City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
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File ID: 2024-01079 6/18/2024 Consent Item 2.
Suspend Competitive Bidding and Approve an Alternative Request for Proposals (RFP) Process for the Med Center Reservoir Improvement Project (Two-Thirds Vote Required) File ID: 2024-01079
Location: District 6, Represented by Councilmember Guerra Recommendation: Adopt a Resolution to suspend competitive bidding and allow use of an alternative Request for Proposals (RFP) process for the procurement of construction services for the Med Center Reservoir Improvement Project.
Contact: Kelsey Fisher, Project Manager, [email protected], (916) 808-1709; Michelle Carrey, [email protected], Supervising Engineer, (916) 808-1438; Sherill Hunn, Engineering & Water Resources Division Manager, [email protected], (916) 808-1455; Pravani Vandeyar, Director, [email protected], (916) 808-3765; Department of Utilities
Presenter: None.
Attachments:
1-Description/Analysis
2-Resolution
Description/Analysis
Issue Detail: Staff requests that City Council suspend competitive bidding and allow an alternative Request for Proposals (RFP) process to select a contractor to construct the Med Center Reservoir Improvement Project (Project). This process will allow the City to select the most qualified contractor to complete the Project within the required scope, schedule, and budget.
Policy Considerations: City staff are proposing the use of an alternative competitive procurement process for the construction work required for the Project. The City’s standard competitive bidding process is based on price alone, provided the contractor meets the minimum qualifications specified to perform the work. This process does not distinguish between bidders who meet the minimum
File ID: 2024-01079 6/18/2024 Consent Item 2.
qualifications and more qualified bidders who exceed the minimum qualifications.
An RFP process will allow the City to select the most qualified contractor to perform the work, and who will best meet the project scope, budget, and schedule. Using the proposed alternative process will allow the City to evaluate and retain the most qualified contractor based on a combination of experiences, past performance, safety, project schedule delivery, and other important factors.
City Code Section 3.60.170(D) allows City Council to suspend competitive bidding for a public project upon a two-thirds vote, if City Council determines that it is in the best interest of the City to do so. City staff believe that it is in the City’s best interest and that an RFP process will provide the best value to City water ratepayers. The proposed process is outlined in the City administrative policy for procurement of public contracts (AP-4002).:
· The City’s standard competitive bidding process requires bidding and contract award to a single contractor based on price alone, provided the contractor meets the minimum qualifications specified to perform the work. The City has no leeway to distinguish between bidders that meet minimal qualifications and more qualified bidders that exceed the minimum qualifications.
· Using the proposed alternative process will allow the City to evaluate and retain the most qualified contractor based on a combination of experience, past performance, safety, customer/public care, communication, coordination, quality assurance, and other relevant factors. This process can provide the best value to City water ratepayers. The proposed process is outlined in the City administrative policy for procurement of public contracts (AP- 4002).
Economic Impacts: None.
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15378(b)(2 and 5). The actions are not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3). Appropriate environmental review consistent with the requirements of CEQA will be completed prior to specific project final action.
Sustainability: The proposed project is consistent with the 2040 General Plan as it improves infrastructure reliability, which will ensure continued safe operation and maintenance of the existing facility. Specifically, continued operation of the elevated reservoir supports goal PFS-1.7 Water Supply for Fire Suppression and goal PFS-3.4 Water Distribution System Management.
Commission/Committee Action: Not applicable.
File ID: 2024-01079 6/18/2024 Consent Item 2.
Rationale for Recommendation: Staff recommends using an alternative RFP process for selecting the most qualified contractor for the Project. Maintaining water storage capacity for operational, fire, and emergency needs requires proper planning of reservoir shutdowns. As the project will require the shutdown of Med Center Reservoir, it is crucial for construction to be completed within a short timeframe and when the City’s water demand is at its lowest. Additionally, a component of the project, the exterior protective coating, is a required first step to enabling an Office of Arts and Culture mural project that has been proposed and funded for installation on Med Center Reservoir. The painting of the mural is set for Spring 2025. An alternative RFP process will enable the City to select a qualified contractor based on their understanding of the project scope and their experience delivering projects on schedule and on budget.
Financial Considerations: The recommendations in this report do not result in any financial impact to the City. Upon approval of this recommendation and following the completion of the RFP process, Staff will submit to City Council a recommendation to authorize the City Manager to execute the Professional Services Agreement with the selected contractor.
Local Business Enterprise (LBE): The City’s LBE participation requirements will apply.
Background: The Med Center Reservoir is one of three elevated concrete water reservoirs constructed in the 1930s. Water reservoirs allow the City to store water to meet demands, help move water throughout the City, and help maintain water pressure in the system.
The project scope includes replacement of the interior access platform, refurbishment and repair of the roof, installation of an industrial protective coating on the exterior of the reservoir, resealing water tight joints and patching the interior surfaces of the reservoir.
The original platform located on the interior of the tank does not meet current codes, as it is constructed of wood, in addition to nearing the end of its useful life. The platform is used to access the water tank and reservoir roof for activities such as maintenance, inspections, water sampling, and visual water quality monitoring. The current condition of the platform is a safety hazard for City Staff with failure resulting in the reservoir being taken out of service. Failure of the platform would also eliminate access to the lights that are required by the Federal Aviation Administration and the emergency telecommunications equipment, both located on the roof of the reservoir.
The current built-up cap sheet roof has aged and declined significantly since its most recent refurbishment. There is concern that leaks will start to occur. Any intrusion through the roof into the reservoir creates a water quality concern. In addition, with the roof and reservoir accessible during the project execution, the condition of the structural elements of the roof will also be assessed and any deficiencies addressed.
The exterior concrete of Med Center Reservoir was formed in 1936, leaving it exposed to the eroding
File ID: 2024-01079 6/18/2024 Consent Item 2.
effects of the elements for the last 88 years. There is increasing evidence of aging of the exterior structure. A protective industrial coating can repair and prevent further degradation, sealing and protecting the exposed concrete surfaces to significantly extend the useful life of the reservoir. The last inspection of the Med Center Reservoir revealed watertight joints that need to be replaced on the interior surfaces of the reservoir.
@BCL@2817EFDE, Rev. 09/09/2020
RESOLUTION NO. 2024-
Adopted by the Sacramento City Council
June 18, 2024
Med Center Reservoir Improvement Project
BACKGROUND
A. The Med Center Reservoir is an integral part of the water distribution system and requires maintenance work to protect the lifespan of this valuable asset. This project includes replacing the existing wooden platform with a new stainless-steel platform, installing a new roofing system and evaluating the condition of the structural members of the roof system with potential repair and replacement, application of a protective industrial coating to the exterior of the reservoir, and addressing age related water tightness issues on the interior of the reservoir. The work will maintain and improve the resiliency of the Med Center Reservoir.
B. In accordance with City Code Section 3.60.170(D), City Council can suspend competitive bidding for a public project when it determines, upon a two-thirds vote, that it is in the City’s best interest to do so.
C. Suspension of competitive bidding and allowing an alternative request for proposal (RFP) process is in the City’s best interest, as it will enable the Department of Utilities to select the most qualified contractor based on a combination of experiences, past performance, safety, project schedule delivery, and other important factors.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. Competitive bidding is suspended and a request for proposal will be used instead for the Med Center Reservoir Restoration Project (Z14130517).
Adopted by the City of Sacramento City Council on June 18, 2024, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
@BCL@2817EFDE, Rev. 09/09/2020
Attest:
The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Sacramento City Council.