AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: GABINO C. LUNA
DIRECTOR OF PUBLIC WORKS
SUBJECT:
title
SECOND AMENDMENT TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT WITH ASSOCIATED SOILS ENGINEERING, INCORPORATED
summary
Summary:
The City maintains an On-Call Professional Consultant Services Agreement with Associated Soils Engineering, Incorporated (ASE) for general geotechnical engineering and materials testing services. In addition to providing on-call services for citywide projects, ASE is also supporting the City’s amphitheater project from the initial site investigation through design and construction, including geotechnical investigation, design support, construction inspection, materials testing, and related special inspection services. ASE is also providing deputy inspection and material testing services for the Gundry Roof Reservoir Rehabilitation Project, which is nearing completion.
The City has utilized or committed the agreement’s current $300,000 not-to-exceed amount, including approximately $180,000 for the Amphitheater Construction Inspection, $22,000 for the Gundry Roof Reservoir Rehabilitation Project, and $98,000 for geotechnical engineering, materials testing, and inspection services for other City projects since the agreement began in July 2024. Staff recommends the City Council approve a Second Amendment to increase the agreement compensation by $185,000 to continue providing construction inspection services citywide projects as well as the Amphitheater and Gundry Roof Reservoir Rehabilitation projects.
Staff further recommend that the City Council find that approving the amendment without conducting a new procurement serves the best interest of the City and supports public health, safety, and welfare pursuant to Signal Hill Municipal Code Section 3.20.120(I).
Strategic Plan Goals:
Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.
recommendation
Recommendation:
1. Authorize the City Manager to execute a Second Amendment to the Professional Consultant Services Agreement with Associated Soils Engineering, Inc., increasing the agreement compensation by $185,000, from $300,000 to a revised not-to-exceed amount of $485,000 over the agreement term to continue the material testing and onsite inspection for the Amphitheater Construction and Gundry Roof Reservoir Rehabilitation projects, in a form approved by the City Attorney; and
2. Find pursuant to Signal Hill Municipal Code Section 3.20.120(I), that approval of the Second Amendment without conducting a new procurement is in the best interest of the City and the public health, safety, and welfare.
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Fiscal Impact:
The proposed Second Amendment to the Professional Consultant Services Agreement with ASE would not require additional appropriations; all costs would be paid from existing funding budgeted for the respective project inspections. The proposed amendment would increase the agreement’s total compensation by $185,000, raising it from $300,000 to a revised not-to-exceed amount of $485,000 over the agreement term. The City has already spent and encumbered approximately $180,000 for the Amphitheater Construction Project, $22,000 for the Gundry Roof Reservoir Rehabilitation Project, and $98,000 for geotechnical engineering, material testing services, and inspection services on other City Projects, exhausting the current $300,000 agreement authority.
Funding for the $180,000 of the proposed increase is available in the Fiscal Year 2026-2027 Capital Improvement Program - Amphitheater Project, Project No. 90.24013, Account No. 400-40-5896, funded by the Civic Center Master Plan Reserve. Funding for the remaining $5,000 is available in the On-Call Water Engineering Account No. 500-44-4680; these allocations fully funds the proposed amendment.
Background:
On July 9, 2024, the City entered into a Professional Consultant Services Agreement with Associated Soils Engineering, Incorporated (ASE) to provide on-call general geotechnical engineering and materials testing services. The initial agreement began on July 10, 2024, and runs through June 30, 2027, with the City retaining the option to renew for up to three additional one-year periods. The original agreement set an annual compensation limit of $100,000 and on April 1, 2026, the City and ASE executed a First Amendment to revise the compensation structure and establish a total not-to-exceed amount of $300,000 over the agreement term.
ASE continuously supported the amphitheater project from the initial investigation through design and construction. During the investigation phase, ASE evaluated the site’s subsurface and seismic conditions, performed field infiltration and laboratory testing, and prepared geotechnical recommendations for grading, foundations, retaining walls, pavements, and drainage improvements. During design, ASE provided additional analysis and recommendations for the amphitheater stage foundations and cast-in-drilled-hole caissons that support the stage light poles. During construction, ASE inspected field conditions, performed materials testing and special inspections, provided engineering recommendations, and documented inspection and testing results.
ASE has also provided deputy inspection and testing services for the Gundry Roof Reservoir Rehabilitation Project. The project includes rehabilitation of the existing reservoir and replacement of its roof with a column-supported aluminum roof system. ASE’s scope has included onsite and offsite deputy welding inspection for steel and aluminum components; inspection of reinforced concrete, anchor bolts, and epoxy installations; concrete sampling and laboratory testing; and preparation of daily inspection reports.
Analysis:
The City has utilized or committed the agreement’s $300,000 not-to exceed amount. Approximately $180,000 supported construction inspection and testing for the Amphitheater Project and $22,000 supported deputy inspection and testing for the Gundry Roof Reservoir Rehabilitation Project. The remaining $98,000 has been utilized for geotechnical engineering, reporting, materials testing, and inspection services for other City projects since the agreement began in July 2024. Consequently, the City would need to amend the contract to its not-to-exceed authority to complete the required inspection work for the Amphitheater and Gundry capital projects.
Staff estimates that an additional $185,000 is necessary to complete inspection services for the Amphitheater and Gundry projects and resulting in a revised not-to-exceed amount of $485,000 over the agreement term. Of this amount, $180,000 would be reserved for the remaining Amphitheater Project construction inspection and materials testing services, and $5,000 would be reserved for the remaining Gundry Roof Reservoir Rehabilitation Project deputy inspection and testing services. The additional agreement authority would be limited to these two projects. The City would utilize other existing City on-call consultants for other geotechnical engineering and inspection services required for other City projects. The proposed amendment does not extend the agreement term or modify ASE’s current compensation rates.
The Amphitheater project requires continuous specialized inspections at critical stages of construction. ASE’s work combines field observations, deputy inspections, laboratory tests, and geotechnical engineering review into one coordinated quality-assurance record for the project. Because ASE performed the original borings and laboratory testing and developed the geotechnical design recommendations, its personnel can compare actual excavation, soil, groundwater, and bearing conditions directly with the assumptions and criteria used during design. ASE also provides special steel fabrication and welding inspections for the project’s roof components. The contractor is currently installing these components, and ASE must continue special welding inspections.
If the City transitions these services to a new consultant during active construction, another firm would need to independently review the existing laboratory data, geotechnical report and investigations, and all completed inspections throughout project construction. Such a transition could duplicate prior efforts, delay time-sensitive foundation, slab, concrete, and structural inspections, and fragment the project’s inspection and certification record. By retaining ASE, the City preserves a consistent chain of technical oversight, supports prompt resolution of field conditions that differ from the design assumptions, and allows the consultant that established the project’s geotechnical criteria to verify their implementation through final review and certification.
Continued use of ASE is also appropriate for the Gundry Roof Reservoir Rehabilitation Project. ASE is familiar with the project’s plans, specifications, construction history, testing results, and outstanding inspection requirements. Because the project is nearing completion, transitioning the remaining work to another consultant would require the new firm to review the existing inspection reports, testing records, and project history for a limited amount of remaining work. Providing the requested additional contract authority would allow ASE to complete the remaining inspections and testing efficiently and maintain a consistent inspection and closeout record through project completion.
Signal Hill Municipal Code Section 3.20.120(I) authorizes the City Council to award and execute contracts without following the otherwise required procurement methods when the approving authority finds that the award is in the best interest of the City or of the public health, safety, and welfare. Based on ASE’s continuous involvement, project-specific knowledge, and current responsibility for critical construction inspection and testing services, staff recommends the City Council make the required finding and approve the Second Amendment.
Reviewed for Fiscal Impact:
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Siamlu Cox
Attachment:
A. Second Amendment to the Professional Consultant Services Agreement with Associated Soils Engineering, Incorporated.