SAN2403.SR.JD
CITY OF SIMI VALLEY
MEMORANDUM
Ap
ril 15, 2024
TO: Cit
y Council
Board of Directors, Ventura County Waterworks District No. 8 FR
OM: Department of Public Works
SUBJ
ECT: APPROVAL OF THIRD CONTRACT AMENDMENT(S) FOR THE
REPAIR/MAINTENANCE OF COLLECTION/DISTRIBUTION SYSTEMS ,
AND PURCHASE OF WATER METERS FOR THE CITY OF SIMI
VALLEY/VENTURA COUNTY WATERWORKS DISTRICT NO. 8
STAFF RECOMMENDATION
It
is recommended that the City Council/Board of Directors:
1. Approve the Third Contract Amendment with Innocenti Construction, Inc. (Innocenti), (page 4) for the repair and maintenance of the collection/water distr ibution systems extending the term for two (2) years from July 1, 2024 to June 30, 2026 and increasing the not-to-exceed amount by $1,030,000, for a total not-to-exceed amount of $2,940,232;
2. Approve the Third Contrac t Amendment with Neptune Technology Group, Inc. (Neptune) (page 8) for the purchase of cold water meters extending the ter m for two (2) years from July 1, 2024 to June 30, 2026 and increasing the not-to-exceed amount by $970,000, for a total not-to-exceed amount of $3,769,067;
BACKGROUND AND OVERVIEW
On M
ay 14 , 2018, the City Council/Board of Directors awarded a contract to Innocenti for the repair and m aintenance of th e collection/water distribution systems in the amount of $619,200 for a two (2) year term from July 1, 2018 to June 30, 2020 with the option to extend for three (3) additional two (2) year terms.
On May 12, 2020, the First Contract Amendment was awarded to Innocenti to extend the term for two (2) years from July 1, 2020, to June 30, 2022, and increase the not- to-exceed amount by $619,200. On June 10, 2022, the Second Contract Amendment was awarded to Innocenti to extend the term for two (2) years from July 1, 2022, to June 30, 2024, and increase the not-to-exceed amount by $671,832, for a total not-to-exceed amount of $1,910,232.
On Ju
ne 18, 2018, the Board of Directors awarded a contract to Neptune for the purchase of cold water meters in the amount of $1,026,400 for a two-year term from July 1, 2018, to June 30, 2020, with the option to extend for three (3) additional two (2) year terms. On April 30, 2020, the First Contract Amendment was awarded to AGENDA ITEM NO.
Consent (3)
SAN2403.SR.JD
Neptune to extend the term for two (2) years from July 1, 2020 , to June 30, 2022, and increase the not-to-exceed amount by $850,200. On May 18, 2022, the Second Contract Amendment was awarded to Neptune to extend the term for two (2) years from July 1, 2022, to J une 30, 2024, and increase the not -to-exceed amount by $922,467, for a total not-to-exceed amount of $2,799,067.
I
n accordance with the contract(s), the City /District now desires to exercise the third term extension with Innocenti and Neptune from July 1, 2024 to June 30, 2026.
FINDINGS AND ALTERNATIVES
I
n accordance with the contract(s), Unit prices shall be increased by 3.7% based on the percent change in the Consumer Price Index for the Los Angeles -Long Beach-Anaheim area for the previous 12-month period ending in March 2023.
F
unds in the amount of $515,000 are being requested in the FY 2024- 25 Public Works proposed budget ($85,000 Sanitation Fund 700 and $430,000 Waterworks Fund 761), and a similar amount will be requested in FY 2025- 26 for the repair and maintenance of the collection/distribution systems from Innocenti.
F
unds in the amount of $485,000 are being requested in the FY 2024- 25 Public Works proposed budget (Waterworks Fund 761), and a similar amount will be requested in FY 2025-26 for the purchase of cold water meters from Neptune.
F
unding for the proposed contract extensions with Innocenti and Neptune are contingent upon City Council/Board of Directors approval of the proposed FY 2024-25 and FY 2025- 26 Public Works operating budget.
T
he following alternatives are available to the City Council/Board of Directors:
1. Approve the Third Contract Amendment with Innocenti for the repair and maintenance of the collection/water distr ibution systems extending the term for two (2) year s from July 1, 2024 to June 30, 2026 and inc reasing the not-t o-exceed amount by $1,030,000, for a total not-to-exceed amount of $2,940,232;
2. Approve the Third Contract Amendment with Neptune for the purchase of cold water meters extending the ter m for two (2) years fr om July 1, 2024 to June 30, 2026 and increasing the not-to-exceed amount by $970,000, for a total not-to-exceed amount of $3,769,067;
3. Provide staff with other direction.
S
taff recommends Alternatives Nos. 1, and 2.
2 SAN2403.SR.JD
SUGGESTED CITY COUNCIL MOTION
I move to approve the Third Contract Amendments extending the terms for (2) years with Innocenti for the repair and maintenance of the collection/water distribution systems in the amount of $1,030,000, and with Neptune for the purchase of cold water meters in the amount of $970,000.
SUMMARY
On May 14, 2018, the City Council/Board of Directors awarded a contract to Innocenti for the repair and maintenance of the collection/water distribution systems in the amount of $619,200 for a two (2) year term with the option to extend three (3) additional two (2) year terms. On May 12, 2020, the First Contract Amendment was awarded to Innocenti to extend the term for two (2) years and increase the not -to-exceed amount by $619,200.
On June 10, 2022, the Second Contract Amendment was awarded to Innocenti to extend the term for two (2) years from and increase the not-to-exceed amount by $671,832. Staff is requesting the City Council/Board of Directors to extend the term for two (2) years from July 1, 2024 to June 30, 2026 and increase the not-to-exceed amount by $1,030,000, for a total not-to-exceed amount of $2,940,232.
On June 18, 2018, the Board of Directors awarded a contract to Neptune for the purchase of cold water meters in the amount of $1,026,400 for a two (2) year term with the option to extend three (3) additional two (2) year terms. On April 30, 2020, the First Contract Amendment was awarded to Neptune to extend the term for two (2) years and increase the not -to-exceed amount by $850,200. On May 18, 2022, the Second Contract Amendment was awarded to Neptune to extend the term for two (2) years and increase the not -to-exceed amount by $922,467 . Staff is requesting the Board of Directors to extend the term for two (2) years from July 1, 2024 to June 30, 2026 and increase the not-to-exceed amount by $970,000, for a total not-to-exceed amount of $3,769,067.
____________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Matt Mckenna, Senior Management Analyst
INDEX Page
Third Contract Amendment – Innocenti ............................................ 4 Third Contract Amendment – Neptune ............................................. 8 3 SAN2043.CON.INNOCENTI
3rd Contract Amendment, SV 18-05
THIRD AMENDMENT TO CONTRACT BETWEEN THE CITY
OF SIMI VALLEY AND VENTURA COUNTY WATERWORKS
DISTRICT NO. 8 AND INNOCENTI CONSTRUCTION INC.,
FOR THE REPAIR AND MAINTENANCE OF THE
COLLECTION/WATER DISTRIBUTION SYSTEMS,
SPECIFICATION NO. SV 18-05
THIS THIRD AMENDMENT TO CONTRACT is made and entered into in the City of Simi Valley on this 15th day of April , 2024, by and between the CITY OF SIMI VALLEY and VENTURA COUNTY WATERWORKS DISTRICT NO. 8 , a municipal corporation, collectively, “City”, and INNOCENTI CONSTRUCTION INC. , hereinafter referred to as CONTRACTOR, each a “Party” and collectively, “Parties”.
I. Recitals
A. CITY and CONTRACTOR entered into a written contract ("CONTRACT") executed by the Parties on May 14, 2018 for the repair and maintenance of the collection/water distribution systems; which is incorporated herein by reference.
B. Thereafter, the CITY and CONTRACTOR entered into a First Amendment to the CONTRACT (“F irst Amendment”), executed by the P arties on May 12, 2020 which is also incorporated herein by reference.
C. Thereafter, the CITY and CONTRACTOR entered into a Second Amendment to the CONTRACT (“Second Amendment”), executed by the Parties on June 10, 2022 which is also incorporated herein by reference.
D. In accordance with paragraph 2 and 9 of the CONTRACT, the Parties desire to amend the CONTRACT as set forth below.
NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the Parties hereto agree as follows:
II. Amendment
1. Section 2. Term
. The term of the CONTRACT is extended from
July 1, 2024 to June 30th 2026.
2. Section 5. Obligations of the CITY/DISTRICT, subsection C. is amended to read as follows:
“C. In no event shall the total amount paid to CONTRACTOR under this THIRD AMENDMENT to the CONTRACT exceed $1,030,000, (the “Not-To-Exceed Amount”) , for a t otal not to exceed CONTRACT amount of $ 2,940,232, unless otherwise agreed to by the parties in writing.”
4 SAN2043.CON.INNOCENTI
3rd Contract Amendment, SV 18-05
3. Section 5. Obligations of the CITY/DISTRICT, subsection D. is added to read as follows:
“ D. Unit prices for the term of the THIRD AMENDMENT to the CONTRACT are increased by 3.7 % in accordance with the percent change in the Consumer Price Index (CPI) for the Los Angeles -Long Beach-Anaheim, CA for the previous 12-month period ending in March.
The CONTRACTOR shall keep a tally of the cost for the work ordered by CITY/DISTRICT. The CONTRACTOR shall not accept work orders from the CITY/DISTRICT if the cost for the work will exceed the amount indicated above unless otherwise agreed to by the parties in writing.
CONTRACTOR acknowledges that CONTRACTOR is not guaranteed to receive the not to exceed amount or any particular or minimum amount of compensation or work under this CONTRACT.”
4. Section 6. Obligations of the CONTRACTOR
, subsection
D. is deleted in its entirety and replaced with the following:
“D. Prevailing Wages.
i. Pursuant to Labor Code § 1720, and as specified in 8 California Code of Regulations § 16000, CONTRACTOR must pay its workers prevailing wages. It is CONTRACTOR’s responsibility to interpret and implement any prevailing wage requirements and CONTRACTOR agrees to pay any penalty or civil damages resulting from a violation of the prevailing wage laws.
ii. In accordance with Labor Code § 1773.2, copies of the prevailing rate of per diem wages are available upon request from CITY’s Engineering Division or the website for State of California Prevailing wage determination at http://www.dir.ca.gov/DLSR/PWD.
CONTRACTOR must post a copy of the prevailing rate of per diem wages at the job site.
iii. CITY directs CONTRACTOR’s attention to Labor Code §§ 1777.5, 1777.6 and 3098 concerning the employment of apprentices by CONTRACTOR or any subcontractor.
iv. Labor Code § 1777.5 requires CONTRACTOR or
subcontractor employing tradesmen in any apprenticeship occupation to apply to the joint apprenticeship committee nearest the site of the public works project and which administers the apprenticeship program in that trade for a certificate of approval. The certificate must also fix the ratio of apprentices to journeymen that will be used in the performance of the contract. The ratio of apprentices to journeymen in such cases will not be less than one to five except:
5 SAN2043.CON.INNOCENTI
3rd Contract Amendment, SV 18-05
a. When employment in the area of coverage by the joint apprenticeship committee has exceeded an average of 15
percent in the 90 days before the request for certificate, or
b. When the number of apprentices in training in the area exceeds a ratio of one to five, or
c. When the trade can show that it is replacing at least 1/30 of its membership through apprenticeship training on an annual basis state wide or locally, or
d. When CONTRACTOR provides evidence that
CONTRACTOR employs registered apprentices on all of his contracts on an annual average of not less than one apprentice to eight journeymen.
e. CONTRACTOR is required to make contributions to
funds established for the administration of apprenticeship programs if CONTRACTOR employs registered apprentices or journeymen in any apprenticeable trade on such contracts and if other contractors on the public works site are making such contributions.
f. CONTRACTOR and any subcontractor must comply
with Labor Code §§ 1777.5 and 1777.6 in the employment of apprentices.
g. Information relative to apprenticeship standards, wage schedules and other requirements may be obtained from the Director of Industrial Relations, ex officio the Administrator of Apprenticeship, San Francisco, California, or from the Division of Apprenticeship Standards and its branch offices.
v. CONTRACTOR and its subcontractors must keep an
accurate certified payroll records showing the name,
occupation, and the actual per diem wages paid to each
worker employed in connection with this Agreement. The
record will be kept open at all reasonable hours to the inspection of the body awarding the contract and to the Division of Labor Law Enforcement. If requested by CITY, CONTRACTOR must provide copies of the records at its
cost.
vi. DIR Registration. CONTRACTOR and all subcontractors must be registered and remain registered with DIR (Department of Industrial Relations) through the term of the CONTRACT in 6 SAN2043.CON.INNOCENTI
3rd Contract Amendment, SV 18-05
accordance with the California Labor Code (“Labor Code”), in particular Labor Code Section 1771.1, and any successor or replacement provision thereto, unless a small project exemption applies ($25,000 for public works or $15,000 for maintenance).
CONTRACTOR further agrees that it will follow all requirements and obligations set forth in Labor Code Section 1776.
5. Except as herein amended, all other terms and conditions of the CONTRACT shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed the day and year first above written.
Attest: City of Simi Valley/Ventura County
Waterworks District No. 8, A Municipal
Corporations
By:
Lucy Blanco, City Clerk/District Secretary Fred D. Thomas, Mayor of the City of Simi Valley/Chair of the Ventura County
Waterworks District No. 8
Approved as to Form: Innocenti Construction, Inc.
Algeria R. Ford, City Attorney/
District Counsel By:
Title:
Approved as to Content:
Print Name:
Brian Paul Gabler, City/District Manager By:
Title:
Johanna Medrano, Print Name:
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki
Public Works Director
7 1
THIRD AMENDMENT TO CONTRACT BETWEEN THE
VENTURA COUNTY WATERWORKS DISTRICT NO. 8 AND
NEPTUNE TECHNOLOGY GROUP, INC. FOR PURCHASE
OF COLD WATER METERS, SPECIFICATION NO. SV 18-07
THIS THIRD AMENDMENT TO CONTRACT is made and entered into in the City of Simi Valley on this 15
th day of April 2024, by and between the VENTURA COUNTY WATERWORKS DISTRICT NO. 8 , a municipal corporation, hereinafter referred to as DISTRICT, and NEPTUNE TECHNOLOGY GROUP, INC ., hereinafter referred to as CONTRACTOR, each a “Party” and collectively, “Parties”.
I. Recitals
A. DISTRICT and CONTRACTOR entered into a written contract ("CONTRACT") executed by the Parties on June 18, 2018 for the purchase of cold w ater meters; which is incorporated herein by reference.
B. Thereafter, the DISTRICT and CONTRACTOR entered into a First Amendment to the CONTRACT (“First Amendment”), executed by the parties on April 30, 2020 which is also incorporated herein by reference.
C. Thereafter, the DISTRICT and CONTRACTOR entered into a Second Amendment to the CONTRACT (“Second Amendment”), executed by the parties on May 18, 2022 which is also incorporated herein by reference.
D. In accordance with paragraph 2 of the CONTRACT, the Parties desire to extend the term of the CONTRACT for two years for the period of July 1, 2024, through June 30, 2026 and increase the not to exceed amount as set forth below.
NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the Parties hereto agree as follows:
II. Amendment
1. Section 2. Term
. The term of the CONTRACT shall be extended
from July 1, 2024 to June 30, 2026.
2. Section 4. Compensation and Payment , subsection C. is amended to read as follows:
“In no event shall the total amount paid for this THIRD AMENDMENT to the CONTRACT exceed $970,000,(the “Not-To-Exceed Amount”), for a total not to exceed CONTRACT amount of $3,769,067, unless otherwise agreed to by the parties in writing.”
3. Section 4. Compensation and Payment , subsection D. is added to read as follows:
8 2
“D. Unit prices for the term of the THIRD AMENDMENT to the CONTRACT are increased by 3.7 % in accordance with the percent change in the Consumer Price Index (CPI) for the Los Angeles -Long Beach-Anaheim, CA for the previous 12-month period ending in March. The CONTRACTOR shall keep a tally of the co st for the work ordered by DISTRICT. The CONTRACTOR shall not a ccept work orders f rom the DISTRICT if the cost for the work will exceed the amount indicated above unless otherwise agreed to by the parties in writing. CONTRACTOR acknowledges that CONTRACTOR is not guaranteed to receive the not to exceed amount or any particular or minimum amount of compensation or work under this CONTRACT.”
4. Except as herein amended, all other terms and conditions of the CONTRACT shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed the day and year first above written.
Attest: Ventura County Waterworks District No. 8,
A Municipal Corporation
By:
Lucy Blanco, District Secretary Fred D. Thomas, Chair of the Ventura County Waterworks District No. 8
Approved as to Form: Neptune Technology Group, Inc.
Algeria R. Ford, District Counsel By:
Title:
Approved as to Content:
Print Name:
Brian Paul Gabler, District Manager By:
Title:
Johanna Medrano, Print Name:
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki
Public Works Director
9