Placentia City Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: ACTING DIRECTOR OF PUBLIC WORKS
DATE: MAY 21, 2024
AGENDA REPORT
SUBJECT: AMENDMENT NO. 2 TO AGREEMENT WITH HOUSTON AND HARRIS PCS, INC.
FOR SEWER MAINTENANCE SERVICES
FISCAL
IMPACT: EXPENSE: $217,091.22 ANNUAL CONTRACT AMOUNT
BUDGET: FISCAL YEARS 2023-26 (CONTRACT TERM)
$226,000.00 FY 23-24 SEWER MAINTENANCE FUND
(484356-6120)
$226,000.00 FY 24-25 SEWER MAINTENANCE FUND
(484356-6120)
SUMMARY:
On May 4, 2021, the City Council awarded a Maintenance Services Agreement to Houston and Harris PCS, Inc. (Houston and Harris), for sewer maintenance services for three (3) years for a cumulative not -to -exceed amount of $592,066.95. The current agreement is set to expire May 4, 2024. Staff recommends an amendment to extend the contract term an additional one (1) year and increase the contract not -to -exceed amount by $217,091.22 to accommodate the additional one (1) year of service. The recommended actions will allow the City to have sufficient contractual authority for the remainder of the contract term. The contract costs for sewer maintenance services with Houston and Harris are included in the current Fiscal Year 2023-24 Operating Budget. The future cost of the services will be proposed in the operating budgets for future fiscal years.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve Amendment No. 2 to the Maintenance Services Agreement with Houston and Harris for sewer maintenance services to extend the contract term by one year and increase the cumulative contract not -to -exceed amount by $217,091.22 or a revised cumulative contract amount of $809,158.17 for the entire contract term; and
2. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
1.e.
May 21, 202',
City Council Agenda
May 21, 2024
STRATEGIC PLAN STATEMENT:
There is no specific Strategic Plan Goal or Objective associated with this Council action.
DISCUSSION:
On May 4, 2021, the City Council awarded a Maintenance Services Agreement to Houston and Harris for sewer maintenance services. The current agreement is set to expire May 4, 2024. On August 24, 2023, Amendment No. 1 was approved within the City Administrator's approval authority to correct language discovered in the original agreement which had stated the contract shall not exceed $197,355.65 but did not state the cumulative not -to -exceed amount over three (3) years, which was in the original City Council approval. Amendment No. 1 corrected the agreement language to clarify the yearly not -to -exceed amount and the cumulative not -to -exceed amount of $592,066.95.
Houston and Harris has been providing sewer maintenance services to Placentia for the past eight (8) years and has done an exceptional job throughout the duration of their contracts.
Additionally, Houston and Harris also provides sewer maintenance services to several other Orange County Cities including the cities of Newport Beach, Orange, Santa Ana, and Buena Park.
Based upon Houston and Harris's extensive experience and prior success in delivering these services to Placentia, Staff recommends extending the contract term an additional one (1) year to Houston and Harris for these services. Based on the rising cost of providing sewer maintenance services, Staff recommends approval of a 10% or $19,735.57 increase for the remainder of the contract term. Under Amendment No. 2, Staff further recommends amending the contract to increase the cumulative not -to -exceed amount by $217,091.22 to accommodate the additional one (1) year of service at the increased rate. The recommended actions will allow the City to have sufficient contractual authority for the remainder of the contract term. The contract costs for sewer maintenance services with Houston and Harris are included in the current Fiscal Year 2023-24 Operating Budget.
FISCAL IMPACT:
The recommended actions will approve Amendment No. 2 to the Maintenance Services Agreement with Houston and Harris, increasing the total contract amount by $217,091.22 for the remainder of the extended term, for a revised total not -to -exceed contract amount of $809,158.17.
Sufficient funds exist for the recommended actions. The future cost of the services will be proposed in the operating budgets for future fiscal years.
Prepared by:
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Samantha Byfield
Public Works Manager
Reviewed and approved:
Jennifer Lampman
Director of Finance
City Council Agenda
May 21, 2024
Reviewed and approved:
Christopher Tar�ig�? Damien R. Arrula—`--
Reviewed and approved:
Acting Director of Public Works
Attachment:
Amendment No. 2 — Houston and Harris
City Administrator