City Council
Report
City Council Meeting: May 25, 2021
Agenda Item: 3.F
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Award Sole Source and Authorize an Agreement with Paul's Welding for Water and Wastewater Welding & Metal Fabrication Services Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute an agreement with Paul Padilla, DBA Paul’s Welding for water and wastewater portable welding and metal fabrication services for the Public Works Department. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (g) and is for a total amount not to exceed $500,000 over five years. Future year funding is contingent on Council budget approval.
Summary
The Water Resources Division contracts portable welding and fabrication services to properly maintain water and wastewater facilities at Santa Monica Urban Runoff Recycling Facility (SMURRF) and Moss Avenue Pumping Station (MAPS). Welding repair work for MAPS and SMURRF requires a specialized knowledge of related equipment as well as confined space certification. In July 2016 and February 2021, the City solicited bids for such services, with Paul’s Welding being the sole bidder each time. Due to a lapse in prevailing wage registration with the Department of Industrial Relations (DIR), Paul’s Welding’s bid was disqualified, and the bid was closed with no qualified responses. Paul’s Welding has since become current with its registration with the DIR. Due to the specialized nature of work and limited response to previous requests for bids, Water Resources seeks to award a sole source to Paul’s Welding in an amount not to exceed $500,000 over a five-year period. 2 of 3
Discussion
The City contracts portable welding and fabrication work to maintain water and wastewater equipment located in Santa Monica and West Los Angeles including the Arcadia Water Treatment Plant, Charnock Well Field, MAPS, and SMURRF. Welding services required by the Water Resources Division are specialized in that repair locations must often be accessed within confined space, at elevated locations, and/or completed within proximity of water treatment chemicals. The welding contractor must have confined space training certification and knowledge of welding techniques and safety protocol unique to industrial water and wastewater operations. Repairs are conducted on an as-needed basis, and often, on an emergency basis at all hours of the day and night. It is vital to Water Resources operations that the City maintain an on-call agreement for portable welding and fabrication services with a certified, reliable, and knowledgeable firm.
Following two prior requests for bids conducted by the City in July 2016 and February 2021, which notified 122 and 4,469 vendors respectively, the effort only yielded one vendor submission, which was Paul’s Welding. Paul’s Welding is the current provider of portable welding and fabrication services for the Water Resources Division. Due to past limited responses to requests for bids and due to the specialized nature of work, Water Resources seeks to award a sole source agreement to Paul's Welding for portable welding and fabrication of related water and wastewater facilities and equipment in the amount of $500,000 over a five-year period, with future funding contingent upon City Council approval. A portion of maintenance costs for wastewater treatment facilities would be covered by the City of Los Angeles per existing maintenance agreements including 100% reimbursement for work completed at MAPS and 50% reimbursement for the SMURRF.
Vendor Selection
Exception to Competitive Bidding
Staff recommends that Paul’s Welding to provide water and wastewater equipment welding and metal fabrication services as an exception to competitive bidding per Muni Code 2.24.250 (g). This award meets the City’s exception to competitive bidding criteria (g) that due to circumstances outside of the control of the City, a substantial interference would result to City operations if a contract was not awarded as this repair work is vital to maintaining water and wastewater treatment . 3 of 3
g. due to circumstances outside of the control of the City, would result in a substantial economic loss, substantially compromise a legal position, or substantially interfere with a required City operation.
Financial Impact
Staff seeks authority to approve funding from the Water and Wastewater Funds to award a contract to Paul’s Welding for welding and fabrication services. Funds are included in the FY 2012-23 Proposed Biennial Budget. Future year funding is contingent on Council budget approval.
Contract/Agreement/Purchase Order Request
FY 2021-22
Budget
Request Amount
Department/CIP Account # Total Contract
Amount
$80,000 50500001.550010 $400,000
$20,000 51500001.550010 $100,000
$100,000 Total $500,000
Prepared By: Kori Jones, Administrative Analyst
Approved Forwarded to Council
Attachments:
A. Paul's Welding Oaks Form