R2024-356 Resolution Authorizing a Contract with USIC Locating Services, LLC for Facility Locating and Marking Services

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Public Works DATE: 11/7/2024 MEMO: 2024-176 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Tim Gleason, City Manager Matt Newell,P.E.,Public Works Director Paul Caswell,P.E.,City Engineer SUBJECT: Resolution Authorizing a Contract with USIC Locating Services, LLC for Facility Locating and Marking Services SUMMARY RECOMMENDATION: It is recommended that the City Council approve a Resolution authorizing a Contract between the City of Decatur and USIC Locating Services,LLC to provide City owned utility locating and marking services. BACKGROUND: Illinois General Assembly enacted the Underground Utility Facilities Damage Projection Act on January 1, 1991. The purpose of the Act was for the protection of underground utilities,the public and excavators during excavation. An amendment to the Illinois Underground Utility Facilities Damage Prevention Act occurred in 1995, 1997,and in 2002. The amended Act in 2002 required all home rule municipalities to join the statewide one-call notification system,Joint Underground Locating Information for Excavations(JULIE),as the notification service for Illinois. In 2002,the Public Works Department evaluated taking on the work in-house in 2002;but due to the cost of the additional staff required,seasonal variability in the work,the requirement to locate 24 hours a day 365 days a year,and cost for equipment,it was decided to contract out the work. In 2002,the City issued a request for proposals and found Great Plans Locate Service (GLPS)having the greatest benefit to the City in providing the service. GLPS has since been acquired by USIC Locating Services,LLC (USIC). USIC approached the City this summer requesting an update to the 2002 agreement due to the inflationary costs of labor and materials. Since 2002,the price has only increased by 3%. With the recently requested contract change,staff reviewed options to complete the work in-house and also spoke with surrounding communities on how they were locating their utilities. It was found that our surrounding communities either did the locating work in-house or contracted with USIC. A recent RFP issued by a neighboring community did not yield alternate utility locating providers in the area. Due to the complexity and amount of the work required it is recommended that the City is best served by continuing its contractual relationship with USIC. While it varies from year to year,the JULIE one call system notifies the City of around 10,000 locations for utility locates annually. The total cost for USIC service last year was approx. $275,000. The cost to locate is charged to the fund for the utility that is being located. Over the past year,the Water Fund paid$128,000(47%),the Storm Sewer Fund paid$42,500 (15%),the Sanitary Sewer Fund paid$58,500(21%),and the Public Works Administration Budget paid$46,000(17%)for traffic signals and streetlights. The total locating cost varies from year to year because it depends on the amount of requests for locates;however,it is expected that the new contract will increase by approximately 15%. The contract has a built-in automatic increase annually of 2.5%or the percentage increase equal to the Consumer Price Index,whichever is more. LEGAL REVIEW: The Agreement was reviewed by Legal on October 15,2024. SCHEDULE: The Contract is for one year with automatic renewal unless one party elects to option out of the agreement. PRIOR COUNCIL ACTION: September 16,2002—The City Council approved Resolution R2002-168-A&R2002-169-A entering into the Joint Underground Locating Information for Excavators(JULIE)one call notification system and authorizing an agreement for with Great Plains Locating Service,Inc to provide locating and marking services.