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HomeMy WebLinkAbout22A - PO FOR CHAIN LINK FENCEREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 15, 2020 TITLE: APPROVE AN INCREASE IN THE PURCHASE ORDER AMOUNT WITH QUALITY FENCE CO., INC. IN THE AMOUNT OF $350,000, FOR A REVISED ANNUAL AMOUNT NOT TO EXCEED $550,000 FOR CHAIN -LINK FENCE AND GATE INSTALLATION SERVICES (SPECIFICATION NO. 18-080) (NON -GENERAL FUND) CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on V Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO /s/ Kristine Ridge FILE NUMBER CITY MANAGER RECOMMENDED ACTION Authorize the City Manager approve an increase to the blanket order contract with Quality Fence Co., Inc., for chain -link fence and gate installation services by $350,000, for a revised annual amount not to exceed $550,000, for the remainder of the contract term, and one one-year renewal option if exercised, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION On February 5, 2019, at the conclusion of a competitive bid process, the City Council approved a one-year purchase order contract with Quality Fence Co., Inc., with provisions for two one-year renewal options, to provide chain -link fence and gate installations to improve the security of the City's water system facilities. The original purchase order contract was awarded in an annual amount not to exceed $200,000, and the first renewal option has been exercised. Services provided under the chain -link fence and gate installation contract have improved the security and safety around the City's water system's wells, reservoir stations, and other water facilities. The work has mainly consisted of, but has not been limited to, the removal and proper disposal of existing fencing and the construction and installation of fabricated industrial steel fencing at various locations. In addition, the existing contract has been utilized for fencing improvements at other City facilities. Staff recommends amending the existing purchase order contract with Quality Fence Co., Inc., to enable the Water Resources Division to continue with their original fencing upgrade schedule, including water property located at 610 North Figueroa, and provide options for citywide fencing improvements on an as -needed basis. To accomplish this, staff recommends increasing the total aggregate annual spending limit by $350,000, resulting in a new aggregate annual spending limit of $550,000. 22A-1 Amendment for Chain -Link Fencing Services September 15, 2020 Page 2 FISCAL IMPACT The current contract for Fiscal Year 2020-21 approved expenditures of $200,000 as an annual amount. The requested amendment will increase the annual Water Resources expenditures amount for the contract by $150,000 in FY 2020-21 and for the lifetime of the agreement. Funds are budgeted and available for expenditure in Water Utility Water Production & Supply, Contract Services -Professional Account (No. 06017640-62300). If the remaining renewal option is exercised, funds will be budgeted for future years as shown below. The requested purchase order amendment will also allow citywide expenditures in the amount of $200,000 for the existing contract term, with an additional $200,000 if the renewal option is exercised. Prior to utilizing non -Water Enterprise funds, staff must receive Finance and Management Services Agency approval of funding and accounts to ensure that funds are available under the authorization and aggregate limit of this contract. Upon a successful completion of this review, a corresponding Notice to Proceed containing specific scope and maximum expenditure for the task order will be issued to the contractor. Accounting Unit- Fund Accounting Unit, Fiscal Year Account # Description Account Amount Description Original Contract 1 st Renewal Option) FY 2020-21 Water Utility Water (July 1, 2020— 06017640-62300 Water Production & Supply, $200,000 January 31, 2021 Contract Services - Professional Requested Amendment FY 2020-21 Water Utility Water (September 15, Production & Supply, 2020 — January 06017640-62300 Water Contract Services- $150,000 31, 2021) Professional FY 2020-21 (September 15, Various —Citywide Various — Various —Citywide 2020 — January Portion Citywide Portion $200,000 31, 2021) Portion Renewal Final Renewal Option) FY 2020-21 Water Utility Water (February 1, 06017640-62300 Water Production & Supply, $175,000 2021-June 30 Contract Services- 2021) Professional FY 2021-22 Various — (February 1, Various — Citywide Citywide Various — Citywide $100,000 2021-June 30, Portion Portion Portion 2021 22A-2 Amendment for Chain -Link Fencing Services September 15, 2020 Page 3 FY 2021-22 (July Water Utility Water 1, 2021-January 06017640-62300 Water Production & Supply, $175,000 31, 2022) Contract Services - Professional -22 (July Various — Citywide aCitywide riousVarious — Citywide 1Y20211-January Portion Portion $100,000 31, 2022 Portion Total Water Utility Production & Supply, Contract Services -Professional: $700,000 Total Various Citywide: $400,000 Total Aggregate Amount: $1,100,000 Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director— Finance and Management Services Agency Submitted By: Nabil Saba, P.E., Executive Director — Public Works Agency 22A-3