REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
DATE: 06/16/2021
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Department of Water and Power
SUBJECT:
Title
Award of contract for On-Call and Emergency Repair Services for Potable Water, Reclaimed Water, and Wastewater Essential Systems to Valverde Construction, Inc., Augustine General Engineering, and W. A. Rasic Construction Co., Inc.
End
EXECUTIVE SUMMARY:
Staff is recommending the City Council award Request for Proposals No. 21-057RH to Valverde Construction, Inc., Augustine General Engineering, and W. A. Rasic Construction Co., Inc. The Purchasing Division followed formal solicitation procedures and received nine (9) proposals. The Department of Water and Power is seeking approval to award the three (3) top respondents Maintenance/General Services Agreements in an amount of $200,000 to each of the top three (3) respondents ($600,000 total). Staff recommends award to multiple vendors to ensure that at least one of the service providers will be available at any time to provide timely emergency repairs to the City’s essential potable water, reclaimed water, and wastewater systems.
RECOMMENDED ACTION:
Recommended action
That the:
a. City Council award Request for Proposals 21-057RH for On-Call/Emergency - Essential Systems Repair Services for: Potable Water - Reclaimed Water - Wastewater to: Valverde Construction, Inc. of Santa Fe Springs, CA; Augustine General Engineering of Alta Loma, CA; and W. A. Rasic Construction Co., Inc. of Long Beach, CA.
b. City Council authorize the City Manager, or his designee, to execute the Maintenance/General Services Agreements with Valverde Construction, Inc. of Santa Fe Springs, CA, Augustine General Engineering of Alta Loma, CA, and W. A. Rasic Construction Co., Inc. of Long Beach, CA, for an initial two-year term beginning in Fiscal Year 2022 with two optional two-year extensions for $200,000 to each company each year.
c. City Council authorize the General Manager and City Attorney, or their designees, to negotiate and execute non-substantive extensions, change orders, and amendments up to $20,000 per contract or 10% of the original contract amount as authorized in Corona Municipal Code Section 3.08.060(J).
d. City Council authorize the Purchasing Manager to issue purchase orders to Valverde Construction, Inc. of Santa Fe Springs, CA, Augustine General Engineering of Alta Loma, CA, and W. A. Rasic Construction Co., Inc. of Long Beach, CA, for $200,000 per fiscal year for an initial two-year term beginning in Fiscal Year 2022 with two optional two-year extensions.
e. Corona Utility Authority review, ratify, and to the extent necessary, direct the City Council to take the above actions.
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BACKGROUND & HISTORY:
The Department of Water and Power operates and maintains 849 miles of water pipeline (including service laterals), 67 miles of reclaimed water pipeline, 459 miles of sewer pipelines, 24,319 system/control valves 8,776 fire hydrants. These pipelines and appurtenances vary in sizes from 2-inch to 36-inch mains throughout the City of Corona Department of Water and Power’s service area.
The Department of Water and Power’s Infrastructure Division is responsible for the maintenance of these pipelines. Department of Water and Power’s horizontal infrastructure consists of various sizes, types, and age of pipeline. About 41.85 miles of potable water mains are comprised of steel pipe. Steel pipe has a life expectancy of 20 to 50 years due to corrosion. The Department of Water and Power has a cathodic protection program that extends the useful life of steel pipe.
Despite having an active Capital Improvement Plan and preventative maintenance program, this infrastructure can experience issues in the system due to various factors, including soil movement and material age and corrosion. Repair needs can occur on busy intersections, major arterial streets, residential streets, undeveloped remote lots, and slopes. The City’s pipelines are located at depths between three feet to over twenty feet.
The repair of a water or reclaimed water pipeline can put customers out of water for the duration of the event. Issues in a sewer pipeline can cause a sanitary sewer overflow, which, if not handled immediately, can result in violations and fines to the City (at an amount of $10,000 per gallon). Further, pipeline issues can require the City to close sections of the road due to asphalt damage. As a result, repairs to a pipeline can be necessary anytime during a 24 hour period and having and on-call contractor to do these repairs is necessary to provide continuous, uninterrupted service, and ensure the City’s streets remain fully operational.
ANALYSIS:
The Purchasing Division issued Request for Proposals (RFP) No. 21-057RH on March 3, 2021, pursuant to Corona Municipal Code (CMC) 3.08.110 non-public projects formal bidding procedure requirements. The proposal closing date was April 5, 2021. A total of 25 firms downloaded the bid documents from PlanetBids. The City received nine (9) proposals by the submission date of April 5, 2021.
The scope of work consists of:
• On-Call/Emergency Essential Systems Repair Services for: Potable Water - Reclaimed Water - Wastewater.
• Repairs shall include limited trenching, disposal of existing pavement and trench materials, emergency repairs to components of the potable water, reclaimed water, and wastewater systems, which may consist of valves, various types and diameters of pipe, flanges, fittings, backfill material, and cold-mix asphalt from City inventories.
• The contractors, on occasion, may be required to provide repair components at a predetermined markup rate as stated in the bid documents.
Evaluation Criteria
The proposals were reviewed by a 3-person evaluation panel of City staff. The proposals evaluations were based on the following:
1. Qualifications of the Firm (20 points): strength and stability of the firm, firm demonstrated an overall knowledge of the scope of work required and the availability of adequate staff to perform the scope of work.
2. Qualifications of Experience and Personnel (20 points): qualifications, education, technical experience and competence of staff, project appropriate team organization, geographic location of the firm, experience, and qualifications of team members identifying key areas of expertise.
3. Completeness and Timeliness of Response (10 points): depth of thoroughness of the Proposer’s understanding of the Project and the City’s needs, understanding of the need, scope and challenges, quality and depth of work plan, firm’s logic for the Project’s organization with appropriate resources to perform the scope of work.
4. Competitive Cost and Price (25 points): appropriate schedule of values and hourly rate shown on the City provided price schedule for a listed position, equipment, and material mark up.
5. Project Plan and Completion (25 points): showing the readiness, resources, and experiences needed to perform emergency repairs in different conditions.
All contractors were required to provide labor and equipment hourly rates and material markup rates on City-provided schedules for uniformity and transparency. Contractors’ understanding and readiness to respond to emergency repair services is critical and held a higher consideration during the evaluation.
After careful perusal of the proposals, the panel evaluated the firms. The table below shows the final rank for each firm:
|
Rank |
Contractor Name |
City/State |
|
1 |
Valverde Construction, Inc. |
Santa Fe Springs, CA |
|
2 |
Augustine General Engineering |
Alta Loma, CA |
|
3 |
W.A. Rasic Construction Co., Inc. |
Long Beach, CA |
|
4 |
Arnaz Engineering Contractors, Inc. |
Anaheim, CA |
|
5 |
Ferreira Coastal Construction Co. |
Rancho Cucamonga, CA |
|
6 |
KEC Engineering |
Corona CA |
|
7 |
Paulus Engineering, Inc. |
Anaheim, CA |
|
8 |
TC Construction Company, Inc. |
Santee, CA |
|
9 |
Creative Home |
Anaheim, CA |
The top three ranked contractors have shown the ability to perform emergency repair work on an as-needed basis with competitive labor and equipment hourly rates. Staff recommends award to the top three firms to provide the redundancy needed for on-call/emergency repairs.
Staff recommends that the City Council award the Maintenance/General Services Agreement (MGSA) for $200,000 each to Valverde Construction, Inc., Augustine General Engineering, and W. A. Rasic Construction Co., Inc. Based on the RFP documents, the contracts shall be for an initial two-year term starting in Fiscal Year 2022 with two optional two-year renewals. All licenses and references for all firms have been reviewed and verified by City staff.
FINANCIAL IMPACT:
Funding for the recommended action is included in the Proposed Fiscal Year 2022 Water, Reclaimed Water, and Water Reclamation Operating Budgets. Funding in future fiscal years will be recommended through the budget process.
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Act (CEQA), which is defined as “Existing Facilities (§ 15301) - 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 merely involves repairs to existing infrastructure to maintain public health and safety. Therefore, no environmental analysis is required.
PREPARED BY: AFTAB HUSSAIN, MAINTENANCE MANAGER
REVIEWED BY: TOM MOODY, GENERAL MANAGER
Attachments:
1. Exhibit 1 - RFP 21-057RH
2. Exhibit 2 - RFP Summary
3. Exhibit 3 - MGSA Valverde Construction, Inc.
4. Exhibit 4 - MGSA Augustine General Engineering
5. Exhibit 5 - MGSA W.A. Rasic Construction Co., Inc.