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Home My WebLink About10 - Underground Utility Installation and Repair ServicesTO: FROM: CITY OF NEWPORT BEACH City Council Staff Report June 25, 2019 Agenda Item No. 10 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL 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 On -Call Maintenance and Repair Services Agreements for Underground Utility Installation and Repair Services with GCI Construction, Inc. and T.E. Roberts, Inc. ABSTRACT: The City utilizes on-call contractors to perform underground utility repair services for the City's water, wastewater and storm drain systems. The Utilities Department is requesting an amendment for an additional $250,000 to each On -Call Maintenance and Repair Services Agreement for Underground Utility Installation and Repair Services with GCI Construction, Inc. and T.E. Roberts, Inc., respectively. 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; and b) Approve Amendment No. 1 to On -Call Maintenance and Repair Services Agreement for Underground Utility Installation and Repair Services with GCI Construction, Inc. and T.E. Roberts, Inc. with an additional $250,000 for each agreement for a total not -to -exceed amount of $750,000 for each agreement, and authorize the Mayor and City Clerk to execute the Amended Agreements. FUNDING REQUIREMENTS: The current adopted budget includes sufficient funding anticipated for these contracts. Funds for these contracts are programmed annually into numerous maintenance and repair accounts from the water, wastewater, and storm drain funds, as well as the Public Works Department's Capital Improvement accounts. In the event of emergencies that exceed the budget, a budget amendment will be brought to City Council similar to the FY 2018-19 storm season budget amendment. 10-1 Amendment No. One to On -Call Maintenance and Repair Services Agreements for Underground Utility Installation and Repair Services with GCI Construction, Inc. and T.E. Roberts, Inc. June 25, 2019 Page 2 DISCUSSION: The Utilities Department maintains hundreds of miles of water, wastewater and storm drain pipelines and appurtenant facilities such as pump stations, pressure stations, reservoirs, treatment facilities, well sites, fire hydrants, valves, manholes and communication equipment. The maintenance and operation of these systems is administered by licensed City staff in the Department. At times, the Department requires the assistance from contractors to provide manpower, equipment, and services such as specialized shoring, certified pipe welders, heavy equipment, and specialized equipment services related to underground utility maintenance, repairs and emergency repairs. Decisions to use these contractors is typically based on size and complexity of the repair or emergency, availability of staff and contract resources, shoring needs, expected duration of the repair and anticipated costs. When using contract resources, City staff oversees the repair. Typically, staff also provides supplemental services in a hybrid approach to save costs and expedite repairs such as excavation, traffic control, trench plating, public noticing, pipe and trench materials, trucking, material handling and underground service marking. On June 12, 2018, City Council awarded three separate contracts for these services to GCI, T.E. Roberts and W.A. Rasic companies. Having multiple providers is the key to meeting the demands of the department for emergencies and for cost management. Over the last year, the Utilities Department and Public Works Department have utilized these contracts at a pace that was more than originally anticipated. During the last 12 -months, the cost and complexity of the several water and sewer main breaks and the storm season damage required several emergency repairs, imminent repairs, and urgent preventative repairs. To date, the Utilities and Public Works have utilized 75% of GCI's contract value, 65% of T.E. Roberts contract value and 30% of the W.A. Rasic's contract value. All three contractors have provided very responsive and quality service to the City. The Utilities Department is seeking to amend the existing contracts with both T.E. Roberts, Inc., and GCI Construction, Inc., respectively, for an additional $250,000 for each Agreement with a new total not -to -exceed contract amount of $750,000 for each Agreement. T.E. Roberts and GCI's companies and personnel are uniquely qualified to perform for the City during these repairs and emergencies, their services will reduce the "learning process" and amending their agreement is the timeliest and most cost effective method to complete future work that will be necessary. These amended agreements should allow the Departments to maintain the contracts through the full 3 -year term as originally expected. 10-2 Amendment No. One to On -Call Maintenance and Repair Services Agreements for Underground Utility Installation and Repair Services with GCI Construction, Inc. and T.E. Roberts, Inc. June 25, 2019 Page 3 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). ATTACHMENTS: Attachment A — Amendment No. One to On -Call Maintenance and Repair Services Agreement for Underground Utility Installation and Repair Services with T.E. Roberts, Inc. Attachment B — Amendment No. One to On -Call Maintenance and Repair Services Agreement for Underground Utility Installation and Repair Services with GCI Construction, Inc. 10-3 ATTACHMENT A AMENDMENT NO. ONE TO ON-CALL MAINTENANCEIREPAIR SERVICE AGREEMENT WITH T.E. ROBERTS, INC. FOR UNDERGROUND UTILITY INSTALLATION AND REPAIR SERVICES THIS AMENDMENT NO. ONE TO ON-CALL MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. One") is made and entered into as of this 25th day of June, 2019 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and T.E. ROBERTS, INC., a California corporation ("Contractor"), whose address is 306 West Kate IIa Avenue, Unit B, Orange, CA 92867, and is made with reference to the following: A. On June 12, 2018, City and Contractor entered into an On -Call Maintenance/Repair Services Agreement ("Agreement") to perform on-call maintenance and/or repair for the City ("Project"). B. Since entering into the Agreement, Contractor was asked to perform a higher volume of work than was originally anticipated. C. The parties desire to enter into this Amendment No. One to reflect these additional Services or Work not anticipated in the Agreement, and to increase total compensation. 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 Letter Proposal 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 Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed Seven Hundred Fifty Thousand Dollars and 00/100 ($750,000.00), without prior written amendment to the Agreement." The total amended compensation reflects Contractor's additional compensation far additional Services to be performed in accordance with this Amendment No. One, including all reimbursable items and subcontractor fees, in an amount not to exceed Two Hundred Fifty Thousand Dollars and 001100 ($250,400.00). T.E. Roberts, Inc. Page 1 10-4 2. 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] T.E. Roberts, Inc. Page 2 10-5 IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be executed on the dates written below. APPROVED AS TO FORM: CITY ATT93NEY'S OFFICE Date: ��(( By: - � Aaron C. Harp City Attorney ATTEST: Date: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Diane B. Dixon Mayor CONTRACTOR: T.E. Roberts, Inc., a California corporation Date: By: Tim Roberts President Date: Justin Roberts Secretary [END OF SIGNATURES] T.E. Roberts, Inc. Page 3 10-6 ATTACHMENT B AMENDMENT NO. ONE TO ON-CALL MAINTENANCE/REPAIR SERVICES AGREMENT WITH GCI CONSTRUCTION, INC. FOR UNDERGROUND UTILITY INSTALLATION AND REPAIR SERVICES THIS AMENDMENT NO. ONE TO ON-CALL MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. One") is made and entered into as of this 25th day of June, 2019 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and GCI CONSTRUCTION, INC., a California corporation ("Contractor"), whose address is 1031 Calle Recodo, Suite D, San Clemente, California 92673, and is made with reference to the following: RECITALS A. On June 12, 2018, City and Contractor entered into an On -Call Maintenance/Repair Services Agreement ("Agreement") for Contractor to perform on-call maintenance and/or repair services for City ("Project"). B. Since entering into the Agreement, Contractor was asked to perform a higher volume of work than was originally anticipated. C. The parties desire to enter into this Amendment No. One to reflect additional Services or Work not included in the Agreement, and to increase the total compensation. 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 Letter Proposal 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 Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed Seven Hundred Fifty Thousand Dollars and 00/100 ($750,000.00), without prior written amendment to the Agreement." The total amended compensation reflects Contractor's additional compensation for additional Services to be performed in accordance with this Amendment One, including all reimbursable items and subconsultant fees, in an amount not to exceed Two Hundred Fifty Thousand Dollars and 00/100 ($250,000.00). GCI Construction, Inc. Page 1 10-7 2. 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] GCI Construction, Inc. Page 2 10-8 IN WITNESS WHEREOF, the parties have caused this Amendment No. Amendment One to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY' OFFICE Date: (2/13l? gig By: Fa(: Aaron C. Harp �q City Attorney d9�� ATTEST: Date: is Leilani f. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Diane B Mayor Dixon CONTRACTOR: GCI Construction, Inc., a California corporation Date: By: Terry D. Gillespie Chief Executive Officer Date - in Janet Gillespie Secretary [END OF SIGNATURES] GCI Construction, Inc. Page 3 10-9