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HomeMy WebLinkAboutItem 19 - Agreement Amendments for On-Call Material Testing and Special Inspection Services Public Works Agency www.santa-ana.org/pw Item # 19 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 1, 2025 TOPIC: Agreement Amendments for On-Call Material Testing and Special Inspection Services AGENDA TITLE First Amendment for Agreements with AESCO, Inc., Kleinfelder, Inc., and RMA Group, Inc. for On-Call Material Testing and Special Inspection Services (Non-General Fund) RECOMMENDED ACTION Approve first amendment to the Caltrans federally procured agreements with AESCO, Inc., Kleinfelder, Inc., and RMA Group, Inc. for on-call material testing and inspection services, to increase the contract amount by $750,000 for a total amount not to exceed $1,700,000, for the remaining term (Agreement Nos. A-2025-XXX, A-2025-XXX, and A- 2025-XXX). GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION The Public Works Agency Engineering Services Division (PWA) is responsible for the administration and oversight of all Capital Improvement Program projects (CIP) in the City. As part of the City’s adopted budget and CIP, numerous federally funded construction projects have been completed and are scheduled to be completed over the next two years. On April 18, 2023, City Council approved agreements with AESCO, Inc., Kleinfelder, Inc., and RMA Group, Inc. for on-call material testing and special inspection services through a federally compliant procurement process authorized by Caltrans. These agreements were established to ensure that the City could access qualified firms to provide quality assurance testing for federally funded capital improvement projects (CIPs). Each firm was selected through a qualifications-based selection (QBS) process that complies with Caltrans Local Assistance Procedures Manual requirements. These services are necessary for verifying contractor compliance with construction material specifications, particularly for concrete, asphalt, soil compaction, welds, and structural steel elements. Testing and inspection services are required under both federal and state funding guidelines and are critical for project certification, close-out, and audit readiness. Agreement Amendment for On-Call Material Testing and Special Inspection Services July 1, 2025 Page 2 5 1 4 6 Since the original contract approval, the City has experienced a significant increase in federally funded CIP construction activity. The on-call testing and inspection agreements have already supported more than 20 federal infrastructure projects across a wide range of scopes, including streetlight installations, active transportation and mobility improvements, school safety enhancements, stormwater infrastructure, traffic signal upgrades, utility and sewer improvements, park and recreation facility renovations, and well rehabilitation. Many of these projects involve ARPA funding, which requires strict adherence to quality assurance and material testing protocols. This increased workload has resulted in rapid drawdown of the original $950,000 shared contract capacity. The proposed amendment increases the total not-to-exceed amount by $750,000 (Exhibits 1-3) to $1,700,000 to ensure continued access to these services through the remainder of the agreement term. Caltrans is not a decision maker in this process but plays an oversight role. The agreements were procured using Caltrans’ federally approved process, which allows their use on federally funded projects without further procurement. While the agreements were established by the City of Santa Ana, other local agencies are not party to these contracts and do not share in their use. Without this amendment, the City would risk project delays and noncompliance with federal and state construction oversight requirements. Staff recommends amending the existing contracts to allow for the uninterrupted completion of federally funded projects. ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. FISCAL IMPACT There is no fiscal impact at this time. Before utilizing on-call services, staff must obtain approval from the Finance and Management Services Agency (FMSA) by submitting a Notice to Proceed Request. This request must specify the funding source and the required dollar amount. FMSA will verify that the necessary funds are encumbered and available within the authorization and aggregate limits of these agreements. Once approved, PWA will issue a Notice to Proceed detailing the specific scope and maximum expenditure for the task. EXHIBIT(S) 1. Agreement Amendment with AESCO, Inc. 2. Agreement Amendment with Kleinfelder, Inc. 3. Agreement Amendment with RMA Group, Inc. Submitted By: Nabil Saba, P.E., Executive Director, Public Works Agency Approved By: Alvaro Nuñez, City Manager FIRST AMENDMENT TO AGREEMENT WITH AESCO, INC. TO PROVIDE ON-CALL MATERIAL TESTING AND SPECIAL INSPECTION SERVICES THIS FIRST AMENDMENT to the above-referenced agreement is entered into on July 1, 2025, by and between AESCO, Inc., a California corporation (“Consultant”), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (“City”). RECITALS A.The Parties entered into Agreement No. A-2023-064-01 (“Agreement”) dated April 18, 2023, to provide on-call material testing and special inspection services for the City’s Public Works Agency. B.The Parties executed both available extensions under the Agreement which runs through July 5, 2026. The Agreement is current and in-effect. C.The Parties now wish to amend the Agreement to increase the overall compensation to account for the additional services and extension of the term of the Agreement. No other changes are contemplated by this Amendment. The Parties therefore agree: 1.Section 2, Allowable Costs and Payments, Subsections “a” and “o” are hereby amended to increase the total compensation for all Consultants selected under RFP 20-111 to an aggregate amount for all Task Orders not to exceed $1,700,000 during the term of the Agreement, including any extensions. 2. Except as modified by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. ATTEST: CITY OF SANTA ANA Jennifer L. Hall Alvaro Nuñez City Clerk City Manager APPROVED AS TO FORM CONSULTANT SONIA R. CARVALHO City Attorney By: ____________________________ Kyle Nellesen By: Assistant City Attorney Title: RECOMMENDED FOR APPROVAL _______ Nabil Saba, PE Executive Director, Public Works Agency President EXHIBIT 1 Nabil Saba Digitally signed by Nabil Saba Date: 2025.06.13 14:56:49 -07'00' FIRST AMENDMENT TO AGREEMENT WITH KLEINFELDER, INC. TO PROVIDE ON- CALL MATERIAL TESTING AND SPECIAL INSPECTION SERVICES THIS FIRST AMENDMENT to the above-referenced agreement is entered into on July 1, 2025, by and between Kleinfelder, Inc., a California corporation (“Consultant”), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (“City”). RECITALS A.The Parties entered into Agreement No. A-2023-064-02 (“Agreement”) dated April 18, 2023, to provide on-call material testing and special inspection services for the City’s Public Works Agency. B.The Parties executed both available extensions under the Agreement which runs through July 5, 2026. The Agreement is current and in-effect. C.The Parties now wish to amend the Agreement to increase the overall compensation to account for the additional services and extension of the term of the Agreement. No other changes are contemplated by this Amendment. The Parties therefore agree: 1.Section 2, Allowable Costs and Payments, Subsections “a” and “o” are hereby amended to increase the total compensation for all Consultants selected under RFP 20-111 to an aggregate amount for all Task Orders not to exceed $1,700,000 during the term of the Agreement, including any extensions. 2. Except as modified by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. ATTEST: CITY OF SANTA ANA Jennifer L. Hall Alvaro Nuñez City Clerk City Manager APPROVED AS TO FORM CONSULTANT SONIA R. CARVALHO City Attorney By: ____________________________ Kyle Nellesen By: Assistant City Attorney Title: RECOMMENDED FOR APPROVAL _______ Nabil Saba, PE Executive Director, Public Works Agency Dany Hanna Vice President EXHIBIT 2 Nabil Saba Digitally signed by Nabil Saba Date: 2025.06.13 14:58:54 -07'00' EXHIBIT 3 Nabil Saba Digitally signed by Nabil Saba Date: 2025.06.13 15:00:13 -07'00'