City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JULY 19, 2022 FROM: PUBLIC UTILITIES DEPARTMENT WARDS: ALL
SUBJECT: THIRD Amendment to THE Professional CONSULTANT Services Agreement with Babcock & Son’s Inc., FOR laboratory testing and analytical services, including an 11% change order increase in the amount of $100,000 to existing annual Purchase Order No. 222032, for a total four-year contract amount of $2,636,364 ISSUE:
Approve the Third Amendment to the Professional Services Agreement with Babcock & Son’s Inc., for laboratory testing and analytical services, including an 11% change order increase in the amount of $100,000 to existing annual Purchase Order No. 222032, for a total four-year contract amount of $2,636,364.
RECOMMENDATIONS:
That the City Council:
Approve the Third Amendment to the Professional Consultant Services Agreement with Babcock & Son’s Inc., for laboratory testing and analytical services, including an 11% change order increase in the amount of $100,000 to existing annual Purchase Order No. 222032, for a total four-year contract amount of $2,636,364; and Authorize the City Manager, or designee, to execute the Third Amendment to the Professional Consultant Services Agreement, including making minor and non-substantive changes.
BOARD RECOMMENDATION:
This report is published on July 7, 2022, for the July 19, 2022, City Council meeting.
On July 11, 2022, the Board of Public Utilities will hear this item for consideration to approve the expenditure for a Third Amendment to the Professional Services Agreement with Bacock & Son’s, Inc., for laboratory testing and analytical services, including an 11% change order increase in the amount of $100,000 to the existing annual Purchase Order No. 222032, for a total four-year contract amount of $2,636,364.
If the Board approves the expenditure and recommends that the City Council approves the Third Amendment to the Professional Services Agreement, we respectfully request the City Council consider the item at the July 19, 2022, City Council meeting.
BACKGROUND:
On June 28, 2021, the Board of Public Utilities approved the Fiscal Year (FY) 2021/22 annual Purchase Orders. The Professional Consultant Services Agreement and Purchase Order for Babcock & Son’s has exceeded the previously approved amount, due to unforeseen and increased costs this fiscal year.
DISCUSSION:
The Third Amendment to the Professional Consultant Services Agreement with Babcock & Son’s is needed to add funding to the contract based on:
RPU Water Operations Division is required by the United States Environmental Protection Agency and the California State Water Resources Control Board to comply with drinking water regulations. The Water Division collects over 29,000 water samples for laboratory testing from its drinking water sources, treatment plants, distribution system, and non-potable sources. The testing results from these samples are required to be reported to regulatory agencies and analyzed by a state certified laboratory.
During the contract term, a new regulation to test PFAS was implemented and was to be enforced by June 30, 2019. Subsequently, a 10% contingency change order in an amount of $150,000 was processed to address the additional expenses.
The additional testing caused increased costs and left the annual PO for FY 2021/22 without sufficient funds to cover the remaining fiscal year expenses. An additional amount of $100,000 is necessary to cover the additional testing costs, increasing the total four-year contract amount to $2,636,364.
The Purchasing Manager concurs that the recommended actions are in compliance with Purchasing Resolution No. 23812, Section 1104.
Based on direction from the City Council on May 17, 2022 regarding professional services agreements, this item was presented to the Board of Public Utilities as an approval of the expenditure and recommendation to the City Council for approval of the execution of the Professional Consultant Services Agreement. This Third Amendment to the Professional Consultant Services Agreement is presented to the City Council for final approval.
STRATEGIC PLAN ALIGNMENT:
This item aligns with Strategic Priority No. 4 Environmental Stewardship and Goal 4.2 - Sustainably manage local water resources to maximize reliability and advance water reuse to ensure safe, reliable and affordable water to our community.
The actions align with the five Cross-Cutting Threads as described below:
Community Trust – Riverside is transparent and produces a summary of the Water Quality Results, obtained from the laboratory services contract in the annual Water Quality Report.
Equity – Maintaining water quality that meets State and Federal drinking water standards benefits Riverside residents, businesses, and visitors.
Fiscal Responsibility – Riverside seeks to maintain compliance with all State and Federal Regulations and monitoring requirements thus avoiding any monetary violations.
Innovation – Riverside works collaboratively with their contract laboratory to come up with innovative solutions to data management, and deliverables.
Sustainability & Resiliency – Communities are reliant on their water resources to thrive, providing high quality water will ensure Riverside’s sustainability and resiliency.
FISCAL IMPACT:
The total fiscal impact of this action is $100,000. Sufficient funds are budgeted and available in the FY 2021/22 Water Fund, Public Utilities Water Production & Operations account no. 6200000-421000.
Prepared by: Todd M. Corbin, Utilities General Manager Certified as to
availability of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/City Treasurer Approved by: Kris Martinez, Assistant City Manager Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Third Amendment to Agreement
Second Amendment to Agreement
First Amendment to Agreement
Agreement
Presentation
Third Amendment to Agreement with Babcock & Son’s ● Page 2