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AGENDA ITEM REVIEW FORM |
6.D.
Regular City Council Meeting
- Meeting Date:
- 05/25/2022
- Department Head:
- Eulogio Vera
- Submitted By:
- James Einwaechter, Assistant Director of Public Works, Public Works Department
Action Requested:
ITEM:
Discussion and possible action on any and all matters regarding Council ratification of an emergency contract with Desert Excavating Inc. to lower and relocate water lines on north 4th Avenue. (Eulogio Vera, Director of Public Works)
SUMMARY:
The Public Works Department had an urgent and compelling requirement to immediately contract with Desert Excavating Inc. to lower and reconfigure water lines that were unexpectedly discovered during the ongoing vertical realignment of North 4th Avenue by another contractor, Evans Custom Concrete LLC. Work includes lowering approximately 500 feet of the existing 12-inch waterline along 4th Avenue in addition to lowering four connections/stubs, two of which are connections to a pressure-reducing valve and two of which are connected to the hydropneumatic tanks and booster pumps inside the Public Works yard. The total cost of the emergent contract with Desert Excavating Inc. will be $112,688.00, which includes the original emergency contract for $110,888.00 plus a contract change order in the amount of $1,800.00 (Change order for unaccounted work on the connection of 12" water valves).
Due to the emergency nature of the water line lowering and reconfiguration (needed to mitigate adverse impact to the schedule and cost of the ongoing contract for realignment of north 4th Avenue), the Public Works Department could not wait for Council approval to proceed with the water line lowering and reconfiguration. Consequently, on April 28, 2022, the Department pursued and obtained the concurrence of the City Manager to proceed with the execution of a contract with Desert Excavating Inc., under the provisions of City Code 3.05.060 for emergency purchase actions. The contract between the City of San Luis and Desert Excavating Inc. was signed/executed on April 28, 2022. Council ratification of the City Manager’s emergency approval is now required.
The $112,688.00 in funding for this contract is available within the currently available balance of $1,155,611 in Water account 300-302-90015 (Capital Outlay – CIP) as a result of previously approved FY 2022 Water CIP requirements that could not be executed during the current FY. The specific unexecuted FY 2022 project from which the required funds will be resourced is the Water Storage Tank Rehabilitation project (for which the Council-adopted cost was $850,000). Desert Excavating Inc. is already performing work for the Valley View Apartments adjacent to 4th Avenue, which made them available to do the work without the need for large equipment mobilization costs.
Due to the emergency nature of the water line lowering and reconfiguration (needed to mitigate adverse impact to the schedule and cost of the ongoing contract for realignment of north 4th Avenue), the Public Works Department could not wait for Council approval to proceed with the water line lowering and reconfiguration. Consequently, on April 28, 2022, the Department pursued and obtained the concurrence of the City Manager to proceed with the execution of a contract with Desert Excavating Inc., under the provisions of City Code 3.05.060 for emergency purchase actions. The contract between the City of San Luis and Desert Excavating Inc. was signed/executed on April 28, 2022. Council ratification of the City Manager’s emergency approval is now required.
The $112,688.00 in funding for this contract is available within the currently available balance of $1,155,611 in Water account 300-302-90015 (Capital Outlay – CIP) as a result of previously approved FY 2022 Water CIP requirements that could not be executed during the current FY. The specific unexecuted FY 2022 project from which the required funds will be resourced is the Water Storage Tank Rehabilitation project (for which the Council-adopted cost was $850,000). Desert Excavating Inc. is already performing work for the Valley View Apartments adjacent to 4th Avenue, which made them available to do the work without the need for large equipment mobilization costs.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE, UNDER THE PROVISIONS OF CITY CODE 3.05.060 TO RATIFY AWARD OF AN EMERGENCY CONTRACT IN THE AMOUNT OF $112,688.00 TO DESERT EXCAVATING INC, AND TO WAIVE FORMAL PURCHASING PROCEDURES PER CITY CODE 3.05.010 (F) FOR THE GOOD CAUSE PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- CITY
- TOTAL:
- $112,688.00
- BUDGETED AMOUNT:
- NO
- AVAILABLE AMOUNT TO TRANSFER:
- NA
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- 300-302-90015, Capital Outlay-CIP, Available Balance $1,155,611.
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The $112,688 in funding for this contract is available within the currently available balance of $1,155,611 in Water account 300-302-90015 (Capital Outlay – CIP) as a result of previously approved FY 2022 Water CIP requirements that could not be executed during the current FY. The specific unexecuted FY 2022 project from which the required funds will be resourced is the Water Storage Tank Rehabilitation project (for which the Council-adopted cost was $850,000). Since this emerging requirement will be executed as a Water CIP requirement, a Budget Transfer will not be required.