REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Travis K. Hopkins, Acting Assistant City Manager
Subject:
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Approve and authorize execution of a contract amendment to Professional Services Contracts with AESCO, Inc., Leighton Consulting, Inc., and Twining, Inc., for On-Call Material Testing and Engineering Services
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Statement of Issue:
An amendment to the existing on-call professional service contracts with AESCO, Inc., Leighton Consulting, Inc., and Twining, Inc., is required to increase the contract amount within the existing three (3) year contract term to meet the needs for various projects throughout the City.
Financial Impact:
The City’s FY 2019/20 Capital Improvement Program (CIP) Budget was adopted and totals $46.6 million (All Funds) for approved projects citywide. Each approved CIP project has a budget containing sufficient funding for design, environmental, engineering, construction, project management and other required costs. In addition to CIP, several of the Departments have budgeted operating funds for these services for various non-CIP related work. Public Works staff estimates that material testing and engineering services needs for FY 2019/20 will total $600,000. At this level of expenditures for the three (3) existing professional service contracts, usage for these budgeted services will be depleted within a few months. Therefore, staff is seeking increases to the not-to-exceed amounts set forth in the contracts.
Recommended Action:
recommendation
A) Approve and authorize the Mayor and the City Clerk to execute “Amendment No. 1 to Agreement Between the City of Huntington Beach and AESCO, Inc. for On-Call Material Testing and Engineering Services” increasing the contract amount by $350,000, from the original amount of $250,000 to an amended amount of $600,000; and,
B) Approve and authorize the Mayor and the City Clerk to execute “Amendment No. 1 to Agreement Between the City of Huntington Beach and Leighton Consulting, Inc.” increasing the contract amount by $350,000, from the original amount of $250,000 to an amended amount of $600,000; and,
C) Approve and authorize the Mayor and the City Clerk to execute “Amendment No. 1 to Agreement Between the City of Huntington Beach and Twining, Inc.” increasing the contract amount by $350,000, from the original amount of $250,000 to an amended amount of $600,000.
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Alternative Action(s):
Do not authorize contracts and direct staff with an alternate action.
Analysis:
The City’s Capital Improvement Program (CIP) is $46.6 million for Fiscal Year 2019/20. Construction of the projects typically includes material testing and engineering services. These services are critical to project completion as the consultants provide supplemental geotechnical testing to make sure contractors are providing projects that meet material standards and specifications. These tests and services are estimated to cost over $600,000 a year. The current contract amount will not be sufficient to provide services for Fiscal Year 2019/20 CIP.
AESCO, Inc., Leighton Consulting, Inc., and Twining, Inc., have (3) years on-call professional service contracts with the City which were approved by City Council on November 19, 2018. The contracts were approved with a contract limit of $250,000 each, totaling $750,000. In the first year alone, the three contracts together expended $527,000 of the $750,000 limit. As of November 2019; with approximately two (2) years remaining in the contract term, only $223,000 remains in the project contract limit between the three (3) consultants. Staff estimates that expenditures for the next two fiscal years will total slightly over $1.2M. At those rates of expenditures, an additional $1,050,000 to the contract limit will be necessary to reach the duration of the contracts. Therefore, staff is requesting that each of the three (3) contract limits be raised an additional $350,000. AESCO, Inc., Leighton Consulting, Inc., and Twining, Inc., on-call services are essential to supplement City staff to meet the needs of the City to complete the annual CIP.
Environmental Status:
Not Applicable
Strategic Plan Goal:
Enhance and maintain infrastructure
Attachment(s):
1. “Amendment No. 1 to Agreement between the City of Huntington Beach and AESCO Inc. for On-Call Material Testing and Engineering Services”
2. “Amendment No. 1 to Agreement between the City of Huntington Beach and Leighton Consulting, Inc. for On-Call Material Testing and Engineering Services”
3. “Amendment No. 1 to Agreement between the City of Huntington Beach and Twining, Inc. for On-Call Material Testing and Engineering Services”