Title
Consider a memorandum/resolution authorizing a Letter of Agreement with Rice Inspection, Inc. for construction inspection on three Water and Sewer Capital Improvement Plan Projects, in an amount of $328,328.
Body
DATE: April 16, 2024
TO: Kent Cagle, City Manager
FROM: Edwin Revell, Executive Director of Development Services
SUBJECT: Authorize the execution of a Letter of Agreement with Rice Inspection, Inc. for construction inspection on three Capital Improvement Plan Projects
BACKGROUND AND FINDINGS:
In the past month, City Council awarded construction contracts for the Chaparral Pump Station Project and the Pump Station No. 2 Rehab Project. In June, the award of a construction contract for the Airport Pump Station Update Project will be presented to City Council. In the past, construction inspection for Water and Sewer Capital Improvement Plan (CIP) projects was handled by City inspectors from the Engineering Division. Due to the current workload of city inspectors, the construction inspection of two Water and Sewer CIP projects is being outsourced.
City staff negotiated a letter of agreement with Rice Inspection in an amount not to exceed $328,328 for construction inspection on the Chaparral Pump Station Project, the Pump station No. 2 Rehab Project, and the Airport Pump Station Update Project. Rice inspection is currently providing construction inspection on the Trimmier Creek Basin Wastewater Main Project and the Chaparral Wastewater Improvements Project.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms to state and local policies. According to Local Government Code 252.022, this item is exempt from competitive bidding requirements.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The total expenditure of $328,328 will be encumbered in fiscal year 2024 and spent between fiscal years 2024 and 2026.
Is this a one-time or recurring revenue/expenditure?
This is a one-time expenditure.
Is this revenue/expenditure budgeted?
Yes, funds are available in the Water & Sewer Revenue & Improvement Bond, Series 2020 Fund account 363-8934-493.69-03 and the Water & Sewer CIP Fund account 387-8934-493.69-03.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/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 three Water and Sewer CIP projects in the amount of $328,328 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:
Development Services
Public Works
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Certificate of Insurance
Certificate of Interested Parties
Presentation