REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: JESUS A. GONZALEZ, PE, Assistant Director
Department of Public Utilities - Utilities Planning & Engineering
ROBERT A. DIAZ, Supervising Engineering Technician
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Approve an increase to the requirements contract with Dawson-Mauldin, LLC., for permanent asphalt concrete pavement repairs, in the amount of $960,000 for a total contract amount of $6,664,400 (Citywide).
Body
RECOMMENDATION
Staff recommends City Council approve an increase to the requirements contract with Dawson-Mauldin, LLC., for permanent asphalt concrete pavement repairs (Project), in the amount of $960,000 for a total contract amount of $6,664,400, for completing the final one-year extension (Citywide).
EXECUTIVE SUMMARY
In 2019, a requirements contract (Contract) was awarded to Dawson-Mauldin, LLC., for as-needed asphalt concrete pavement (pavement) repairs at locations having undergone water system repairs and replacements (improvements). The Contract now in its final year, has experienced a greater than anticipated number of work orders. Additional funds are necessary to carry the Contract through to its expiration in November of this year. Approval of the $960,000 increase will allow for continuation of the work orders until such a time as a new vendor is identified via a competitive bid process.
BACKGROUND
In its function of maintaining the water system, the Water Division removes existing pavement when performing repairs or system improvements. Upon completion of the improvements, pavement repairs are necessary to restore streets to their original condition. Due to the ongoing nature of the repairs and improvements, the Water Division went through the competitive bid process to procure Project services. On July 25, 2019, City Council awarded a $1,426,100 one-year requirements contract, with provisions for up to three one-year extensions, to Dawson-Mauldin, LLC. The Water Division on three occasions, exercised the provision to extend the Contract by one year. The final extension as now been executed and the Contract is set to expire on November 1, 2023.
On September 20, 2022, prior to the start of the fourth and final year of the Contract, Dawson-Mauldin LLC. Requested and was granted a labor rate and materials cost increase. The cost increase along with a greater than anticipated number of work orders has resulted in a fast expenditure of funds. To date, Dawson-Mauldin, LLC., has satisfactorily performed all pavement work in accordance with the requirements of the Contract and therefore the Water Division desires to finish out its final year for which an increase of $960,000 to the Contract is necessary.
On June 25, 2023, City Council adopted the 33rd Amendment to the Annual Appropriation Resolution No. 2022-154 appropriating $988,000 for the Project. The expenditure of funds was not possible as an approval for an increase to the Project’s Contract was erroneously omitted. Approval of a revised amount, of $960,000 increase, will allow for use of funding under the Water Division’s fiscal year 2024 capital improvement budget.
City Attorney has reviewed and approved to form.
ENVIRONMENTAL FINDINGS
When this item was approved in 2019, staff performed a preliminary environmental assessment of the Project in accordance with the requirements of CEQA and determined that it is exempt under Class 1, Section 15301 of the CEQA Guidelines because its contract is for the repair of existing street pavement associated with the operation and maintenance of the water system. The Project will not result in the expansion of capacity of existing uses. Staff further determined that it also falls within the Categorical Exemption set forth in Class 2, Section 15302 of the CEQA Guidelines, which exempts projects consisting of replacement or reconstruction of existing structures and facilities, because any new facility will be located on the same site as the facility replaced and will have substantially the same purpose and capacity. Staff further found that the Project also falls within the Categorical Exemption set forth in Class 3, Section 15303 of the CEQA Guidelines because any conversion of existing small structures from one use to another would only entail minor modifications made in the exterior of a structure. Finally, staff also found that it falls within the Categorical Exemption set forth in Class 4, Section 15304 of the CEQA Guidelines because any grading, filling, or backfilling required will consist of minor alterations in the condition of land, water, and vegetation, which do not involve removal of healthy, mature, or scenic trees, except for forestry or agricultural purposes. Furthermore, staff determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project.
The proposed discretionary action, approval of a funding increase for the existing requirements contract, is to provide funding to allow Dawson Mauldin, LLC., to continue performing work orders under the previously approved scope of work.
The proposed project has not changed since the prior approval and as such no further assessment under CEQA is required at this time.
LOCAL PREFERENCE
Local preference was not implemented as this is an approval of a requirements contract cost increase.
FISCAL IMPACT
There is no impact to the General Fund. Funding for this Project is included in the Fiscal Year 2024 capital improvement budget within the Water Division’s Water Enterprise Fund 4000-4001. The Project is Citywide.
Attachment: Requirements Contract