City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JUNE 13, 2023 FROM: FINANCE DEPARTMENT WARDS: ALL
SUBJECT: REQUEST FOR PROPOSAL 2167 – SERVICES AGREEMENT FOR EMERGENCY AND NON-EMERGENCY ON-CALL PLUMBING SERVICES WITH 24-HR EXPRESS SERVICES, Inc., of murRieta, caLIFORNIA, IN AN AMOUNT NOT-TO-EXCEED $750,000 PER FISCAL year PLUS 10% contingency in the amount of $75,000 for a total ANNUAL AMOUNT not to exceed $825,000, FROM JULY 1, 2023 THROUGH JUNE 30, 2026 ISSUE:
Approve a Services Agreement from Request for Proposals 2167 for Emergency and Non-Emergency On-Call Plumbing Services with 24-Hr Express Services, Inc., of Murrieta, California, in an amount not-to-exceed $750,000, plus 10% contingency of $75,000, for a total annual amount not to exceed $825,000, from July 1, 2023 through June 30, 2026.
RECOMMENDATIONS:
That the City Council:
Approve a Services Agreement for Emergency and Non-Emergency On-Call Plumbing Services to 24-Hr Express Services, Inc., of Murrieta, California, in an annual amount not-to-exceed $750,000, from July 1, 2023 through June 30, 2026; Authorize 10% contingency of $75,000, for a total annual amount not to exceed $825,000; Authorize the City Manager, or designee, to execute the Services Agreement, including making minor and non-substantive changes.
BACKGROUND:
The Finance Department’s Risk Management Division is responsible for procuring and managing various emergency and non-emergency agreements. These agreements are designed to ensure that the City has direct access to specialized contractors that can assist City response to incidents that pose a threat to property, public health, continuity of services and operations or create liability for the City. Because the City of Riverside is responsible for maintaining sewer laterals in the public right-of-way and provides utility services to its residents and businesses, it is essential for Riverside to have access to a plumber who can assist the City in responding to plumbing-related distress calls.
Having direct access to a certified, insured, and bonded plumber will reduce standby time, speed up repair processes and improve the City’s ability to restore sewer or water services more promptly for residents and businesses.
Previously, the City relied on General Contractors to assist with plumbing related repairs which generated markup fees for the City. As a result, Risk Management made the decision to issue RFP 2167 for On-Call Emergency and Non-Emergency Plumbing Services to secure direct access to a licensed, insured, and bonded plumber. The City will save money by being able to pay the plumbing contractor directly and eliminate middleman markup fees and higher rates in addition to maintaining control and oversight of plumbing related calls.
There are many instances where the City needs to enlist the help of a plumber, such as the invasion of tree roots into sewer laterals, water mainline breaks, and changes in water pressure following work completed on City lateral lines. The City has also needs plumbers to locate and mark sewer lines in preparation for routine and emergency repairs. Other plumbing services can range from repairing or replacing old fittings on water meters and conducting investigations to verify broken or collapsed lines.
This Services Agreement will enable Risk Management to identity trends and conduct more accurate analyses on the City’s plumbing needs, vulnerabilities, and exposures as the data and expenses will be detailed and collected under specified Purchase Orders and financial reports.
DISCUSSION:
The Purchasing Division published Request for Proposal (RFP) 2167 on April 1, 2022, with proposals due on April 26, 2022. Bidders had a total of 18 business days to prepare, review, and submit a proposal. The City hosted a non-mandatory pre-proposal meeting on April 4, 2022 where only one bidder attended. A total of 17 plumbing companies showed interest in submitting a bid. Three companies later updated their status to “non-bidder,” leaving 14 plumbing companies as potential bidders.
Due to shortages in staffing, the evaluation and award phase of the RFP was extended into 2023. Purchasing staff assisted Risk Management in contacting the bidders to confirm their interest in continuing to participate in RFP 2167 and to verify that the bids and pricing submitted in 2022 are still valid as economic conditions have changed substantially with continued inflationary pressures. The City received a total of three bids, two of which were marked non-responsive for not meeting prerequisite requirements and failing to respond to a Request for Clarification (RFC).
Vendor
Vendor’s Location
Rank
24-Hr Express Services, Inc.
Murrieta, CA
1 *GM Plumbing Corporation
Signal Hill, CA
Non-Responsive
*SoCal Sewer Construction, Inc.
Signal Hill, CA
Non-Responsive
*Vendors were deemed unresponsive due to having less than the required five (5) years of experience within the last seven (7) years under a legally registered business name, and lack of response to Request to Clarification.
The evaluation committee consisted of staff from Public Utilities, General Services and Risk Management representatives. After a careful review and assessment by the committee, it was determined that 24 Hour Express was the highest rated bidder. Risk Management received the final bid packet from Purchasing on March 31, 2023 and subsequently entered into negotiations with 24-Hr Express Services, Inc. Negotiations and clarifications on the information presented in the bid concluded on April 4, 2023, and Risk Management informed Purchasing of its desire to move forward with awarding RFP 2167 to 24-Hr Express Services, Inc., per the agreed up on terms and conditions.
The Purchasing Manager concurs that the recommendation to award RFP 2167 to 24 Hour Express Services is in accordance with Purchasing Resolution 23914.
The plumbing contractor will be required to respond to emergency and non-emergency situations. Response time shall be two hours for emergencies and 48 hours for standard, non-emergency calls. The plumbing contractor shall also be required to provide 24-hour emergency services.
The scope of the agreement includes but is not limited to the following tasks:
Troubleshoot, investigate, and identify breaks and offsets in sewer lines with proper markings.
Investigate and identify areas of low pressure and its cause(s).
Be able to hydro jet the mainline and other sewer lines as instructed by authorized staff.
Remove roots from sewer lines.
Have the capacity to install property cleanouts and manholes as directed staff.
Must be able to respond to plunged faucet screens, plunged hot water heaters, plunged water softener.
Be able to assist with leaking pipes inside structure walls.
Have the tools, materials, and ability to repair leaking main line between the back of the meter and residential homes.
Be able to remove and replace meters.
Be able to cut, repair, install, and test new pipes.
The Risk Management division is confident that 24-Hr Express Services, Inc., will be able to provide the services needed to support all of the City’s plumbing needs.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 2- Community Well-Being and Goal 2.6 - Strengthen community preparedness for emergencies to ensure effective response and recovery.
This item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – The City established prerequisites and qualifications in order for a plumbing service provider to be considered compliant to work on City assets.
Equity – All wards within the City of Riverside can be subject to plumbing needs at any given time of the day. 24 Hour Express Services will respond to all calls from authorized City staff requesting assistance throughout the City.
Fiscal Responsibility – Competitive procurement was used to secure lowest cost for services in RFP 2167 and the City will only pay for services rendered. Establishing a direct relationship with a plumber could potentially save the City thousands of dollars.
Innovation – The City has worked to establish emergency and non-emergency operational procedures between staff and Risk Management contract administration, producing high staff and plumber response time and overall project completion.
Sustainability & Resiliency – This agreement will only continue to contribute to the longevity of the City’s infrastructure and overall services provided to its residents on a timely basis.
FISCAL IMPACT:
There is no immediate fiscal impact of the action as the City only pays for services and materials rendered. Funds for Risk Management are available in the Liability Insurance Trust Fund, Risk Management, account number 2320000-428630. The City departments will pay for their own service requests from the departmental budgets. Appropriations for future fiscal years will be included in the budget submissions for those fiscal years to be presented to the City Council for approval.
Prepared by: Kristie Thomas, Assistant Chief Financial Officer Certified as to
availability of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/City Treasurer
Approved by: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/Treasurer
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Services Agreement
Award Recommendation
RFP 2167 for Emergency and Non-Emergency On-Call Plumbing Services ● Page 4