City Council Agenda Report
Meeting Date: March 21, 2023
From: Daniel S. Wall, P.E., Director of Public Works
Department: Public Works
Submitted by: Andrew Eguia, Assistant Engineer
Subject
Professional Services Agreement with RAMCO General Engineering Contractors and Mega Renovation, Inc. for On-Call General Contractor and Minor Construction Services Recommendation
A. Find that the proposed action is categorically exempt under the California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because the project consists of the maintenance, repair and minor alteration of existing facilities and involves negligible or no expansion of an existing use;
B. Approve and authorize the City Administrator to execute a Professional Services Agreement with RAMCO General Engineering Contractors, in substantially the same form as submitted, for a three-year term in an amount not-to-exceed $350,000 for on-call general contractor and minor construction services; and
C. Approve and authorize the City Administrator to execute a Professional Services Agreement with Mega Renovation, Inc., in substantially the same form as submitted, for a three-year term in an amount not-to-exceed $350,000 for on-call general contractor and minor construction services.
Background
The City of Vernon owns residential and municipal buildings which require occasional minor construction work such as remodeling or repair work. The work is typically time-sensitive and the City intends to award contracts to licensed and qualified contractors with a history of successfully and efficiently performing a full range of minor construction, maintenance, and repair services on an as-needed basis. These contractors will augment the expertise of Public Works crews and will supplement existing City staff to ensure that construction projects are completed in timely manner. City staff will continue to perform work when projects are within the scope of staff’s skillset and when time permits personnel to tend to project tasks efficiently and urgently.
Pursuant to Vernon Municipal Code (VMC) Section 3.32.070, the Engineering Division publicized the Request for Proposals (RFP) for On-Call General Contractor and Minor Construction Services, as the cost for the service was anticipated to exceed $50,000. The VMC Section noted above allows the bidding procedure for this type of work to be conducted in a twopart process consisting of an initial qualifications review to select pre-qualified bidders and a separate price submittal as needed. In response to the RFP posted o or about February 7, 2023, the Engineering Division received three (3) proposals by the due date from qualified firms.
Proposals were rated on experience, overall cost, responsiveness to the RFP, and feedback of references for demonstrated capability on similar recent projects.
A panel comprised of Internal staff evaluated the three (3) proposals received in order to determine the firm best suited to provide the services requested. A comprehensive, fair and impartial evaluation of the proposals was conducted in accordance with the specifications set forth within the RFP document. Established criteria were used in reviewing and comparing the proposals to determine the most suitable firm. At the conclusion of the assessment, it was determined that RAMCO General Engineering Contractors (RAMCO) and Mega Renovation, Inc. (Mega) will best meet the needs of the City and provide an opportunity to compare costs and timeliness for as-needed construction, maintenance, and repair work. RAMCO’s and Mega’s proposals demonstrated their experience in similar on-call agreement services, and their references for past work provided positive reviews. Both cost proposals are considered to be competitively priced. Staff recommends that the City enter into services agreements with these two firms. When construction and/or repair work is required, the Public Works Department will request cost and request bids from both firms for comparison and issue a Notice to Proceed to the firm that will best fulfill the urgent needs at that time.
Each proposed Services Agreement has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact for both contracts is a combined not-to-exceed $350,000 for the term of three years. The service providers’ fees will be based on actual work performed. Any amount paid to either RAMCO or Mega shall count toward the not-to-exceed amount. Multiple funding sources will be utilized. Sufficient funds to cover the costs of the services are available in the General Fund, Public Works, Facilities Maintenance, Repairs & Maintenance Account No. 011-040-415- 529000 and the General Fund, Public Works, City Housing, Repairs & Maintenance Account No. 011-040-410-529000 for the current fiscal year and will be budgeted in subsequent fiscal years based on projected activity.
Attachments
1. Services Agreement – RAMCO General Engineering Contractors
2. Services Agreement – Mega Renovation, Inc.