Agenda Item Wording:
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Authorize the City Manager to award Request for Bids (RFB) 22-23-37, an annual contract for On-Call Concrete Repair/Replacement to Sierra Range Construction of Visalia, CA. for the not to exceed amount of $200,000, based on proposed unit pricing. This is a one (1) year contract that may be renewed for four (4) consecutive one (1) year periods upon mutually agreed upon terms.
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Deadline for Action: 5/15/2023
Submitting Department: Public Works
Contact Name and Phone Number:
Wyndi Ferguson, Public Works Manager, wyndi.ferguson@visalia.city, 713-4186
Nick Bartsch, Public Works Director, nick.bartsch@visalia.city <mailto:nick.bartsch@visalia.city>, 713-4052
Department Recommendation:
Staff recommends that the City Manager award an annual contract for On-Call Concrete Repair/Replacement to Sierra Range Construction of Visalia, CA. for the not to exceed amount of $200,000, based on proposed unit pricing. This is a one (1) year contract that may be renewed for four (4) consecutive one (1) year periods upon mutually agreed upon terms.
Background Discussion:
Staff conducted a competitive bid process for a contractor to supply concrete repair and replacement services on an on-call basis throughout the city (RFB 22-23-27). These services include but are not limited to repair or replacement of sidewalks, curbs and gutters, driveway approaches and bus pads to bring them into compliance with codes and regulations. Additionally, the City offers contracted services to property owners needing concrete work in the right-of-way adjacent to their property frontage. An estimate will be provided to the property owner with a scope of work utilizing the unit bid prices, and if agreeable to the property owner, the Contractor will perform the work. The property owner can either pay the City directly or agree to have the cost of the repairs assessed to their property tax bill in four (4) equal annual installments.
The bid was comprised of twenty-nine (29) standard projects commonly used by the City with a unit cost for each item. Estimated annual quantities were used to project unit prices to the total annual cost. The total annual cost was used to award the bid and the unit costs will be the basis for payment on each future project. These bids include prevailing wage requirements. In some cases, the unit costs of concrete services have doubled, and others have as much as tripled, thus resulting in a significant increase to the “Total Estimated Annual Cost” from the previous contract which dates back to 2015. Unit prices under this contract are also typically much higher than the City’s capital projects due to the inefficiencies of small quantities spread throughout the City. In most cases, the contractor is required to remove and replace, or make repairs to, short segments of sidewalk or curb and gutter in isolated locations.
On April 25, 2023, one (1) bid was received by Purchasing. This bid was submitted by Sierra Range Construction in the amount of $779,200 for numerous unit-priced items and was based on estimated quantities. Historically, the City has not utilized all items on this list every year, but needed to establish unit pricing so it is available as needs arise. Therefore, a not to exceed amount of $200,000 per year provides the flexibility for the City’s various departments to utilize this contract for concrete repair work as issues arise. Sierra Range Construction has held the contract for the last 15 years. They are very capable, dependable and have an excellent performance history with the City; therefore, it is staff’s recommendation that Sierra Range Construction be awarded the contract.
Fiscal Impact:
Funding for these services is budgeted within the Street Maintenance operating budget (3124) in the amount of $70,000. While the total bid amount of $779,200 is much higher than the amount budgeted under this account, not all items of work will be performed every year, or necessarily in the quantities estimated. Additionally, some costs will be reimbursed through billing direct to property owners or approved property tax assessments. Ultimately, the unit prices for individual items of work will be utilized and billed accordingly for work that is performed. Staff will address any budget shortfall within the fiscal year if such occurs. This contract may also be used by other departments throughout the City. While work for other departments may be performed under this contract, each department would budget for those costs accordingly within their own operating budget.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to award an annual contract for On-Call Concrete Repair/Replacement to Sierra Range Construction of Visalia, CA. for the not to exceed amount of $200,000, based on proposed unit pricing. This is a one (1) year contract that may be renewed for four (4) consecutive one (1) year periods upon mutually agreed upon terms.
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Attachments:
RFB 22-23-37
RFB 22-23-37 Bid Results