REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
DATE: 04/03/2024
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
SUBJECT:
Title
FIFTH AMENDMENT TO THE MAINTENANCE/GENERAL SERVICES AGREEMENT WITH KNUDSEN GRADING COMPANY INC., DBA GREEN MOUNTAIN ENGINEERING FOR “AS-NEEDED” GRADING AND SPOILS REMOVAL SERVICES
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EXECUTIVE SUMMARY:
The staff report asks the City Council to approve the Fifth Amendment to the Maintenance/General Services Agreement, with Knudsen Grading Company Inc., DBA Green Mountain Engineering for “as-needed” grading and spoils removal services. The Utilities Department uses Knudsen Grading Company Inc., for site grading work and stockpiled spoils removal. The existing agreement includes soil screening and debris transportation disposal services.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Approve the Fifth Amendment to the Maintenance/General Services Agreement with Knudsen Grading Company Inc., DBA Green Mountain Engineering, for “as needed” grading and spoils removal services for Fiscal Year 2024 in the amount of $81,500.
b. Authorize the City Manager, or his designee, to execute the Fifth Amendment with Knudsen Grading Company, Inc., DBA Green Mountain Engineering and increase the purchase order in the amount of $81,500 for a total contract amount of $300,000.
That the Corona Utility Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions.
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BACKGROUND & HISTORY:
On June 20, 2018, the City of Corona issued Request For Proposals (RFP) No. 18-051CA for On-call Site Grading and Stockpiled Spoils Removal Services. The RFP was advertised in the Sentinel Weekly News on June 22, 2018, and posted on the City of Corona’s bidding website. The City solicited 11 contractors with 2 contractors submitting proposals: Hardy and Harper Inc., and Knudsen Grading Company Inc., DBA Green Mountain Engineering.
The City Council awarded RFP 18-051CA on September 5, 2018, for $130,000 to Knudsen Grading Company Inc., DBA Green Mountain Engineering (Knudsen). On February 15, 2019, the Purchasing Division processed an initial 10% change order and issued the First Amendment to the Maintenance/General Services Agreement increasing the total compensation to $143,000.
On May 15, 2019, City Council approved a second amendment to the agreement authorizing to increase the contract amount to $186,000. The third and fourth amendments were executed by the City Manager’s designee on August 20, 2020, and August 24, 2022, respectively, increasing the contract to $218,500 and extending the agreement term through June 30, 2024.
ANALYSIS:
Stockpiled spoils removal work generally involves soil screening and debris transportation/disposal services. Spoils materials are typically produced from excavation activities performed by the Utilities Department that occur throughout City roadways and other rights-of-way resulting from water, sewer, and water reclamation pipeline/facility repairs or replacement projects. The volume of spoils generated varies due to the nature of each job. The unsorted materials (mixed soil, concrete, and asphalt) are transported by UD to a holding facility that can safely maintain a maximum capacity of 500 tons where it is then hauled off by Knudsen. In the past year, the water infrastructure system has experienced an increased number of unplanned maintenance activities, resulting in larger excavations and removal of native soil. The increased rainfall during the winter months has led to increases in services City-wide with higher-than-average spoils removal.
Of note, Knudsen rates have increased only 10% in most areas from the initial contract rates from 2019 and 20% or less from the 2019 rates in two areas compared to the rates included in the proposed Fifth Amendment. Comparatively, the Consumer Price Index for All Urban Consumers for Riverside-San Bernardino-Ontario, California (CUURS49CSA0) for the same period increased by 24.14%.
A comparison of rates is shown in the following table:
Based on the department’s year-to-date and anticipated future expenses, staff requests approval of the Fifth Amendment to the Maintenance/General Services Agreement increasing the compensation by $81,500 for Knudsen Grading Company Inc., DBA Green Mountain Engineering for a total amount not to exceed $300,000 for FY2024 for as-needed grading and spoils removal services due to water, sewer, and reclaimed infrastructure repairs. The approval of this amendment is to complete the work for FY2024. The Utilities Department, in conjunction with Purchasing, plans to bid these services in FY2025.
FINANCIAL IMPACT:
There is sufficient budget in the Utilities Department Operating budgets for the recommended actions.
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Act (CEQA), which states that “operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination,” and is therefore exempt from CEQA. This action involves spoils removal due to the repair of the underground infrastructure. Therefore, no environmental analysis is required.
PREPARED BY: AFTAB HUSSAIN, MAINTENANCE MANAGER
REVIEWED BY: TOM MOODY, DIRECTOR OF UTILITIES
Attachments:
1. Exhibit 1 - Maintenance/General Services Agreement
2. Exhibit 2 - First Amendment
3. Exhibit 3 - Second Amendment
4. Exhibit 4 - Third Amendment
5. Exhibit 5 - Fourth Amendment
6. Exhibit 6 - Fifth Amendment