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File #: RS-23-185    Version: 1 Name: LOA Rice Inspections Chaparral Rd WW Project
Type: Resolution Status: Passed
File created: 10/16/2023 In control: City Council
On agenda: 11/14/2023 Final action: 11/14/2023
Title: Consider a memorandum/resolution to authorize a Letter of Agreement with Rice Inspection, Inc. for Construction Inspection on the Chaparral Road Wastewater Improvements Project, in an amount of $50,516.
Sponsors: Water & Sewer
Attachments: 1. Agreement, 2. Certificate of Insurance, 3. Certificate of Interested Parties, 4. Presentation

Title

 

Consider a memorandum/resolution to authorize a Letter of Agreement with Rice Inspection, Inc. for Construction Inspection on the Chaparral Road Wastewater Improvements Project, in an amount of $50,516.

 

Summary

 

DATE:                     November 7, 2023                     

 

TO:                     Kent Cagle, City Manager                     

 

FROM:                     Jeffery Reynolds, Executive Director of Public Works                     

 

SUBJECT:                     Authorize the execution of a Letter of Agreement with Rice Inspection, Inc. for Construction Inspection on the Chaparral Road Wastewater Improvements Project                     

 

BACKGROUND AND FINDINGS:

 

On September 26, 2023, City Council awarded a construction contract to Arguijo Corporation for the construction of the Chaparral Road Wastewater Improvements Project.  In the past, construction inspections for Water and Sewer capital improvement plan (CIP) projects were handled by city inspectors from the Engineering Division.  Due to the workload of city inspectors, future inspections of Water and Sewer CIP projects will need to be outsourced.

 

City staff negotiated a letter of agreement (LOA) with Rice Inspection in an amount of $50,516 for construction inspections on the Chaparral Road Wastewater Improvements Project. Rice Inspection is currently providing construction inspections on the Trimmier Creek Basin Wastewater Main Project.

 

THE ALTERNATIVES CONSIDERED:

 

(1)                     Do not approve the letter of agreement with Rice Inspection; this will hinder the Chaparral Road Wastewater Improvements Project from getting constructed as designed.

(2)                     Approve the letter of agreement with Rice Inspection in an amount of $50,516.

 

Which alternative is recommended? Why?

 

Staff recommends Alternative (2), approval of the proposed letter of agreement with Rice Inspection due to their exceptional inspection and easement acquisition service on the Trimmier Creek Basin Wastewater Main Project.  Staff believes that Rice Inspection has submitted a fair and reasonable proposal for their construction inspection services.

 

CONFORMITY TO CITY POLICY:

 

This item conforms to state and local policies. According to Texas Local Government Code 252.022(a)(4), this item is exempt from competitive bidding requirements.

 

FINANCIAL IMPACT:

 

What is the amount of the expenditure in the current fiscal year? For future years?

 

The total expenditure in an amount of $50,516 for fiscal year 2024.

 

Is this a one-time or recurring expenditure?

 

One-time

 

Is this expenditure budgeted?

 

Yes, funds are available in the Water & Sewer CIP Fund account 387-8934-493.69-01.

 

If not, where will the money come from?

 

N/A

 

Is there a sufficient amount in the budgeted line-item for this expenditure?

 

Yes

 

RECOMMENDATION:

 

City Council authorize the City Manager or designee to execute a Letter of Agreement with Rice Inspection, Inc. for construction inspection on the Chaparral Road Wastewater Improvements Project in an amount of $50,516 and authorize the City Manager, or designee, to execute any and all change orders within the amounts set by state and local law.

 

DEPARTMENTAL CLEARANCES:

 

Public Works

Finance

Legal

 

ATTACHED SUPPORTING DOCUMENTS:

 

Agreement

Certificate of Insurance

Certificate of Interested Parties

Presentation