – Monterey Road to North City Limit (N.C.L.) • Old Mill Road – Sherwood Road to Roanoke Road
• Euston Road – Wembley Road to Oxford Road
In order to complete the additional resurfacing of the streets above and associated concrete repairs, professional construction management services are recommended to continue through the extended duration of the project for 30 additional days to ensure an experienced construction manager is on site to oversee the construction of the additional streets and deliver a successful project. The City contracted with Z&K Consultants for the Street Rehabilitation Project, and recommends approval of Amendment No. 1 to their existing agreement in the not to exceed amount of $80,268 increasing the total compensation for construction management services on the project to $280,264 to include the additional streets. Z&K Consultants has worked with the City on multiple street rehabilitation projects, including receiving the award of contract for the current project through a competitive RFP process.
Z&K has been highly professional during these projects and is very familiar with the City and City-affiliated construction projects. Additionally, they have worked successfully with Onyx to this point on the Street Rehabilitation Project, which would enable this change order work to be completed in an efficient manner.
Given all of the above-mentioned factors, staff recommends the City Council approve contract Amendment No. 1 with Z&K Consultants to continue providing construction management services for the completion of the additional street rehabilitation work.
FISCAL IMPACT & PROCUREMENT REVIEW
At its July 26, 2024, meeting, the City Council approved awards of contract related to the Street Rehabilitation Project, including to Z&K Consultants for Construction Management services. At that meeting, the project budget was presented as such;
Costs for Street Rehabilitation Project
Item Cost
Construction Contract (Onyx Paving) $7,171,000
Construction Contingency (5%) $358,500
Construction
Management/Inspection (Z&K
Consultants)
$199,996
Total Project Cost $7,729,496
The proposed Amendment No.1 with Z&K in the amount of $80,268 falls within the construction contingency amount of $358,500. As such, sufficient funds have been budgeted in Account # 394-48-4600-9271 for the completion of the additional work. No additional appropriation is required.
LEGAL REVIEW
The City Attorney's office has reviewed the staff report and approved as to form.
RECOMMENDATION
Staff recommends that the City Council approve Amendment No.1 with Z&K Consultants in an amount not to exceed $80,268 for additional construction management services associated with the project, and authorize the City Manager to execute the contract amendment on behalf of the City. If the Council concurs, an appropriate motion would be:
“I move to approve Amendment No.1 with Z&K Consultants in an amount not to exceed $80,268 for additional construction management services associated with the project, and authorize the City Manager to execute the contract amendment on behalf of the City.”
ATTACHMENTS
1. Draft Amendment No.1 with Z&K Consultants
2. Original Agreement with Z&K Consultants