REPORT TO THE CITY COUNCIL FROM: DENIX D. ANBIAH, PE, Director Capital Projects Department BY: ANTONIO M. BUELNA, PE, Assistant Director Capital Projects Department, Administration Division JERRI L. REED, Project Management Office Manager Capital Projects Department, Administration Division SUBJECT ..Title Actions pertaining to the First Amendment for the Capital Projects Department's On-Call Consultant Service Agreements for Materials Testing and Acceptance Services for capital improvement projects (Citywide): 1. Approve the First Amendment to the On-Call Consultant Services Agreement with Salem Engineering Group Inc., of Fresno, California, for materials testing and acceptance services, increasing the maximum amount payable for all Task Orders by $1,000,000.00, for a total not to exceed Agreement value of $1,958,000.00; 2. Approve the First Amendment to the On-Call Consultant Services Agreement with Krazan & Associates, Inc, of Clovis, California, for materials testing and acceptance services, increasing the maximum amount payable for all Task Orders by $1,000,000.00, for a total not to exceed Agreement value of $1,958,000.00. ..Body RECOMMENDATIONS Staff recommends City Council approve two (2) First Amendments to the On-Call Consultant Service Agreements between the City of Fresno (City) and 1) Salem Engineering Group Inc., 2) Krazan & Associates, Inc., collectively (Consultants), to modify the compensation of each Agreement and increase the maximum amount payable by the City to each Consultant for all Task Orders resulting under the Agreement by $1,000,000.00, for a total not to exceed Agreement value of $1,958,000.00, with no guarantee expressed or implied that this dollar amount will be authorized under any of the two respective Agreements through Task Orders, and authorize the Capital Projects Director or designee to execute both First Amendments on behalf of the City of Fresno. EXECUTIVE SUMMARY The Quality Assurance Program (QAP) is a Federal Highway Administration requirement that must be implemented as a condition of federal-aid funded projects. This program tests materials incorporated into City projects and assures that the materials and workmanship are in conformance with project specifications, State and Federal requirements. Local agencies receiving federal funding for City constructed projects, must have a Caltrans approved, fully implemented QAP prior to receiving construction authorization on federally funded projects. In order to quickly and efficiently deliver necessary services and infrastructure to a growing community, the City entered into three (3) On-Call Consultant Service Agreements dated December 23, 2022, with Certerra-RMA GeoScience, Salem Engineering Group Inc., and Krazan & Associates, Inc. Each Agreement included a total maximum amount payable by the City of $958,000.00, for all Task Orders issued under the Agreement. To date, eighty-nine (89) acceptance testing Task Orders have been initiated though the Capital Projects Department's On-Call Consultant Service Agreements valued at over $2,089,000, As a result, CPD anticipates exhausting the limits of two of the three agreements this fiscal year. By amending the Agreements, it will allow for little to no disruption in procuring a consultant for future work. Staff recommends Council approve the two (2) proposed First Amendments to increase the maximum amount payable to each Consultant for all Task Orders by an amount not to exceed $1,000,000.00, for a total maximum Agreement value of $1,958,000.00, with no guarantee expressed or implied that this dollar amount will be authorized under any of the two (2) respective Agreements through Task Orders. Funding for the proposed First Amendments will be appropriated under the individual capital projects for each Task Order. BACKGROUND As required by both Federal Highway Administration (FHWA) and Caltrans for federal-aid projects, Capital Projects Department (CPD) has revised its current QAP. This program provides assurance that the materials and workmanship incorporated into our federally funded construction projects are in conformance with contract specifications, State and Federal requirements. FHWA requires local agencies to update their QAP every five years and that an approved fully implemented QAP be in place prior to receiving construction authorization on federal-aid projects. One of the main elements of the QAP is acceptance testing of the materials used on these projects. CPD engages local consulting firms ("laboratories") to perform these required tests. A Request for Qualifications (RFQ) was advertised in the Business Journal on August 15, 2022. The Statements of Qualifications were reviewed, and the participating laboratories were short listed with interviews held the week of September 19, 2022. Public Works had determined that Certerra-RMA GeoScience, Salem Engineering Group, Inc. and Krazan & Associates, Inc., meet and/or exceed the necessary qualifications to perform the Materials Testing and Acceptance Services outlined in the QAP. Following execution of the original Agreements, the formation of CPD and the increased pace at which projects are advancing through construction have resulted in the need to raise the maximum amount payable to each Consultant. Staff now recommends Council approve two (2) First Amendments to the On-Call Consultant Service Agreements between the City of Fresno and the Consultants to increase the maximum amount payable to each Consultant for all Task Orders issued under the Agreement by $1,000,000.00, for a total not to exceed Agreement value of $1,958,000.00, with no guarantee expressed or implied that this dollar amount will be authorized under any of the two (2) respective Agreements through Task Orders, and authorize the Capital Projects Director or Designee to sign the Amendments on behalf of the City. Funding for the proposed First Amendments will be appropriated under the individual capital projects for each Task Order. Staff is recommending additional funding for only two of the three existing On-Call Consultant Service Agreements. The Agreement with Certerra - RMA is not being amended at this time because it retains sufficient remaining contract capacity to support anticipated Task Orders. Therefore, no increase in the maximum payable amount is required for that Agreement. The First Amendments do not modify the original contract term. All Agreements will continue under their existing timeframes as established in the original On-Call Consultant Service Agreements. The City Attorney's Office has reviewed and approved the First Amendments to the Agreements as to form. ENVIRONMENTAL FINDINGS An Amendment to an On-Call Consultant Services Agreement is not a "project" pursuant to CEQA Guidelines � 15378. LOCAL PREFERENCE Local Preference does not apply as this is an Amendment to existing Consultant Service Agreements. FISCAL IMPACT These First Amendments to the Consultant Service Agreements have no immediate impact to the General Fund and the Amendments will service projects in all Council Districts. All funding necessary for the services of the proposed Amendments will be appropriated under the individual capital projects for each task order. Attachments: First Amendment to the Agreement and original Agreement - Salem Engineering Group Inc. First Amendment to the Agreement and original Agreement - Krazan & Associates, Inc.