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Home My WebLink About07 - Amendment to M/RSA for Sewer Manhole Lining ServicesQ �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report June 23, 2020 Agenda Item No. 7 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: 949-644-3011 TITLE: Amendment No. One to Maintenance and Repairs Services Agreement with Zebron Contracting, Inc. for Sewer Manhole Lining Services ABSTRACT: The City utilizes a contractor to provide manhole lining services to rehabilitate sewer manholes throughout the City each year. The existing contract with Zebron Contracting, Inc., for as -needed sewer manhole lining services expires August 1, 2020. The proposed amendment to the Agreement extends the contract term for two additional years and increases the contract compensation amount by $150,000. 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. One to the Maintenance/Repairs Services Agreement with Zebron Contracting, Inc. for as -needed sewer manhole lining services, which extends the contract term for two additional years and increases the contract compensation by $150,000, and authorize the Mayor and City Clerk to execute the Agreement. FUNDING REQUIREMENTS: The Fiscal Year 2020-21 budget includes sufficient funding for this amended Agreement. The contract will be expensed to the Wastewater/Sewer Fund in the Utilities Department, including Sewer Manhole Lining budget account 7119061-851050 and Maintenance and Repair budget account 7119061-851037. 7-1 Amendment No. One to Maintenance and Repairs Services Agreement with Zebron Contracting, Inc. for Sewer Manhole Lining Services June 23, 2020 Page 2 DISCUSSION: The City wastewater collection system is made up of approximately 200 miles of mainline pipes, 5 miles of force mains, 5,000 manholes and cleanouts, and 25,000 sewer laterals (the pipe from the property line to the City sewer main). Due to the unforgiving environment, concrete sewer manholes deteriorate over time. Rather than replace the entire manhole, which would involve street closures, sewer diversions, and customer outages, the City rehabilitates or lines the manhole. The process includes cleaning and installing a polyurethane lining on the inside of the manhole. This blocks the harsh environment from further damaging the concrete structure and extends the life of the manhole for many years. The process is quicker, more cost effective than full replacement, and less disruptive to the community and roadway traffic. Over the past two fiscal years, the Utilities Department, through its contract with Zebron, has installed over 500 linear feet of sewer manhole lining of various manhole depths. The current contract with Zebron Contracting, Inc., expires August 1, 2020. Staff recommends approval of Amendment No. One, which extends the current contract for two additional years through August 1, 2022 and increases the not -to -exceed amount by $150,000 for a total not to exceed amount of $400,000. 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). ATTACHMENT: Attachment A — Amendment No. One to On -Call Maintenance and Repair Services Agreement with Zebron Contracting, Inc. 7-2 ATTACHMENT A AMENDMENT NO. ONE TO ON-CALL MAINTENANCE/REPAIR SERVICES AGREEMENT WITH ZEBRON CONTRACTING, INC. FOR AS -NEEDED SEWER MANHOLE LINING SERVICES THIS AMENDMENT NO. ONE TO ON-CALL MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. One") is made and entered into as of this 23rd day of June, 2020 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and ZEBRON CONTRACTING, INC., a California corporation ("Contractor"), whose address is Post Office Box 2874, Newport Beach, California 92659, and is made with reference to the following: IN*0111r-A%` A. On August 8, 2017, City and Contractor entered into a Maintenance/Repair Services Agreement ("Agreement") to engage Contractor to perform on-call maintenance and/or repair services for City ("Project"). B. The parties desire to enter into this Amendment No. One to extend the term of the Agreement to August 1, 2022, to increase the total compensation, to amend the City's administration of the Agreement, and to update insurance requirements. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM Section 1 of the Agreement is amended in its entirety and replaced with the following: "The term of this Agreement shall commence on the Effective Date, and shall terminate on August 1, 2022, unless terminated earlier as set forth herein." 2. 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, 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 and subcontractor fees, shall not exceed Four Hundred Thousand Dollars and 001100 ($400,000.00), 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 No. One, including all reimbursable items and subcontractor fees, in an amount not to exceed One Hundred Fifty Thousand Dollars and 001100 ($150,000.00). ZEBRON CONTRACTING, INC. Page 1 7-3 Q611i•IRII:7-rII*].I Section fi of the Agreement is amended in its entirety and replaced with the following: "This Agreement will be administered by the Utilities Department. City's Wastewater Supervisor or designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator shall represent City in all matters pertaining to the Services to be rendered pursuant to this Agreement." 4. INSURANCE REQIREIVIENTS Exhibit C, "Insurance Requirements," Section 5(A), is amended in its entirety and replaced with the following: "A. Evidence of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation and other endorsements as specified herein for each coverage. All of the executed documents referenced in this Contract must be returned to City within ten (10) regular City business days after the date on the "Notification of Award." Insurance certificates and endorsements must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Contract. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Contractor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. City reserves the right to require complete, certified copies of all required insurance policies, at any time." 5. 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] ZEBRON CONTRACTING, INC. Page 2 7.4 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: I /�?,o CITY OF NEWPORT BEACH, a California municipal corporation Date: By: L-,&= By: fir. Aaron C. Harp Will O'Neill City Attorney Mayor ATTEST: Date: En Leilani I. Brown City Clerk CONTRACTOR: ZEBRON CONTRACTING, INC., a California corporation Date: By: Roger Decker President Date: By: Ty Kline Secretary [END OF SIGNATURES] ZEBRON CONTRACTING, INC. Page 3 7.5