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Home My WebLink About2012/10/23 Item 07TY COUNCIL STATEMENT ~~ CITY OF m CHULAVISTA 10/23/12, Item 7 ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE TRANSFER OF $49,486 PROM THE CAPITAL IMPROVEMENT PROTECT SW262 TO THE SEWER SERVICE OPERATING BUDGET; ND AM)/NDING THE BUDGETS THEREFOR ~ SUBMITTED BY: DIRECTOR OF PUBLIC WORKS I,/ _\,~1 J ASSISTANT DIREC OF ENG RING fw~l'r ~Jd~'_ REVIEWED BY: CITY MANAGE ASSISTANT CITY ANAGER lj~ 4/STNS VOTE: YES ® NO ^ SUMMARY Over the course of time, the City sewer manholes in certain areas of the City have been inhabited with roaches. On September 13, 2011, per Resolution 2011-178. City Council entered into an agreement with Golden Bell Products. Inc. (Golden Bell) to apply insecticide to the City sewer manholes to control the spread of roaches. Tonight's action, to ensure proper accounting, will authorize the transfer of $49,486 from Capita] hnprovement Project SW262 (where the cost for the service was budgeted for) to the Sewer Operating Budget to cover the cost of providing vermin eradication services for PY 2012-2013. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity qualities for a Class l categorical exemption pursuant to Section 15301 [Existing Facilities of the State CEQA Guidelines because the activity consists of continuing maintenance operations involving the application of insecticides to existing sewer facilities fowid within existing street right-of- way. Thus, no Further environmental review is necessary. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. 7-1 10/23/12, Item Page 2 of 3 DISCUSSION Over time, roaches multiply due to the moist enviromnent in the sewer collection system. Controlling the spread of roaches reduces the health threat to both city employees and customers. On Tune 10, 2011, staff issued a Request for Proposals for Sewer Collection Systems Vermin Eradication Services. Subsequently, Golden Bell was selected to provide such services in accordance with Section 2.57 of the Chula Vista Muivcipal Code and the City contractor selection guidelines. Consequently, on September 13, 2011, per Resolution 2011-178, City entered into an agreement with Golden Bell to apply insecticide to the City sewer manholes to control the spread of roaches. Resolution 20] 1-178 authorized the City Engineer to enter into an agreement with Golden Bell for vermin eradication services for an amount of $SQ000 for Fiscal Year 2011-2012, and further authorized the City Engineer to add four one-year-extensions to be funded from the sewer operating budget. The maximum contracted amormt of each proceeding fiscal year extension was limited to $50,000, with an increase of 2% per year in the unit cost as described in the following table: Fiscal Year Cost per Manhole for Treating more than 1000 Manholes Cost per Manhole for Treating less than 1000 Manholes 2012-2013 $19.89 $21.42 20]3-2014 $20.29 $21.85 2014-2015 $20.69 $22.28 2015-2076 $2].10 $22.73 The nwnber of manholes to be treated would be based on the unit price submitted by the contactor and the cost of other needed services. Iu November of 2011. Golden Bell treated 2550 manholes and was compensated $49,861.50 for such work. For FY 2012-2013 the City will treat the maximum number of manholes with the $49,486 transfer. The City has the right to terminate this contract at any time without ~„y obligations. The costs for the FY 2012-2013 year (in the amount of $49,86].50) was budgeted for in Capita] Improvement Project ("CIF") SW262. However, to ensure proper accounting, such expenses should be documented in the Sewer Service Operating Budget As a result, it is requested that a transfer of $49,861.50 be made from CIP SW262 to the Sewer Service Operating Budget. DECISION MAKER CONFLICT Pursuant to California Code of Regulations Section ] 8704.2 (b) (2), there is no material et~ect on a~~y economic interests in real property as the decision solely concerns repairs, replacement, or maintenance of existing streets, water, sewer, storm drainage or similar facilities. 7-2 10/23/12, Item ~ Page 3 of 3 CURRENT YEAR FISCAL IMPACT Funds in the amount of $49,486 are still in CIP budget in the FY 20]2-20]3 Capital hnprovement Budget - SW 262 for sewer vermin eradication. Por accounting purposes, sewer vermin eradication is considered a major maintenance expense and therefore classified as an operating expenditure rather than a capital improvement expenditure. As such staff is recommending the capital project SW-262 be closed and the sewer funds be transferred from the adopted FY 20]2-20]3 Capital Improvement Budget to the sewer service professional services account in the sewer operating budget. ONGOING FISCAL IMPACT The cost for the optional extension not to exceed $50,000 annually for the proceeding three years is anticipated to be budgeted for subsequent years in the sewer operating budget. ATTACHMENTS A. Resolution 2011-178 Prepared b~~: Jamal Naji, P. E., ,4ssociate Civil E~~gineer, Public N'orks Departme~~a J' IEngineer~AG6.VD.91C9S2017110-73J?II'er'nrnr ernrli<'ation Cantracl 9iuhori:ing 7Yar~eferREF'doc 7-3 ,tl'{j/>~HMENT RESOLUTION NO. 2011-178 RESOLUTION OP THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND GOLDEN $ELL PRODUCTS, INC. FOR PROVIDING SEWER COLLECTION SYSTEMS VERMIN ERADICATION SERVICES; AUTHORIZING THE TRANSFER OF $50,000 FROM THE CAPITAL IMPROVEMENT PROJECT SW262 TO THE SEWER SERVICE OPERATING BUDGET; AND AMENDING THE BUDGET5THEREFOR WHEREAS, over the course of time, the City sewer manholes in certain areas of the City have been inhabited with roaches: and WHEREAS, controlling the spread of roaches will reduce the health threat to both city employees and customers; and WHEREAS, on June ]0, 2011, staff issued a Request for Proposals for Sewer Collection Systems Vermin Eradication Services. Subsequently, on June 30, 2011, the Director of Public Works received two (2) proposals far this project: Contractor Name Total Contract Traffic Control Subconsultant Cost for Treating Each Manhole Golden Bell Products, Inc $50,000 At Cost $19.50 Temtinix Commercial $50,000 At Cost $50.00 WHEREAS, Golden Bell Products, [nc. has proven its expertise in applying Insecta 45600-1, and warrants that it is experienced and staffed in a manner such that it can deliver the services required of a Contractor in accordance with the time frames and the terms and conditions of this agreement; and WHEREAS, the City shall pay Golden Bell, Inc. a fixed fee of $19.50 for treating each manhole. WHEREAS, the contract also grants the City Engineer 4 one-year options to extend, whereby he may extend the contract for vermin eradication services up to a maximum of 4 years at the same contract maximum of $50,000 per year for the subsequent Fiscal Years 2013 through 2016; and 7-4 Resolution No. 2011-178 Page ? WHEREAS, the contract allows far an increase of 2% per year in the unit cost as follows: Fiscal Year Cost per Manhole for Treating more than 1000 Manholes Cost per Manhole for Treating less than 1000 Manholes 2012 $19.50 $21.00 2013 $19.89 $21.42 2014 $20.29 $21.85 2015 $20.69 $22.28 2016 $21.10 $22.73 WHEREAS, the Capital Improvement Budget is a multi-year budget for long-lived capital improvement projects and assets; and WHEREAS, examples of capital assets include: land, improvements to land, easements, buildings, bui]ding improvements, infrastructure, equipment, vehicles and machinery; and WHEREAS, capital improvements projects include: construction or rehabilitation of roads, bridges, drainage systems, water and sewer systems, dams, lighting and traffic systems; and WHEREAS, sewer vermin eradication is a major maintenance expenditure and not classified as a capital improvement project andlor asset; and WHEREAS, it is necessary to move the expenditure from the Capital Improvement Budget SW262 to the Sewer Service operating budget and amend the budgets accordingly. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does approve an agreement between the City of Chula Vista and Golden Bell Products, Inc. for Providing Sewer Collection Systems Vermin Eradication Services; authorize the transfer of $50,000 from the Capital Improvement Project SW262 to the Sewer Service Operating Budget; and amend the budgets therefor. Presented by Approved as to form by Richard A. H pkins len R. ogins Director of Public orks ey 7-5 Resolution No. ZO11-178 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 13th day of September 201 ] by the following vote: AYES: Councilmembers: Aguilar, Bensoussan, Castaneda, Ramirez and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None ~~~~ Cheryl Cox, yo ATTEST: _~~~ ~~~ Donna R. Norris, CMC, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Donna R. Norris, City Clerk of Chula Vista, California, Resolution No. 2011-178 was duly passed, approved, an regular meeting of the Chula Vista City Council held on the Executed this lith day of September 201 1. do hereby certify that the foregoing I adopted by the City Council at a 13th day of September 2011. ~ ~~~ Donna R. Norris, CMC, City Clerk 7-6 RESOLUTION NO. 2012- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE TRANSFER OF $49,486 FROM THE CAPITAL IMPROVEMENT PROJECT SW262 TO THE SEWER SERVICE OPERATING BUDGET; AND AMENDING THE BUDGETS THEREFOR WHEREAS, over the course of time, the City sewer manholes in certain areas of the City have been inhabited with roaches; and WHEREAS, controlling the spread of roaches will reduce the health threat to both city employees and customers; and WHEREAS, on June 10, 2011, staff issued a Request for Proposals (RFP) for sewer collection systems vermin eradication services and Golden Bell Product, Inc. (Golden Bell) was subsequently chosen to provide such services; and WHEREAS, for Fiscal Year (FY) 2011-12, during the month of November, Golden Bell treated 2,550 manholes and was compensated $49,861.50 for such work; and WHEREAS, the contract with Golden Bell also grants the City Engineer four one-year options to extend the contract for vermin eradication services up to a maximum of four years at the same contract maximum of $50,000 per year for the subsequent Fiscal Years 2012-13 through 2015-16;and WHEREAS, the contract allows for an increase of 2% per year in the unit cost as follows: Fiscal Year Cost per Manhole for Treating more than 1000 Manholes Cost per Manhole for Treating less than 1000 Manholes 2011-12 $19.50 $21.00 2012-13 $19.89 $21.42 2013-14 $20.29 $21.85 2014-15 $20.69 $22.28 2015-16 $21.10 $22.73 WHEREAS, for FY 2012-13, the City will treat the maximum number of manholes with the $49,486 transfer and that such funds have been budgeted for in Capital Improvement Project ("CIP") SW262; and WHEREAS, to ensure proper accounting, costs for vermin eradication, as discussed herein, should not be in the Capital Improvement Project budget, but should be in the Sewer Service Operating Budget, and therefore, it is necessary to transfer $49,486 from CIP SW262 to the Sewer Service Operating Budget and amend their budgets accordingly. 7-7 Resolution No. Page 2 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby authorize the transfer of $49,486 from the Capital Improvement Project SW262 to the Sewer Service Operating Budget; and amend the budgets therefor. Presented by Richard A. Hopkins Director of Public Works Approved as to form by ~~~~~ Glen R. Googins City Attorney 7-8