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CC 2016-03-08_09i Contract Amendment_Waterboys Plumbing MEMORANDUM TO: CITY COUNCIL FROM: GEOFF ENGLISH, DIRECTOR OF PUBLIC WORKS BY: SHANE TAYLOR, PUBLIC WORKS SUPERVISOR – UTILITIES SUBJECT: CONSIDERATION OF A THIRD AMENDMENT TO CONTRACT WITH WATERBOYS PLUMBING, INC. FOR THE PLUMBING RETROFIT PROGRAM DATE: MARCH 8, 2016 RECOMMENDATION: It is recommended the City Council 1. Approve a Third Amendment to the contract with Waterboys Plumbing, Inc. in the amount of $74,335; 2. Authorize the Mayor to execute the Third Amendment to the Contract. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: A total of $78,550 is allocated in the FY 2015/16 Budget in Water Neutralization Contractual Services (Account 226-4306-5303), which includes funds for the continuation of the Plumbing Retrofit Program. An additional $52,050 will be included in the FY 2016/17 budget to cover the costs of the contract. The program will continue to be administered by the Public Works Department. Approximately 200 hours per year are required to continue the program. BACKGROUND: The City Council adopted a Water Conservation Program on May 13, 2003. Phase I of the program began in April of 2004 and was focused on retrofitting existing residential plumbing with low flow fixtures. Over the last 11-1/2 years, a total of 2,030 single family homes, 547 apartment units, 236 mobile homes, 243 motel units, 9 church facilities, and 153 commercial establishments have been retrofitted under the program. A total of 5,054 toilets, 4,132 faucet aerators, 1,858 showerheads, and 416 pressure regulators were installed. The total cost to date for Phase I is $1,319,454. In 2005, the City adopted the Mandatory Retrofit Upon Change of Ownership of Real Property Ordinance. A total of 1,173 properties have been issued Water Conservation Certificates indicating that these residences comply with the Ordinance. An estimated 177-acre feet of water per year has been conserved due to the retrofit program. Item 9.i. - Page 1 CITY COUNCIL CONSIDERATION OF A THIRD AMENDMENT TO THE CONTRACT WITH WATERBOYS PLUMBING, INC. FOR THE PLUMBING RETROFIT PROGRAM MARCH 8, 2016 PAGE 2 On February 26, 2014, Waterboys Plumbing, Inc. was awarded a one year contract, which included options for two, one year extensions. This Third Amendment could exercise the second one year extension. Waterboys Plumbing, Inc. has performed to a satisfactory level and the City has received many favorable comments regarding the quality of workmanship and level of service. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1) Approve a Third Amendment to the contract with Waterboys Plumbing, Inc.; 2) Do not approve the Third Amendment to the contract; or 3) Provide direction to staff. ANALYSIS OF ISSUES: In 2004, the program targeted 4,357 single family homes and 44 apartment complexes. After 11-1/2 years, 48% of the homes and 91% of the apartment complexes in the City have been retrofitted. In addition, the program was expanded to include mobile homes and commercial properties. A total of 97% of last year’s contract amount was expended. Retrofitting indoor plumbing has proven to be a very reliable and consistent water conservation measure. The per capita consumption for 2015 was 117 gallons per day per person compared to 144 gallons per day per person in 2014. Phase II programs have also helped conserve water with washing machine rebates, cash for grass, and large landscape audits. ADVANTAGES: Every property retrofitted conserves approximately 10,000 – 12,000 gallons of water per year. Qualified property owners may still take advantage of the program and receive free retrofitting to comply with the Mandatory Retrofit Upon Change of Ownership of Real Property Ordinance. DISADVANTAGES: No disadvantages are seen. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, March 3, 2016. The Agenda and staff report were posted on the City’s website on Friday, March 4, 2016. Attachments: 1. Letter from Waterboys Plumbing, Inc. Item 9.i. - Page 2 THIRD AMENDMENT TO CONTRACT FOR CITY OF ARROYO GRANDE PLUMBING RETROFIT PROGRAM This THIRD AMENDMENT TO CONTRACT (“Third Amendment”) is made and entered into this 8th day of March, 2016, by and between the CITY OF ARROYO GRANDE, a California Municipal Corporation (“City”) and WATERBOYS PLUMBING INC., a California Corporation (“Contractor”). The City and Contractor are sometimes referred to herein as the “Parties”. WHEREAS, on February 26, 2014, the City and Contractor entered into a Contract for the City of Arroyo Grande’s Plumbing Retrofit Program (“Contract”) wherein Contractor agreed to provide City with plumbing services subject to the terms and conditions set forth in the Contract. A true and correct copy of the Contract is on file with the Public Works Department; and WHEREAS, the Contract includes two (2) one (1) year options to extend; and WHEREAS, on February 24, 2015, the City Council approved a First Amendment which extended the Contract for the first of two (2) one (1) year options; and WHEREAS, on September 22, 2015, a Second Amendment was approved between the Parties adding additional monies to cover costs incurred by the program; WHEREAS, the Parties now desire to extend the Contract for the second of the two (2) one (1) year options. NOW THEREFORE, in consideration of the mutual covenants and conditions set forth herein, the Parties agree as follows: 1. The above recitals are true and correct and are incorporated herein by this reference. 2. Article 1 of the Contract shall be amended in its entirety as follows: ARTICLE I. For and in consideration of the payments and agreements hereinafter mentioned to be made and performed by City, Contractor agrees with City to furnish all materials, equipment and labor and construct facilities for City, and to perform and complete in a good and workmanlike manner all the work pertaining thereto shown on the plans and described in the specifications hereto attached, and to furnish at his own proper cost and expense all tools, equipment, labor, and materials necessary therefore, except such materials as in the said specifications are stipulated to be furnished by City, and to do everything required by this Contract and the said specifications and plans, and the requirements of the Engineer under them, to wit: Item 9.i. - Page 3 CONTRACT SCHEDULE OF COSTS ITEM NO. QTY UNIT DESCRIPTION UNIT PRICE AMOUNT 1 200 EA 1.28 gpm Flush Toilet – 12” Rough $235.00 $47,000.00 2 50 EA 1.28 gpm Flush Toilet – 10” Rough $290.00 $14,500.00 3 250 EA Toilet Seat and Cover $15.00 $3,750.00 4 200 EA 2.2 gpm Faucet Aerator $5.00 $1,000.00 5 50 EA 2.5 gpm Shower Head $13.00 $650.00 6 125 EA Water Pressure Determination $10.00 $1,250.00 7 10 EA Adjust Existing Water Pressure Regulating Valve $5.00 $50.00 8 15 EA Replace Existing 3/4" Water Pressure Regulating Valve $1.00 $15.00 9 10 EA Replace Existing 1” Water Pressure Regulating Valve $2.00 $20.00 10 20 EA Install New 3/4" Water Pressure Regulating Valve $140.00 $2,800.00 11 20 EA Install New 1” Water Pressure Regulating Valve $165.00 $3,300.00 TOTAL CONTRACT PRICE $74,335.00 3. The Parties agree to amend the Contract amount to $74,335.00. The term of the second Contract Time Extension shall expire on February 23, 2017. 4. Except as modified herein, all other terms and conditions of the Contract shall remain in full force and effect. Item 9.i. - Page 4 IN WITNESS WHEREOF, this Third Amendment has been duly executed as of the date first set forth above. CITY OF ARROYO GRANDE WATERBOYS PLUMBING, INC. _______________________ ___________________________ Jim Hill, Mayor Thomas Potter, Owner ATTEST: ___________________________________ Kelly Wetmore, City Clerk APPROVED AS TO FORM: _____________________________________ Heather Whitham, City Attorney Item 9.i. - Page 5 ATTACHMENT 1 Item 9.i. - Page 6 Item 9.i. - Page 7 THIS PAGE INTENTIONALLY LEFT BLANK Item 9.i. - Page 8