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Home My WebLink About2003-06-23 City CouncilCity C ty Manager’ ep rt TO:HONORABLE CITY COUNCIL FROM:CITY 5iL4,NAGER DEPARTMENT: UTILITIES DATE:JUNE 23, 2003 CMR: 284:03 SUBJECT:APPROVAL OF AMENDMENT NO. 2 TO CONTRACT NO. Cl126141 WITH UNDERGROUND CONSTRUCTION COMPANY INCORPORATED FOR THE 2000-2001 UTILITY TRENCH AND SUBSTRUCTURE INSTALLATION, TO EXTEND THE PERFORMANCE PERIOD THROUGH AUGUST 31, 2003 RECOMMENDATION Staff recommends that Council approve and authorize the Mayor to execute the attached amendment number 2 to conta’act Cl126141 with Under~ound Construction Company Incorporated, to extend the performance period tba’ough August 31, 2003. BACKGROUND On June 26, 2000, the City entered into a contract with Under~ound Construction Company, Inc. in the amount of $717,925 for trenching and installing conduits for electric utility customers, small extensions, and replacements to the existing under~’ound system; and to install communications, street light, traffic signal, and fiber optic conduits. The contract was awarded for a 12-month period with the option to extend the contract for two additional 12-month periods. A contingency of $72,000 was also approved at the time of award to cover unforeseen work. On June 26, 2001, a change order was executed to access the contingency amount of $72,000 for unforeseen work. At the end of FY 2000/01, the contract term was extended CMR:284:03 Page 1 of 3 for a 12-month period in the amount of $717,925, using the City Manager’s authority, granted when the contract was awarded on June 26, 2000. On May 6, 2002, a change order was executed to extend the contract term again for the second 12-month period and to increase the contract anaount by $717,925. DISCUSSION The present contract with Underground Construction Company, Inc. to perform utility trench and substructure installation ends on June 30, 2003. The process to award the new contract was started on April 24, 2003 and is currently out to bid. The contract cannot be awarded in time for work to be constructed in the next fiscal year. Staff anticipates that a new contract to perforna utility trench and substructure installation ~vill be awarded in mid-July to early August of 2003. The absence of a contractor to perform the utility trench and substructure installations for up to two months will result in an unacceptable backlog of both customer service and CIP projects. No additional funding is requested for this contract. RESOURCE IMPACT Funds for this contract are available in the FY 2003/04 Electric Capital Improvement Program Budget. This action has no impact on City construction forces because an outside contractor is performing the work. POLICY IMPLICATIONS This recommendation is consistent with the Council approved Utilities Strategic Plan to invest in infrastructure to deliver reliable service. ENVIRONMENTAL RE’\~EW This project is categorically exempt from the California Environmental Quality Act. CMR:284:03 Page 2 of 3 ATTACHMENTS Amendment PREPARED BY:JIM THOMPSON Senior Electric Project Engineer DEPARTMENT HEAD: ctor of Utilities CITY MANAGER APPROVAL: EMILY HARRISON Assistant City Manager CMR:284:03 Page 3 of 3 AMENDFIENT NO. TWO TO CONTI%ACT NO. Ci126141 BETWEEN THE CiTY OF PALO ALTO AND UNDERGROUND CONSTRUCTION CO., INCo FOR UTILITY TRENCH AND SUBSTRUCTURE INSTALLATION This Amendment No.Two to Contract No. Ci126141 ("Contract") is entered into , by and between the CITY OF PAL0 ALTO, a chartered city and a municipal corporation of the State of California ("CITY"), and UNDERGROUND CONSTRUCTION CO., INC., (Taxpayer Identification Number 76-0575471) a Delaware Corporation, located at 5145 Industrial Way, Benicia, CA 94510 ("Contractor"). RECITALS: ~4EREAS, the Contract was entered into between the parties for the provision of trenching and installing conduits for electric utility customers as well as fiber optic conduits for communication systems; ¼~EREAS, the contract provides that the contract term may be extended for two additional twelve (12) month periods for a term not to exceed thirty-six (36) months; and ~,~FHEREAS, the Contract was renewed by the City Manager’s designee, for fiscal year 2001-02 in the amount of Seven Hundred Seventeen Thousand Nine Hundred Twenty-Five Dollars ($717,925) via a change order; WHEREAS, the contract amount was increased by Seventy-Two Thousand Dollars ($72,000), previously authorized by the C~ty Council to cover additiona! but unforeseen work during the Project via a change order; WHEREAS, the parties amended the Contract in order to increase the amount of the Contract by an additiona! Two Hundred Thousand Dollars ($200,000) for additional and/or unforeseen substructure construction work relating to the rebuilding of the electric system infrastructure; ~dEREAS, the Contract was renewed by the City Manager’s designee for fisca! year 2002-03 an additiona! year in the amount of Seven Hundred Seventeen Thousand Nine Hundred Twenty-Five Dollars ($717,925) via a change order; and WHEREAS, the parties wish to extend the final term of the contract for an additional two month period to and including August 31, 2003. 030617 sdl 0072296 NOW, THEREFORE, in consideration of the covenants, terms, conditions., and provisions of this Amendment, the parties agree: SECTION I. Section 1 entitled "Term" is hereby, amended to read as fol!ows: This contract shal! commence and be binding on th~ parties on the Date of Execution of this Contract, and shal! expire on the date of recordation of the Notice of Substantia! Completion, or if no such notice is required to be filed, on the date that the fina! payment is made hereunder, subject to the earlier termination of this Contract and no event later than August 31, 2003. SECTION 2.Section 2 is hereby amended to read as fol!ows: General Scope of Project and Work. Contractor shall furnish labor, services, materials and equipment in connection with the construction of the Project and complete the Work in accordance with the covenants, terms and conditions of this Contract to the satisfaction of CITY. The Project and Work is generally described as follows: Project Title: 2000-01 Utility Trench & Substructure Installation, Invitation for Bid (IFB) Number 126141 Tota! Bid:$2,425,775.00 SECTION 3. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shal! remain in full force and effect. 030617 sdl 0072296 2 !N WITNESS kSqEREOF, ths parties have by theiz duly au~h~z~d representatives e~e~u~ed this Amendmen~ on ~irst a~ov~ wxitten. Cizy Clerk AP~ROVEDAS TO FORM: Senior Asst. C~£y AYYRDV~D: Ass~stan~ City Man~ger Services Utilities UNDERSRDUND COIqSTROCT~ON Ma/ne; Patricia C. Darnell Title E~xecu,tive Vice President N~me; Richard R. Shone Title: Secre:ary Taxpayer Identification No. 76-0575471 FRX NO, 6505B64536 P, 05 C~L~:~ O~I~O~T~ (Civil Code ~ 1189) STATE OF California $olanoCOUNTY- OF ) ) ~n June 18 ......2009 befozeme, the undersigned, notary public in a~d for ~aid County, personally ~ppe~red PatriciaC. Dar’nellm’,~~d R. personally ka~own to ~ to be ~-,.e person(s) whose name(s) is/are subscribed ~o ~he within instrument, and acknowledged he/she/they executed ~he same Sn his/her/#he&: authorized capaci~y(~es), and th=~ by his/hez/the!~ signature{s) on the ~ns~ru2n~n~ ~he person(s), mr the entity upon bahalf o~ which the pezson(s) acted, e~ecuted £he instrument. WITNESS my hand and official sea!. 4