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AUTHORIZE THE FILING OF THE NOTICE OF EXEMPTION AND AWARD A PROFESSIONAL SERVICES AGREEMENT TO GOES AND NOCETI CONSTRUCTION, INC. FOR ON-CALL WATER LINE REPAIR SERVICES
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Authorize the filing of the Notice of Exemption No. NOE27-19 under the California Environmental Quality Act (“CEQA”) for On-Call Water Line Repair Services.
2. Award a Professional Services Agreement to Goes and Noceti Construction, Inc. (Doing Business As G&N Construction) of Stockton in the Not-to-Exceed amount of $1,745,375 for the On-Call Water Line Repair Services.
It is also recommended that the City Manager be authorized to take appropriate actions to carry out the purpose and intent of the resolution.
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Summary
The Municipal Utility Department (MUD) is responsible for repairing and maintaining the water distribution pipelines and equipment that provide Stockton residents with high-quality drinking water. In addition to utilizing staff to perform repairs and maintenance to the water distribution system, MUD uses an on-call water repair service agreement to contract for emergency repairs and projects.
The Department’s current on-call water repair service agreement has been in place over the past five years and will expire on April 30, 2020. Under the agreement, the on-call contractor is required to respond within two-hours of notification to avoid prolonged water outages for residential, commercial or industrial water customers.
If approved, this action will authorize the filing of the Notice of Exemption and award a five-year Professional Services Agreement with Goes and Noceti Construction, Inc. (G&N Construction), of Stockton, in the Not-to-Exceed amount of $1,745,375.
DISCUSSION
Background
In addition to regular staff, it is imperative for the MUD to have an emergency on-call water repair service agreement in place to minimize the impact caused by prolonged water outages to the drinking water distribution system. The existing on-call water repair service agreement requires the contractor to respond within two-hours of notification. In addition to water service line repairs, the scope of work for the on-call contractor includes services such as emergency water main, valve and fire hydrant repairs, water meter box and fire hydrant replacements, as well as restoration of pavement, curb, gutter and sidewalks.
The current contract has been in place over the past five years and will expire on April 30, 2020. A new contract is needed to maintain the appropriate level of repair services and mitigate prolonged water service outages to Stockton residents.
Present Situation
The existing on-call water repair service agreement expires on April 30, 2020. To secure a new agreement, the MUD solicited bids from interested vendors on Bid Flash.
One competitive bid was received. The vendor G&N Construction, of Stockton, CA provided the following bid (Attachment A):
|
COMPANY NAME |
Total Cost over 1 Year |
Total Cost over 5 Years |
|
G&N Construction, Inc. |
$ 349,075 |
$ 1,745,375 |
The annual estimated amount for water line repair services is $349,075 with a Not-to-Exceed amount of $1,745,375 over a five-year term. The proposed contract (Exhibit 2 to the Resolution) governs the extent of on-call water line services. Though the contract has estimates and a Not-to-Exceed amount, the City does not guarantee the vendor a minimum amount.
When comparing the bid’s fee schedule provided by G&N Construction to the fee schedule of the existing contract, the bid’s fee schedule is comparable to the existing contract’s fee schedule.
The current bid reflects current costs to the vendor and is a fixed cost for the next five years. This contract does not allow for price increases due to fuel, labor or other costs.
On July 26, 2016, the City Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016, which applies to all Public Works projects over $1 million that are bid after that date. The CWTA was applied to this project because the estimated repair services cost is more than $1 million.
The bid received by G&N Construction, the lowest responsive bidder, is regular in all aspects. G&N Construction has the proper license to perform the work. Staff recommends Council approve a resolution to execute a Professional Services Agreement (PSA) with G&N Construction.
Environmental Clearance
It has been determined that this action/project is exempt from the requirements of the California Environmental Quality Act, since this type of action/project has been granted a “Categorical Exemption” under Article 19, Section 15301(b) of the State of California Environmental Quality Act Guidelines (Exhibit 1 to the resolution).
LOCAL EMPLOYMENT ORDINANCE
This project is subject to the Local Employment Ordinance (Stockton Municipal Code, § 3.68.095), and G&N Construction will be required to comply with those requirements.
FINANCIAL SUMMARY
The FY 2019-20 Annual Budget includes appropriation in the Water Operations & Maintenance Division (account 421-4231-571) to cover the remaining months of the current fiscal year. Future on-call water repair services will be budgeted in the accounts shown below in subsequent fiscal years and will be subject to Council approval during the annual budget development process.
|
Account |
Total Cost over 1 Year |
Total Cost over 5 Years |
|
421-4231-571 - Water Distribution |
$183,875 |
$919,375 |
|
421-4223-571 - Water Hydrant Maintenance |
$80,000 |
$400,000 |
|
431-4331-575 - Wastewater Maintenance |
$42,600 |
$213,000 |
|
431-4333-575 - Wastewater Pump Stations |
$21,300 |
$106,500 |
|
441-4432-575 - Stormwater Pump Stations |
$21,300 |
$106,500 |
|
Total |
$349,075 |
$1,745,375 |
The quantities listed in Attachment A are estimates only. The actual type of repair services may vary depending on needs and will be charged at the agreed rate. The Not-to-Exceed amount represents the total expense throughout the 5-year contract term and is set at $1,745,375.
There is no impact to the General Fund or any other unrestricted fund, from this action.
Attachment A - Bid