Title
Agreement: Electric Motor Repairs and Services [Published for 10-day Review on 11/21/2024]
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FileID
File ID: 2024-01912
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or the City Manager's designee to execute Non-Professional Services Agreements with All Electric Motors, Dahl-Beck Electric Company, Herold & Mielenz, Inc., Koffler Electrical Mechanical Apparatus Repair, Inc., and Modesto Electrical Company for On-Call Electric Motor Repairs and Service, for a one-year term, with the option to extend for four additional one-year terms, not to exceed five years for an amount not-to-exceed amount of $3,000,000 per vendor; with a total not-to-exceed amount of $15,000,000.
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Contact
Contact: Deanne Neighbours, Logistics Manager, (916) 808-3536, dneighbours@cityofsacramento.org; Ray Wilderman, Utilities Operations and Maintenance Superintendent, (916) 808-6955, rwilderman@cityofsacramento.org; Charley Cunningham, Utilities Operations and Maintenance Manager, (916) 808-5518, ccunningham@cityofsacramento.org; Pravani Vandeyar, Director, (916) 808-3765, pvandeyar@cityofsacramento.org; Department of Utilities
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Agreement_Herold & Mielenz Inc.
3-Agreement_All Electric Motors Inc.
4-Modesto Industrial Electric Co. Inc.
5-Agreement_Dahl-Beck Electric
6-Agreement_Koffler Electrical Mechanical Apparatus Repair Inc.
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Description/Analysis
IssueDetail
Issue Detail: The City of Sacramento has an ongoing need for On-Call Electric Motor Repairs and Service at Department of Utilities (DOU) critical facilities.
DOU requires vendors with various specialties to service the large variety of motor sizes and types utilized at facilities throughout the City. For instance, All Electric provides specialty in valve actuators and large high horsepower motors, Herold and Mielenz specializes in submersible and lower horsepower motors up to 600 volts, Modesto Industrial Electric specializes in higher horsepower and medium voltage motors, and Koffler specializes in synchronous motors and higher horsepower and medium voltage motors. To provide operational flexibility and support the variety needs at facilities throughout the City, DOU is proposing to award non-professional services agreements to five on-call vendors for electric motor repairs and services, for a one-year term, with the option to extend for four additional one-year terms, not to exceed five years for an amount not-to-exceed amount of $3,000,000 per vendor; with a total not-to-exceed amount of $15,000,000.
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PolicyConsiderations
Policy Considerations: In conformance with City Code section 3.56.090, City Council approval is required to execute non-professional service agreements if the amount expended under the agreement is $250,000 or more. City Council may approve an alternative procurement process pursuant to City Code section 3.56.230.
Pursuant to the Non-Professional Services Procurement Policy AP4101, Section.1 (c)(1), when on-call services contracts are used, the amount of the procurement is the cumulative amount of the on-call services contracts if multiple on-call services contracts are being used for the same scope of services. DOU was previously approved to suspend competitive bidding for the purpose of an RFQ and is now requesting to suspend competitive bidding as allowed pursuant to Section.2.(1) which is allowed, if after advertising for bids as required, no valid bids are received. A different procurement method may be used, provided the use of such method is approved by the City Council consistent with applicable provisions of the City Code. Pursuant to Section.2.(2)(ii), DOU has entered into competitive negotiations with all proposers to obtain the lowest prices available for these services.
The Sacramento City Code Section 4.04.020 and the City Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to City Council action. This item was published for 10-day review on November 21, 2024, in compliance with the City Code.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The activity described in this report has been determined to not be a project pursuant to the California Environmental Quality Act (CEQA). CEQA Guidelines Section 15378(b). The activity is a continuing administrative or maintenance activity, such as the purchases of supplies or personnel related actions and will not result in direct or indirect physical changes in the environment [CEQA Guidelines section 15378 (b)] and is not subject to CEQA (CEQA Guidelines Section 15060(c)(3)]. Future maintenance activities that may result as from the approval of this agreement are generally exempt from CEQA pursuant to CEQA Guidelines Section 15301.
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Sustainability
Sustainability: The proposed contract is consistent with the 2040 General Plan under policy PFS-3.1 as it is related to public facilities and safety, including providing reliable water, wastewater, and stormwater drainage service to the City of Sacramento.
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Commission/CommitteeAction
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: On May 30, 2023, DOU issued Request for Proposal (RFP) P23141361517 for On-Call Electric Motor Repair Parts and Services. Four proposals were received and subsequently rejected after it was determined they were not responsive to all solicitation requirements. Non-professional services agreements were subsequently executed under the spending authority of the City Manager with the intent to revisit and release another solicitation for these services.
Staff received approval from City Council on June 11,2024, to allow the use of a Request for Qualification (RFQ) process to establish a qualified Contractor list for On-Call Electric Motor Repair Parts and Services. The purpose of the RFQ was to develop a list of qualified on-call Contractors to assist Department of Utilities’ staff in repairing and servicing the wide array of types and sizes of electric motors used in DOU infrastructure throughout the city. After receiving Statements of Qualification (SOQs), staff proposed to enter into contracts with all Contractors deemed qualified. City Council approved the use of this alternative process with a two-thirds vote.
On August 6, 2024, DOU issued Request for Qualifications (RFQ) Q24141361712 for On-Call Electric Motor Repair Parts & Service. The project was publicly advertised, extensive outreach was conducted including two pre-bid meetings, and five Contractors submitted Statements of Qualification (SOQs). One Contractor was invalidated due to failure to accept addendums as required, and the remaining four Contractors were rejected after it was determined they were not responsive to all solicitation requirements. Competitive bidding requirements do not apply to this solicitation because City Council approved an alternative form of procurement and the City did not receive any valid bids. Due to the Contractors’ demonstrated lack of capacity to meet the City’s solicitation requirements, DOU is requesting to approve contracts resulting from competitive negotiations with all proposers and award agreements for on-call services up to $3,000,000 each.
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FinancialConsiderations
Financial Considerations: Funding for the first year of these agreements of approximately $300,000 has been included in the approved Fiscal Year 2024/25 DOU Budget. Funding for future fiscal years shall be subject to funding availability in the adopted budgets for the applicable fiscal year in an amount not to exceed $3,000,000 over the five-year term for each agreement. Purchase orders encumbering funds under this agreement will not be created until needs and funding are identified in the applicable budget (operating, capital, multi-operating, or grants).
There are no impacts to the General Fund for this Agreement.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): The minimum LBE participation requirement is waived as the City has suspended competitive bidding and utilized an alternate procurement method to select a supplier.
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