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AGENDA ITEM REVIEW FORM |
6.C.
Regular City Council Meeting
- Meeting Date:
- 05/11/2022
- Department Head:
- Jorge Perez
- Submitted By:
- Jorge Perez, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the engagement of DPE Construction, Inc., for the City of San Luis 5th and 7th Avenue Improvements. (Eulogio Vera, Director of Public Works)
SUMMARY:
Staff seeks approval to engage DPE Construction, Inc., for the City of San Luis 5th and 7th Avenue Improvements Project.
This is a project that was not budgeted for the fiscal year 2021-2022, but given the extraordinary circumstances of the construction market in general, there are projects that are delayed and will not be completed within the current fiscal year 2021-2022. Staff evaluated a couple of street projects that could be completed this fiscal year and will bring benefit to the residents of San Luis. The 5th & 7th Avenue street connections from residential subdivisions to Cesar Chavez Boulevard will help alleviate some of the traffic from the bigger and signalized intersections.
Staff is seeking Mayor and Council approval to direct hire DPE Construction, INC. granted that they are one of the local paving contractors that could provide these improvements in the required period of time. Staff followed a sealed quote process instead of a formal bidding process, given the short period of time allotted to complete this project and the publication and notice time for formal bidding. Moving forward with this project, staff is asking council to waive the formal procurement code as allowed under San Luis Purchasing Code Section 3.05.010 (F).
Only DPE Construction, INC. responded. The quote was higher than expected but understandable in this current state of inflation. DPE Construction, INC. quoted at $304,440.00.
The quote was rejected because under A.R.S. 34-201(D) the threshold of $246,750 for the fiscal year triggers the state requirement for formal bidding. A new scope of work excluding items #10, #11, #28 and #30 from the original request for quotes was generated, and a total amount of $245,058.00 was quoted by DPE Construction, INC. Since the new quote under the new job is under the state threshold, formal bidding is not required under state law. However, the San Luis Purchasing code requires formal bidding at $35,000 unless formal purchasing procedures are waived by City Council under San Luis Purchasing Code Section 3.05.01(F). Waiving formal procedures is justified because the staff has already tested the market. Expending more time in an inflationary market to go out to bid is not likely to result in a lower quote.
This was not a budgeted project for fiscal year 2021-2022. Thus, the staff is also requesting approval to use funds in the Capital Outlay - Improvement Roads account to complete this project.
This is a project that was not budgeted for the fiscal year 2021-2022, but given the extraordinary circumstances of the construction market in general, there are projects that are delayed and will not be completed within the current fiscal year 2021-2022. Staff evaluated a couple of street projects that could be completed this fiscal year and will bring benefit to the residents of San Luis. The 5th & 7th Avenue street connections from residential subdivisions to Cesar Chavez Boulevard will help alleviate some of the traffic from the bigger and signalized intersections.
Staff is seeking Mayor and Council approval to direct hire DPE Construction, INC. granted that they are one of the local paving contractors that could provide these improvements in the required period of time. Staff followed a sealed quote process instead of a formal bidding process, given the short period of time allotted to complete this project and the publication and notice time for formal bidding. Moving forward with this project, staff is asking council to waive the formal procurement code as allowed under San Luis Purchasing Code Section 3.05.010 (F).
Only DPE Construction, INC. responded. The quote was higher than expected but understandable in this current state of inflation. DPE Construction, INC. quoted at $304,440.00.
The quote was rejected because under A.R.S. 34-201(D) the threshold of $246,750 for the fiscal year triggers the state requirement for formal bidding. A new scope of work excluding items #10, #11, #28 and #30 from the original request for quotes was generated, and a total amount of $245,058.00 was quoted by DPE Construction, INC. Since the new quote under the new job is under the state threshold, formal bidding is not required under state law. However, the San Luis Purchasing code requires formal bidding at $35,000 unless formal purchasing procedures are waived by City Council under San Luis Purchasing Code Section 3.05.01(F). Waiving formal procedures is justified because the staff has already tested the market. Expending more time in an inflationary market to go out to bid is not likely to result in a lower quote.
This was not a budgeted project for fiscal year 2021-2022. Thus, the staff is also requesting approval to use funds in the Capital Outlay - Improvement Roads account to complete this project.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO ENGAGE DPE CONSTRUCTION, INC. FOR THE 5TH AND 7TH AVENUE IMPROVEMENTS FOR $245,058.00 FROM THE CAPITAL OUTLAY- IMPROVEMENT ROADS ACCOUNT, AUTHORIZE THE ACTING CITY MANAGER OR THE PUBLIC WORKS DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY TO DO SO WITHOUT FURTHER APPROVAL OF CITY COUNCIL, AND WAIVE FORMAL PURCHASING PROCEDURES FOR THE REASONS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- CITY
- TOTAL:
- $245,058.00
- BUDGETED AMOUNT:
- $0.00
- AVAILABLE AMOUNT TO TRANSFER:
- $1,298,205.39
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Capital Outlay - Improvement Roads / GL Account #200-210-90010 / $1,298,205.39
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
This was not a budgeted project for fiscal year 2021-2022, thus, staff is also requesting approval to use funds in the Capital Outlay - Improvement Roads account 200-210-90010, no budget transfer is needed.