Agenda Item Wording:
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Authorize City Manager to award RFQ 22-23-66 and establish a qualified bidders list to perform various maintenance activities in the sanitary and storm sewer systems, including rehabilitation of lift stations, wells & pumps, and repair sanitary and storm sewer mains. Work completed under this contract will be funded through the operating and CIP budgets of the Wastewater and Storm Sewer funds at an amount not to exceed $1,500,000 annually. This is a one (1) year contract and is renewable for up to four (4) additional one year periods.
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Deadline for Action: 11/6/2023
Submitting Department: Public Works
Contact Name and Phone Number:
Wyndi Ferguson, Public Works Manager, wyndi.ferguson@visalia.city <mailto:wyndi.ferguson@visalia.city>, 713-4186
Nick Bartsch, Public Works Director, nick.bartsch@visalia.city, 713-4052
Department Recommendation:
Staff recommends that Council authorize the City Manager to establish a qualified bidders list for the repair and rehabilitation of the City’s sanitary and storm sewer systems consisting of the following contractors:
West Valley Construction Company, Inc. San Jose, CA
S W Construction, Inc. Bakersfield, CA
RT Nelson Company, Inc Visalia, CA
GSE Construction Company, Inc. Livermore, CA
Staff recommends that Council authorize the City Manager to award of an annual contract to each of the four (4) qualified bidders, West Valley Construction, S W Construction, RT Nelson, and GSE Construction, in a combined amount not to exceed $1,500,000 annually with up to four (4) additional one year periods.
Background Discussion:
Repair and rehabilitation of the City’s sanitary sewer and storm sewer systems is primarily outsourced to private contractors. In the vast majority of cases, the work is reactive in nature and in most cases cannot be determined in advance. Work is performed on an “as needed” basis and is scheduled after a system deficiency or failure is discovered. The scope of work for each project is initially determined based on the best information available, but the true scope is likely to expand or contract once the problem is excavated and exposed.
Ideally, as individual projects are identified, standard City purchasing procedures would be followed in selecting a contractor to complete the work. Depending on the estimated cost, this could include a formal bidding process, evaluation of bids, award by Council, and processing of contracts. In the best case scenario, this is a two month process for even modestly sized projects. Unfortunately, repair work on a broken sewer system cannot sit idle while a multiple month purchasing process unfolds.
In 2018, Council approved a hybrid approach to this issue, whereas a Request for Qualifications (RFQ) was issued, and respondents were evaluated to determine whether they met the minimum qualifications necessary to perform the typical scope of work anticipated. Based on that evaluation a list of “eligible bidders” was established, and individual contracts were awarded. As individual projects arise, a scope of work is developed, all contractors on the list are notified of the scheduled “job walk”, and a reasonable bid submission deadline is established. Once the bids are evaluated, the lowest responsive bidder is awarded the project, a Purchase Order is issued, and work can commence shortly thereafter. Because of the upfront work of establishing the eligible bidders list, the process unfolds very quickly once a project is identified.
All the eligible bidders were awarded five (5) year contracts, and those contracts expired in July 2023. In September 2023, RFQ 22-23-66 was issued for the Rehabilitation of Lift Stations, Well & Pumps, and the Repair of Sanitary Sewer and Storm Sewer Mains. Respondent’s qualifications were evaluated, and the following responses were determined to meet the minimum qualifications:
West Valley Construction Company, Inc. San Jose, CA
S W Construction, Inc. Bakersfield, CA
RT Nelson Company, Inc Visalia, CA
GSE Construction Company, Inc. Livermore, CA
Staff believes this approach has proven very successful and recommends that Council authorize the City Manager to award a contract to each of the contractors listed. Contractors will be required to submit all necessary insurance and other documentation to the City prior to being placed on the bidders list. The City has made clear that inclusion on the eligible bidders list does not guarantee that a contractor will be selected to perform work for any project as each project will be awarded separately to the lowest responsive bidder.
Fiscal Impact:
Work to be performed under this contract is funded through the Wastewater Enterprise Fund (431) and the Storm Water Maintenance Fund (481) Capital Improvement Projects (CIP), CP9456 Replace and Relocate Sanitary Sewer Mains and CP0589 Storm Drainage Replacement, respectively.
Prior Council Action:
5/7/2018
Authorization to award RFQ 17-18-11 and establish a qualified bidders list.
Alternatives:
Reject proposal approach and follow City’s standard bidding process each time a project is identified.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to award RFQ 22-23-66 and establish an eligible bidders list, and further authorize the City Manager to award an annual contract to each of the qualified bidders, West Valley Construction, S W Construction, RT Nelson, and GSE Construction, in a combined amount not to exceed $1,500,000 with up to four (4) one year extensions.
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Attachments:
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