City Council Agenda Report
Meeting Date: June 3, 2025
From: Daniel S. Wall, P.E., Director of Public Works
Department: Public Works
Submitted by: Rosemary Lozada, Management Analyst
Subject
Additional Funds for Contract No. 20230172 With RAMCO General Engineering Contractors (RAMCO) and Mega Renovation, Inc. (Mega)
Recommendation
A. Find that the proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because the project consists of the maintenance, repair or minor alteration of existing structures and involves negligible or no expansion of an existing use; and
B. Approve $100,000 in additional funds for Contract No. 20230172 with RAMCO and Mega for on-call general contractor and minor construction services provided.
Background
As required by Vernon Municipal Code (VMC) Section 3.32.080, on February 7, 2023, the City advertised and received proposals for on-call general contractor and minor construction services.
On March 21, 2023, the City awarded Contract No. 20230172 to RAMCO General Engineering Contractors (RAMCO) and Mega Renovation, Inc. for on-call general contractor and minor construction services for the period of March 21, 2023, through March 20, 2026, for a combined total not-to-exceed $350,000. The contract was awarded to two firms simultaneously to allow the City flexibility to assign work to either firm based on pricing and availability. Due to the work completed by both firms to date, an additional $100,000 is being requested as the remaining funds are insufficient to meet the full demands of the current and upcoming projects through the end of the contract term.
The City of Vernon owns residential and municipal buildings which require occasional minor construction work such as remodeling or repair work. These services are essential to maintaining and improving city facilities and infrastructure in a timely and cost-effective manner and augments the expertise of Public Works crews. These services also supplement existing City staff to ensure that construction projects are completed. City staff will continue to perform work when projects are within the scope of staff’s skillset and when time permits personnel to tend to project tasks efficiently and urgently. The additional $100,000 will ensure continuity of service, avoid project delays, and enable City staff to provide services in a timely manner. Currently, $113,258.00 has been paid to RAMCO and $208,515.50 has been paid to Mega. The cost of repairs needing to be addressed will cause the combined contract total to exceed $350,000.
If approved by Council, the additional funds would be encumbered in Munis and the total not-toexceed amount for Contract No. 20230172 would increase to $450,000, with amounts paid to either firm counting towards this total. An amendment is not necessary as no contractual information is being changed.
Fiscal Impact
The fiscal impact of additional funds requested is not-to-exceed $100,000. The service provider’s fees will be based on actual work performed. Any amount paid to either RAMCO or Mega shall count towards the not-to-exceed amount. Multiple funding sources will be utilized. Sufficient funds to cover the costs of the services are available in the General Fund, Public Works, Facilities Maintenance, Repairs & Maintenance Account No. 011-040-415-529000 and the General Fund, Public Works, City Housing, Repairs & Maintenance Account No. 011-040-410-529000 for the current fiscal year and will be budgeted in FY25-26.
Attachments
1. Services Agreement with RAMCO General Engineering Contractors
2. Services Agreement with Mega Renovation, Inc.