HomeMy WebLinkAboutItem 1a: Contract with Vargas Olson for Annual Construction Maintenance at Various City Facilities OF AR
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oot ''`b STAFF REPORT
Public Works Services Department
DATE: February 1, 2011 .
TO: Mayor and City Council
FROM: Tom Tait, Public Works Services Director
Prepared by: Dave McVey, General Services Superintendent
SUBJECT: AUTHORIZE THE CITY MANAGER TO EXECUTE A CONTRACT WITH
VARGAS OLSON ENTERPRISES, INC. FOR ANNUAL
CONSTRUCTION MAINTENANCE SERVICES AT VARIOUS CITY
FACILITIES IN THE AMOUNT NOT TO EXCEED $105,770
Recommendation: Approve
SUMMARY
As part of the City's ongoing facilities maintenance program, the Public Works Services
Department annually conducts a variety of scheduled and unscheduled building
improvements for various City facilities, through the Capital Improvement Program,
Departmental operating budgets and emergency repairs associated with water /sewer
damages. To ensure these projects are completed in a timely manner, staff conducted
a competitive bidding process for scheduled and unscheduled construction and repair
work at various City facilities.
The City Clerk opened sealed bids on January 4, 2010. Staff has evaluated all of the
bid documents and found the most responsive /responsible bidder to be Vargas Olson
Enterprises Inc. Therefore, staff recommends that the City Council award a contract to
Vargas Olson Enterprises Inc. for the annual construction maintenance services at
various City facilities in the amount not to exceed $105,770.
DISCUSSION
The Public Works Services Department is responsible for the maintenance of all City
facilities, which includes preventative maintenance programs at City parks and all
building facilities. Additionally, the contract provides for any extraordinary services that
pertain to emergency response required for sanitary sewer overflows, which at times
cause damage to public and /or private structures.
Staff conducted a competitive bidding process for the annual construction maintenance
services for various City facilities. Notice inviting bids was published in the adjudicated
paper and bid packages were distributed to area contractors. Sealed bids were opened
on January 4, 2010 with the following results:
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Mayor and Council
February 1, 2011
Bidder Location Amount
Vargas Olson Enterprise Inc. Monrovia, CA $105,770.00
Access Pacific Inc. Pasadena, CA $123,605.00
Staff received two (2) bids despite extending the bid opening deadline. During the
advertisement period, seven (7) bid packets were distributed to potential vendors with
an additional five (5) vendors purchasing a bid packet. Staff received phone and email
inquiries regarding the bid from vendors who seemed to be interested in the contract
and yet they did not submit a bid. It is important to note that the contract amount is a
not -to- exceed amount. However, this does not necessarily mean that this amount is
what is going to be spent. The work is based on Capital Improvement Projects and
extraordinary repair work. Consequently, potential vendors shy away from bidding on
these types of maintenance contracts because the work is based on an "as- needed"
basis. Essentially, the work is not guaranteed but a vendor is required to initially
purchase a bid bond for the full price of the contract which may not be economically
feasible for their business.
Staff has reviewed the bid documents received for content and the vendor's background
and competency and concluded that Vargas Olson Enterprises, Inc. is the lowest
responsible bidder. Vargas Olson has worked for the City on other projects and has
consistently provided quality work. It is staff's opinion that Vargas Olson Enterprises
Inc. can satisfactorily perform the work required.
Staff is recommending that the City Council award a contract to Vargas Olson
Enterprises Inc. for annual construction maintenance services at various City facilities in
the amount not to exceed $105,770.
FISCAL IMPACT
Sufficient funds have been budgeted in the 2010 -11 Capital Improvement and
Operating Budgets.
RECOMMENDATION
1. Award a contract to Vargas Olson Enterprises Inc. for annual construction
maintenance services at various city facilities in the amount not to exceed
$105,770.
2. Waive any informality in the bid or bidding process.
3. Authorize the City Manager and City Clerk to execute a contract in a form
approved by the City Attorney.
Approved by: ..err
Donald Penman, City Manager
TT: DM
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