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HomeMy WebLinkAboutStaff Report 2407-3221CITY OF PALO ALTO CITY COUNCIL Regular Meeting Monday, November 04, 2024 Council Chambers & Hybrid 5:30 PM     Agenda Item     10.Approval of Contract Amendment No. 3 to Contract Number C24187444 with Stephen Ciari Plumbing and Heating, Inc., in the Amount of $167,720 for Backflow Prevention Devices Testing, Repair, and Certification Services; CEQA Status – Categorically Exempt Under Sections 15301 and 15302 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: November 4, 2024 Report #:2407-3221 TITLE Approval of Contract Amendment No. 3 to Contract Number C24187444 with Stephen Ciari Plumbing and Heating, Inc., in the Amount of $167,720 for Backflow Prevention Devices Testing, Repair, and Certification Services; CEQA Status – Categorically Exempt Under Sections 15301 and 15302 RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to execute Amendment Number 3 to Contract C24187444 with Stephen Ciari Plumbing and Heating, Inc. for Backflow Prevention Devices Testing, Repair, and Certification Services for a six-month contract extension in the not-to-exceed amount of $167,720, including $152,473 for basic services and $15,247 for additional services for unforeseen work. EXECUTIVE SUMMARY In June 2023, Council approved a one-year contract (although bid solicitation was for a three- year term) for Backflow Prevention Devices Testing, Repair and Certification Services knowing that the Utilities Department was working towards adding additional staffing to perform these services in-house. However, the additional position was approved in Fiscal Year 2025, resulting in the need for a six-month contract extension with the current contractor to allow for hiring and training of the new Utilities Department staff. BACKGROUND In accordance with State law, backflow prevention devices require annual testing and certification. The testing of City-owned backflow prevention devices must follow regulations of the California State Department of Public Health contained in Title 17 of the California Administrative Code, Chapter 5, Subchapter 1, Group 4, Sections 7583 through 7604. On March 14, 2023, a notice inviting formal bids for Backflow Prevention Device Testing, Repair and Certification Services was posted on the PlanetBids website. Staff reviewed the submitted bids and recommended that the bid of $457,791 submitted by Stephen Ciari Plumbing and Heating, Inc. be accepted, and the vendor was declared the lowest responsible bidder. However, knowing that the Utilities Department was working towards adding staffing to perform the backflow prevention devices testing, repair and certification services in-house, the City decided to convert this three-year bid submission into a one-year contract with a base amount of $146,308, which was approved during the June 19, 2023, City Council meeting1. The original one-year contract was amended by extending the term by six months until December 31, 20242. ANALYSIS The City has about 400 backflow devices that need to be tested and certified annually. Prior to starting work, the contractor is required to meet with City of Palo Alto Cross Connection Control Staff from the Utilities Department, who will provide pre-filled test forms and tags for known devices. The annual inspections and repairs will occur throughout the fiscal year. Staff intends to begin doing this work in-house through the Utilities Department beginning in Fiscal Year 2026. The recruitment process for the new staff person is underway. FISCAL/RESOURCE IMPACT As with the first year of the contract, funding for the six-month extension request comes from two departments, Public Works, and Community Services, and is broken down as follows: The Public Works and Community Services departments have allocated sufficient funding within their respective Fiscal Year 2025 operating budgets to cover the cost of the amendment. Necessary funds have been encumbered and given the available budgetary allocations, no additional budget adjustments are required, allowing both departments to proceed with the amendment request without financial impact on other programs or services. 1 City Council, June 19,2023; SR #2303-1226; https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/public-services/contracts/2303- 1226amedment-2.pdf 2 Stephen Ciari Plumbing and Heating, Inc., Backflow Prevention Devices Testing, Repair, and Certification Services, Contract # C24187444, Amendment No.1; https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/public-services/contracts/stephen-ciari- amend.-1.pdf The cost of the six-month extension request follows the original three-year bid fee schedule and corresponds to Year 2, as shown in the table below. In addition to the base bid, staff recommends additional services funding in the amount of $15,247, or 10% of the Year 2 base bid, for unforeseen work. STAKEHOLDER ENGAGEMENT Staff will be notified if testing or repair work will be disruptive in their workspace. ENVIRONMENTAL REVIEW This contract is categorically exempt from the California Environmental Quality Act (CEQA) under Sections 15301 and 15302 of the CEQA guidelines as an alteration to an existing facility and no further environmental review is necessary. ATTACHMENTS Attachment A: Contract with Stephen Ciari Plumbing and Heating, Inc.; Amendment No. 3 APPROVED BY: Brad Eggleston, Director Public Works/City Engineer