HomeMy WebLinkAbout07 - Amendment to On-Call PSA for Electric Motor Repair ServicesQ �EwPpRT
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TO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
January 13, 2026
Agenda Item No. 7
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Mark Vukojevic, Utilities Director - 949-644-3011,
mvukojevic@newportbeachca.gov
PREPARED BY: Joshua Rosenbaum, Senior Management Analyst - 949-644-3057
josenbaum@newportbeachca.gov
TITLE: Amendment to On -Call Services Agreement with Superior Electric
Motor Service, Inc, for Electric Motor Repair Services
ABSTRACT:
The Utilities Department operates and maintains the City of Newport Beach's large
electric motors which power water wells, water pumps, and sewer lift stations. These
motors are critical to the water and sewer system, and a specialty contractor is retained
on an as -needed basis for repairs and rebuilds. Superior Electric Motor Services, Inc.,
was selected as the service contractor through a competitive process for a five-year term.
Over the last three and a half years, most of the agreement compensation has been
utilized and staff is requesting City Council approval for a $100,000 increase to the
existing agreement.
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. One to the On -Call Maintenance Services Agreement with
Superior Electric Motor Service, Inc., and increase the contract amount by $100,000,
and authorize the Mayor and City Clerk to execute the Agreement.
DISCUSSION:
The Utilities Department operates and maintains several large electric motors that power
the City's water well sites, water pump stations, and sewer lift stations. The department's
in-house electricians perform most of the routine maintenance and repairs. However, due
to the critical nature of the services, staff also utilizes a specialty contractor on an as -
needed basis to repair, rewire and rebuild electric motors. In June 2022, following a
request for proposals (RFP) process to solicit interest from qualified companies to provide
as -needed electric motor repair services, the city manager approved a five-year
agreement with Superior Electric Motor Services, Inc., which included a total contract
compensation amount of $120,000.
Amendment to On -Call Services Agreement with Superior Electric Motor Service, Inc,
for Electric Motor Repair Services
January 13, 2026
Page 2
Over the last three and a half years, electric motor repairs and rebuilds have exhausted
a majority of the authorized agreement compensation. Staff is requesting an amendment
to increase Superior Electric's agreement by $100,000. The total five-year as -needed
agreement amount will increase from $120,000 to $220,000. The additional amount will
allow future motor repairs/rebuilds and needed contingencies to continue as needed over
the next 18 months. On -call agreements do not guarantee any specific amount of
business for the contracted company.
FISCAL IMPACT:
The adopted budget in the water and sewer enterprise funds includes sufficient funding
for these electric motor repairs and rebuild services. Actual expenses vary from year to
year. A typical electric motor rebuild is $10,000 and approximately $105,000 has been
spent to date over the last three and a half years.
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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. One to On -Call Services Agreement with Superior
Electric Motor Service, Inc.
Attachment A
AMENDMENT NO. ONE TO
ON -CALL MAINTENANCE/REPAIR SERVICES AGREEMENT
WITH SUPERIOR ELECTRIC MOTOR SERVICE INC. FOR
AS -NEEDED ELECTRIC MOTOR REPAIR SERVICES
THIS AMENDMENT NO. ONE TO ON -CALL MAINTENANCE/REPAIR
SERVICES AGREEMENT ("Amendment No. One") is made and entered into as of this
13th day of January, 2026 ("Effective Date"), by and between the CITY OF NEWPORT
BEACH, a California municipal corporation and charter city ("City"), and SUPERIOR
ELECTRIC MOTOR SERVICE INC., a California corporation ("Consultant"), whose
address is 4622 Alcoa Avenue, Vernon, California 90058, and is made with reference to
the following:
RECITALS
A. On June 1, 2022, City and Consultant entered into a Maintenance/Repair Services
Agreement (Contract No. C-7115-2) ("Agreement") to perform on -call maintenance
and/or repair services for the City ("Project").
B. The parties desire to enter into this Amendment No. One to update the insurance
requirements, and to reflect an increase in the total compensation due to an
increased volume of repair.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
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 Twenty Thousand Dollars and
00/100 ($220,000.00), without prior written amendment to the Agreement."
The total amended compensation reflects Consultant's additional compensation to
be performed in accordance with this Amendment No. One, including all reimbursable
items and subconsultant fees, in an amount not to exceed One Hundred Thousand
Dollars and 00/100 ($100,000.00).
2. INSURANCE
As of this Effective Date of this Amendment No. One, Exhibit C of the Agreement
shall be deleted in its entirety and replaced with Exhibit C, attached hereto and
incorporated herein by reference. Any reference to Exhibit C in the Agreement shall
hereafter refer to Exhibit C attached hereto.
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]
SUPERIOR ELECTRIC MOTOR SERVICE INC. Page 2
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: iZ/G 312oZ3r
By: _ av 0 q, I
Aaron C. Harp
City Attorney
ATTEST:
Date:
:-
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
TBD
Mayor
CONTRACTOR: SUPERIOR ELECTRIC
MOTOR SERVICE INC., a California
corporation
Date:
By:
Lena Shumway Art Marachelian
City Clerk Chief Executive Officer
Date:
By:
Christopher Marachelian
Chief Financial Officer
[END OF SIGNATURES]
Attachments: Exhibit C — Insurance Requirements
SUPERIOR ELECTRIC MOTOR SERVICE INC. Page 3
EXHIBIT C
INSURANCE REQUIREMENTS -- MAINTENANCE/REPAIR/JANITORIAL SERVICES
1. Provision of Insurance. Without limiting Contractor's indemnifica-ion of City,
and prior to commencement of Work, Contractor shall obtain, provide and
maintain at its own expense during the term of this Agreement, policies of
insurance of the type and amounts described below and in a form satisfactory
to City. Contractor agrees to provide insurance in accordance with
requirements set forth here. If Contractor uses existing coverage to comply
and that coverage does not meet these requirements, Contractor agrees to
amend, supplement or endorse the existing coverage.
2. Acceptable Insurers. All insurance policies shall be issued by an insurance
company currently authorized by the Insurance Commissioner to transact
business of insurance in the State of California, with an assigned policyholders'
Rating of A- (or higher) and Financial Size Category Class VII (or larger) in
accordance with the latest edition of Best's Key Rating Guide, unless otherwise
approved by the City's Risk Manager.
3. Coverage Requirements.
A. Workers' Compensation Insurance. Contractor shall maintain Workers'
Compensation Insurance, statutory limits, and Employer's Liability
Insurance with limits of at least one million dollars ($1,000,000) each
accident for bodily injury by accident and each employee for bodily injury
by disease in accordance with the laws of the State of California, Section
3700 of the Labor Code.
Contractor shall submit to City, along with the certificate of insurance, a
Waiver of Subrogation endorsement in favor of City, its C,ty Council,
boards and commissions, officers, agents, volunteers, employees, and
any person or entity owning or otherwise in legal control of the property
upon which Contractor performs the Project and/or Services
contemplated by this Agreement.
B. General Liability Insurance. Contractor shall maintain commercial
general liability insurance and, if necessary, umbrella liability insurance,
with coverage at least as broad as provided by Insurance Services Office
form CG 00 01, in an amount not less than two million dollars
($2,000,000) per occurrence, four million dollars ($4,000,000) general
aggregate. The policy shall cover liability arising from premises,
operations, products -completed operations, personal and advertising
injury, and liability assumed under an insured contract (including the tort
liability of another assumed in a business contract).
C. Automobile Liability Insurance. Contractor shall maintain automobile
insurance at least as broad as Insurance Services Office form CA 00 01
covering bodily injury and property damage for all activities of Contractor
SUPERIOR ELECTRIC MOTOR SERVICE INC. Page C-1
arising out of or in connection with Work to be performed under this
Agreement, including coverage for any owned, hired, non -owned or
rented vehicles, in an amount not less than one million dollars
($1,000,000) combined single limit each accident.
4. Other Insurance Requirements. The policies are to contain, or be endorsed to
contain, the following provisions:
A. Waiver of Subrogation. All insurance coverage maintainer or procured
pursuant to this Agreement shall be endorsed to waive subrogation
against City, its City Council, boards and commissions, officers, agents,
volunteers, employees, and any person or entity owning or otherwise in
legal control of the property upon which Contractor performs the Project
and/or Services contemplated by this Agreement or shall specifically
allow Contractor or others providing insurance evidence in compliance
with these requirements to waive their right of recovery prior to a loss.
Contractor hereby waives its own right of recovery against City, and shall
require similar written express waivers from each of its subcontractors.
B. Additional Insured Status. All liability policies including general liability,
products and completed operations, excess liability, pollution liability,
and automobile liability, if required, shall provide or be endorsed to
provide that City, its City Council, boards and commissions, officers,
agents, volunteers, employees, and any person or entity owning or
otherwise in legal control of the property upon which Contractor
performs the Project and/or Services contemplated by this Agreement
shall be included as insureds under such policies.
C. Primary and Non Contributory. All liability coverage shall apply on a
primary basis and shall not require contribution from any insurance or
self-insurance maintained by City.
D. Notice of Cancellation. All policies shall provide City with thirty (30)
calendar days notice of cancellation (except for nonpayment for which
ten (10) calendar days notice is required) or nonrenewal of coverage for
each required coverage.
5. Additional Agreements Between the Parties. The parties hereby agree to the
following:
A. Evidence of Insurance. Contractor shall provide certificates of insurance
to City as evidence of the insurance coverage required herein, along
with a waiver of subrogation endorsement for workers' compensation
and other endorsements as specified herein for each coverage.
Insurance certificates and endorsement must be approved by City's Risk
Manager prior to commencement of performance. Current certification
of insurance shall be kept on file with City at all times during the term of
this Agreement. The certificates and endorsements for each insurance
policy shall be signed by a person authorized by that insurer to bind
SUPERIOR ELECTRIC MOTOR SERVICE INC. Page C-2
coverage on its behalf. At least fifteen (15) days prior to the expiration
of any such policy, evidence of insurance showing that such insurance
coverage has been renewed or extended shall be filed with the City. If
such coverage is cancelled or reduced, Contractor shall, within ten (10)
days after receipt of written notice of such cancellation or reduction of
coverage, file with the City evidence of insurance showing that the
required insurance has been reinstated or has been provided through
another insurance company or companies. City reserves the right to
require complete, certified copies of all required insurance policies, at
any time.
B. City's Right to Revise Requirements. City reserves the right at any time
during the term of the Agreement to change the amounts and types of
insurance required by giving Contractor sixty (60) ca endar days
advance written notice of such change. If such change results in
substantial additional cost to Contractor, City and Contractor may
renegotiate Contractor's compensation.
C. Right to Review Subcontracts. Contractor agrees that upon request, all
agreements with subcontractors or others with whom Contractor enters
into contracts with on behalf of City will be submitted to City for review.
Failure of City to request copies of such agreements will not impose any
liability on City, or its employees. Contractor shall require and verify that
all subcontractors maintain insurance meeting all the requirements
stated herein, and Contractor shall ensure that City is ai additional
insured on insurance required from subcontractors. For CGL coverage,
subcontractors shall provide coverage with a format at least as broad as
CG 20 38 04 13.
D. Enforcement of Agreement Provisions. Contractor acknowledges and
agrees that any actual or alleged failure on the part of Ciy to inform
Contractor of non-compliance with any requirement imposes no
additional obligations on City nor does it waive any rights hereunder.
E. Requirements not Limiting. Requirements of specific coverage features
or limits contained in this Section are not intended as a limitation on
coverage, limits or other requirements, or a waiver of any coverage
normally provided by any insurance. Specific reference to a given
coverage feature is for purposes of clarification only as it pertains to a
given issue and is not intended by any party or insured to be all inclusive,
or to the exclusion of other coverage, or a waiver of any type. If the
Contractor maintains higher limits than the minimums shown above, the
City requires and shall be entitled to coverage for higher limits
maintained by the Contractor. Any available insurance proceeds in
excess of the specified minimum limits of insurance and coverage shall
be available to the City.
F. Self -insured Retentions. Any self -insured retentions must be declared
to and approved by City. City reserves the right to require that self -
SUPERIOR ELECTRIC MOTOR SERVICE INC. Page C-3
insured retentions be eliminated, lowered, or replaced by a deductible.
Self-insurance will not be considered to comply with these requirements
unless approved by City.
G. City Remedies for Non -Compliance. If Contractor or any subcontractor
fails to provide and maintain insurance as required herein, then City shall
have the right but not the obligation, to purchase such insurance, to
terminate this Agreement, or to suspend Contractor's right to proceed
until proper evidence of insurance is provided. Any amounts paid by
City shall, at City's sole option, be deducted from amounts payable to
Contractor or reimbursed by Contractor upon demand.
H. Timely Notice of Claims. Contractor shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from
Contractor's performance under this Agreement, and that involve or may
involve coverage under any of the required liability policies. City
assumes no obligation or liability by such notice, but has the right (but
not the duty) to monitor the handling of any such claim or c aims if they
are likely to involve City.
Contractor's Insurance. Contractor shall also procure and maintain, at
its own cost and expense, any additional kinds of insurance, which in its
own judgment may be necessary for its proper protection and
prosecution of the Work.
SUPERIOR ELECTRIC MOTOR SERVICE INC. Page C-4