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HomeMy WebLinkAboutItem 2e - Extension to contract for Electrical Repairs and Preventative Maintenance DATE: September 15, 2015 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Dave McVey, General Services Superintendent SUBJECT: EXTENSION TO CONTRACT WITH D & J FOOTHILL ELECTRICAL CONTRACTORS, INC. FOR ELECTRICAL REPAIRS AND PREVENTATIVE MAINTENANCE AT VARIOUS CITY FACILITIES IN THE AMOUNT OF $140,700 Recommendation: Approve SUMMARY On August 5, 2014, the City Council approved a contract with D & J Foothill Electrical Contractors, Inc. in the amount of $114,760, for electrical repairs and preventative maintenance at various City facilities. D & J Foothill Electrical Contractors, Inc. is reaching the end of their initial contract term and has submitted a written offer to extend the existing contract for an additional year. The contract amount reflects an increase of 22.6%, or $25,940. The increase is to offset labor costs due to the recent changes pertaining to the administration of prevailing wage under Senate Bill 7 (“SB 7”). This will be the contractor’s first contract extension and all other terms and conditions of the contract will remain in effect. Based on the excellent services provided by D & J Foothill Electrical Contractors, Inc., it is recommended that the City Council authorize and direct the City Manager to approve a one year extension to the contract with D & J Foothill Electrical Contractors, Inc. for electrical repairs and preventative maintenance at various City facilities in the amount of $140,700. DISCUSSION Throughout the year, the Public Works Services Department performs routine maintenance that includes electrical repairs and preventative maintenance at City facilities. To ensure proper electrical operations in City facilities, it was determined that an annual maintenance contract with a licensed electrician is the most cost-effective and reliable approach because it provides electrical expertise for preventative Extension to Electrical Maintenance Services Contract September 15, 2015 Page 2 of 3 maintenance and immediate response for unscheduled repairs. Additionally, there are electrical improvements included in the Fiscal Year 2015-16 Capital Improvement Program for the Library, Police Department, and City Hall that can utilize the services of this contract. This contract will also be utilized for sport field lamp and ballast replacements and the annual installation of decorative street light poles. Effective January 1, 2015, SB 7 requires public works contracts of $25,000 or more for construction work; or projects of $15,000 or more for alteration, demolition, repair, or maintenance work, be paid by prevailing wage labor rate or the City will be prohibited from receiving state funding or financial assistance. The City has elected to adhere to these requirements and an analysis determined that compliance would increase annual public works maintenance and Capital Improvement Program contracts by approximately 25%. The City Attorney has advised that contract extensions that are awarded after January 1, 2015, will need to be amended to include the prevailing wage requirement and may be amended without re-bidding provided that all other terms of the contract remain unchanged. The contract language allows for annual contract extensions, subject to City Council approval. D & J Foothill Electrical Contractors, Inc. has provided excellent services to the City during the initial term of the contract and this would be the contractor’s first extension. The proposed 22.6% contract increase in the amount of $25,940 is to offset increased labor costs pertaining to the payment and administration of prevailing wage rates. The total contract amount is a “not-to-exceed” amount and the work performed is based on Capital Improvement Projects and extraordinary repair work on an as-needed basis throughout the year. All other terms and conditions of the contract will remain in effect. FISCAL IMPACT The total contract cost will be set at a not-to-exceed amount of $140,700. Sufficient funds have been budgeted in the FY 2015-16 Capital Improvement Program and in each department’s Operating and Maintenance budget accounts for facility maintenance. All work performed is on a time and material basis and the contractor is only paid for work performed. Extension to Electrical Maintenance Services Contract September 15, 2015 Page 3 of 3 RECOMMENDATION It is recommended that the City Council authorize the direct the City Manager to execute a one year extension to the contract with D & J Foothill Electrical Contractors, Inc. for electrical repairs and preventative maintenance at various City facilities in the amount of $140,700. Attachment: Proposed Amendment No. 1 AMENDMENT NO. 1 TO THE ELECTRICAL SERVICES AND PREVENTATIVE MAINTENANCE CONTRACT BY AND BETWEEN THE CITY OF ARCADIA AND D & J FOOTHILL ELECTRICAL CONTRACTORS, INC. This Amendment No. 1 No. 1this ______ day of ______________, 2015 by and between the City of Arcadia, a municipal corporation of the State of California, and D & J Foothill Electrical Contractors, Inc., with respect to that certain Agreement between the parties dated September 18, 2014 ). The Parties agree as follows: 1. Section 3.3.4 of the Contract, the Term is hereby extended from September 18, 2015 to September 18, 2016 . 2. Section 3.3.2 of the Contract is amended to provide that the total compensation for the extended term shall not exceed ONE HUNDRED FORTY THOUSAND SEVEN HUNDRED DOLLARS AND NO CENTS ($140,700.00). 3. All terms and provisions of the Contract not amended by this Amendment No. 1 are hereby reaffirmed. In witness whereof the Parties have executed this Amendment No. 1 on the date set forth below. CITY OF ARCADIA FOOTHILL ELECTRICAL CONTRACTORS, INC. By: By: Dominic Lazzaretto City Manager Title: Dated: Dated: By: ATTEST: Title: Dated: City Clerk APPROVED AS TO FORM CONCUR: Stephen P. Deitsch Tom Tait City Attorney Public Works Services Director