City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JUNE 14, 2022 FROM: FINANCE – RISK MANAGEMENT WARDS: ALL
SUBJECT: APPROVE THE FIRST AMENDMENTS TO THE MASTER AGREEMENTS FOR THE EMERGENCY AND NON-EMERGENCY CONTRACTOR SERVICES PANEL: (1) BELFOR RESTORATION SERVICES, (2) KAIROS CONSTRUCTION, INC., AND (3) STILWELL CONSTRUCTION, INC., IN THE AMOUNT NOT TO EXCEED $750,000 PER CONTRACTOR UNTIL THE END OF THE EXTENDED AGREEMENT TERM FROM JULY 1, 2022, TO JUNE 30, 2023.
ISSUES:
Approve the First Amendments to the Master Agreements for the Emergency and Non-Emergency Contractor Services Panel: (1) Belfor USA Group, Inc. DBA Belfor Property Restoration, (2) Kairos Construction, Inc., and (3) Stilwell Construction, Inc., in the amount not to exceed $750,000 per contractor until the end of the extended one-year agreement term from July 1, 2022, to June 30, 2023.
RECOMMENDATIONS:
That the City Council:
Approve the First Amendment to the Master Agreement for Emergency and Non-Emergency Contractor Services with Belfor Property Restoration of Riverside, CA, in the amount not to exceed $750,000 for the fiscal year ending June 30, 2023; Approve the First Amendment to the Master Agreement for Emergency and Non-Emergency Contractor Services with Kairos Construction, Inc. of Murietta, CA, in the amount not to exceed $750,000 for the fiscal year ending June 30, 2023; Approve the First Amendment to the Master Agreement for Emergency and Non-Emergency Contractor Services with Stilwell Construction, Inc. of Riverside, CA, in the amount not to exceed $750,000 for the fiscal year ending June 30, 2023; and Authorize the City Manager, or his designee, to execute the respective amendments, including making minor and non-substantive changes to the agreements.
BACKGROUND:
The Risk Management division is responsible for maintaining a qualified panel of contractors to assist the City in responding to a variety of emergency and non-emergency situations. The City frequently receives 311 calls from residents who believe their property was damaged due to invasive tree roots stemming from City owned trees, backflow into their homes as a result of sewer line complications, and issues with water pressure or the lack thereof. The City dispatches technicians to assess the underlying issue and extent of any potential damages. Depending on the findings, the City will then dispatch, if necessary, a contractor from the panel to repair the damages. In cases of immediate emergencies to public health or property, the City utilizes the emergency authorization clause granted by the City’s Purchasing Resolution No. 23812, Section 301, to promptly dispatch a contractor to assist with the needed repairs and prevent the continuance of any potential hazards.
During any given year, repairs to private and/or City property are required to mitigate the cost of the related claim or loss to the City, including repairs that require immediate emergency attention. Title 7.10.065 defines “Emergency Work” as work made necessary to restore property to a safe condition following property damage caused by an emergency or work necessary to prevent or minimize damage from a potential emergency. Examples include sewer lateral tree root invasions, tree branch failures, water main breaks, potential trip and fall hazards, miscellaneous street and sidewalk repairs and various other anomalies that are identified through the claims process.
In the interest of reducing these emergency-based costs, the Risk Management Division issued Request for Proposal (RFP) 1913 to engage a panel of qualified construction contractors to provide these services. Staff believes that by inserting this element of competition, the process has become more efficient and reduced costs by having pre-determined fixed pricing included in the contracts. This panel responds to both emergency and non-emergency repair work related to liability insurance claims against the City on an around-the-clock basis.
DISCUSSION:
The Master Agreements for the Emergency and Non-Emergency Contractor Services Panel was approved on November 19, 2019, with a contract term to expire June 30, 2022, with the option to extend for two additional one-year terms, not to exceed five (5) years. Risk Management is proposing a one-year extension to begin on July 1, 2022 and end on June 30, 2023. Risk Management will issue a separate RFP in the beginning of calendar year 2023 to request bids from contractors for new Master Agreements which will commence on July 1, 2023.
The City selects a contractor depending on the repair needs and urgency of each incident. The Risk Management team analyzes all factors including but not limited to the gravidity of damage to property, potential ensuing damages that may result if known damage is unaddressed, continuity of service to residents and businesses, availability of a contractor, cost, and the health and safety of those who may be directly impacted by hazards that have been reported to the City. The City’s priority is to ensure the efficient response to all incidents and will select a contractor who will best assist the City in responding to any given incident while maximizing City resources to do so.
Not all contractors have the same Contractors State Licensing Board license nor authority to do certain type of work. For example, only one contractor on the bench has the license to do specific underground sewer work at a certain number of feet. A second contractor on the bench can also complete the same job, but they would need to hire a subcontractor that is specifically licensed to perform underground work under a certain number of feet which comes at additional cost to the City. The third contractor on the bench wouldn’t be able to do any type of sewer work or any type of lateral work as they do not have the license to do so.
If the situation is not urgent then contractors are requested to go onsite and provide a quote for the work that is required. Occasionally, staff exercise discretion if contractor bids are deemed too costly given the scope of work and won’t end up using the contractors on the panel. Staff will work with relevant departments to assemble an internal team to perform the work, or they will work with purchasing to request bids from non-panel contractors.
STRATEGIC PLAN ALIGNMENT:
The topics included in this report align with Strategic Priority 5 – High Performing Government and Goal 5.5: Foster a culture of safety, well-being, resilience, sustainability, diversity, and inclusion across the city organization.
This action aligns with each of the Cross-Cutting Threads as follows:
Community Trust – Riverside is able to make the necessary emergency and non-emergency repairs to impaired utility or sewer infrastructure to ensure the safe and continuous use of utility services by all of Riverside’s residents and businesses.
Equity – The contractor panel is able to respond to all wards within Riverside at any time and day including overnight and weekend incidents.
Fiscal Responsibility – Riverside reviews all invoices and authorizes precise scopes of work when dispatching a contractor to a job in effort to keep costs at a minimum.
Innovation – Riverside works collaboratively with staff and the contractor panel to effectively respond to emergency and non-emergency situations. The panel consists of contractors who specialize in different areas of emergency response and construction, thus enhancing Riverside’s ability to optimize resources and time.
Sustainability & Resiliency – Riverside has access to qualified, licensed, insured, and bonded contractors who can aide the City is responding to emergency and non-emergency situations.
FISCAL IMPACT:
The total fiscal impact of the action is $750,000 per contractor. The City does not pay any of the contractors upfront; the City pays for services as they are rendered. Sufficient funds are available within the applicable Fund and Department that utilizes the contractor panel to respond to emergency and non-emergency incidents.
Prepared by: Kristie Thomas, Assistant Chief Financial Officer Certified as to
availability of funds: Edward Enriquez, Chief Financial Officer/Treasurer Approved by: Edward Enriquez, Interim Assistant City Manager Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
First Amendment to Master Agreement with Belfor Restoration, Inc.
First Amendment to Master Agreement with Kairos Construction, Inc.
First Amendment to Master Agreement with Stilwell Construction, Inc.
Emergency/Non-Emergency Master Agreements ● Page 3