| | | | | | | | Agenda Item - 3.e.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Lisa L. Kim
| From: | William E. Murray
| | Dept.: | City Manager
| Dept.: | Public Works
| | Subject: | Approval of an Agreement with Horizon Underground, Inc., to provide on-call saw cutting services for Water and Sewer Projects. (Cost: $190,000) (Action Item) | Date: | 1/23/2024 |
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| | | | | | | | OBJECTIVE
To request City Council approval of an agreement with Horizon Underground, Inc. for on-call saw cutting services for water and sewer projects. |
| | | | | | | | BACKGROUND
The Water and Sewer Services staff perform maintenance improvements throughout the city, which includes the removal of asphalt or concrete. Saw cutting provides a cleaner cut and a stronger bond with the existing asphalt. In situations where the asphalt is 12 to 18 inches thick, saw cutting is a more efficient and safer method as compared to using a jack hammer.
The contractor provides the necessary staff to meet demands, due to workload and equipment needs for large asphalt projects. The City retains these contractors based on overall performance and cost effectiveness. |
| | | | | | | | DISCUSSION
Due to workload and equipment needs for large asphalt projects, the City conducted a bid for concrete and asphalt saw cutting service. The invitation to bid was advertised on December 6, 2023. On January 5, 2024, one (1) bid was received and deemed responsive. The sole bidder was Horizon Underground, Inc. The bid amounts are listed below:
- 1” to 10” Depth- $291 per hour
- 11” to 15” Depth- $345 per hour
- 16” to 18” Depth- $393 per hour
- Emergency Call Out Rate- $589.50 per hour
- Handsaw 1” to 4” Depth-$225 per hour
- Handsaw 1” to 8” Depth- $259 per hour
- Minimum amount of hours per job- 4 hours
City staff reviewed the bid and negotiated an agreement with Horizon Underground, Inc. for their services. |
| | | | | | | | FINANCIAL IMPACT
The agreement is not to exceed $190,000 on as-needed basis per fiscal year with an annual option to extend the terms, for a total of five (5) fiscal years. Funding is included in the City’s adopted FY 2023-24 Water and Sewer enterprise fund budget. There is no impact to the General Fund. |
| | | | | | | | RECOMMENDATION
It is recommended that City Council:
- Approve the agreement with Horizon Underground, Inc. for on-call saw cutting services for water and sewer projects in the amount, not to exceed $190,000 per fiscal year with an annual option to extend the terms, for a total of five (5) fiscal years; and
- Authorize the City Manager to execute the agreement on behalf of the City and make minor modifications as appropriate thereto.
By: Samuel Kim, P.E.
Public Works Deputy Director/Water Services Manager
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| ATTACHMENTS: | | Description | Upload Date | Type | File Name | | Agreement | 1/16/2024 | Agreement | PROJECT_AGREEMENT-Horizon_Underground_Inc_FY_24.pdf |
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