REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: JESUS A. GONZALEZ, PE, Assistant Director Department of Public Utilities - Utilities Planning & Engineering ROBERT A. DIAZ, Supervising Engineering Technician Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title ***RESOLUTION - Adopting the 33rd Amendment to the Annual Appropriation Resolution (AAR) No. 2022-154 appropriating $988,000 for Permanent Asphalt Concrete Pavement Repairs (Requires 5 Affirmative Votes) (Subject to Mayor's Veto). ..Body RECOMMENDATION Staff recommends that City Council adopt the 33rd Amendment to the Annual Appropriation Resolution (AAR) No. 2022-154 appropriating $988,000 for Permanent Asphalt Concrete Pavement Repairs. EXECUTIVE SUMMARY Approval of the 33rd Amendment will appropriate $988,000 for Permanent Asphalt Concrete Pavement Repairs. A contract was awarded to Dawson-Mauldin LLC., in 2019, to repair street pavement at locations where water main and service repairs required sections of street paving be removed. Due to a higher than anticipated number of water main and service repairs, additional funds are needed to carry the contract through to its expiration in November of this year. BACKGROUND The Water Division removes existing street paving to gain access to the water system for repairs and maintenance. These pavement removals require a permanent pavement replacement. Due to the ongoing nature of extensive water service and water main repairs, the Water Division put out to bid a requirements contract for permanent pavement repairs. In 2019, City Council awarded a one-year requirements contract with provisions for up to three one-year extensions to Dawson-Mauldin LLC., for the Permanent Asphalt Concrete Pavement Repairs (Project). This contract permitted the Water Division to issue work orders for street repair on an as-needed basis. The Project contract is set to expire on November 1, 2023. Dawson-Mauldin LLC., requested and was awarded a labor and material increase on September 20, 2022. The City has experienced numerous unexpected water main failures and water service repairs that have exceeded the work originally forecasted. Dawson-Mauldin LLC., has performed all repair work per contract requirements and the Water Division seeks to fulfill the remaining contract year with Dawson-Mauldin LLC. Adoption of the 33rd Amendment to the AAR No. 2022-154 is requested to provide the additional appropriations required to fully fund this contract. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378 the award of this contract does not qualify as a "project" for the purpose of CEQA. LOCAL PREFERENCE Local preference was not implemented as this is an appropriation of funds. FISCAL IMPACT There will be no impact to the General Fund. The total contract cost of $988,000 will be appropriated into the Water Enterprise Fund upon adoption of the 33rd Amendment to the AAR No. 2022-154. The source of this funding is retained earnings. Attachment: 33rd Amendment to the Annual Appropriation Resolution No. 2022-154