8H
Date: September 15, 2026
To: Honorable Mayor and Members of the City Council
From: Shant Megerdichian, General Services Director
Ted Stevens, Community Services Director
By: Milton Sanabria, Administrative Services Manager | [email protected] Krystle Covarrubias, Senior Business Manager | [email protected] Subject: General Services and Community Services – Approve First Amendment to Contract Services Agreement for General Construction Services as a Cooperative Purchase with Sourcewell. Expenditure: Not-to-Exceed $4,750,000 (General Fund and Non-General Funds).
RECOMMENDATION
Recommendation of the General Services Director and Community Services Director that City Council approve a first amendment to the contract services agreement with Horizons Construction Company Int’l, Inc. of Orange, CA (C2026-135), in the amount of $4,750,000, for a new total not-to-exceed amount of $5,000,000, to provide general construction services through June 30, 2029, as a cooperative purchase with Sourcewell.
FUNDING
Funding is available in the Fiscal Year 2026-27 Operating Budget and Capital Improvement Plan across various funds, depending on the scope and funding source of each project, and is expected to be available in subsequent fiscal years. Expenditures will be authorized on a job-order basis subject to available appropriations.
DISCUSSION
On July 1, 2026, contract services agreement C2026-135 was executed with Horizons Construction Company Int’l, Inc. (Horizons) for a total not-to-exceed amount of $250,000 to provide as-needed general construction services through June 30, 2029. The initial agreement and contract capacity were established to support as-needed general construction services for the General Services Department.
Since establishing the agreement, the General Services and Community Services Departments have identified a variety of maintenance and capital improvement projects at City facilities and parks that may be completed through the agreement. Potential projects include additional court resurfacing, walking path rehabilitation, site improvements, and building repairs and renovations. 1 City Council
September 15, 2026
Community Services is currently utilizing the agreement for court improvements at Hickory Park and El Retiro Park at a combined cost of approximately $132,000. The projects include resurfacing and restriping the existing courts, along with associated asphalt repairs, to address deteriorated playing surfaces and extend the useful life of the courts.
General Services is also utilizing the agreement for trellis repairs at the Torrance Cultural Arts Center at a cost of approximately $33,000. The project includes replacement of damaged heavy timber trellis beams and related repairs to the tiled supporting columns.
To provide sufficient contract capacity to accommodate the anticipated needs of both departments during the remaining term of the agreement, staff recommends increasing the agreement by $4,750,000 for a new total not-to-exceed amount of $5,000,000. Contract expenditure authority will be shared by the General Services and Community Services Departments, with expenditures by both departments applied toward the same aggregate contract limit.
Prior to authorizing work, the department responsible for each project will confirm that sufficient funding is available within the applicable approved operating budget or Capital Improvement Plan.
General Services and Community Services will coordinate use of the agreement and monitor cumulative expenditures to ensure the combined value of all work remains within the authorized contract limit.
The proposed amendment will provide both departments with a flexible project delivery tool for appropriately sized and scoped construction projects. The amendment does not guarantee work to Horizons or commit the City to expend the full contract amount. Projects will be evaluated individually based on scope, available funding, project delivery needs, and the appropriateness and cost-effectiveness of utilizing the Sourcewell contract.
SOURCEWELL COOPERATIVE PURCHASING
The City is a member of Sourcewell, formerly the National Joint Powers Alliance, a public agency that competitively solicits cooperative contracts for use by participating governmental agencies.
Cooperative purchasing allows public agencies to utilize competitively procured contracts, reducing duplicative procurement efforts, conserving staff resources, and facilitating timely project delivery.
The agreement with Horizons utilizes Sourcewell Contract No. CA-R8-GB-101723-HRZ, an Indefinite Delivery-Indefinite Quantity Construction Contract. The contract provides a Job Order Contracting method through which individual construction projects may be completed as needs arise. Each project is separately scoped and priced in accordance with the Sourcewell contract before work is authorized.
A cooperative purchase is allowable under Torrance Municipal Code (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 2 City Council
September 15, 2026
Chapter, and the goods or services are supplied to the City at the same or better price as the price obtained by that agency.”
For each project, staff will develop a defined scope of work and obtain a job order proposal from Horizons in accordance with the Sourcewell contract. The proposal will identify the applicable construction tasks, quantities, pricing, and project requirements. Staff will review the proposed scope and pricing before authorizing work. This process allows the City to utilize the competitively established Sourcewell contracting framework while maintaining project-specific review and authorization.
Accordingly, it is recommended that City Council approve a first amendment to Contract Services Agreement C2026-135 with Horizons in the amount of $4,750,000 for a new total not-to-exceed amount of $5,000,000 through June 30, 2029, as a cooperative purchase with Sourcewell.
ATTACHMENTS
1. First Amendment to Contract Services Agreement (C2026-135)
2. Contract Services Agreement (C2026-135)
3 -
1 -
FIRST
AMENDMENT
TO
CONTRACT
SERVICES AGREEMENT
(
C2026
-
135
)
This
First
Amendment to
Contract
Services Agreement
C2026
-
135
(
the
“
First
Amendment”)
is made and entered int
o a
s of
September 15
, 2026
,
by and between the
CITY
OF TORRANCE,
a municipal c
orporation
(“CITY”)
, and
Horizons Construction
Company
Int’l
, Inc.
, a
California Corporation
(“
CON
TRACTOR
”
).
RECITALS:
A.
CITY previously
wished to retain the services of an experienced and qualified CONTRACTOR to provide General Construction Services for Various C apital
Improvements throughout City Facilities
.
B.
In order to obtain the desired services, CITY reviewed the cooperative purchase agreements available from Sourcewell
.
C.
Sourcewell Contract CA
-
R8
-
GB
-
101723
-
HRZ
(the “Sourcewell Contract”) is a
cooperative purchasing agreement entered into by CONTRACTOR that includes the as
-
needed general construction services sought by CITY
.
D.
CONTRACTOR represented that it was qualified to perform those services and provide those materials listed in the Sourcewell Contract.
E.
On or about
October 29, 2025
, CONTRACTOR and Sourcewell entered into an
Agreement to Modify and Extend Sourcewell Contract
CA
-
R8
-
GB
-
101723
-
HRZ
(the “Sourcewell Extension”), which extended the term of the Sourcewell Contract through December 5,
2026
.
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
July
1,
2026
, CITY and CONTRACTOR entered into Contract
Services Agreement
C2026
-
135
, whereby CONTRACTOR agreed to provide
General Construction Services for Various Capital Improvements throughout City Facilities
, pursuant to the Sourcewell Contract, with a term running through June
30,
2029
, and for an amount not
-
to
-
exceed $
2 50,000 (the “Agreement Sum”)
.
H.
CITY is satisfied with the level of service provided by CONTRACTOR.
I.
CITY and CONTRACTOR
now wish to
amend the Agreement
to increase
the
CONT
RACTOR’s compensation
by $
4,750,000
,
for a
new
not
-
to
-
exceed sum of
$
5,000,000 to allow CONTRACTOR to complete desired services .
ATTACHMENT 1
4 -
2 -
J.
The
initial Agreement Sum only contemplated as needed general construction services by the General Services Department. The
increase in the Agreement
Sum is necessary because the
CITY’s General Services Department and
Community Services Department intend to jointly utilize the Agreement for as needed general construction services associated with various capital improvement proje
cts throughout City facilities, requiring additional contract capacity to accommodate the anticipated needs of both departments during the remaining term of the Agreement.
AGREEMENT:
1. Paragraph
3 , entitled “
Compensation
”,
subsection A, entitled “Contractor’s Fee”
is 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
$
5,000
,000 ("Agreement Sum"), unless
otherwise first approved in writing by
CITY
.”
2. In all other respects, the Agreement
dated July 1, 2026
is
ratified
,
reaffirmed and
remains in full force and effect.
[
Signatures on following page
]
5 -
3 -
CITY OF TORRANCE,
a municipal corporation
_______________________________
Sharon Kalani
, Mayor
Horizons Construction Company International
,
Inc
.
,
a
California Corporation
By:
_______________________________
Kinan Kotrash
Vice President, Secretary
ATTEST:
_______________________________
Rebecca Poirier, MMC
City Clerk
APPROVED AS TO FORM:
PATRICK Q. SULLIVAN
City Attorney
By: ____________________________
Jennifer V
icente
Guerrero
Deputy Ci
ty Attorney
6 ATTACHMENT 2
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 30
31