Julian Lee, Director of Public Works
Michael Vartanians, City Engineer
CONSIDERATION OF APPROVAL OF THE SECOND AMENDMENT TO TASK ORDER NO. 2 WITH NV5, INC. FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR THE FY 2019-20 STREET IMPROVEMENT PROJECT, INCREASING THE TOTAL CONTRACT AMOUNT TO $413,786
It is recommended that the City Council:
- Approve the Second Amendment (Attachment 1) to Task Order No. 2 with NV5, Inc. for Construction Management and Inspection Services for the Fiscal Year (FY) 2019-2020 Street Improvement Project, increasing the total not-to-exceed amount by $61,465, for a new total contract amount of $413,786.
- Authorize the City Manager to execute the amendment and all related documents.
Staff requests approval of the Second Amendment to Task Order No. 2 with NV5, Inc. for construction management and inspection services associated with the FY 2019-20 Street Improvement Project. The amendment will increase the contract by $61,465, raising the total not-to-exceed amount from $352,321 to $413,786.
The additional funding is requested because construction has continued beyond the schedule anticipated at the time of the First Amendment. The contractor's latest schedule extends construction through October 23, 2026 due to continued contractor schedule overruns and delays associated with obtaining the Metro permit for work along Arroyo Parkway. Approval of this amendment will allow NV5 to continue providing construction management and inspection services through project completion while ensuring the City maintains appropriate construction oversight and compliance with contract requirements.
The FY 2019-2020 Street Improvement Project provides roadway rehabilitation and related improvements throughout the City. To support successful delivery of the project, the City retained NV5, Inc. under the City's Master On-Call Professional Services Agreement to provide construction management and full-time inspection services.
Task Order No. 2 was originally approved in the amount of $273,680 to provide construction management, construction inspection, and construction administration services during the anticipated construction period. Construction began on September 15, 2025, with an estimated duration of 150 working days, based on the contractor's original schedule.
On July 15, 2026, the City Council approved the First Amendment in the amount of $78,641, increasing the total not-to-exceed amount to $352,321 to provide continued services through the extended construction schedule.
Construction has continued beyond the schedule anticipated when the First Amendment was approved. The contractor's latest schedule identifies October 23, 2026, as the anticipated last day of construction requiring continued inspection and construction management services beyond those originally anticipated.
NV5, Inc. is a nationally recognized engineering and infrastructure consulting firm with extensive experience providing construction management, inspection, engineering, and project delivery services for municipal agencies throughout California.
Throughout construction of the FY 2019-2020 Street Improvement Project, NV5 has provided daily inspection, construction management, coordination with contractors, documentation of project progress, review of contractor activities, and construction administration necessary to ensure work is completed in accordance with project specifications and City requirements.
Construction has extended beyond the original contract duration primarily due to contractor schedule overruns, resulting in the assessment of liquidated damages, and delays associated with obtaining Metro permits for work along Arroyo Verde Road. These circumstances are outside of NV5's control but require the consultant to continue providing inspection and construction management services until construction is complete.
The requested amendment provides funding for approximately:
- 65 additional hours of Construction Management
- 260 additional hours of Full-Time Construction Inspection
- 90 additional hours of Construction Administration
These additional services are expected to support construction through October 31, 2026, allowing the City to maintain the level of oversight necessary for successful project completion.
The contractor has exhausted all contract working days. As a result, the City will pursue liquidated damages in accordance with the contract to recover costs associated with the extended construction period, including additional construction management, inspection, and administration services.
Because these additional services are necessary to maintain oversight through completion of construction, staff recommends approval of the Second Amendment.
The proposed Second Amendment increases the Task Order by $61,465, resulting in a revised total contract amount of $413,786.
Funding for the amendment is available within the FY 2026-27 Capital Improvement Program budget for the FY 2019-20 Street Improvement Project and will be funded using available funds in the following accounts:
236-9008-9203-8170-000 - $30,731
500-9008-9203-8170-000 - $30,733
No additional appropriation is required.