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Home My WebLink About12 - Underground Utility Work�EWPR CITY OF T - z NEWPORT BEACH <,FoR�P City Council Staff Report April 11, 2017 Agenda Item No. 12 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: George Murdoch, Municipal Operations Director - 949-644-3011, gmurdoch@newportbeachca.gov PREPARED BY: Steffen Catron, Utilities Manager, scatron newportbeachca.gov PHONE: 949-718-3402 TITLE: Amendment No. Two to On -Call Maintenance/Repair Services Agreement with GCI Construction, Inc. for Underground Utility Work ABSTRACT: The Municipal Operations and Public Works Departments utilizes on-call contractors such as GCI Construction to complete a variety of maintenance and repair to the City's water, wastewater and storm drain systems. Due to an unforeseen increase in utility work related to the Capital Improvement Program (CIP) and operations, the current agreement limits are close to being reached. Staff is requesting that the not -to -exceed limit be increased by $125,000 to cover any additional unforeseen repairs for the remaining term of the agreement. 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. Two with GCI Construction, Inc. for utility on-call maintenance/repair services increasing the compensation limits by $125,000 for the remaining one-year period of the agreement, and authorize the Mayor and City Clerk to execute the amendment. FUNDING REQUIREMENTS: There are adequate funds in the Municipal Operations and Public Works Department budgets to fund on-call services through the remainder of the fiscal year, and funds for these services will continue to be budgeted in the subsequent fiscal year. 12-1 Amendment No. Two to On -Call Maintenance/Repair Services Agreement with GCI Construction, Inc. for Underground Utility Work April 11, 2017 Page 2 DISCUSSION: The City currently has three on-call contractors that perform underground utility repair services. The City holds contracts with three different contractors for this service because when emergencies happen, one or more contractors may not be available, the equipment is tied up elsewhere, or the firms do not have staff available. The City selected these contractors through a competitive process and all three have extensive experience in underground utility repairs and working with the City. On May 26, 2015 the City Council approved an on-call maintenance/repair services agreement with GCI Construction Inc. Work performed under this agreement includes the installation, maintenance and repair of water, wastewater, and storm drain components, as well as excavations and minor grading. The Municipal Operations and Public Works Departments use these contractors for various projects associated with emergency repairs, preparation of utilities in conjunction with capital projects, and smaller non-CIP projects. Recent items included a water main replacement on Balboa Avenue, fire hydrant repairs in the Cameo Shores community, pipeline welding at our water disinfection facilities, and storm drain catch basin repairs. Due to an increased need for these services and a necessity to use GCI, the not -to - exceed contract limit is approaching, with one year remaining on the term. In order to maintain the availability of these services, staff requests that the City enter into Amendment No. Two to increase the not -to -exceed value by an additional $125,000. This would raise the total not -to -exceed amount of the on-call agreement to $500,000, which is similar with other on-call utility agreements. 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. Two to the Utilities On -Call Maintenance/Repair Services Agreement with GCI Construction, Inc. 12-2 ATTACHMENT A AMENDMENT NO. TWO TO ON-CALL MAINTENANCE/REPAIR SERVICES AGREEMENT WITH GCI CONSTRUCTION, INC. FOR UNDERGROUND UTILITY INSTALLATION AND REPAIR SERVICES THIS AMENDMENT NO. TWO TO MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. Two") is made and entered into as of this 14th day of March, 2017 ("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 May 11, 2015, City and Contractor entered into a Maintenance/Repair Services Agreement ("Agreement") for on-call maintenance and/or repair service for City ("Project"). B. On February 28, 2017, City and Consultant entered into Amendment No. One to the Agreement ("Amendment No. One") to increase the total compensation due to an increased amount of labor, equipment, materials, and supervision needed to provide on-call underground utility installation and repair services not contemplated at execution of the Agreement. C. The parties desire to enter into this Amendment No. Two to reflect increased total compensation due to the increased amount of labor, equipment, materials, and supervision needed to provide on-call underground utility installation and repair services in conjunction with various capital improvement projects, and not contemplated at execution of Amendment No. One. 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, the Letter Proposal and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Contractor's compensation for all Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed Five Hundred Thousand Dollars and 00/100 ($500,000.00), without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City." The total amended compensation reflects Contractor's increased compensation for Services to be performed in accordance with this Amendment No. One, including all 12-3 reimbursable items and subcontractor fees, in an amount not to exceed One Hundred Twenty Five Thousand Dollars and 00/100 ($125,000.00). 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. IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date. 3zl q Z17 CITY OF NEWPORT BEACH, a California municipal corporation Date: By: By: Aaron C. Harp i-iy,l7 wv City Attorney ATTEST: Date: Leilani I. Brown City Clerk Kevin Muldoon Mayor CONTRACTOR: GCI Construction, Inc., a California corporation Date: By: Terry Gillespie President Date: By: Janet Gillespie Corporate Secretary [END OF SIGNATURES] GCI Construction, Inc. Amendment No. Two Page 2 12-4