1 STAFF REPORT
DAT
E: June 3, 2025
TO: Justin Hess, City Manager
F
ROM: Mandip Samra, General Manager, Burbank Water and Power VIA: Richard Wilson, Assistant General Manager, Water Systems BY: Asif Sheikh, Manager Water Engineering & Planning
Melissa Dekermenji, Senior Administrative Analyst
S
UBJECT: Adoption of a Resolution Extending an Agreement with Pav eco Construction, Inc. for On-Call Street Repair Services Previously Awarded Under Bid Schedule No. 1480
RECOMMENDATION
Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK EXTENDING AN AGREEMENT WITH PAVECO CONSTRUCTION, INC. FOR ON-CALL STREET REPAIR SERVICES PREVIOUSLY AWARDED UNDER BID SCHEDULE NO. 1480 (Attachment 1).
BACKG
ROUND
Burbank Water and Power (BWP) installs and maintains the City's water, electric, and fiber optic infrastructure within the public right -of-way, which requires excavating City streets. BWP hires a contractor to restore the affected pavement after the installation has been completed.
BW
P pre-negotiated unit prices with Paveco Construction, Inc. (Paveco) that is based on the type and quantity of items constructed during each project. Unit pricing controls BWP’s costs because pricing is established upfront and remains fixed throughout the contract year. At each renewal, prices are adjusted based on the Consumer and Producer Price Indices to reflect market conditions.
BW
P’s contract with Paveco supports pavement restoration efforts associated with water improvement projects including planned transmission and distribution water main replacements, valve replacements, new service installations and unplanned water main
WATER AND
POWER
2 breaks. The contract also covers underground electric and fiber optic construction work throughout the year.
Bid Schedule No. 1480 was originally awarded on May 11 , 2020, under Resolution No. 20-29,135, which allowed for four annual renewals . BWP has exercised all four renewal options. A subsequent change order was approved on December 13, 2022, to increase the base rate of the contract from $1,000,000 to $3,000,000.
DISCUSSION
It is critical to have a qualified on-call contractor to provide asphaltic concrete and Portland cement concrete services to ensure timely installation of certain projects at a competitive price. The following are important considerations for selecting a contractor for these services:
• Timely restoration of pavement for construction and emergency repairs often requires immediate restoration to minimize disruptions to traffic, businesses, and residents.
• Proper installation of asphalt and concrete requires specialized knowledge of materials, equipment, and techniques.
• Using pre-negotiated itemized pricing provides predictable and competitive unit costs for materials and labor. This allows for accurate budgeting and avoids premium charges often associated with emergencies or last-minute repairs. • Construction within the public right-of-way must meet strict local, state, and federal regulations.
• An on-call contractor provides flexibility to respond to planned and unplanned work throughout the year, ensuring continuity in service delivery.
Based on the reasons noted above, BWP desires to amend the contract with Paveco to allow for one additional year of work, under the terms allowed under the previously awarded Bid Schedule 1480 (Attachment 2). The pre-negotiated itemized pricing has been determined to be reasonable in light of the Consumer Price Index adjustment and prevailing wage increases.
Competitive bidding is not required where the work has been through the competitive bidding process and if the Council finds that it is in the best interest of the City. As this work has been through the competitive bidding process through the previously awarded Bid Schedule No. 1480, the prices are set according to a preapproved formula in the bid schedule and are reasonable in light of current market conditions . Staff recommends extension of the Paveco contract as it is in the best interest of the City to ensure such work can continue until the next competitive bidding process.
3 ENVIRONMENTAL REVIEW
Work related to the operation, repair, maintenance, or minor alterations of existing public facilities are categorically exempt from the California Environmental Quality Act (CEQA) (14 CCR § 15301) . The work subject to this amendment will restore streets that were excavated back into its original condition, without expand ing any existing use or adding any additional lanes. In addition, if work is implemented for Complete Streets projects, a separate CEQA analysis will be determined under the Compete Streets project . Staff recommends that Council find adoption of this resolution categorically exempt from CEQA as set forth in the resolution.
FISCAL IMPACT
Paving services are budgeted at a base rate of $3,000,000 per fiscal year. Approval of the amendment increase will have no fiscal impact as funding for paving was budgeted for in each applicable project for Fiscal Years 2024-25 and 2025-26.
CONCLUSION
Staff recommends that Council adopt the attached resolution and approve an amendment to the current agreement with Paveco to extend the term for one year at the base rate of $3,000,000.
ATTACHMENTS
Attachment 1 – Resolution
Attachment 2 – Draft First Amendment