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Date: May 5, 2026
To: Honorable Mayor and Members of the City Council
From: Shant Megerdichian, General Services Director
By: Milton Sanabria, Administrative Services Manager | [email protected] Subject: General Services – Approve First Amendment to Contract Services Agreement for On-Call General Contractor Services through Sourcewell. Expenditure:
$5,250,000 (General Fund and Non-General Funds).
RECOMMENDATION
Recommendation of the General Services Director that City Council approve a first amendment to the contract services agreement with Angeles Contractor, Inc of City of Industry, CA (C2025–104), in the amount of $5,250,000, for a new total not-to-exceed amount of $6,000,000, for on-call general contractor services through Sourcewell through April 30, 2028.
FUNDING
Funding is available in Fiscal Year (FY) 2025-26 Operating Budget and Capital Improvement Plan across various funds, depending on scale and scope of services requested, and is expected to be available in subsequent fiscal years. Expenditures will be made on a task-order basis subject to available appropriations.
DISCUSSION
On May 1, 2025, a contract services agreement was executed with Angeles Contractor, Inc. for a total not-to-exceed amount of $750,000 for on-call general contractor services through Sourcewell. With approval of the first amendment, the new not-to-exceed agreement will increase to $6,000,000 through April 30, 2028, for on-call general contractor services.
On-Call services are utilized as necessary to assist in maintaining all City Buildings, including Transit Operations and City Parks. The recommendations are in accordance with Torrance Municipal Code Section 22.2.010 that requires contracts with an expenditure of $250,000 or more to be approved by the City Council.
On-Call Service contracts are created to provide timely services during emergencies, times of peak work overload, when specialized work is required, or when operations of essential facilities are being interrupted. Establishing on-call contract services is the best management practice for maintenance and repair projects.
Staff is requesting an increase to the current not-to-exceed (NTE) amount for the on-call general contracting services to ensure continuity of operations and timely delivery of ongoing and 1 City Council
May 5, 2026
upcoming projects. The existing NTE has been nearly exhausted due to a higher volume of maintenance, repair, and small capital improvement work. Upcoming efforts, including Park Building Improvements at Torrance, Walteria, and El Retiro Park, along with the active Central Services Storage Room Conversion project, will continue to rely on this contract. The contractor has also recently completed the City Hall Door Replacement and Parking Lot Modifications, City Hall Employee Lounge Accessibility Improvements, and Fleet Services Interior Renovation, demonstrating consistent reliability and quality. Increasing the annual NTE will help maintain project momentum, support timely response to urgent needs, and avoid delays associated with new procurement processes, ensuring uninterrupted service delivery within the current fiscal year.
Under the agreement, funding for each project is secured in the approved capital budget. The contractor may have multiple assignments each year; however, the aggregate amount shall not exceed the contract amount. Purchases in future fiscal years are dependent upon availability of funding in the adopted budgets of the applicable fiscal years.
The City of Torrance (City) is a member of Sourcewell (formerly the National Joint Powers Alliance), which competitively bids construction tasks with pre-set unit prices and specifications for general construction services, including materials, equipment, and labor costs. Many government agencies share contracting efforts through cooperative purchasing agreements to maximize cost savings, staff resources, and expedite the public bidding process. The Torrance Municipal Code (TMC) authorizes the City to participate in cooperative purchasing agreements like those established by Sourcewell while also adhering to the City’s procurement policies.
A cooperative purchase is allowable under TMC Section 22.3.100(c) which states:
“The competitive selection processes set forth in this Chapter do not apply in the following categories however purchases shall be made in accordance with procedures and regulations established by the City Manager:
c) Competitive procedures were followed by a governmental agency, including a federal, state, county, city, joint powers agency, special district, or cooperative purchasing agency consisting of one or more such agencies, that are equivalent to the procedures set forth in this Chapter, and the goods or services are supplied to the City at the same or better price as the price obtained by that agency.”
The method for pricing terms falls under a Job Order Contract – IDIQ (Indefinite Delivery Indefinite Quantity). The consistency is based on the trade and pricing terms against the gordian construction task catalog. This method is used by government agencies to procure goods or services when the specific quantities and timing are uncertain at the time of the contract’s formation such as for on-call services. The General contractor agrees to provide general construction services under the Sourcewell Contract, and IDIQ job order contract. Each on-call job order request will specify scope, schedule, and details for the work for the readily available construction services.
ATTACHMENTS
1. First Amendment (C2025-104)
2. Original Contract (C2025-104)
3. Agreement to Modify and Extend Sourcewell Contract #CA-R8-GB-101723-ACI 2 -1-
FIRST AMENDMENT TO CONTRACT SERVICES AGREEMENT (C2025-104) This First Amendment to Contract Services Agreement C2025-104 (the “First Amendment”) is made and entered into as of May 5, 2026, by and between the CITY OF TORRANCE, a municipal corporation (“CITY”), and Angeles Contractor, Inc., a California corporation (“CONTRACTOR”).
RECITALS:
A. CITY previously wished to retain the services of an experienced and qualified CONTRACTOR to provide as needed General Construction Services throughout City Facilities and Parks.
B. In order to obtain the desired services, CITY reviewed the cooperative purchase agreements available from Sourcewell.
C. CONTRACTOR represented that it was qualified to perform those services and provide those materials listed in the Sourcewell Contract.
D. Sourcewell Contract CA-R8-GB-101723-ACI (the “Sourcewell Contract”) is a cooperative purchasing agreement entered into by CONTRACTOR that includes the as-needed general construction services sought by CITY.
E. On or about November 15, 2024, CONTRACTOR and Sourcewell entered into an Agreement to Modify and Extend Sourcewell Contract CA-R8-GB-101723-ACI (the “Sourcewell Extension”), which extended the term of the Sourcewell Contract through December 5, 2025.
F. CONTRACTOR agreed to utilize the Gordian Construction Task Catalog as the basis for the predetermined pricing based on unit rates and/or negotiated amounts for specific tasks or goods provided, for the services provided to CITY pursuant to this Agreement.
G. On or about May 1, 2025, CITY and CONTRACTOR entered into Contract Services Agreement C2025-104, whereby CONTRACTOR agreed to provide as- needed General Construction Services throughout City Facilities and Parks, pursuant to the Sourcewell Contract, with a term running through April 30, 2028, and for an amount not-to-exceed $750,000 (the “Agreement Sum”).
H. On or about October 29, 2025, CONTRACTOR and Sourcewell entered into an Agreement to Modify and Extend Sourcewell Contract CA-R8-GB-101723-ACI (the “Second Sourcewell Extension”), which extended the term of the Sourcewell Contract through December 5, 2026. A true and correct copy of the Second Sourcewell Extension is attached herein as Exhibit C.
I. CITY is satisfied with the level of service provided by CONTRACTOR. 3 ATTACHMENT 1
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J. CITY and CONTRACTOR now wish to amend the Agreement by increasing CONTRACTOR’s compensation by $5,250,000, resulting in a new not-to-exceed amount of $6,000,000.
AGREEMENT:
1. Paragraph 1, entitled “Services To Be Performed by Contractor”, is hereby amended to read in its entirety.
“1. SERVICES TO BE PERFORMED BY CONTRACTOR
CONTRACTOR will provide CITY general construction services as covered by the Sourcewell Contract and the Sourcewell Extension, and as further detailed by the IDIQ General Terms and Conditions and the Gordian Construction Task Catalog, on an on-call basis. A true and correct copy of the Sourcewell Contract is attached herein as Exhibit A. A true and correct copy of the Sourcewell Extension is attached herein as Exhibit B. A true and correct copy of the Second Sourcewell Extension is attached as Exhibit C. True and correct copies of the IDIQ General Terms and Conditions and the Gordian Construction Task Catalog are accessible in their entirety at Angeles Contractor, Inc.: Contract CA-R8-GB-101723- ACI | Sourcewell. CONTRACTOR warrants that all work and services provided in compliance with the Sourcewell Contract, the Sourcewell Extension, the IDIQ General Terms and Conditions, and the Gordian Construction Task Catalog, will be performed in a competent, professional and satisfactory manner.”
2. Paragraph 3, entitled “Compensation”, is hereby amended to read in its entirety as follows:
“ 3. COMPENSATION .
A. CONTRACTOR’s Fee.
For services rendered pursuant to this Agreement, CONTRACTOR will be paid pursuant to the Gordian Construction Task Catalog’s predetermined unit rate pricing and/or negotiated pricing amounts for the specific tasks and/or goods and/or services provided to CITY; provided, however, that in no event will the total amount of money paid the CONTRACTOR, for services initially contemplated by this Agreement, exceed the sum of $6,000,000 (the “Agreement Sum”), unless otherwise first approved in writing by the CITY.”
4. In all other respects, the Agreement, as amended by this First Amendment, is ratified and reaffirmed and remains in full force and effect. 4 -3-
CITY OF TORRANCE,
a municipal corporation
_______________________________
George K. Chen, Mayor
ATTEST:
_______________________________
Rebecca Poirier, MMC
City Clerk
Angeles Contractor, Inc.,
a California corporation
By: ______________________
Young Kang
President/Secretary
APPROVED AS TO FORM:
PATRICK Q. SULLIVAN
City Attorney
By: ____________________
Jeanne-Marie K. Litvin
Deputy City Attorney
Attachments: Exhibit C Second Agreement to Modify and Extend Sourcewell Contract CA-R8-GB-101723-ACI
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EXHIBIT C
SECOND AGREEMENT TO MODIFY AND EXTEND SOURCEWELL CONTRACT CA-R8-GB-101723-ACI
[TO BE ATTACHED]
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ATTACHMENT 2
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AGREEMENT TO
MODIFY AND EXTEND
SOURCEWELL CONTRACT #CA-R8-GB-101723-ACI
THIS AGREEMENT TO MODIFY AND EXTEND, Sourcewell Contract #CA-R8-GB-101723-ACI, is effective upon the date of the last signature below.
Sourcewell and Angeles Contractor, Inc. (“Contractor”) have entered into an Indefinite Delivery- Indefinite Quantity Construction Contract, Contract Number CA-R8-GB-101723-ACI, with an initial term ending December 5, 2024, and five bilateral options to extend for an additional one-year term (“Contract”). The parties agree to modify and extend the Contract as stated below.
CONTRACT MODIFICATION
The following is adopted as the new CTC for the Contract effective December 6, 2024:
Sourcewell California - Region 8
Pursuant to the Contract, Contractor’s Adjustment Factors remain fixed for the duration of the contract term and are unaffected by this modification.
EXERCISE OF OPTION: EXTENSION
Contractor and Sourcewell hereby desire and agree to extend the Contract, with the above modification, for the period of December 6, 2024 through December 5, 2025.
Sourcewell Angeles Contractor, Inc.
By: __________________________ By: __________________________ Jeremy Schwartz Young Kang
Title: Chief Procurement Officer Title: President
Date:
Date:
Docusign Envelope ID: 5F1002AA-29AF-47EF-9C28-F3453792580D 11/13/2024 | 2:44 PM PST11/13/2024 | 5:28 PM CST
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AGREEMENT TO
MODIFY AND EXTEND
SOURCEWELL CONTRACT #CA-R8-GB-101723-ACI
THIS AGREEMENT TO MODIFY AND EXTEND, Sourcewell Contract #CA-R8-GB-101723-ACI is effective upon the date of the last signature below.
Sourcewell and Angeles Contractor, Inc. (“Contractor”) have entered into an Indefinite Quantity Construction Contract, Contract Number CA-R8-GB-101723-ACI with an initial term ending December 5, 2024, and five bilateral options to extend for an additional one-year term (“Contract”). This contract has previously been extended by the parties for the term ending December 5, 2025. The parties agree to modify and extend the Contract as stated below.
CONTRACT MODIFICATION
The updated CTC will appear in the eGordian software upon receipt of the executed extension document.
Pursuant to the Contract, Contractor’s Adjustment Factors remain fixed for the duration of the contract term and are unaffected by this modification.
EXERCISE OF OPTION: EXTENSION
Contractor and Sourcewell hereby desire and agree to extend the Contract, with the above modification, for the period of December 6, 2025 through December 5, 2026.
Sourcewell Angeles Contractor, Inc.
By: __________________________ By: __________________________ Jeremy Schwartz Young Kang
Title: Chief Procurement Officer Title: President
Date:
Date:
Docusign Envelope ID: 172667F7-FCB4-4A64-A424-1B0F3F9C443A 10/29/2025 | 10:09 AM PDT
10/29/2025 | 3:03 PM CDT
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