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HomeMy WebLinkAboutItem 2f - Extension to Agreement for City's Fuiel Management and Extraordinary Repair ServicesExtension to the Professional Services Agreement for Fuel Management and Extraordinary Repairs September 5, 2017 Page 1 of 3 DATE: September 5, 2017 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Jacquelyn Mercado, Management Analyst SUBJECT: EXTENSION TO THE PROFESSIONAL SERVICES AGREEMENT WITH SUNWEST ENGINEERING CONSTRUCTORS, INC. FOR THE CITY'S FUEL MANAGEMENT AND EXTRAORDINARY REPAIR SERVICES IN THE AMOUNT OF $21,506.85 Recommendation: Approve SUMMARY On September 16, 2014, the City Council approved a Professional Services Agreement (“Agreement”) with Sunwest Engineering Constructors, Inc. for the City’s fuel management and extraordinary repair services. The contractor is reaching the end of their second extension and has agreed to hold their prices for an additional year. This will be the contractor’s third contract extension; all other terms and conditions of the contract will remain in effect. Based on the excellent level of service provided by the contractor, it is recommended that the City Council approve, and authorize and direct the City Manager to execute a one year extension to the Professional Services Agreement with SunWest Engineering Constructors, Inc. for the City’s fuel management and extraordinary repair services in the amount of $21,506.85. BACKGROUND The Public Works Services Department is responsible for the purchase of bulk fuels (unleaded and diesel) that are delivered and stored at its five underground and aboveground fuel dispensing sites. These sites are located at Fire Stations 105 and 107; the Police Department; and the Public Works Services Department. As fuel is both stored and dispensed at these sites, the City must comply with regulations mandated by Los Angeles County Environmental Division, the South Coast Air Quality Management District, and federal environmental regulations. These mandates were established to ensure effective operation of the underground fuel tanks and dispensing equipment, and to protect the public and the environment from the potential release of vapor and other Extension to the Professional Services Agreement for Fuel Management and Extraordinary Repairs September 5, 2017 Page 2 of 3 contaminants in the air, soil, and groundwater during the transfer and dispensing of gasoline at fuel dispensing facilities. To comply, the City must conduct monthly testing and annual permitting, inspections, and certifications to all its underground and aboveground storage tanks and equipment, including extraordinary repairs. Extraordinary repairs could include equipment servicing of fuel dispensers and fuel pumps; pumping water out of a fuel tank; piping repairs from tank to tank; and line pressure testing and painting. Additionally, these services must be performed by a state-certified and licensed contractor. SunWest Engineering Constructors, Inc. has been providing repair, maintenance, and inspection services to fueling system owners for almost 20 years. They have extensive experience with fueling system components, system design, installation, maintenance and operation, and regulatory compliance and reporting. They have successfully served clients in the industrial sector, commercial industry, and local government. Some of their current clients include Verizon Services Organization, Southern California Edison, and Los Angeles County Department of Public Works. Attached is a copy of the proposed Amendment. ENVIRONMENTAL ANALYSIS The Professional Services Agreement with SunWest Engineering Constructors, Inc. is not considered a project as defined by California Environmental Quality Act (“CEQA”) Section 15378; as a service contract of this nature is considered ministerial. FISCAL IMPACT The total contract extension cost will be set at a not-to-exceed amount of $21,506.85. Sufficient funds are budgeted in the Fiscal Year 2017-18 Operating Budget from each Department’s budget for fuel management and extraordinary repair services. All work performed is on a time and material basis and the contractor is only paid for work performed. RECOMMENDATION It is recommended that the City Council approve, and authorize and direct the City Manager to execute a one year contract extension with SunWest Engineering Constructors, Inc. for the City’s fuel management and extraordinary repair services in the amount of $21,506.85. Extension to the Professional Services Agreement for Fuel Management and Extraordinary Repairs September 5, 2017 Page 3 of 3 Attachment: Proposed Professional Services Agreement Amendment No. 3 AMENDMENT NO. 3 TO THE PROFESSIONAL SERVICES AGREEMENT FOR THE FUEL MANAGEMENT & EXTRAORDINARY REPAIR SERVICES BY AND BETWEEN THE CITY OF ARCADIA AND SUNWEST ENGINEERING CONSTRUCTORS, INC. This Amendment No. 3 (“Amendment No. 3”) is hereby entered into this ______ day of ______________, 2017 by and between the City of Arcadia, a municipal corporation of the State of California, and SunWest Engineering Constructors, Inc., a California Corporation, with respect to that certain Professional Services Agreement between the parties dated October 8, 2014 (“Agreement”), further amended by Amendment No. 1 dated September 9, 2015, and further amended by Amendment No. 2 dated September 21, 2016. The Parties agree as follows: 1. Section 3.1.2 of the Agreement, the Term is hereby extended from October 8, 2017 to October 8, 2018 (“Extended Term”). 2. All terms and provisions of the Agreement not amended by this Amendment No. 3 are hereby reaffirmed. In witness whereof the Parties have executed this Amendment No. 3 on the date set forth below. CITY OF ARCADIA SUNWEST ENGINEERING CONSTRUCTORS, 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