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AGENDA ITEM REVIEW FORM
5.B.
Special City Council Meeting
Meeting Date:
02/07/2024
Department Head:
Eulogio Vera
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 purchase of a new Pre-Engineered Metal Building (PEMB) for the Water Well Site #5 Project.  (Jorge Perez, Assistant Director of Public Works) 

SUMMARY:

The department of public works and its water division are currently working on the development, design and construction of a new groundwater well, filtration system, and building improvements at Well Site #5. The new Pureflow filtration sytem will be housed in a new pre-engineered metal building (PEMB). Some of the equipment like the filtration system has been ordered to take advantage of time and allow for the fabrication and delivery of materials. The complete design of the project is at approximately 90% complete and Public Works would like to procure the pre-engineered metal building to advance on its fabrication and delivery. 

The project was initiated at the beginning of the fiscal year by bringing a consultant on board to produce design plans for the construction of the well, to work with Pureflow filtration system and incorporate their system design into the project design, and to also produce design work for the pre-engineered metal building (PEMB). The project has advanced in design in construction phases, concentrating initial efforts into the well design and filtration system for it to be ordered. At this stage, the design is far along to produce engineering design for the metal building and thus, the department of Public Works is seeking purchase of the building. Conducting a formal bid process for the purchase of a new pre-engineered metal building (PEMB) could add 6-8 weeks to the project schedule. With this in mind, Public Works, with the assistance of its consultants, requested and obtained two proposals from Bunger Steel out of Phoenix, Arizona and Rhino Steel Building Systems from Denton, Texas for the fabrication of a PEMB. A third vendor, Nucor Corporation, declined to provide a proposal as they only work with general contractors. Both responsive vendors provided an informal schedule of 8 weeks for sealed drawings and 10-12 weeks for fabrication, for a total of 18-20 weeks for delivery of the PEMB. 

Public Works is seeking Mayor and Council approval to purchase a pre-engineered metal building (PEMB) from Bunger Steel in the amount of $71,471.25 and to waive the formal purchasing procedures as authorized under the San Luis City Code, Section 3.05.010(F) Procedures Waived.

RECOMMENDATION / SUGGESTED MOTION:

I MOVE TO APPROVE THE PURCHASE OF A PRE-ENGINEERED METAL BUILDING FROM BUNGER STEEL IN THE AMOUNT OF $71,471.25 AND TO 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:
$71,471.25
BUDGETED AMOUNT:
$1,600,000.00
AVAILABLE AMOUNT TO TRANSFER:
N/A
ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
300-302-90015 / Capital Outlay - CIP / $2,804,604.01

FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):

Budgeted Item at $1,600,000.00
Bunger Steel Proposal $64,556.00 + tax = $71,471.25
Rhino Steel Proposal $74,400.00 + tax = $82,369.73
Nucor Corporation declined to provide proposal.

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