HomeMy WebLinkAbout08 - Citywide Streetlight Maintenance and Repair ServicesQ SEW Pp�T
CITY OF
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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