DATE: NOVEMBER 15, 2022
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, DIRECTOR
BY: BRIAN FRUS, SENIOR ENGINEER
TITLE: AMENDED AND RESTATED AGREEMENT FOR SERVICES BETWEEN THE CITY OF SALINAS AND ANDERSON PACIFIC ENGINEERING CONSTRUCTION RELATED TO THE EAST LAKE STREET EMERGENCY REPAIR WORK RECOMMENDED MOTION:
A motion to approve a Resolution approving an Amended and Restated Agreement for Services in the amount of $4,587,862 between the City of Salinas and Anderson Pacific Engineering Construction, Inc. related to the East Lake Street Emergency Repair Work.
RECOMMENDATION:
It is recommended that the City Council approve a Resolution approving an Amended and Restated Agreement for Services in the amount of $4,587,862 between the City of Salinas and Anderson Pacific Engineering Construction, Inc. related to the East Lake Street Emergency Repair Work.
BACKGROUND:
A release of raw sewage from a City sewer main located in Chinatown occurred February 2, 2021 and was reported the same day. The cause was attributed to failure of nearly 500 feet of aging sewer pipe running the length of East Lake Street. Both engineering and maintenance staff believed that failure of the piping and the risk of another sewage release was highly likely. Thus, engineering engaged a contractor and consultant to perform the repair work on an emergency basis.
An agreement to perform the work was executed on April 28, 2021 with Anderson Pacific Engineering Construction (APEC) by the City Manager for an initial estimate of $917,362 performed on a time and material basis. Project construction began in July. An amendment for a $2.65M increase to the agreement was approved by Council on December 14, 2021 (Resolution No. 22272). An additional amendment for a $1.1M increase was approved on March 22, 2022 (Resolution No. 22320) bringing the amended total to $4,667,362.
Staff now has received all invoices from APEC and has determined that the funds encumbered by the corresponding purchase order may be reduced by $79,500 while still meeting the obligation to pay the invoices. However, because the agreement expired on June 30, 2022, an Amended and Restated Agreement is required to make these adjustments to the purchase order for APEC. With this decrease, the Amended and Restated Agreement for Services will be in the amount of $4,587,862.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
The proposed project and agreement meet the City Council’s Strategic Plan Initiative of Infrastructure and Environmental Sustainability by improving City facilities.
DEPARTMENTAL COORDINATION:
This project will rely on coordination between Finance and the Public Works Department. The Waster Waste and Energy division in Public Works will continue to coordinate close out of the project.
FISCAL AND SUSTAINABILITY IMPACT:
The Amended and Restated Agreement represents and decrease of $79,500 from the original agreement including all amendments. This in turn will allow staff to reduce the allocation to 5800.50.9302-66.4000 by $79,500 which will enable this same amount to be encumbered for other purposes within the sewer fund.
A total of $4,954,291 have been appropriated to CIP 9302, Lake Street Emergency Repairs which is funded by the 6400 Sewer Enterprise fund and 2301 Development Fees, of which $4,667,362 have been allocated in 5800.50.9302-66.4000 (Capital Outlays).
ATTACHMENTS:
Resolution
Amended and Restated Agreement for Services between the City of Salinas and Anderson Pacific Engineering Construction, Inc. for the East Lake Street Emergency Repair Work Page | 3
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