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RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: May 20, 2011 ITEM NO: 5 SUBJECT: FIRST AMENDMENT TO AGREEMENT WITH UTILIQUEST L.L.C. FOR UNDERGROUND LOCATING SERVICES ISSUE: That the Board of Public Utilities consider approval of the First Amendment to the Agreement with Utiliquest L.L.C. for Underground Locating Services. RECOMMENDATION: That the Board of Public Utilities approve the First Amendment to the Agreement with Utiliquest L.L.C. for Underground Locating Services in an amount not to exceed $990,000. BACKGROUND: Underground locating is a vital function of the Utility to maintain safety and reliability of the water and electric systems and is required by State law Government Code Section 4216. Utiliquest L.L.C. (Utiliquest, formerly U.T.I.) has been competently providing this service for Riverside Public Utilities under contract and extensions since 2001. To ensure the best possible services and the best possible price, the City issued a formal Request For Proposals for these services in May 2008. In June 2008, the proposal evaluation team, consisting of staff from Public Utilities, Public Works, and Finance departments, selected Utiliquest as the successful proposer based on their industry experience, lowest cost, and excellent past performance. The evaluation team negotiated this favorable agreement with Utiliquest to provide this service. The term of the Agreement was for July 1, 2008 through July 1, 2011, unless terminated earlier. The term may be extended by mutual consent of the parties for additional one-year periods not to exceed two additional years. Utiliquest has agreed to a one-year extension of the current agreement maintaining the existing terms and pricing as proposed in July 2008. Based on their excellent performance and the fact they are holding pricing to 2008 levels in this climate of volatile fuels costs, staff recommends authorizing a one-year extension through June 30, 2012. It should be noted that unit costs for this service is only B% higher than costs the City paid in 2003. FISCAL IMPACT: The total cost for the First Amendment to the Agreement will not exceed $990,000. Sufficient funds are programmed in the proposed FY 2011-12 budget, Professional Services Account Nos. 6105000-421000 and 6205000-421000. Prepared by: Stephen H. Badgett, Public Utilities Deputy General Manager Approved by: David H. Wright, Public Utilities General Manager Approved by: Belinda J. Graham, Assistant City Manager Approved as to form: Gregory P. Priamos, City Attorney