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Home My WebLink About10 - Amendment to On -Call Service Agreement for Temporary Pumping EquipmentQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report February 27, 2024 Agenda Item No. 10 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mark Vukojevic, Utilities Director - 949-644-3011, mvukojevic@newportbeachca.gov PREPARED BY: Josh Rosenbaum, Sr. Management Analyst - 949-644-3057, josenbaum@newportbeachca.gov TITLE: Amendment to On -Call Service Agreement for Temporary Pumping Equipment ABSTRACT: The Utilities Department utilizes on -call contractors to perform a variety of supplemental contract services, especially during emergencies. Staff is requesting an amendment to an existing on -call agreement with Charles King Company for temporary pumping services. The amendment increases the agreement's compensation by $220,000. RECOMMENDATIONS: 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. Three to the On -Call Maintenance/Repair Services Agreement with Charles King Company, for Temporary Pumping Equipment, which increases the total agreement compensation by $220,000, and authorize Mayor and City Clerk to execute the Agreement; and c) Approve Budget Amendment No. 24-052 appropriating $120,000 in increased expenditures in the Storm Drain Maintenance and Repair Program Account 0109062- 851037 from the unappropriated General Fund. DISCUSSION: Over the years, the Utilities Department has rented temporary trailer -mounted pumps as needed during storm/tide events and for bypassing sewers. In March 2023, a landslide occurred on Galaxy Drive, severing the City of Newport Beach's storm drain line. Moving quickly, the Utilities Department entered into a short-term agreement with Charles King Company to provide and install temporary pumping equipment as a replacement for the City's storm drain line. The Utilities Department, in conjunction with the Public Works and Community Development Departments, is prepared to reconnect or install a replacement storm drain line. However, the continued movement of the hillside, and construction efforts by the homeowners to stabilize the slopes, require staff to delay the installation further than expected. Staff believes the pumps will continue to be needed into the coming months. 10-1 Amendment to On -Call Service Agreement for Temporary Pumping Equipment February 27, 2024 Page 2 Charles King Company is a local company with expertise in temporary pump setups. They can mobilize quickly to provide temporary pumping solutions or rent pumps. They are also properly licensed and have positive references. On -call agreements do not guarantee any specific amount of business for the contracted company. The utilization of the contractor will be based on several factors, including its cost proposal, expertise and the company's availability. The agreement is being amended to cover the current and foreseeable temporary pumping needs for the continued situation on Galaxy Drive. The homeowners are in the process of installing a new retaining wall system. After that is complete, the City's storm drain can be reconnected, and the temporary pumps can be removed. The on -call agreement is also in place as a department resource through June 2025. For example, extra trailer mounted pumps were rented in January and February of this year. This amendment increases the compensation by up to $220,000 over the next year. FISCAL IMPACT: Upon approval of the proposed $120,000 General Fund budget amendment, sufficient funding will be available for the continued use of this contract resource. The remaining funds will be sourced from the Storm Drain Maintenance and Repair Program Account. 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. Three to the On -Call Agreement with Charles King Company for Temporary Pumping Equipment Attachment B — Budget Amendment No. BA-052 10-2 ATTACHMENT A AMENDMENT NO. THREE TO ON -CALL MAINTENANCE/REPAIR SERVICES AGREEMENT WITH CHARLES KING COMPANY FOR TEMPORARY PUMPING EQUIPMENT THIS AMENDMENT NO. THREE TO ON -CALL MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. Three") is made and entered into as of this 27th day of February, 2024 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and CHARLES KING COMPANY, a California corporation ("Contractor"), whose address is 2841 Gardena Avenue, Signal Hill, California, 90755, and is made with reference to the following: RECITALS A. On March 8, 2023, City and Contractor entered into an On -Call Maintenance/Repair Services Agreement ("Agreement") to engage Contractor to perform on -call maintenance and/or repair services for City ("Project"). B. On April 25, 2023, City and Contractor entered into Amendment No. One, to extend the term of the Agreement to August 31, 2023, to increase the total compensation, update project manager information, and update the administration section. C. On June 13, 2023, City and Contractor entered into Amendment No. Two to extend the term of the Agreement to June 30, 2025, and to increase the total compensation. D. The parties desire to enter into this Amendment No. Three to increase the total compensation and to amend Section 4 (Compensation to Contractor) of the Agreement to add a Consumer Price Index escalation provision. 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 Four Hundred Seventy Thousand Dollars and 00/100 ($470,000.00) 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. Three, including all reimbursable items and subconsultant fees, in an amount not to exceed Two Hundred Twenty Thousand Dollars and 001100 ($220,000.00). 10-3 Section 4.5 to the Agreement shall be added to read as follows: "4.5 Upon the first anniversary of the Effective Date and upon each anniversary of the Effective Date thereafter, the billing rates set forth in Exhibit B ("Billing Rates") shall be adjusted in proportion to changes in the Consumer Price Index, subject to the maximum adjustment set forth below. Such adjustment shall be made by multiplying the Billing Rates in Exhibit B by a fraction, the numerator of which is the value of the Consumer Price Index for the calendar month three (3) months preceding the calendar month for which such adjustment is to be made, and the denominator of which is the value of the Consumer Price Index for the same calendar month immediately prior to Effective Date. The Consumer Price Index to be used in such calculation is the "Consumer Price Index, All Items, 1982-84=100 for All Urban Consumers (CPI-U)", for the Los Angeles - Riverside -Orange County Metropolitan Area, published by the United States Department of Labor, Bureau of Labor Statistics. If both an official index and one or more unofficial indices are published, the official index shall be used. If said Consumer Price Index is no longer published at the adjustment date, it shall be constructed by conversion tables included in such new index. In no event, however, shall the amount payable under this Agreement be reduced below the Billing Rates in effect immediately preceding such adjustment. The maximum adjustment increase to the Billing Rates, for any year where an adjustment is made pursuant to this Section, shall not exceed the Consumer Price Index or 2.0% of the Billing Rates in effect immediately preceding such adjustment, whichever is less." 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] Charles King Company Page 2 10-4 IN WITNESS WHEREOF, the parties have caused this Amendment No. Three to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: By: r n 413, � 24 wt, Attorney,,/ ATTEST: Date: By: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Will O'Neill Mayor CONTRACTOR: CHARLES KING COMPANY, a California corporation Date: Bv: Debra Kay King Chief Executive Officer/ Chief Financial Officer/ Secretary [END OF SIGNATURES] Charles King Company Page 3 10-5 ATTACHMENT B r City of Newport Beach °R=1F�RNa BUDGET AMENDMENT BA#: 24-052 2023-24 Department: Utilities ONETIME. F±] Yes ❑ No Requestor: Joshua Rosenbaum Approvals ❑ CITY MANAGER'S APPROVAL ONLY Finance Director: Date 911A44 ❑ COUNCIL APPROVAL REQUIRED City Clerk: Date EXPLANATION FOR REQUEST: To amend the existing on -call agreement with Charles King Company for temporary pumping services and increase the ❑ from existing budget appropriations original agreement by $120k to cover current and foreseeable temporary pumping for the continued situation on Galaxy ❑ from additional estimated revenues Drive. ❑', from unappropriated fund balance REVENUES Fund # Org Object Project Description Increase or (Decrease) $ Subtotal $ EXPENDITURES Fund # Org Object Project Description Increase or (Decrease) $ 010 0109062 851037 STORM DRAINS/STREET SWEEPING - MAINT & REPAIR NOC 120,000.00 Subtotal $ 120,000.00 FUND BALANCE Fund 9 Object Description Increase or (Decrease) $ 010 300000 GENERAL FUND - FUND BALANCE CONTROL (120,000.00) Subtotal $ (120,000.00} Fund Balance Change Required 10-6