REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
DATE: 03/01/2023
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
SUBJECT:
Title
Maintenance/General Service Agreement with R&B Automation, Inc. for Actuated Valve On-Call and On-Site Preventative Maintenance, Repair, and Asset Register Creation.
End
EXECUTIVE SUMMARY:
This staff report asks the City Council to consider a Maintenance/General Service Agreement (MGSA) with R&B Automation, Inc. in the amount of $250,000. R&B Automation, Inc. will provide the City of Corona Utilities Department with actuated valve on-call and on-site preventative maintenance, repair, replacement, and valve inspection services. Additionally, it will create an asset register to include all valves with actuators for the Department’s computerized asset management and work order system.
RECOMMENDED ACTION:
Recommended action
That the:
a. City Council award Notice Inviting Bid 23-020AS for the Actuated Valve on-Call and On-Site Preventative Maintenance, Repair, and Asset Register Creation Project to R&B Automation, Inc., the lowest responsive, responsible bidder, for the total bid amount of $250,000 per fiscal year.
b. City Council authorize the City Manager, or his designee, to negotiate and execute the Maintenance/General Services Agreement with R&B Automation, Inc. in the amount of $250,000 per fiscal year for the initial contract term ending June 30, 2025, with one (1) optional three (3) year extension.
c. City Council authorize the City Manager, or his designee, to negotiate and execute non-substantive extensions, change orders, and amendments up to 10% of total contract cost or $25,000 as authorized by Corona Municipal Code Section 3.08.060(J).
d. City Council authorize the City Manager, or his designee, to issue a purchase order to R&B Automation, Inc. in the amount of $250,000 per fiscal year for the initial contract term ending June 30, 2025, with one (1) optional three (3) year extension.
e. Corona Utility Authority review, ratify, and to the extent necessary, direct the City Council to take the above actions.
Body
BACKGROUND & HISTORY:
The City of Corona Utilities Department (UD) has approximately 300 electronic and air actuated valves Citywide. Actuators and valves are located at different facilities and in various process environments including drinking water, reclaimed water, and sewer systems. This action will allow the UD to move its preventative maintenance to predictive maintenance in anticipation of avoiding unscheduled or unplanned shutdowns due to failures. The services will enhance the current inspection program to further extend the useful life of the valves.
ANALYSIS:
The City issued Notice Inviting Bids (NIB) 23-020AS pursuant to Public Contract Code formal bidding procedures and the Corona Municipal Code Section 3.08.090 on December 8, 2022.
The scope of work consists of:
• Creating an asset register by facility location, building and/or area to include all valves with actuators.
• Verifying asset numbers to that on file.
• Inspecting and testing all actuator functions for air actuated valves, motor actuated valves, and mechanical gearboxes.
The scope of work did not include the replacement of any units as this work would be extremely difficult to predict. As the Utility performs preventive maintenance activities each year, the department is anticipating the need for some units to receive extensive repairs or replacement. The overall contract amount of $250,000 gives the UD the ability to have the contractor perform the annual service and to utilize the remaining balance to further address the repair/replacement of valves as needed.
|
Vendor |
City |
Bid Amount |
|
R&B Automation, Inc. |
Temecula, CA |
73,509 |
Bids were due on January 20, 2023. The City received one bid for the services solicited. The bid documents were downloaded by 8 contractors in addition to 32 vendors being notified.
|
Item No. |
Description |
Frequency |
Cost |
|
1 |
Create assets register by facility, location, building or area including labor and materials |
One Time |
$43,250 |
|
2 |
Preventative maintenance and inspection of actuated valves sizes 4” to 36” |
Annually |
$30,259 |
|
3 |
Year 1- Repairs/replace actuated valves based on Time and Materials cost (non-guaranteed amount of contract) as reviewed and authorized by Utilities Department |
As-needed based on annual inspection/or emergency repairs |
$176,491 |
|
4 |
Remaining Term of contract - Repairs/replace actuated valves based on Time and Materials cost (non-guaranteed amount of contract) as reviewed and authorized by Utilities Department |
As-needed based on annual inspection/or emergency repairs |
$219,741 |
|
Year 1 contract tasks (Item Nos. 1 through 3): |
$250,000 |
|
Remaining term of the agreement (Item Nos. 2 and 4): |
$250,000 |
R&B Automation, Inc. will perform the aforementioned services for a fixed amount of $73,509 in the first year of the contract. Item No. 1 of the MGSA, as listed in Exhibit C “Compensation,” requires creation of an asset register by facility location, building and/or area of all valves with actuators in the amount of $43,250. This item will only be paid in year one of the contract as the remaining terms of the agreement will exclude Item No. 1’s cost. The Contractor will provide Item No. 2 (of Exhibit C in the MGSA) in the amount of $30,259, annually, for the remainder of the contract. The MGSA amount of $250,000 annually is non-guaranteed. Once inspections are completed by the contractor, an inspection report will be provided to staff. The report will list all valves that need repairs and/or are not functioning. Staff will review, evaluate, and authorize the replacement of such valves as needed. Valves that are installed at 24-hour facilities will be replaced as they reach their useful life as part of predictive maintenance.
Staff recommends that the City Council award the bid and MSGA to R&B Automation, Inc., in the amount of $250,000 as the apparent lowest responsive, responsible bidder for NIB 23-020AS for Preventative Maintenance, Repair and Asset Register Creation. All licenses for R&B Automation, Inc., have been reviewed and verified by City staff.
FINANCIAL IMPACT:
Funding for the recommended action is available in the Utilities Department Fiscal Year 2023 operating budget. Future fiscal year funding requests will be evaluated and submitted through the annual budget process.
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Act (CEQA), which states that operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination, and is therefore exempt from CEQA. This action involves actuated valve on-call and on-site preventative maintenance, repair, asset inventory and valves inspection services. Therefore, no environmental analysis is required.
PREPARED BY: AFTAB HUSSAIN, MAINTENANCE MANAGER
REVIEWED BY: TOM MOODY, DIRECTOR OF UTILITIES
Attachments:
1. Exhibit 1 - NIB 23-020AS
2. Exhibit 2 - Addenda
3. Exhibit 3 - Bid Summary
4. Exhibit 4 - Maintenance/General Services Agreement