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Home My WebLink About12 - Amendment to On-Call Service Agreement for Temporary Pumping EquipmentQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report June 13, 2023 Agenda Item No. 12 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mark Vukojevic, Utilities Director - 949-644-3011, mvukojevic@newportbeachca.gov PREPARED BY: Casey Parks, Utilities Superintendent, cparks@newportbeachca.gov PHONE: 949-644-3011 TITLE: Amendment No. Two 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. If approved, the amendment would increase the agreement compensation by $130,000 and extend the agreement term until June 30, 2025. 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; and b) Approve Amendment No. 2 to the On -Call Maintenance/Repair Services Agreement with Charles King Company, for Temporary Pumping Equipment, which extends the agreement to June 30, 2025, and increases the total agreement compensation by $130,000, and authorize the Mayor and City Clerk to execute the Agreement. DISCUSSION: Over the years, the Utilities Department has rented temporary trailer -mounted pumps as needed during storm/tide events and for bypassing sewers. In early March, a landslide occurred on Galaxy Drive which severed a City of Newport Beach (City) 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 temporary replacement for the City's storm drain line. The Utilities Department, in conjunction with efforts by the Public Works and Community Development Department, 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 be needed into the summer months. 12-1 Amendment No. Two to On -Call Service Agreement for Temporary Pumping Equipment June 13, 2023 Page 2 Charles King Company is a local industry proven leader for temporary pump setups and was able to mobilize quickly to provide a temporary pumping solution for the City. It is also properly licensed and references provided positive feedback on the company's work performance, especially in on -call and emergency situations. On -call agreements do not guarantee any specific amount of business for the contracted company. The utilization of the contractor will be based on factors including its cost proposal, staff expertise and the company's availability. The agreement is being amended to cover the foreseeable temporary pumping costs as the Galaxy Drive site stabilizes. The on -call agreement will also be in place as a department resource for next winter. If approved, the amendment would increase the compensation by up to $130,000 and extend the agreement term until June 30, 2025. FISCAL IMPACT: The proposed Fiscal Year 2023-2024 budget includes sufficient funding for this amended agreement. The agreement is on -call and if needed next fiscal year, will be funded from the annual maintenance and repair account within the storm drain program, which is a General Fund program. Staff will submit all costs regarding the Galaxy Drive landslide for potential reimbursement through the County's emergency declaration regarding this season's winter storms. 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. 2 to the On -Call Agreement with Charles King Company 12-2 ATTACHMENT A AMENDMENT NO. TWO TO ON -CALL MAINTENANCE/REPAIR SERVICES AGREEMENT WITH CHARLES KING COMPANY FOR TEMPORARY PUMPING EQUIPMENT THIS AMENDMENT NO. TWO TO ON -CALL MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. Two") is made and entered into as of this 13th day of June, 2023 ("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. The parties desire to enter into this Amendment No. Two, to extend the term of the Agreement to June 30, 2025, 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 June 30, 2025, 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 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 Two Hundred Fifty Thousand Dollars and 00/100 ($250,000.00) 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. Two, 12-3 including all reimbursable items and subconsultant fees, in an amount not to exceed One Hundred Thirty Thousand Dollars and 00/100 ($130,000.00). 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] Charles King Company Page 2 12-4 IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTO NE 'S OFFICE Date: 3 ?� By: Aa n C. OV 5 -31-t3 vo- ty Attorney ATTEST: Date: go Leilani 1. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Noah Blom Mayor CONTRACTOR: CHARLES KING COMPANY, a California corporation Date: By: Debra Kay King Chief Executive Officer/ Chief Financial Officer/ Secretary [END OF SIGNATURES] Charles King Company Page 3 12-5