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HomeMy WebLinkAboutE-4.1. Approve Second Amendment of Doreck MSACONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES DATE: JULY 26, 2021 SUBJECT: APPROVE SECOND AMENDMENT TO THE AGREEMENT FOR MAINTENANCE SERVICES WITH STEPHEN DORECK EQUIPMENT RENTALS, INC. FOR ON-CALL WATER MAINTENANCE AND REPAIR SERVICES BACKGROUND: On July 20, 2020, the Azusa Utility Board (“Utility Board”) approved the First Amendment to the Agreement for Maintenance Services (“MSA”) with Stephen Doreck Equipment Rentals, Inc. (“Doreck”) for on-call water maintenance and repair services. The MSA was amended to exercise the City of Azusa’s (“City”) option to extend the term of the MSA for one additional year, ending July 31, 2021. Azusa Light & Water (ALW) continues to utilize this agreement to rehabilitate, repair, and maintain critical water infrastructure, as needed. Based on competent and reliable service provided by Doreck over the last two years, ALW recommends exercising its final option to extend the MSA for one year, effective August 1, 2021. RECOMMENDATION: Staff recommends the Utility Board take the following actions: 1) Approve the Second Amendment to the Agreement for Maintenance Services (“Second Amendment”) with Stephen Doreck Equipment Rentals, Inc.; and 2)Authorize the Mayor to execute the Second Amendment, in a form acceptable to the City Attorney, on behalf of the City. E-4 Approved Utility Board 7/26/21 Approve Second Amendment – Stephen Doreck July 26, 2021 Page 2 ANALYSIS: ALW has been using an on-call water maintenance and repair services contractor to support the Advanced Metering Infrastructure (“AMI”) project and other miscellaneous water line repairs. To support ALW water distribution staff, a third party water maintenance contractor has been used to restore water service to customers affected by AMI related service line breakage. In addition, these licensed contractors have been used to perform non-AMI maintenance and repair work on ALW infrastructure, on an as-needed basis, as provided in the Water Division’s operating budget. On February 25, 2019, after a formal 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 $250,000, 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. On June 20, 2020, the Utility Board approved a First Amendment to the MSA exercising the City’s option to extend the term of the agreement for one year, ending July 31, 2021. ALW continues to utilize this agreement to rehabilitate, repair, and maintain critical water infrastructure on a scheduled and emergency basis. Based on competent and reliable service provided by Doreck over the last two years, ALW recommends exercising its final option to extend the MSA for one year, effective August 1, 2021. FISCAL IMPACT: Funding for this contract is available in Water Fund 32, Account No. 32-40-723-751-6493 (Water Distribution - Outside Services & Repairs), in the amount of $363,000. Work performed, as necessary, under the Master Maintenance Service Contract, will not exceed $250,000 annually without written approval from the Azusa Utility Board. Approve Second Amendment – Stephen Doreck July 26, 2021 Page 3 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 Agreement for Maintenance Services 2) Second Amendment to the Agreement for Maintenance Services