AGENDA REPORT
Meeting Date: January 18, 2022
Item Number:
To:
D-9
Honorable Mayor & City Council
From: Daren Grilley, Assistant Director of Public Works/City Engineer Christine Chung, Associate Project Manager
Subject: APPROVAL TO INCREASE THE PURCHASE ORDER TO MIKE PRLICH AND SONS, INC. FOR THE AS-NEEDED SEWER REPAIR
SERVICES CONTRACT IN THE AMOUNT OF $1,006,742.50 FOR
A TOTAL NOT TO EXCEED AMOUNT OF $2,076,300
Attachments: 1. Agenda Report dated July 16, 2019
2. Purchase Order 20001022
RECOMMENDATION
Staff recommends City Council move to approve an increase in the purchase order with Mike Prlich and Sons, Inc. (“MPS”) for high-priority work related to the As-Needed Sewer Repair Services contract in the amount of $1,006,742.50 for a total not to exceed amount of $2,076,300.
INTRODUCTION
The Public Works Department cleans, inspects and maintains the City’s 98 mile-long sewer collection system to protect public health and the environment and reduce the risk of leaks or overflows. In order to timely complete repairs in emergencies or when damaged sections of pipeline or manholes are discovered through routine system inspections, the City awarded an on-call contract to Mike Prlich and Sons (MPS) in 2019.
The contract term runs through September 2022 and, at the discretion of the City Manager, may be extended for up to two additional years. Since the award of the contract, MPS has satisfactorily completed a number of high- priority and urgent repairs, including more than 450 linear feet of sewer pipeline, approximately 25 sewer manholes and several drainage structures.
BEVERLY
HILLS
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•
Meeting Date: January 18, 2022
DISCUSSION
Currently, MPS is scheduled to perform approximately 80 feet of spot pipeline replacements and 20 feet of sectional structural liner installations at 12 various locations by February 2022.
Based on video inspections and condition assessments completed in late 2021, approximately 8,000 linear feet of pipe and 20 manholes have been determined to be in need of immediate repair, either through spot pipeline replacement installation of structural liners. The estimated cost to complete these repairs is $880,000. In addition, based on past annual urgent repair needs, staff estimates that an additional $135,000 will be needed for other sewer repair needs that may arise in the next year. The City Manager may extend the contract time if the work goes beyond September 2022.
FISCAL IMPACT
The work to be completed by February 2022 amounts to approximately 99% of the original Purchase Order amount of $1,069,557.50, leaving a balance of $8,557.50. The total estimate for completing the repair work identified through the 2021 inspections ($880,000.00) and the anticipated unforeseen work this calendar year ($135,300) is $1,015,300.
Original Purchase Order (incl. 10% contingency) $1,069,557.50 Work completed to date $1,061,000.00
Remaining PO balance $ 8,557.50
Estimated work based on 2021 Inspections $ 880,000.00
Estimated unforeseen sewer repair work for 2022 $ 135,300.00 Estimated Total Cost $1,015,300.00
Less remaining PO balance $ (8,557.50)
Change Purchase Order Amount $ 1,006,742.50
If approved, the total Purchase Order not to exceed amount would be $2,076,300.00.
Funds for this request are available in the Capital Improvement Program (CIP Project No. 00066 – Sewer System Repairs) as follows:
Shana Epstein,
Director of Public Works
Approved By
ACCOUNT NUMBER FUND DESCRIPTION AMOUNT
84005401-850000-00066 Wastewater $ 1,006,742.50
Attachment 1
Meeting Date:
Item Number:
To:
From:
Subject:
Attachments:
AGENDA REPORT
July 16, 2019
E-29
Honorable Mayor & City Council
Daren Grilley, City Engineer
Christine Chung, Associate Project Manager
AWARD OF A CONTRACT TO THE LOWEST RESPONSIBLE
BIDDER, MIKE PRLICH AND SONS, INC., FOR AS-NEEDED
SEWER REPAIR SERVICES, IN THE AMOUNT OF $972,325
OVER A BASE THREE (3) YEAR CONTRACT TERM, AND IF
EXTENDED FOR TWO (2) ADDITIONAL ONE-YEAR RENEWAL
TERM, IN THE TOTAL AMOUNT OF NOT-TO EXCEED $1,722,325
FOR FIVE YEARS; AND
APPROVAL OF THE CONTINGENCY OF 10% FOR UP TO
$97,232.50 OVER THE BASE 3 YEAR TERM, UP TO $37,000 FOR OPTIONAL YEAR 4, AND UP TO $38,000 FOR OPTIONAL YEAR
5;AND
APPROVAL OF THE PLANS AND SPECIFICATIONS THEREFOR;
AND
APPROVAL OF ISSUANCE OF A PURCHASE ORDER IN THE
AMOUNT OF $1,069,557.50 TO MIKE PRLICH AND SONS, INC.
FOR THE PROJECT OVER THE BASE THREE (3) YEAR
CONTRACT TERM
1. Agreement with Mike Prlick and Sons, Inc.
2. Categorical Exemption
3. City Sewer Quantity Data
4. Map of City Lined Sewers
RECOMMENDATION
Staff recommends City Council move to approve the award of a contract to the lowest responsible bidder, Mike Prlick and Sons, Inc. for emergency and as-needed sewer repair services and sanitary sewer overflow responses in the amount of $972,325 over a
Meeting Date: July 16, 2019
base three (3) year contract term, and if extended for two (2) additional one-year renewal terms, in the total amount of not-to-exceed $1,722,325 for five years of the contract upon successful performance by the Contractor; approve a construction contingency of 10% in the amount of $97,232.50 over the base three (3) year term, up to $37,000 for optional year 4, and up to $38,000 for optional year 5; approve the plans and specifications therefor with respect to design criteria; and approve the issuance of a purchase order to Mike Prlick and Sons, Inc. in the amount of $1,069,557.50 for the project over the base three (3) year contract term.
INTRODUCTION
The City of Beverly Hills Public Works Department is responsible for maintaining the sewer main system throughout the City. Due to the age of the sewer system, damaged pipes are frequently discovered during video condition inspections. There are also instances in which the sewer system is damaged during inclement weather and excavation in the public right of way. Such damages in the sewer system very often require immediate repair to ensure uninterrupted operation and to prevent overflow conditions, which are environmental and public health hazards.
DISCUSSION
On May 23, 2019, a Notice Inviting Bids was published on the City's website and sent to several online trade journals. On June 20, 2019, two (2) bids were received and opened as follows:
Contractor
Mike Prlick and Sons, Inc.
MNR Construction, Inc.
Bid Prices for three (3)
year contract term
$ 972,325
$ 1,657,100
The Engineer's Estimate was $900,000 for the base three (3) year contract term, $337,000 for the optional fourth year, and $345,000 for the optional fifth year. Staff reviewed the bid proposals received and determined all documents submitted by these bidders were complete and complied with the bid proposal requirements. The above bid amounts were tabulated based on the bid proposals received and the lowest responsible bidder is Mike Prlick and Sons, Inc. The lowest bid is 8% higher than the Engineer's Estimate and assessed to be competitive value for specialized utility services at on-call shifts.
Mike Prlick and Sons, Inc. has successfully completed similar work for many public agencies in southern California. Staff contacted the cities of Los Angeles, Garden Grove and Simi Valley and all reported that the Contractor was very responsive to emergency pipeline repair requests and completed similar sewer repair projects in a timely and costefficient manner while maintaining consistent quality.
Staff recommends the project be awarded to Mike Prlick and Sons, Inc. in the amount of $972,325 over a base three (3) year contract term. Staff also recommends a 10% contingency allowance in the amount of $97,232.50 (for a total authorization of $1,069,557.50 over the three years) to address potential extraordinary emergency or force majeure conditions during the life of the contract.
Based upon successful contractor performance in the most current contract period as determined by City, the contract includes the option by the City Manager to renew two
Meeting Date: July 16, 2019
(2) additional one-year terms. Following the first three years of the Agreement, the contract cost of services may be increased by a maximum of 3% for the fourth and fifth years, if the contract is extended.
If the Contractor provides satisfactory performances to support the Public Works Department during the base three (3) year contract period, staff recommends the contract be extended up to two (2) additional one-year terms with Mike Prlick and Sons, Inc. per unit prices with maximum 3% cost of services increase specified therein in an amount not-to-exceed $370,000 for the fourth (4th) year and $380,000 for the fifth (5th) year of the contract.
EN�RONMENTALASSESSMENT
This project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA, Public Resources Code Sections 21000 et seq.), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq.), and the environmental regulations of the City. Pursuant to Section 15301 (b)(c) (Existing facilities) of the CEQA guidelines, the project would be exempt from CEQA, because it would involve ongoing repair and maintenance of existing facilities involving no expansion of use. A Categorical Exemption (Attachment 2) was prepared and certified by Community Development staff on June 18, 2019.
FISCAL IMPACT
The proposed project budget summary table is below. A construction contingency allowance in the amount of $97,232.50 has been included in the purchase order total amount of $1,069,557.50 for the base three (3) year contract term. If extended by two additional years, the total purchase order amount shall be a maximum amount of $1,894,557.50 over a five (5) year period including 10% contingency in the maximum amount of $172,232.50.
P roi. ect B LI d lQet S ummarv T a bl e
Base 3-Years Optional Optional Total Contract Terms (FY20/21 to Year4 Year5 Years 1 to 5 22/23) (FY23/24) (FY24-25) Not-To-Exceed $ 972,325.00 $ 370,000.00 $ 380,000.00 $ 1,722,325.00 Contract Value Maximum 10% $ 97,232.50 $ 37,000.00 $ 38,000.00 $ 172,232.50 Contlnqencv Maximum Purchase $ 1,069,557.50 $ 407,000.00 $ 418,000.00 $ 1,894,557.50 Order Amount Funds for this project are budgeted in Fiscal Year 2020/21 Capital Improvement Program (CIP Project No. 00066 - Sewer System Repairs) as follows:
ACCOUNT NUMBER FUND DESCRIPTION AMOUNT
84005401-850000-00066 Wastewater $ 1,894,557.50
TOTALS $ 1,894,557.50
Attachment 1
AGREEMENT
THIS AGREEMENT, made and entered into this 16th day of July, 2019, by and between the CITY OF BEVERLY HILLS, a municipal corporation, hereinafter referred to as "City", and Mike Prlich and Sons, Inc.
5103 Elton Street
Baldwin Park, CA 91706
hereinafter referred to as "Contractor;"
WITNESSETH
In this consideration of their covenants the parties hereto agree as follows:
1. Contractor shall furnish all labor, materials and equipment necessary to perform the following work in the City of Beverly Hills, California, strictly in accordance with the Notice to Bidders, Proposal form, Plans and Specifications for such improvement, Standard Contractual Requirements and inclusive of Addendums, each of which documents are made a part of this Contract as though fully set forth herein:
AS-NEEDED SEWER REPAIR SERVICES
2. In consideration of such work City agrees to pay Contractor and Contractor agrees to accept the sum of Nine Hundred Seventy Two Thousand and Three Hundred Twenty Five Dollars and Zero Cents ($972,325.00) in the manner provided in subject Plans and Specifications and subject to adjustment provided therein.
3. Concurrently with the execution of this Contract, Contractor shall file with the City the bonds and certificates of insurance specified in said Standard Contractual Requirements.
4. This Contract shall not be assigned without the written permission of the City Council.
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written.
ATTEST:
Huma Ahmed, City Clerk
APPROVED AS TO CONTENT:
GEORGE CHAVEZ, City Manager
SHARON L'HEUREUX DRESSEL, Risk Manager
SHANA EPSTEIN, Director of Public Works
APPROVED AS TO FORM:
LAURENCE S. WIENER, City Attorney
CITY OF BEVERLY HILLS,
A municipal corporation
JOHN A. MIRISCH, Mayor
CONTRACTOR:
FUNDS AVAILABLE:
JEFFS. MUIR, Director of Finance
Attachment 1
Attachment 2
CITY OF BEVERLY HILLS
COMMUNITY DEVELOPMENT DEPARTMENT- PLANNING DIVISION
455 North Rexford Drive
Beverly Hills, CA 90210-4817
(310) 285-1141
FAX: (310) 858-5966
BeverlyHills.org
Categorical Exemption
Name of Project: As-Needed Sewer Repair Services
Location: Various Locations within the City of Beverly Hills sewer maintenance zones Type of Business (if commercial) _
Project Description: City of Beverly Hills operates and maintains sewer mains throughout the City including minor portions located within boundaries of the Cities of Los Angeles and West Hollywood.
This project consists of as-needed emergency and non-emergency repairs to the City's sewer system that requires immediate support beyond and/or in addition to City's available maintenance sources.
The work includes, but not limited to. cleaning any spills or overflows of sewage, videoing sewer lines. the replacement of sewer rings and covers, sewer line point repairs, and pavement restoration for the City of Beverly Hills sewer system.
Applicant's Name: City of Beverly Hills
Applicant's Address: 345 N. Foothill Rd.
City: Beverly Hills
If different, provide:
Agent's Name _
Agent's Address _
Zip _
The undersigned, having received this project for processing, has reviewed it for environmental impact and concluded that the project qualifies for a categorical exemption under the procedures adopted by the City of Beverly Hills and no further environmental assessment is necessary.
Applicable Exemption Class Class 1 (15301) Existing Facilities Comments Class 1 includes the repair and maintenance of existing public structures. in this case including street pavement restoration and sewer repairs/maintenance. involving negligible or no ATTACHMENT 2
Zip: 90210
Phone: (310)285-2516
City _
Attachment 3
City Sewer Quantity Data by Pipe Diameters, Material, and Lined Conditions The sewer main data tabulated in this document is approximate and is not guaranteed to be accurate or complete.
Pipe Sewer Pipeline Condition
Diameter Total Length Lined To-Be-Lined Unlined/
(inch) (feet) (feet) by 2020 Unknown (feet) (feet)
6 41019 30564 8028 2427 8 333234 201465 90763 41006
10 60354 20355 2240 37759 12 24061 8187 1099 14775 15 31379 11297 1454 18628 18 12561 6205 0 6356 21 3523 0 0 3523
24 7214 2598 0 4616
27 319 0 0 319
30 2206 0 0 2206
32/33 860 0 0 860
36 376 0 0 376
Unknown 444 308 0 136
TOTAL 517550 280979 103584 132987
Sewer Pipeline Condition
Pipe Total Length Lined To-Be-Lined Unlined/ Material (feet) (feet) by 2020 Unknown (feet) (feet) Concrete 139571 102402 35863 1306
Non- 377979 178577 67721 131681 Concrete
District Total Pipe Length (feet)
1 31812
2 34445 3 37637
4 35982
5 27560
6 31393 7 25679 8 22467 9 24243
10 23433
11 24900
12 19186 13 24174 14 19383 15 24434
16 24193
17 13963 18 28564
19* 12426
20* 11761 21* 19911
TOTAL 517550
*Trousdale Estate Area
Attachment 3
Attachment 4
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Attachment 2
Purchase Order
Purchase
Order #
THIS NUMBER MUST APPEAR ON ALL INVOICES,
PACKAGES AND SHIPPING PAPERS.
Fiscal Year
Phone Number
Vendor Number Terms
Department/Division
Description
Buyer Requisition Number
Page of
Delivery must be made within doors of specified destination.
TERMS AND CONDITIONS TO BE COMPLIED WITH IN
FILLING THIS ORDER.
Item# Description/Part No. Qty UOM Unit Price Extended Price By
V
E
N
D
O
R
S
H
I
P
T
O
PO Total
B
I
L
L
T
O
City of Beverly Hills
455 N. Rexford Drive
Beverly HIlls, CA 90210-4810
NET 30 DAYS
Order Date Prepared by
2020 1 1
350 20001022
ATTN: ACCOUNTS PAYABLE
PUBLIC WORKS DEPARTMENT
455 N REXFORD DR
BEVERLY HILLS CA 90210
MIKE PRLICH AND SONS, INC.
5103 ELTON STREET
BALDWIN PARK CA 91706
PW - CIVIL ENGINEERING
PUBLIC WORKS DEPARTMENT
345 FOOTHILL ROAD
BEVERLY HILLS CA 90210
ATTN: CHRISTINE CHUNG
Christine Chung 3102882823 PUBLIC WORKS 20101351
10095 10/22/2019 SEWER REPAIRS Gabor Fabian
10/22/2019 $1,069,557.50
CHARGES ARE NOT TO EXCEED TOTAL.
AGREEMENT #400-19/COUNCIL APPROVED ON
07/16/2019, ITEM #E-29/ALL INSURANCE MUST
BE CURRENT
1 WASTEWATER MAINT 7 REPAIR - JOSETTE 1.0 EACH $972,325.000 $972,325.00
DESCALZO - AS NEEDED REPAIRS
84005401 - 850000 - 00066 $972,325.00
2 WASTEWATER MAINT 7 REPAIR - JOSETTE 1.0 EACH $97,232.500 $97,232.50
DESCALZO - AS NEEDED REPAIRS - CONTINGENCY
84005401 - 850000 - 00066 $97,232.50
- -
TERMS AND CONDITIONS TO BE COMPLIED WITH IN FILLING THIS ORDER Vendor agrees that prices shown on this purchase order are the agreed prices and charges against this purchase order shall not exceed the amount indicated as total (including all taxes, freight, delivery, and installation charges) without the prior written approval of the City. The City will not pay any amount greater than the total shown on the purchase order.
If this order is not priced, it shall not be filled at prices higher than those last quoted or charged the purchaser, unless such increased prices shall have been authorized in writing by the purchasing agent of the City.
A separate invoice shall be rendered for each order or for each shipment (if more than one) made on an order. Invoices, shipping memorandum, and bills of lading shall be dated and mailed on the day of actual shipment.
ALL INVOICES SHALL BE MADE OUT TO THE CITY OF BEVERLY HILLS, AND SHALL BE MAILED
TO THE DEPARTMENT ORDERING AT THE ADDRESS INDICATED ON THE FRONT OF THIS PURCHASE ORDER (“BILL TO” IN UPPER LEFT HAND CORNER).
Every package, bill of lading, shipping memorandum and invoice must be marked with the purchase order number of the City.
An itemized delivery ticket, bearing the City’s purchase order number hereon, must be left with the goods to insure their receipt. If delivery is made by carrier, an itemized delivery ticket must be attached to the outside of the package.
Delays in shipment shall be reported immediately by the seller to the City. The City reserves the right to cancel any order where goods are not received within thirty (30) days, unless a different delivery period is specified in the invitation to bid or on the face of the purchase order.
All prices must be FOB delivery point. Where a purchase is specifically negotiated as FOB shipping point, the VENDOR is to prepay shipping charges and add them to invoice.
The City is municipality and invoices are processed for payment not less than once each calendar month. It shall be understood that the cash discount period will extend to the date that invoices are paid.
In case any article sold and delivered to the City thereunder shall be protected by any patent or copyright, the seller agrees to indemnify and hold harmless the City, from and against any all suits, claims, judgments, and costs instituted or recovered against it by any person whomsoever on account or the use or sale of such article by the City in violation of rights under such patent or copyright.
Goods and materials must be properly packaged. What constitutes damaged goods or materials shall be at the sole discretion of the City of Beverly Hills. Quantities specified in the order are not to be exceeded.
FAIR EMPLOYMENT PRACTICES: Every supplier of materials and services and all contractors doing business with the City of Beverly Hills shall be an “equal opportunity employer” and as such shall not discriminate against any other person by reason of race, creed, color, religion, age, sex or physical or mental handicaps with respect to the hiring, application for employment, tenure, terms or conditions of employment of any person.
Any act or omission by the seller in violation or disregard of the foregoing terms and conditions shall not be binding upon the City, nor shall the City be responsible for any damage or loss to the seller arising out of, or in consequence of, any such act or omission.
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