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RIVERSIDE PUBLIC UTILITIES M3Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: March 19, 2010 ITEM NO: 10 SUBJECT: RENEWAL OF CONTRACTOR PANEL MASTER AGREEMENT FOR ENERGY DELIVERY WORK ISSUE: Board of Public Utilities approval is requested for the Amended and Restated Contractors' Panel Master Agreement. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve the Amended and Restated Master Agreement for the Energy Delivery Contractors' Panel, for an initial term of five years; and 2. Authorize the City Manager, or his designee,to execute three one-year extensions to the Amended and Restated Master Agreement, if necessary. BACKGROUND: The Energy Delivery Contractors' Panel was first established in 1999 to streamline the bidding process for construction work to help staff address the increasing demand for such work. At that time, existing Energy Delivery resources had a difficult time meeting the customer's time frames for electrical service, constructing or relocating electrical facilities required by Public Works' projects, continuing the Capital Improvement Program and restoring service to electrical outages. The firms on the panel are pre-qualified to bid on construction projects under a Master Agreement. The Master Agreement incorporates all contractual requirements including bonding and insurance. When Riverside Public Utilities (RPU) requires work by a contractor, request for bids are sent out to all panel members. Bids are generally returned and opened within 1 —2 weeks. Each bid is awarded to the lowest responsive bidder by the City of Riverside's(City) Purchasing Division. RPU only uses the panel for projects which are less than$500,000; projects in excess of this amount are bid through the City's formal competitive bidding process. Any contractor can join the panel if they meet the requirements and execute the Master Agreement. RPU periodically circulates and advertises for requests for proposals to add additional members to the panel. Section 1109 of the City Charter allows waiver of its formal bidding requirements for projects for construction and/or improvement of any public utility operated by the City, so long as the City Council adopts a resolution by at least five affirmative votes. The current Master Agreement was approved by the City Council, with prior Public Utilities Board concurrence, on March 23, 2004, for a duration of five years, with a clause allowing up to three one-year extensions. The City Council also adopted a resolution waiving formal bidding requirements, as referenced above. The Master Agreement was extended,with Board approval,for a period of one year beginning March 31, 2009. The Master Agreement is due to expire on March 31, 2010. It is proposed to amend and restate the Master Agreement for another five years, which will extend the agreement through March 31, 2015,with