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HomeMy WebLinkAboutI-3 Staff Report - Extension of Doreck Agreement for Maintenance ServicesUB CONSENT ITEM I-3 TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES DATE: JULY 20, 2020 SUBJECT: APPROVAL OF A ONE (1) YEAR EXTENSION OF THE ON-CALL WATER MAINTENANCE AND REPAIR SERVICES AGREEMENT WITH STEPHEN DORECK EQUIPMENT RENTALS BACKGROUND: On February 25, 2019, the Utility Board approved a Master Maintenance Service Contract (“Contract”) for on-call water maintenance and repair services with Stephen Doreck Equipment Rentals, Inc. (“Doreck”). Azusa Light & Water (“ALW”) utilizes this Contract to support the replacement of water meters pursuant to the Advanced Metering Infrastructure (“AMI”) Capital Improvement Project, as well as miscellaneous service and main line repairs. The initial seventeen (17) month term expires on July 31, 2020, and the Contract includes two (2) additional one (1) year extension options that may be exercised by the City. Based on competent and reliable service provided by Doreck over the last seventeen months, and the continuance of the AMI project, staff recommends that a one (1) year extension be granted to Doreck, under the existing Agreement for Maintenance Services, effective August 1, 2020. RECOMMENDATION: Staff recommends the Utility Board take the following action: 1) Approve a one (1) year extension of the February 25, 2019 agreement with Stephen Doreck Equipment Rentals for on-call water maintenance and repair services effective August 1, 2020 and extending through July 31, 2021. APPROVED UTILITY BOARD 7/20/2020 Extension of Stephen Doreck Agreement July 20 , 2020 Page 2 ANALYSIS: ALW has been using an on-call water maintenance and repair services contractor to support the AMI project and other miscellaneous water line repairs. As part of the AMI project, a contract installer is replacing over 23,000 water meters, and has experienced some breakage of customer service lines, ball valves and angle valves during the replacement process due to age and deterioration. To support ALW water distribution staff, a third party water maintenance contractor has been used to restore water service to customers affected by such service line breakage. In addition, these licensed contractors have also been used to perform non-AMI maintenance and repair work on ALW infrastructure, on an as-needed basis, as provided in the budget. On February 25, 2019, after a competitive Request for Proposals process, the Utility Board approved a Master Maintenance Service Contract for on-call water maintenance and repair services with Stephen Doreck Equipment Rentals, Inc., in an annual amount not to exceed $460,000, unless otherwise approved by the Utility Board. The term of the Contract was for seventeen (17) months, with two (2) additional one (1) year extension options that may be exercised by the City. Based on competent and reliable service provided by Doreck over the last seventeen months, and the continuance of the AMI project, staff recommends that a one (1) year extension be granted to Stephen Doreck Equipment Rentals, Inc., under the existing Agreement for Maintenance Services, effective August 1, 2020. FISCAL IMPACT: Funding for this contract is available in the Capital Improvement Project – Advanced Metering Infrastructure (Project 72118B/73018B) in the amount of $10,000; Capital Improvement Project – Water Main Replacements (Project 72115A) in the amount of $100,000; and the Maintenance of Transmission & Distribution Mains – Outside Services & Repairs in the amount of $350,000. Work performed, as necessary, under the Master Maintenance Service Contract, will not exceed $460,000 annually and will be funded, as appropriate, through the aforementioned accounts. Prepared by: Reviewed and Approved: Jared Macias Manny Robledo Assistant Director of Utilities – Water Operations Director of Utilities Reviewed and Approved: Sergio Gonzalez City Manager Attachment: 1) Stephen Doreck Equipment Rentals Agreement for Maintenance Services Attachment 1