To: Honorable Mayor and Members of City Council
From: Phil Brun, Utilities Director
Prepared By: Sara Gallegos, Management Analyst II
TITLE:
Title
On-Call Repair and Construction Service Agreements for Water Utility Infrastructure
LABEL
RECOMMENDED ACTION:
Recommendation
Authorize the Utilities Director to execute agreements with Atlas Peak Construction, Inc., Garney Pacific, Inc., and G.D. Nielson Construction, Inc., for amounts not to exceed $300,000 each with a three-year term, for emergency and on-call repair and construction services for water utility infrastructure, and determine this action is exempt from CEQA.
Body
DISCUSSION:
The City’s Utilities Department currently maintains on-call service agreements with local and regional construction companies including Atlas Peak Construction, Garney Pacific, and G.D. Nielson Construction for emergency and on-call repair and construction services for water utility infrastructure. These on-call agreements are either set to expire in June 2023 or the funding for the agreements has been exhausted. The Utilities Department is looking to renew all three agreements in amounts not to exceed $300,000 each for a three-year term. This will allow additional resources as needed and secure additional funding for each agreement that has seen increased labor and material costs over the last year. The added flexibility ensures staff’s ability to call upon any one of these contracts in case of an emergency or unplanned or unforeseen project needs.
In the event of an emergency, the City will issue a task order to the first available contractor who can provide the required services. During the next event, the City will call the next contractor on the list first to afford them the first right of refusal to perform the work, then continue to call the next contractor, and so forth, noting that for emergency events, time is of the essence.
Each of these contractors are familiar with our water utility infrastructure, meet State and Federal requirements, charge equally using CALTRANS rates, and can address the emergency response needs for the City in a cost-effective manner. They all have the qualifications to handle water utility repairs and installations and are in close proximity such that they can provide rapid response and provide 24-hour/7 days per week services. These criteria are essential to meet the needs of the City in the event of an emergency or unforeseen project needs.
FINANCIAL IMPACTS:
The agreements provide a not to exceed amount of $300,000 each for three years from date of execution. The Utilities Department will issue individual task orders through the
contract manager for necessary services. Task orders will be authorized by the contract manager based on remaining funds in each contract, and by the Finance Department based on budget availability for the issuing task. Each contract has standard CALTRANS compensation rates and charges for work. The scope of the work can only be defined at the time of the repair need and will be described and provided in writing with each authorization.
CEQA:
The Utilities Director has determined that the Recommended Action described in
this Agenda Report is exempt from CEQA pursuant to CEQA Guidelines Section 15301(a) (Existing Facilities) which exempts operation, repair, maintenance or minor alteration of existing public or private structures, facilities, mechanical equipment or topographic features involving no expansion of use beyond that previously existing.
DOCUMENTS ATTACHED:
ATCH 1 - On-call Construction Contract with Atlas Peak Construction, Inc.
ATCH 2 - On-call Construction Contract with Garney Pacific, Inc.
ATCH 3 - On-call Construction Contract with G.D. Nielson Construction, Inc.
NOTIFICATION:
None