City Council Agenda Report
Meeting Date: February 17, 2026
From: Daniel S. Wall, P.E., Director of Public Works-City Engineer Department: Public Works
Submitted by: Rosemary Lozada, Management Analyst
Subject
Additional Funds for Contract No. 20230172 With RAMCO General Engineering Contractors, Inc. (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 work consists of the maintenance, repair or minor alteration of existing structures and involves negligible or no expansion of an existing use; and
B. Approve $55,391 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. On June 3, 2025 an additional $100,000 was approved and increased the contract amount to $450,000. Due to the work completed by both firms to date, an additional $55,391 is being requested as the remaining funds are insufficient to process the outstanding invoices received.
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 $55,391 will ensure all invoices are paid and the account is current. To date, $158,517 has been paid to RAMCO and $291,205 has been paid to Mega.
The cost of the outstanding invoices will cause the combined contract total to exceed $450,000.
The RAMCO invoice in the amount of $15,191 reflects work completed at the City Yard consisting of the installation of a chain-link fence to enclose designated office trailers. The Mega invoice in the amount of $40,200 reflects remodeling work completed at a vacant City-owned residential property. The improvements were necessary to prepare the unit for occupancy by a new tenant.
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 $505,391, with amounts paid to either firm counting towards this total. An amendment is not necessary as no contractual information is being changed. Council approval is required as the total amount spent with both firms exceeds $100,000.
Fiscal Impact
The fiscal impact of additional funds requested is not-to-exceed $55,391. The service provider’s fees are based on actual work performed. Any amount paid to either RAMCO or Mega shall count towards the not-to-exceed amount. Sufficient funds 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.
Attachments
1. Services Agreement with RAMCO General Engineering Contractors
2. Services Agreement with Mega Renovation, Inc.
3. RAMCO Invoice #2025-931
4. Mega Invoice #3622