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Home My WebLink About08 - Amendment to On -Call M/RSA for Underground Utility Installation and Repair ServicesQ �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report April 27, 2021 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: Steffen Catron, Field Superintendent II, scatron@newportbeachca.gov PHONE: 949-718-3402 TITLE: Amendment No. Three 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 of Newport Beach (City) utilizes on-call contractors at times to perform underground utility repair services for the City's water, wastewater and storm drain systems. The Utilities Department is requesting Amendment No. Three increasing the agreement limits by $225,000 with GCI Construction, Inc., $275,000 with T. E. Roberts, Inc., and extending the term of both to December 31, 2022. 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. Three to On -Call Maintenance and Repair Services Agreements for Underground Utility Installation and Repair services, which increases the agreement compensation by $225,000 for GCI Construction, Inc., and increases the agreement compensation by $275,000 for T.E. Roberts, Inc., and extends the contract term to December 31, 2022 for both. 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 are 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. 8-1 Amendment No. Three to On -Call Maintenance and Repair Services Agreements for Underground Utility Installation and Repair Services with GCI Construction, Inc. and T.E. Roberts, Inc. April 27, 2021 Page 2 Decisions to use these contractors are 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 to save costs and expedite repairs. On June 12, 2018, the City Council awarded three separate agreements for these services to GCI Construction, Inc., T.E. Roberts, Inc., and W.A. Rasic. Having multiple providers is the key to meeting the demands of the department for emergencies and for cost management. When the service is needed, the contractors are called in to provide a cost estimate, their availability and their expertise on the repair. Based upon those factors they are selected to perform the work. To date, the Utilities and Public Works Departments have utilized 85% and 90% of GCI's and T.E. Roberts contract value's respectively, and 40% of W.A. Rasic's contract value. All three contractors have provided very responsive and quality service to the City. On June 25, 2019, City Council awarded Amendment No. One for an additional $250,000 each to GCI Construction, Inc., and T.E. Roberts, Inc., based upon several emergency repairs needed in 2019. On October 6, 2020, the City Manager executed Amendment No. Two for an additional $120,000 to both GCI Construction, Inc. and T.E. Roberts, Inc. Staff believes that amending their agreements is the timeliest and most cost-effective method to complete future work and is therefore seeking a third amendment. This third amendment includes an additional agreement capacity of $225,000 to GCI Construction, Inc., increasing the limit to $1,095,000. Also requested is an additional agreement capacity of $275,000 for T.E. Roberts, Inc., increasing the limit to $1,145,000. These amendments also extend the term of both contracts to December 31, 2022. (The W.A. Rasic agreement is also being extended through December 31, 2022 by a City Manager executed amendment.) Staff will issue a new request for proposals and establish new agreements in 2022, prior to the expiration of these agreements. FISCAL IMPACT: The current adopted budget includes sufficient funding anticipated for these agreements. 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. 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. 8-2 Amendment No. Three to On -Call Maintenance and Repair Services Agreements for Underground Utility Installation and Repair Services with GCI Construction, Inc. and T.E. Roberts, Inc. April 27, 2021 Page 3 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 On -Call Professional Services Agreement with GCI construction, Inc. Attachment B — Amendment No. Three to On -Call Professional Services Agreement with T.E. Roberts Construction, Inc. 8-3 ATTACHMENT A AMENDMENT NO. THREE TO ON-CALL PROFESSIONAL SERVICES AGREEMENT WITH GCI CONSTRUCTION, INC. FOR UNDERGROUND UTILITY INSTALLATION AND REPAIR SERVICE 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 April, 2021 ("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") to perform on-call maintenance and/or repair services for City ("Project"). B. On June 25, 2019, City and Contractor entered into Amendment No. One to the Agreement ("Amendment No. One") to reflect additional Services or Work not previously included in the Agreement and to increase the total compensation. C. On September 14, 2020, City and Contractor entered into Amendment No. Two to the Agreement ("Amendment No. Two") to extend the term of the Agreement, to increase the total compensation, and to update Insurance Requirements (Exhibit C) to the Agreement. D. The parties desire to enter into this Amendment No. Three to extend the term of the Agreement to December 31, 2022, and to increase the total compensation. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows - 1 . ollows: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 December 31, 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 One Million Ninety Five GCI CONSTRUCTION, INC. Page 1 8-4 Thousand) Dollars and 001100 ($9,095,000.00), without prior written amendment to the Agreement. from City." 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 subcontractor fees, in an amount not to exceed Two Hundred Twenty Five Thousand Dollars and 001100 ($225,000.00). 3. 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 8.5 IN WITNESS WHEREOF, the parties have caused this Amendment No. Three to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTO NEY'S OFFICE Date: S1 zit ZIV ?A By: J'�6�o� j �{ Aaron C. Harp 4%A.014 -U131 City Attorney ATTEST: Date: MM Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Brad Avery Mayor CONTRACTOR: GCI CONSTR-CTION, INC., a California corporation Date:lc.hfc�� 17 By: V Terry b. Gill spie Chief Fxeclive Officer 1 President Date: 2 ME ME ?�_. �00 [END OF SIGNATURES] GCI CONSTRUCTION, INC. Page 3 g_g ATTACHMENT B AMENDMENT NO. THREE TO ON-CALL MAINTENANCEIREPAIR SERVICES AGREEMENT WITH T.E. ROBERTS, INC. FOR UNDERGROUND UTILITY INSTALLATION AND REPAIR SERVICES 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 April, 2021 ("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 Katella Avenue, Unit B, Orange, California 92867, 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. On June 25, 2019, City and Contractor entered into Amendment No. One to the Agreement ("Amendment No. One") to increase the total compensation. C. On September 14, 2020, City and Contractor entered into Amendment No. Two to the Agreement ("Amendment No. Two") to extend the term of the Agreement, to increase the total compensation, and to update Insurance Requirements (Exhibit C) to the Agreement. D. The parties desire to enter into this Amendment No. Three to extend the term of the Agreement to December 31, 2022, and to increase the total compensation. 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 December 31, 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 One Million One Hundred Forty Five Thousand Dollars and 001100 ($1,145,000.00), without prior written amendment to the Agreement." T.E. ROBERTS, INC Page 1 8-7 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 subcontractor fees, in an amount not to exceed Two Hundred Seventy Five Thousand Dollars and 00/100 ($275,000.00). 3. 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 8.8 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: _ 0;'� 1 Aaron C. Harp L�►Mo3�'W�ZI City Attorney ATTEST: Date. - By: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Brad Avery Mayor CONTRACTOR: T.E. ROBERTS, INC., a California corporation Date: H-5-2.1 By:��.� � o Tim Roberts Chief Executive Officer 1 President Date: 9,5-2.) By- Bustin Roberts Secretary [END OF SIGNATURES] T.E. ROBERTS, INC Page 3 8.9