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HomeMy WebLinkAbout08 - Citywide Streetlight Maintenance and Repair ServicesQ SEW Pp�T CITY OF �m z NEWPORT BEACH c�<,FORN'P City Council Staff Report January 22, 2019 Agenda Item No. 8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mark Vukojevic, Utilities Director - 949-644-3011, mvukojevic@newportbeachca.gov PREPARED BY: Joshua Rosenbaum, Senior Management Analyst, jrosenbaum@newportbeachca.gov PHONE: 949-644-3057 TITLE: Amendment No. One to Maintenance/Repair Services Agreement with International Line Builders, Inc. for Citywide Streetlight Maintenance and Repair Services ABSTRACT: The City maintains approximately 6,000 streetlights and over 750 other City -owned lighting fixtures with contract services. Currently, the City contracts with International Line Builders, Inc., (ILB) to provide streetlight maintenance and repair services. The amount of unforeseen work required by ILB has expended the contract faster than anticipated. This Amendment increases the contract not -to -exceed amount to ensure continuation of necessary repairs and services and allows time for the Utilities and Finance Departments to facilitate an RFP process for a new contract. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve Amendment No. One to the Maintenance/Repair Services Agreement with International Line Builders, Inc., for Citywide streetlight maintenance and as -needed repairs, adding $125,000 to the contract for a total not -to -exceed amount of $1,478,425 for the remainder of the term of the agreement; and c) Authorize the Mayor and City Clerk to execute the Amendment. FUNDING REQUIREMENTS: The FY2018/19 adopted budget includes sufficient funding for citywide streetlight maintenance and as -needed repair services. The Utilities Department expenses these services to the Streetlight Services/Electrical Services Contract account, 0109063- 811017. W Amendment No. One to Maintenance/Repair Services Agreement with International Line Builders, Inc. for Citywide Streetlight Maintenance and Repair Services January 22, 2019 Page 2 DISCUSSION: The City maintains and repairs as -needed approximately 6,000 streetlights and over 750 other City -owned lighting fixtures with contract services provided by International Line Builders, Inc. Other lighting fixtures include the following: bollards, park lights, parking lot lights, tree lights/up lighting and beach flood lights. The entire system is managed by one Utilities staff electrician who uses these contractors for the system servicing. Under the existing contract, ILB is also responsible for purchasing streetlight materials, previously purchased by the City. In July of 2015, the City entered into an agreement with ILB who was selected using an RFP process and was evaluated based on their qualifications, availability, experience and cost. At the time, it was estimated that the annual contract need for their services would be approximately $270,000 per year for a five-year period ($1.35 million). However, the actual service needs averaged $375,000 per year over the last 3.6 years. The actual service needs have included routine repairs and maintenance, unforeseen repairs and street light replacements, minor projects, street light knock downs, materials, support for capital projects, support for upcoming wireless/telecom improvements along with contract inflationary adjustments. This needed work has expended the contract faster than anticipated. At this time, the Utilities Department requests to amend the existing contract to increase the amount by $125,000. This Amendment increases the not -to -exceed total amount to $1,478,425. Sufficient funds are available within the existing budget. The budget has increased in recent years based on actual expenditures. Utilities and Finance staff are also pursuing a new on-call contract through an RFP process, which is expected to be ready for approval in the Spring. In parallel with this effort, staff is studying the cost effectiveness of providing many of these services with an additional in-house staff electrician and will present findings during the upcoming budget discussion. ENVIRONMENTAL REVIEW Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Amendment No. One to Maintenance/Repair Services Agreement with International Line Builders, Inc. for Citywide Streetlight Maintenance and Repair Services January 22, 2019 Page 3 ATTACHMENT: Attachment A — Amendment No. One to Maintenance/Repair Services Agreement with International Builders Inc., for Citywide Streetlight Maintenance and As -Needed Repairs ATTACHMENT A AMENDMENT NO. ONE TO MAINTENANCE/REPAIR SERVICES AGREEMENT WITH INTERNATIONAL LINE BUILDERS, INC. FOR CITYWIDE STREETLIGHT MAINTENANCE AND AS -NEEDED REPAIRS THIS AMENDMENT NO. ONE TO MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. One") is made and entered into as of this 22nd day of January, 2019 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and INTERNATIONAL LINE BUILDERS, INC., a Delaware corporation ("Contractor"), whose address is 2520 Rubidoux Boulevard, Riverside, California 92509, and is made with reference to the following: RECITALS A. On July 14, 2015, City and Contractor entered into a Professional Services Agreement ("Agreement") to engage Contractor to perform maintenance and/or repair services for City ("Project"). B. The parties desire to enter into this Amendment No. One to increase the total compensation as a result of an unanticipated increase in the volume of Services or Work, and to update terms regarding Independent Contractors, Prevailing Wages, Claims, and to update Insurance Requirements. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. COMPENSATION TO CONTRACTOR Section 4.1 of the Agreement is amended in its entirety and replaced with the following: "City shall pay Contractor for the Services on a time and expense not -to - exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Except as otherwise provided herein, no rate changes shall be made during the term of this Agreement without the prior written approval of City. Contractor's compensation for all Work performed in accordance with this Agreement, including all reimbursable items and subcontractor fees, shall not exceed One Million Four Hundred Seventy Eight Thousand Four Hundred Twenty Five Dollars and 00/100 ($1,478,425.00), without prior written amendment to the Agreement." The total amended compensation reflects Contractor's additional compensation for Services to be performed in accordance with this Amendment No. One, including all reimbursable items and subcontractor fees, in an amount not to exceed One Hundred Twenty Five Thousand Dollars and 00/100 ($125,000.00). 2. INDEPENDENT CONTRACTOR Section 10 of the Agreement shall be supplemented to include the following paragraph as Section 10.2: "10.2 Contractor agrees and acknowledges that no individual performing Services or Work pursuant to this Agreement shall: work full-time for more than six (6) months; work regular part-time service of at least an average of twenty (20) hours per week for one year or longer; work nine hundred sixty (960) hours in any fiscal year; or already be a CalPERS member." 3. PREVAILING WAGES Section 16 of the Agreement shall be supplemented to include the following paragraph as Section 16.2- "16.2 Unless otherwise exempt by law, Contractor warrants that no contractor or subcontractor was listed on the bid proposal for the Services that it is not currently registered and qualified to perform public work. Contractor further warrants that it is currently registered and qualified to perform "public work" pursuant to California Labor Code section 1725.5 or any successor statute thereto and that no contractor or subcontractor will engage in the performance of the Services unless currently registered and qualified to perform public work." 4. CLAIMS Section 26 of the Agreement shall be supplemented to include the following paragraph as Section 26.2: "26.2 To the extent that Contractor's claim is a "Claim" as defined in Public Contract Code section 9204 or any successor statute thereto, the Parties agree to follow the dispute resolution process set forth therein. Any part of such "Claim" remaining in dispute after completion of the dispute resolution process provided for in Public Contract Code section 9204 or any successor statute thereto shall be subject to the Government Claims Act requirements requiring Contractor/Consultant to file a claim in strict conformance with the Government Claims Act. To the extent that Contractor's claim is not a "Claim" as defined in Public Contract Code section 9204 or any successor statute thereto, Contractor shall be required to file such claim with the City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.)." 5. INSURANCE REQUIREMENTS Exhibit C to the Agreement, "Insurance Requirements," is supplemented to include the following paragraph as Section 3(D): "D. Umbrella or Excess Liability Insurance. Contractor shall obtain and maintain an umbrella or excess liability insurance policy with limits of not less than one million dollars ($1,000,000) that will provide bodily injury, INTERNATIONAL LINE BUILDERS, INC. Page 2 8.5 personal injury and property damage liability coverage at least as broad as the primary coverages set forth above. Such policy or policies shall include the following terms and conditions: • A drop down feature requiring the policy to respond in the event that any primary insurance limits are exhausted by paid claims; • Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; Policies shall "follow form" to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies." 6. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] INTERNATIONAL LINE BUILDERS, INC. Page 3 8-6 IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 12 • zl • (S By: ��t A N '�c ron C. Harp (A* T -quits qty Attorney ATTEST: Date: EM Leilani 1. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Diane B. Dixon Mayor CONTRACTOR: INTERNATIONAL LINE BUILDERS, INC., a Delaware corporation Date: By: Mike Bass President Date.- By: ate: By: Brad Hulquist Treasurer [END OF SIGNATURES] INTERNATIONAL LINE BUILDERS, INC. Page 4 8-7