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Agenda Item 18.
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| City Council Meeting |
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| Subject: |
| Amendment to Professional Services Agreement with MTGL, Inc. for Additional Construction Materials and Soils Testing Services on Capital Improvement Projects |
| RECOMMENDATION |
| Approve the Amendment to Professional Services Agreement increasing the annual contract amount from $50,000 to $150,000. |
| BACKGROUND/DISCUSSION |
On July 1, 2015, the City Council approved a Professional Services Agreement (PSA) with MTGL, Inc. to provide Construction Materials and Soils Testing (Geotechnical) services for various Capital Improvement Projects on an "As-Needed (On-Call)" basis (see Contract). The PSA includes a not-to-exceed amount of $50,000 per year with an initial one-year term and provisions for three-one year extensions making the total possible contract term four (4) years. To date, the PSA term has been extended three times with the current term from July 1, 2018 to June 30, 2019.
Throughout the span of this On-Call PSA for Geotechnical services, MTGL has provided services on several high-priority projects including The Glenbrook Tract Water Line Replacement and Street Rehabilitation (CIP 7452), The Tracks at Brea, Segments 6, 2 and 3 (CIP 7873), and The Laurel Elementary Magnet School/Lagos de Moreno Park Upgrades (CIP 7929).
In the previous PSA term, July 1, 2017 to June 30, 2018, the City increased the annual amount from $50,000 to $140,000 as a result of several issues regarding the Lagos De Moreno Park Upgrades (CIP 7929). One major issue consisted of an unforeseen six inch (6") sewer lateral that was discovered during excavation which required replacement. As a result, the original completion date of November 28, 2017 was pushed to June 2018. Subsequent to the aforementioned issues, the primary contractor continued to cause numerous construction delays due to poor performance, as well as unorthodox means and methods. This caused the need for frequent additional site visits by MTGL staff for special inspection and materials testing.
Collectively, between the unforeseen issues and the contractor’s numerous construction delays, CIP 7929 was significantly competed on September 28, 2018. With a substantial completion date of September 28, 2018, the contractor is 172 working days over the time specified in the contract.
As a result, MTGL provided additional services for the project past the extended estimated completion date of June, 2018 to September 28, 2018 which resulted in a total amount of $150,000, which is $100,000 over the current allowable annual limit of the PSA. In order to increase the purchase order so these extra charges can be accommodated, the annual PSA amount of $50,000 will need to be increased. Staff has prepared a PSA Amendment (Amendment No. 2) to increase the annual not-to-exceed third extended term amount from $50,000 to $150,000, which will cover the added CIP 7929 project costs (see Amendment #2). |
| COMMISSION/COMMITTEE RECOMMENDATION |
| Finance Committee reviewed this report at their October 30, 2018 meeting. The committee recommended approval to City Council with a comment that staff investigate ways City Council can review change orders on future contracts as they’re being issued by staff. |
| FISCAL IMPACT/SUMMARY |
Amendment No. 2 to the MTGL annual "As-Needed (On-Call)" PSA for Geotechnical services will allow staff to increase the amount of the purchase order to $150,000 for CIP 7929, which will cover the work up to September 28, 2018. Therefore, staff recommends amending the PSA with MTGL to increase the not-to-exceed amount from $50,000 to $150,000 for the third extended term.
All costs related to MTGL services are included in the approved budget for the aforementioned project. As indicated by the table below, there are sufficient funds within the project to cover the cost of purchase order changes within the Amendment, therefore, there will be no impact to the General Fund.
| CIP # |
Project Name |
Approved Budget |
Expenditures To Date |
Remaining Balance |
| 7929 |
Lagos De Moreno Park |
$3,271,473 |
$2,960,271 |
$311,202 |
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| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Raymond Contreras, Assistant Engineer
Concurrence: Tony Olmos, P.E., Public Works Director
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