Loading...
HomeMy WebLinkAboutItem 1a: Contract with Vargas Olson for Annual Construction Maintenance at Various City Facilities OF AR c) S' L P<irok;V'19 d a .0 1014 A R f, I 1 , 10 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: Page 1 of 3 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 Page 2 of 3