SR-06-23-2015-3D- Mm City Council Report
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City Council Regular Meeting: June 23, 2015
Agenda Item: LI—D
To: Mayor and City Council
From: Susan Cline, Interim Director of Public Works
Subject: Contractual Service Agreement for Plumbing Contractor Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to exercise the first
year renewal option of Bid #4164 and negotiate and execute a contractual service
agreement with The Lighthart Corporation, a California -based company, for plumbing
contractor services in an amount not to exceed $200,000 for FY 2015 -16, with one
additional one -year renewal option in the amount of $200,000, on the same terms and
conditions, for a total amount not to exceed $550,000 over a three -year period, with
future year funding contingent on Council budget approval.
Executive Summary
The City contracts out plumbing work for various City facilities and properties. In June
2014, the City solicited bids for such services. After reviewing the six bids received,
CDMT, Inc. and The Lighthart Corporation were selected to form a pre - qualified vendor
list to provide plumbing contractor services during FY 2014 -15 in a cumulative amount
not to exceed $150,000. Staff recommends exercising renewal options with The
Lighthart Corporation as the best qualified bidder to provide plumbing contractor
services for the next two years through June 2017 in an amount not to exceed $200,000
each year, for a total amount not to exceed $550,000 over three years.
Background
In June 2014, staff solicited bids for plumbing contractor services that included multi-
year renewal options. In the midst of the selection process, on August 26, 2014, staff
was directed by Council to review contracted services throughout the City and identify
situations where contracted services could be brought in- house. Because continuation
of the service was necessary during the review time; staff structured the agreement to
include a one year term with two one -year renewal options, pending the outcome of the
study and Council action. The bid was awarded by contractual services agreement for
the first year under the authority of the City Manager. On January 13, 2015 (attachment
B), Council agreed with staff's determination that this service is best contracted out due
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to the technical expertise and equipment requirements allowing for staff to exercise the
renewal options. With the renewal options, the total expenditure for the three -year term
is $550,000 and, as a formal bid, requires Council approval.
Discussion
City maintenance staff performs the majority of plumbing work at City facilities (more
than 90% of approximately 1,500 work orders per year), but requires plumbing
contractor services for larger jobs involving excavation (water and sewer line
repairs /replacements), re- piping, and replacement/installation of various equipment
including drinking fountains, restroom fixtures, and water heaters.
Method of Service
Council approved contracted staff for this service as part of the January 13, 2015
Contract and As- Needed and Staffing Review (attachment B). The service has not
changed substantially since that analysis. On February 5, 2015, the Purchasing
Services Manager issued a pre - qualified vendor list including CDMT, Inc. and The
Lighthart Corporation to provide plumbing contractor services through June 2015 not to
cumulatively exceed $150,000. At the time of issuance, the amount was below the
threshold requiring Council authority. This action incorporates the first year award of
$150,000 and two one -year renewal options with The Lighthart Corporation in an
amount not to exceed $200,000 each year, for a three -year total amount not to exceed
$550,000.
Vendor Selection
In June 2014, the City published Notices Inviting Bids to provide plumbing contractor
services as required by Facilities Services responsible for plumbing repairs in
accordance with City specifications. The bid was posted on the City's on -line bidding
site, and notices were advertised in the Santa Monica Daily Press in accordance with
City Charter and Municipal Code provisions. A total of 132 vendors were notified, 22
vendors downloaded the bid (Bid #4164). Six bids were received and publicly opened
on June 20, 2014 per attachment A. Bids were evaluated based on the criteria in
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SMMC 2.24.072, including price, previous experience, capacity and skill, ability to
deliver, quality of product, and compliance with City specifications and scope of work. A
scope of work was provided for the removal of a Santa Monica Swim Center water
storage tank as a comparison tool.
The Lighthart Corporation provided the best bid pricing for removal of the Swim Center
water storage tank and has provided the City with satisfactory plumbing contractor
services at reasonable prices for several years. CDMT, Inc. provided the third best bid
pricing for removal of the Swim Center water storage tank and has previously provided
the City with satisfactory services as a general contractor. CDMT, Inc. was
recommended to be selected as a pre - qualified vendor for FY 2014 -15, but over the
course of three plumbing jobs required additional instruction and corrections by City
staff to achieve satisfactory completion. Staff verified with the Contractors State
License Board that the license for The Lighthart Corporation is current, active and in
good standing. Based on these criteria, The Lighthart Corporation is recommended as
the best qualified bidder to provide plumbing contractor services through June 2017.
Financial Impacts and Budget Actions
The contract to be awarded to The Lighthart Corporation is for an amount not to exceed
$550,000. Funds in the amount of $200,000 are included in the FY 2015 -17 Proposed
Biennial Budget in various department budgets and applicable Capital Improvement
Program budgets. Future year funding is contingent on Council budget approval.
Prepared By: Kevin Nagata, Administrative Analyst
Approved Forwarded to Council
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Susan Cline, Interim Director of PtE 800IL6
Elaine M Polachek, Interim City N661- 'Q6rl5
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Attachments:
A. Results for Bid #4164 Plumbing Contractor Services (PDF)
B. January 13, 2015 Staff Report
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Reference:
Agreement No. 10082
(CCS)