Discussion and possible action on any and all matters regarding the City of San Luis Public Works Department accepting Construction Services from Yuma Valley Contractors, Inc. for the installation of new sewer service at the City of San Luis Public Works yard and adjacent parcels to the South.  (Jorge Perez, Assistant Director of Public Works).

The City of San Luis Public Works department currently has a construction project within its public works yard to provide a new groundwater well and a new filtration system. This project was designed keeping in mind that there was to be reclaimed water discharge from the filtration system and that it would go to the existing sewer lift station serving the existing buildings within the property. It was later decided that the existing lift station needed to be removed and that the yard property needed to connect to the gravity sewer along 4th Avenue. CORE Engineering produced design plans for the lift station removal and new connections, including two new sewer manholes that would service the adjacent properties to the south. Said properties were recently acquired by the City of San Luis, and providing sewer service is now beneficial in saving for future construction. At the same time, it is good timing to add sewer service before the full 4th Avenue road expansion to avoid cuts on new pavement. 

Staff requested quotes from MGC Contractors, Gutierrez Canales Engineering, and Yuma Valley Contractors since they all have been working in the area. MGC Contractors is the Well project contractor, and Yuma Valley Contractors has been doing underground work for MGC on the same project. On the other hand, Gutierrez Canales Engineering is doing utility work on the Cesar Chavez Blvd. project. Proposals were received as follows:

• MGC Contractors Inc. $492,525.22
• Yuma Valley Contractors $198,794.00
• Gutierrez Canales Engineering - Proposal not received

The lowest quote is Yuma Valley Contractors for $198,794.00 plus 5% ($9,939.70) in contingencies for a total of $208,733.70.  Under A.R.S. § 34-201(D), Arizona law requires bidding for sewer construction work for amounts that do not exceed approximately $266,850 (this was the last fiscal year that the Arizona League of Cities and Towns calculated the threshold by adjusting for inflation and other economic factors required by the statute).  Since inflation has only gone up since that time, the threshold is conservative, and the city is well below the threshold. The city's formal purchase procedure is to go out to bid for purchases over $45,000. Under San Luis City Code § 3.05.01: "For good cause, with the approval of the Council, formal purchase procedures may be waived." Given the quotes we have, the approaching end of the fiscal year, and the time it would take to bid and order materials (especially new sewer manholes); staff is seeking the City Council's approval to contract with Yuma Valley Contractors and to waive formal purchasing procedures to allow the project to be completed within the current fiscal year.