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