City Council
City of Report
Santa Monica®
City Council Meeting: September 12, 2017
Agenda Item: 3.A
To: Mayor and City Council
From: Susan Cline, Director, Public Works, Facilities Maintenance Subject: Contractual Service Agreement for Plumbing Contractor Services Recommended Action
Staff recommends that the City Council:
1. Award Bid #4281 to Plumbing by Todd R. Marsh, Inc., a California-based company, and Horn's Backflow & Plumbing Service, Inc., a California-based company, for plumbing contractor services;
2. Authorize the City Manager to negotiate and execute an agreement with Plumbing by Todd R. Marsh, Inc., in an amount not to exceed $200,000 for one year, with two additional two-year renewal options in the amount of $840,808 including an increase of 2% each year, for a total amount not to exceed $1,040,808 over a five-year period, with future year funding contingent on Council budget approval; and
3. Authorize the City Manager to negotiate and execute an agreement with Horn's Backflow & Plumbing Service, Inc., in an amount not to exceed $45,000 for one year, with two additional two-year renewal options, in the amount of $45,000, on the same terms and conditions for a total amount not to exceed $225,000 over a five-year period, with future year funding contingent on Council budget approval.
Executive Summary
The City contracts out plumbing work for various City facilities including office locations, park restrooms, city libraries, Annenberg Beach House and Santa Monica Municipal Airport properties. This contracted work augments the City's in-house plumbing team and is often focused on large-scale and/or urgent plumbing issues, which occur approximately 40 times per fiscal year. After a formal bid process, seeking up to two contractors and reviewing the four bids received, staff recommends a split award for the two best bidders as follows:
• Plumbing by Todd R. Marsh (TRM Services) would provide large-scale repairs for one year, with two additional two-year renewal options for a cumulative not to exceed amount of $1,040,808 over a five-year period.
• Horn's Backflow & Plumbing Service would provide minor urgent and after-hour 1 of 4
repairs for one year, with two additional two-year renewal options for a cumulative not to exceed amount of $225,000 over a five-year period.
Background
The City employs four permanent in-house plumbers, including one plumber crew leader, to provide various plumbing services at City facilities. Typical services provided by City staff include repairing drain line stoppages, repairing fixtures, replacing water filters, installing water heaters and performing tenant improvement projects. This team, however, cannot handle all of the City's plumbing needs and therefore historically has contracted out for additional plumbing services.
On January 13, 2015 (Attachment A), staff presented to Council a Contract and As- Needed Staffing Review: Policy, Practice, Recommendations report. Council approved contracted staff for plumbing services as part of the comprehensive report; plumbing services have not changed substantially since that analysis.
On June 23, 2015 (Attachment B), Council authorized the City Manager to exercise the first year renewal option of Bid #4164 and execute a contractual service agreement with The Lighthart Corporation for plumbing contractor services in a total amount not to exceed $550,000 over a three-year period that ended June 30, 2017.
Discussion
While Facilities Maintenance plumbing staff completes the majority of the plumbing work at City facilities, plumbing contractor services are needed for urgent repairs and large- scale jobs that require the excavation of water and sewer lines or installation of new fixtures such as drinking fountains, sinks, toilets, etc.
To ensure the City has access to the best pricing and to keep proposals competitive, staff recommends splitting the award between TRM Services and Horn's Backflow & Plumbing Service. TRM Services would provide plumbing services for large-scale projects that are often long-term and require specialized licensing and equipment, such as boiler rehabilitations, water and sewer line replacements, and installation of plumbing 2 of 4
departments and applicable Capital Improvement Program budgets.
The contract to be awarded to Horn's Backflow is for an amount not to exceed $225,000. Funds of $45,000 are available in the FY 2017-18 budget in various departments and applicable Capital Improvement Program budgets.
Future year funding is contingent on Council budget approval.
Prepared By: Kyla Johnson, Administrative Analyst
Approved Forwarded to Council
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Susan Cline, Director 8/31/2017 Rick Cole, City Manager 975/2017 Attachments:
A. January 13, 2015 Staff Report
B. June 23, 2015 Staff Report
C. F4281 Bid Results
D. Todd R Marsh Oaks Form
E. Horn's Backflow Oaks
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fixtures. Horn's Backflow would provide plumbing services for minor urgent and after- hour repairs such as drain cleanouts, storm drain stoppages and fixture leaks. Staff's recommendation is to award the bid to two plumbing contractors to allow continuous and immediate availability as plumbing emergencies often involve sanitation and water supply issues, which directly impact public health.
Vendor/Consultant Selection
On May 9, 2017, the City published Notices Inviting Bids for citywide plumbing contractor services that included multi-year renewal options 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 Section 2.24.100(a). A total of 20 vendors downloaded the bid. Four bids were received and publicly opened on May 25, 2017, per Attachment C. Bids were 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. Neither TRM Services nor Horn's Backflow is the lowest bidder when considering the hourly labor rates, but both offered competitive pricing, the fastest guaranteed response times and lowest pricing for renewal options. Moreover, both recommended bidders have previously provided the City with responsive and satisfactory service. Amgreen Solutions offered the lowest hourly labor rate, but its pricing is significantly lower than the established Prevailing Wage rates required by state law, demonstrating non- compliance and thus its bid was inadmissible. Based on these criteria, staff recommends TRM Services and Horn's Backflow as the best bidders.
As both bid awards are subject to prevailing wage rates, the recommended cumulative not to exceed amount has increased from the previous contracted amount by approximately 30 percent. The cumulative not to exceed amount increase is also attributed to the additional two-year renewal option.
Financial Impacts and Budget Actions
The contract to be awarded to TRM Services is for an amount not to exceed $1,040,808. Funds of $200,000 are available in the FY 2017-18 budget in various 3 of 4 •