For City Council Meeting [September 24, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster City Administrator
FROM: Sean Grayson, Acting Public Works Director
Title
Request City Council to Approve a Third Amendment to the Construction Contract Agreement with Hardy & Harper, Inc., for On-Call Permanent Trench Paving Services for Fiscal Year 2019/2020 in the amount of $180,000.
(ACTION)
Body
BACKGROUND
On March 27, 2012, the City Council approved a Concession Agreement (CA) with Rialto Water Services (RWS) to operate and maintain the City’s water and wastewater enterprise for a term of 30 years. The CA contemplated that RWS would backfill and compact street cuts created during maintenance and operation of the utility systems with a temporary asphalt patch, and the Public Works Department would follow up with permanent trench paving using hot mix asphalt in accordance with the City’s Trench Repair Standard (SC-231).
The CA requires the RWS operator (Veolia) to backfill, provide compaction testing, place base and temporary asphalt concrete in all water and sewer utility cuts related to maintenance and operation activities. The City of Rialto Public Works Department provides final asphalt paving of the trench cuts with a minimum of 1,000 square feet of trench repairs at a time. The work includes removing temporary asphalt, placing permanent asphalt with a cold mill and cap, where applicable, to make final trench repairs per City of Rialto Public Works Standard SC-231.
On March 14, 2017, the City Council awarded a Construction Contract Agreement (CCA) to Hardy & Harper, Inc. a California Corporation, for $439,575 ($189,575 for FY2016/2017 and $250,000 for FY2017/2018, Resolution No.7090) for on-Call Permanent Trench Paving Services. A copy of the CCA is included as Attachment 1. Pursuant to Article 3 of the CCA, the initial term was for two (2) years commencing on July 8, 2016, through June 30, 2018, with three (3) optional one (1) year extensions.
On August 14, 2018, the City Council awarded the First Amendment to the Construction Contract Agreement (CCA) with Hardy & Harper for a not to exceed amount of $165,000 (Attachment 2). On January 22, 2019, the City Council awarded the Second Amendment to the CCA with Hardy & Harper for an additional $100,000 to aid in emergency pothole repairs for a cumulative total for Fiscal Year 2018/2019 of $265,000 (Attachment 3).
ANALYSIS/DISCUSSION
Staff has been satisfied with the contractor’s performance and recommends that the City Council approve a Third Amendment to the CCA with Hardy & Harper, Inc., to exercise the second of the City’s optional one (1) year extensions for On-Call Permanent Trench Paving Services for Fiscal Year 2019/2020. Listed below is a summary of past work completed by Hardy & Harper, Inc. for the City of Rialto under the current contract:
|
Task |
Work Completed |
|
Water Cut Trench Repair |
7,880.64 Square Feet of Trench Cuts |
|
General Paving - Maintenance |
26 Tons at Alder/Camellia Intersection |
|
General Paving - Pothole Repairs |
182 Tons City Wide |
The Contract bid prices are subject to a percentage upward change in the United States Bureau of Labor Statistics Consumer Price Index “All Urban Consumers for Los Angeles, Riverside and Orange County, CA (CPI)” for the most recent twelve (12) months for which statistics are available. The most current statistics have established the CPI at 2.9%. Hardy & Harper, Inc. has requested this price increase for the 2019/2020 Fiscal Year. A copy of the unit pricing with CPI is included as Attachment 4.
Staff has prepared the Third Amendment to the CCA with Hardy & Harper, Inc. to exercise the second annual extension of the CCA, extending the term through June 30, 2020.
A copy of the proposed Third Amendment to the CCA with Hardy & Harper, Inc. is included as Attachment 5.
ENVIRONMENTAL IMPACT
This project is a Class 1 exemption pursuant to California Environmental Quality Act (CEQA) Section 15301 Existing Facilities. Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. The types of “existing facilities” itemized below are not intended to be all inclusive of the types of projects that might fall within Class 1. The key consideration is whether the project involves negligible or no expansion of an existing use. Examples include but are not limited to: (d) Restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the City of Rialto General Plan Goal and Policies:
Goal 3-8: Promote affordable and quality water service capable of adequately meeting normal and emergency water demands to all areas in Rialto.
Policy 3-8.4: Advocate regular evaluation of the entire water supply and distribution system to ensure its continued adequacy, reliability, and safety.
Policy 3-8.5: Upgrade outdated and undersized water service facilities to prevent unnecessary system failures in the City’s water system.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report.
FINANCIAL IMPACT
A copy of the City’s Disclosure form is included as Attachment 6.
Operating Budget Impact
Budget is available for the requested issuance of a purchase order with Hardy & Harper, Inc. in the amount of $180,000
|
FUND |
ACCOUNT NO. |
AMOUNT |
|
Water Fund |
670-500-7150-2011 |
$130,000 |
|
Waste Water Fund |
660-500-7150-2011 |
$10,000 |
|
Street Maintenance Fund |
010-500-7305-2011 |
$40,000 |
Capital Improvement Budget Impact
This action does not impact the capital improvement budget.
Licensing
Prior to execution of the Construction Contract Amendment, the vendor shall submit a business license application and pay a Business License tax at the rate of $254, as well as Administration and State fees.
RECOMMENDATION
Staff recommends that the City Council Approve the Third Amendment to the Construction Contract Agreement with Hardy & Harper, Inc., for On-Call Permanent Trench Paving Services for Fiscal Year 2019/2020 in the amount of $180,000.