City Council
Report
City Council Meeting: May 14, 2024
Agenda Item: 5.K
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Award Contract to Reign Industries, Inc. as Primary and Leed Electric, Inc. as Secondary to Provide Electrical Contractor Services at Water & Wastewater Treatment Facilities
Recommended Action
Staff recommends that City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines;
2. Award Bid #4476 to Reign Industries Inc. as the primary vendor to provide electrical contractor services at water and wastewater treatment facilities; and to Leed Electric, Inc. as the secondary vendor to provide electrical contractor services at water and wastewater treatment facilities for the Public Works Department;
3. Authorize the City Manager to negotiate and execute an agreement with Reign Industries, Inc. in an amount not to exceed $300,000 for one year, with four additional one-year renewal options in the amount of $1,200,000 on the same terms and conditions for a total amount not to exceed $1,500,000 over a fiveyear period with future funding contingent on Council budget approval; and
4. Authorize the City Manager to negotiate and execute an agreement with Leed Electric, Inc. in an amount not to exceed $160,000 for one year, with four additional one-year renewal options in the amount of $640,000 for a total amount not to exceed $800,000 over a five-year period with future funding contingent on Council budget approval.
Summary
The City of Santa Monica Public Works Department – Water Resources Division is charged with providing safe, reliable water and wastewater services to the community.
Vital to ensuring reliable service is the maintenance of a variety of interconnected electrical controls to ensure continuous operation of the City’s water and wastewater infrastructure, including the Arcadia Water Treatment Plant, Charnock Water Treatment 2 of 5
Plant, groundwater production wells, the Santa Monica Urban Runoff & Recycling Facility (SMURRF), and the Moss Avenue Pump Station (MAPS). Periodic repair and maintenance are needed to keep the electrical controls working at all times. Staff recommends awarding a contract to Reign Industries Inc. in an amount not to exceed $1,500,000 over five years to provide electrical contractor services for water and wastewater infrastructure. Staff also recommends awarding a contract to LEED Electric, Inc. in an amount not to exceed $800,000 over five years as a secondary vendor to provide electrical contractor services for the City’s water and wastewater infrastructure.
Discussion
The Water Resources Division relies on several types of electrical equipment and controls that are integral to the treatment and delivery of high quality drinking water, the treatment and delivery of recycled water, and the collection of wastewater for the City’s customers. Collectively, there are thousands of electrical equipment and controls throughout the City’s water and wastewater infrastructure that includes motor control center panels, breakers, flow meters, motor starters, soft starters, power cables, and variable frequency drives. As these facilities are critical to the health and safety of the community, it is crucial that any type of electrical issues are addressed immediately to maintain continuity of service. Staff recommends Reign Industries Inc. as the primary contractor, and LEED Electric, Inc. as the secondary contractor, in the event Reign is unable to provide necessary electrical services due to scheduling, equipment availability, supply chain delays, or if additional resources may be needed.
Vendor Selection
Bidder Recommendation
Best Bidder Reign Industries Inc. (Primary)
LEED Electric, Inc. (Secondary)
Evaluation Criteria
(include all that apply)
Price; experience of the bidder; the ability of the bidder to provide such future maintenance or service as may be needed; any other factor that will further the intent set forth in Section 608 of the City Charter. The City shall have absolute discretion in determining the applicability and weight of the criteria listed above.
The City is not required to select the bid with the lowest price.
Municipal Code SMMC 2.24.180
Submittals Received
Reign Industries Inc. $1,913.00 Moore Flooring, Inc. NO BID 3 of 5
Bid Data
Date Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
01/16/2024 City's Online
Bidding Site
Santa Monica Daily Press 33 2/26/2024
Best Bidder Justification
The proposals were reviewed by a selection panel consisting of staff from the Public Works Department – Water Resources Division. The proposal evaluations were based on previous experience, ability to deliver, cost, and compliance with City requirements.
Based on Reign Industries’ previous experience and expertise with the specialized electrical equipment the City uses, staff recommends Reign Industries, Inc as the best bidder and primary vendor to provide electrical contractor services for the City’s water & wastewater treatment facilities. LEED Electric, Inc. excluded service on some older equipment from their bid and is recommended as the secondary vendor. Staff would use LEED Electric, Inc. in circumstances where Reign is unavailable to perform services.
Environmental Review
The maintenance and repair of electrical controls at the City’s water and wastewater facilities are categorically exempt pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines. Section 15301 provides exemption for the operation, repair, maintenance, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. This contract would ensure that the City’s existing electrical controls are maintained and/or repaired. The contract would not expand or materially change existing facilities or operations. Therefore, the contract is categorically exempt pursuant to Section 15301 of the CEQA Guidelines.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Water and Wastewater Funds to award a contract with Reign Industries Inc. to provide electrical contractor services for water and wastewater treatment facilities. In addition, staff seeks authority LEED Electric, Inc. $1,394.78 Unipak Corp. NO BID
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to approve available funding from the Water and Wastewater Funds to award a contract with LEED Electric, Inc. as a secondary vendor to provide electrical contractor services for water and wastewater treatment facilities.
Contract Request (Reign Industries Inc. – Primary)
FY 2023-24
Request Amount
Future Years
Request Amount Account # Total Contract Amount
$100,000 $400,000 50500001.550010 $500,000
$25,000 $100,000 50500002.550010 $125,000
$25,000 $100,000 50500003.550010 $125,000
$50,000 $200,000 51500001.550010 $250,000
$50,000 $200,000 51500001.529420 $250,000
$50,000 $200,000 51500001.529450 $250,000
$300,000 $1,200,000 Total $1,500,000
Contract Request (LEED Electric, Inc. – Secondary)
FY 2023-24
Request Amount
Future Years
Request Amount Account # Total Contract Amount
$55,000 $220,000 50500001.550010 $275,000
$15,000 $60,000 50500002.550010 $75,000
$15,000 $60,000 50500003.550010 $75,000
$25,000 $100,000 51500001.550010 $125,000
$25,000 $100,000 51500001.529420 $125,000
$25,000 $100,000 51500001.529450 $125,000
$160,000 $640,000 Total $800,000
Future year funding is contingent on Council budget approval.
Prepared By: Thomas Poon, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. Oaks Initiative Form - Reign Industries Inc.
B. Levine Act Disclosure Form - Reign Industries Inc.
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C. Oaks Initiative Form - LEED Electric, Inc.
D. Levine Act Disclosure Form - LEED Electric Inc.