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HomeMy WebLinkAboutD-3. Extend Henkels&McCoy MSAUB-20 APPROVED UTILITY BOARD 05/29/2018 The MSA is due to expire on May 31, 2018, and the Agreement has only been in effect for about a year. In the event of a major emergency, it may be necessary to summon assistance on short notice from any readily available source which can be rendered by nearby electric utilities, and other agencies or contractors such as Henkels & McCoy. Such extraordinary assistance is intended for urgent repair of damaged facilities and urgent repair/maintenance work which may not be adequately handled on time by Azusa’s available in house resources. Henkels & McCoy has already submitted their written consent for one year contract term extension without any changes in their rates. In addition, Henkels has provided Azusa with typical “crew pricing” for budgetary purposes in the event of urgent/emergency call out scenarios. This allows for transparency and certainty in cost exposure during emergency situations. Staff recommends the Utility Board approve the one year extension as it provides for additional assurance in cases of difficult to mitigate or recover from electric outages. FISCAL IMPACT: There is no fiscal impact as a result of approving the Agreement term extension for another year. Costs are incurred only when urgent services are rendered subject to written request or work issued by Azusa Light & Water. The Purchase Order limit amount is still covered under the Electric Division Operating Budget and funds are available in Account 6493 – Outside Service & Repairs. Prepared by: Reviewed and Approved: Federico Langit Jr. Yarek Lehr, P.E. Assistant Director – Electric Operations Acting Director of Utilities Reviewed and Approved: Sergio Gonzalez City Manager Attachments: 1) March 27, 2017 Utility Board approved memo 2) Henkels & McCoy Letter dated May 16, 2018 UB-21 UB-22 UB-23 UB-24 UB-25 UB-26 UB-27 UB-28 UB-29 UB-30 UB-31 UB-32 UB-33 UB-34 UB-35 UB-36 UB-37 UB-38 UB-39 UB-40 UB-41 UB-42 UB-43 UB-44 UB-45 UB-46 UB-47 UB-48 UB-49 UB-50 UB-51