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SR 06-26-2018 3F City Council Report City Council Meeting: June 26, 2018 Agenda Item: 3.F 1 of 4 To: Mayor and City Council From: Susan Cline, Director, Public Works, Water Resources Subject: Award Contract to Leed Electric Inc. for Electrical Services at Water and Wastewater Treatment Facilities Recommended Action Staff recommends that the City Council: 1. Award Bid #4336 to Leed Electric Inc., a California-based company, to provide electrical contractor services at water treatment facilities and wastewater facilities; 2. Authorize the City Manager to negotiate and execute an agreement with Leed Electric Inc., in an amount not to exceed $1,660,000 over a five-year period, including 5% annual increases, with future funding contingent on Council budget approval. Executive Summary The Water Resources Division of the Public Works Department is charged with providing safe, reliable water supply to our 2,741 commercial and institutional customers and our 14,317 residential accounts covering our citywide population of 93,000 residents along with treating and disposing of the community’s wastewater. Vital to ensuring reliable service is the maintenance of a variety of interconnected electrical controls to operate the Arcadia Water Treatment Plant, Charnock Water Treatment Plant, the Santa Monica Urban Runoff & Recycling Facility (SMURRF), and the Moss Avenue Pump Station (MAPS). Periodic repair and maintenance is needed to keep the electrical controls working at all times. Staff recommends Leed Electric Inc. as the best bidder for these services in an amount not to exceed $1,660,000 over five years. Discussion The Water Resources Division relies on several types of electrical controls that are integral to the treatment and delivery of potable water to the City, the treatment and delivery of non-potable water from the SMURRF, and the conveyance of wastewater to 2 of 4 the Hyperion Water Reclamation Plant. These include motor control center panels, breakers, flow meters, motor starters, soft starters, power cables, and variable frequency drives. The three-year contract with the current vendor, Golden West Electric, was awarded by Council on June 19, 2015 and expires on June 30, 2018 (Attachment A). If the recommended award is approved by Council, the proposed vendor, Leed Electric Inc., would implement a new preventative maintenance schedule created by staff to ensure all the electrical controls are operating properly. Vendor Selection On April 2, 2018, the City published Notices Inviting Bids to provide all labor and materials to service and repair pump motor equipment such as starters, drives, and controls as required by the Water Resources Division 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. Twenty-nine vendors downloaded the bid, and six vendors attended the mandatory pre-bid meeting. Two bids were received and publicly opened on April 30, 2018 per Attachment B. The bid from Reign Industries was considered non-responsive, because the company’s Department of Industrial Relations (DIR) registration was expired at the time of the bid. Contractors without a current DIR registration are ineligible to bid or work on a Public Works contract, per California Labor Code Section 1725.5. The bid from Leed Electric Inc. was evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product, and compliance with City specifications and scope of work. City staff reviewed IBISWorld Report, a research report that assists buyer with data and analysis of electrical contracting service pricing. Staff concluded that the hourly rates within the bid are consistent with electrical contracting services for the area. City staff contacted references and all respondents reported that Leed Electric Inc’s work was completed in a timely and cost-efficient manner, while maintaining consistent 3 of 4 quality. Additionally, Leed Electric Inc. was awarded a prior City of Santa Monica contract to replace the variable frequency drives at MAPS and the SMURRF, and City staff reported that the contractor’s completed work was very thorough. The State Contractor’s License Board verified that the company’s license is current, active, and in good standing. The company’s DIR registration is also current. Based on these criteria, Leed Electric Inc. is recommended as the best bidder to provide maintenance services on electrical controls at water treatment facilities and wastewater facilities. Financial Impacts and Budget Actions The contract to be awarded to Leed Electric Inc. is for an amount not to exceed $1,660,000. Funds in the amount of $300,000 are available in the proposed FY 2018-19 budget in the Public Works Department. The contract will be charged to the following accounts: JDE Account Number Tyler Munis Equivalent FY 2018-19 25671.555010 50500001.550010 $50,000 25672.555010 50500002.550010 $75,000 25673.555010 50500003.550010 $75,000 31661.566631 51500001.529450 $50,000 31661.566450 51500001.529420 $50,000 TOTAL $300,000 Future year funding is contingent on Council budget approval. Prepared By: Deborah McCloskey, Administrative Analyst Approved Forwarded to Council Attachments: A. June 9, 2015 Staff Report (Web Link) 4 of 4 B. F4336 Electrical Contractor Bid Results C. Oaks Initiative Form for Leed Electric Inc. Bid Results for Project ELECTRICAL CONTRACTOR (4336) Issued on 04/02/2018 Bid Due on April 30, 2018 3:00 PM (Pacific) ITEM NUMBER SECTION ITEM CODE DESCRIPTION UNIT OF MEASURE QUANTITY LEED ELECTRICAL , INC. - UNIT PRICE LEED ELECTRICAL , INC. - LINE TOTAL LEED ELECTRICAL , INC. - COMMENT REIGN INDUSTRIES - UNIT PRICE REIGN INDUSTRIES - LINE TOTAL REIGN INDUSTRIES - COMMENT 1 PRICING Enter the Lead Time (ARO) for each item listed below in the comment section.NOTE 0 $0.00 $0.00 Confirmed 2 PRICING Labor - Electrician/Foreman HOURLY RATE 1 $139.38 $139.38 3 PRICING Labor - Electrician/Helper HOURLY RATE 1 $101.42 $101.42 4 PRICING Emergency/After-Hours Labor Electrician/Foreman HOURLY RATE 1 $219.93 $219.93 5 PRICING Emergency/After-Hours Labor Electrician/Helper HOURLY RATE 1 $165.74 $165.74 SUBTOTAL $626.47 6 QUESTION - TRAVEL HOURLY RATE Will an hourly travel rate be charged?QUESTION 0 $0.00 $0.00 No travel rate but we have a minimum 2 hours charge 7 PRICING Hourly travel rate, if charged HOURLY RATE 1 $0.00 $0.00 No 8 PRICING 22C-D105A103 Allen-Bradley PowerFlex 400 75 HP 460V AC Drive or similar EACH 1 $22,000.00 $22,000.00 8 Weeks SUBTOTAL $22,000.00 9 QUESTION - REQUIREMENTS Vendor must be Allen-Bradley factory trained on controls. Can you submit proof with bid?QUESTION 0 $0.00 $0.00 Yes, this is for our listed consultant 10 QUESTION - REQUIREMENTS Vendor must be a DNH Industries Digi-Fire supplier and service representative. Can you submit proof with bid?QUESTION 0 $0.00 $0.00 No, Leed Electric Inc employees Qualified Union Electricians. We have been maintaining several similar systems same as this one. 11 QUESTION - REQUIREMENTS Vendor must have training or continuing education on Siemens equipment. Can you submit proof with bid?QUESTION 0 $0.00 $0.00 Yes, this is for our listed consultants 12 QUESTION - REQUIREMENTS Vendor must have at least five years experience working with motor controls at a Water Treatment Plant and a Wastewater Treatment Plant. Can you submit proof of experience and references with bid? QUESTION 0 $0.00 $0.00 Yes, we have over 39 years of experience in installation, maintenance and troubleshooting of MCCs and VFDs 13 QUESTION - REQUIREMENTS Are you an Authorized Distributor for products offered for sale or used in the course of repairs?QUESTION 0 $0.00 $0.00 No but our subcontractors and supplier are authorized. 14 PRICING Additional fees and charges not listed above (i.e. freight, fuel surcharges). Provide description in the comments section.LUMP SUM 1 $0.00 $0.00 No SUBTOTAL $0.00 15 QUESTION - ADDITIONAL PRICING INFORMATION Percent discount off of manufacturer's price list for related items subject to this bid not listed above: __________ % to_________ %QUESTION 0 $0.00 $0.00 5% to 20% 16 QUESTION - PAYMENT TERMS Payment Terms (Enter payment discount terms; otherwise net thirty (30) days will apply.QUESTION 0 $0.00 $0.00 NET 30 17 RENEWAL OPTIONS The City desires the right and option to extend any contract hereunder for additional one-year renewal periods from date of expiration at the same price, terms and conditions, as specified below from date of expiration at the same price, terms and conditions. For each subsequent renewal period listed below please indicate in the comment section which of the following apply: 1) No renewal option offered. 2) Same price, terms and conditions offered. 3) % of increase /decrease of previous year's price for all areas or options. Increases greater than CPI will be subject to the "Escalation & De-Escalation of Bid Price" clause in the bid. Specify alternate terms and conditions if applicable. NOTE 0 $0.00 $0.00 Confirmed 18 QUESTION - RENEWAL OPTIONS Period 2 (First Annual Renewal Option)QUESTION 0 $0.00 $0.00 5% Increase 19 QUESTION - RENEWAL OPTIONS Period 3 (Second Annual Renewal Option)QUESTION 0 $0.00 $0.00 5% Increase 20 QUESTION - RENEWAL OPTIONS Period 4 (Third Annual Renewal Option)QUESTION 0 $0.00 $0.00 5% Increase 21 QUESTION - RENEWAL OPTIONS Period 5 (Fourth Annual Renewal Option)QUESTION 0 $0.00 $0.00 5% Increase TOTAL $22,626.47 EXPERIENCE STATEMENT COMPLETE LIST OF SUB-CONTRACTORS COMPLETE LIVING WAGE CERTIFICATION COMPLETE PREVAILING WAGE ACKNOWLEDGEMENT COMPLETE CERTIFICATE OF COMPLIANCE COMPLETE CERTIFICATION REGARDING DEBARMENT COMPLETE NON-DISCRIMINATION POLICY ACKNOWLEDGMENT COMPLETE NON-COLLUSION DECLARATION COMPLETE BUSINESS LICENSE INCOMPLETE OAKS INITIATIVE DISCLOSURE FORM INCOMPLETE 1,119 33 BID INVALID - DIR REGISTRATION EXPIRED PROSPECTIVE BIDDERS REQUIRED FORMS REQUIRED FORMS REQUIRED FORMS REQUIRED FORMS REQUIRED FORMS REQUIRED FORMS REQUIRED FORMS REQUIRED FORMS FORMS FORMS VENDORS NOTIFIED REFERENCE: Agreement No. 10703 (CCS)