SAN2419.SR.MG
CITY OF SIMI VALLEY
MEMORANDUM
Ma
y 6, 2024
TO
: City Council
F
ROM: Department of Public Works
S
UBJECT: APPROVAL OF THE FIRST CONTRACT AMENDMENT FOR PUMPING EQUIPMENT REPAIRS, SPECIFICATION NO. SV 22-21
STAFF RECOMMENDATION
1. A
pprove the first contract amendment with Vaughan’s Industrial Repair Co, Inc., (VIR), for pumping equipment repairs extending the term for two (2) years from July 1, 2024, to June 30, 2026, and increasing the not -to-exceed amount by $100,000, for a total not-to-exceed amount of $219,546.20; and,
2. A
uthorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract by one (1) additional two-year term in accordance with the contract terms.
BACKGROUND AND OVERVIEW
O
n July 19, 2022, the City Manager awarded a contract to VIR for pumping equipment repairs at the City’s Water Quality Control Plant in the amount of $119,546.20 for a two (2) year term from July 19, 2022, to June 30, 2024, with the option to extend for two (2) additional two (2) year terms . The contract term will expire on July 1, 2024, and staff seeks to extend the term of the contract for an additional two years. Staff recommends the City Council approve this first amendment to the contract.
FINDINGS AND ALTERNATIVES
In ac
cordance with the contract , 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 $50 ,000 are being requested in the FY 2024- 25 Public Works proposed budget ( Sanitation Fund 700), and a similar amount will be requested in FY 2025-26 for pumping equipment repairs from VIR.
F
unding for the proposed contract extension with VIR is contingent upon City Council approval of the proposed FY 2024-25 and FY 2025-26 Public Works operating budget.
AGENDA ITEM NO.
Consent (3)
SAN2419.SR.MG
The following alternatives are available to the City Council:
1. Approve the first contract amendment with VIR for pumping equipment repairs extending the term for two (2) years from July 1, 2024, to June 30, 2026 , and increasing the not-to-exceed amount by $100,000, for a total not-to-exceed amount of $219,546.20;
2. Authorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract by one (1) additional two-year term in accordance with the contract terms;
3. P rovide staff with other direction.
Staff recommends Alternative Nos. 1 and 2.
SUGGESTED CITY COUNCIL MOTION
I move to approve the first contract amendment extending the term for (2) years with VIR for pumping equipment repairs in the amount of $100,000, for a total not- to-exceed amount of $219,546.20 and authorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract by one (1) additional two-year term in accordance with the contract terms.
SUMMARY
On July 19, 2022, the City Manager awarded a contract to VIR for pumping equipment repairs in the amount of $119,546.20 for a two (2) year term with the option to extend two (2) additional two (2) year terms. Staff is requesting the City Council to extend the term for two (2) years from July 1, 2024 , to June 30, 2026, and increase the not -to-exceed amount by $100,000, for a total not-to-exceed amount of $219,546.20, and authorize the City Manager to approve any subseque nt contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract by one (1) additional two-year term in accordance with the contract terms.
____________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Matt Mckenna, Senior Management Analyst
INDEX
Page
First Contract Amendment ................................................................. 3 2
FIRST AMENDMENT TO
AGREEMENT BETWEEN
THE CITY OF SIMI VALLEY AND
VAUGHAN’S INDUSTRIAL REPAIR CO., INC.
THIS FIRST AMENDMENT (“Amendment”) is made and entered into this 6 th day of May 2024, by and between the CITY OF SIMI VALLEY , a general law city and municipal corporation (“CITY”), and VAUGHAN’S INDUSTRIAL REPAIR CO., INC. , a California Corporation (“CONSULTANT”).
1. Pursuant to Section eight (8) of the Agreement between THE CITY OF SIMI VALLEY AND VAUGHAN’S INDUSTRIAL REPAIR CO., INC., FOR PUM PING EQUIPMENT REPAIRS, SPECIFICATION NO. SV 22 -21 (“Agreement”), Section 2 of the Agreement is amended to read as follows:
Section 2. Term. The term of this Agreement is extended from July 1, 2024 to June 30, 2026. This contract may be extended one (1) additional two-year terms upon mutual written consent of the City Council and the CONTRACTOR. For contract extensions, unit prices may be adjusted in July for each contract extension requested at an amount not to exceed the increase in the U.S. City Average Consumer Price Index (CPI) for the prior year ending in March.
2. Pursuant to Section eight (8) of the Agreement, Section 4 is amended to read as follows:
Section 4. Obligations of the CITY.
“A. The CITY shall be obligated to pay CONTRACTOR based upon the actual City -authorized quantities in place and the unit and/or lump sum prices bid by CONTRACTOR, including but not limited to all labor, material and equipment, rather than the CONTRACT bid as set forth in Exhibit “B-1” the “Amended Cost Information”.”
“B. CITY shall make regular progress payments to the
CONTRACTOR within 30 days after mutual concurrence with the unit quantities and/or lump sum items of work performed, subject to applicable retention requirements. In no event shall the total amount paid for this CONTRACT exceed $219,546.20 unless otherwise agreed to by the Parties in accordance with Section 8.”
“C. Upon receipt of an invoice for work performed to CITY'S satisfaction, CITY shall make progress payments within thirty (30) days of receipt of invoice. If the work is not performed satisfactorily or the invoice is defective, CITY shall notify CONTRACTOR, in writing, of the reasons within seven (7) 3 City of Simi Valley
First Amendment to Agreement No. 3230011
Vaughan’s Industrial Repair Co., Inc.
SAN2419.CON.MG SPECIFICATION NO. SV 22-21
days of receipt of invoice. The intent of this Section is to comply with Public Contract Code Section 20104.50.
3. Pursuant to Section eight (8) of the Agreement, Exhibit B, Cost Information Dated May 16, 2022, is amended and the price schedule tables are replaced with Exhibit B-1 for the term of this Amendment.
4. ELECTRONIC SIGNATURES. This Agreement may be executed by the Parties on any number of separate counterparts, and all such counterparts so executed constitute one Agreement binding on all the Parties notwithstanding that all the Parties are not signatories to the same counterpart. In accordance with Government Code §16.5, the Parties agree that this Agreement, Agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature.
5. This Amendment may be executed in any number or counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date.
6. Except as modified by this Amendment, all other terms and conditions of the Agreement remain the same.
[SIGNATURES ON NEXT PAGE]
4 City of Simi Valley
First Amendment to Agreement No. 3230011
Vaughan’s Industrial Repair Co., Inc.
SAN2419.CON.MG SPECIFICATION NO. SV 22-21
IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written.
Attest: City of Simi Valley, A Municipal Corporation
By:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
Approved as to Form: Vaughan’s Industrial Repair Co., Inc.
By:
Algeria R. Ford, City Attorney
Print Name:
Approved as to Content: Title:
By:
Brian Paul Gabler, City Manager
Print Name:
Title:
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki
Public Works Director
5 City of Simi Valley
First Amendment to Agreement No. 3230011
Vaughan’s Industrial Repair Co., Inc.
SAN2419.CON.MG SPECIFICATION NO. SV 22-21
EXHIBIT “B-1”
AMENDED COST INFORMATION
(EFFECTIVE JULY 1, 2024 TO JUNE 30, 2026)
Pump # Hourly Rate Parts Cost
1 $95.00 $3,946.25
2 $95.00 $3,046.88
3 $95.00 $3,798.25
4 $95.00 $3,437.50
5 $95.00 $3,946.25
Motor # Hourly Rate Parts Cost
A $95.00 $2,720.00
B $95.00 $2,058.75
C $95.00 $2,058.75
D $95.00 $2,108.75
6