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Home My WebLink About5G Electrical Contractor Services o � PRlp� !� � v �'�' 4646 Dakota Street SE Prior Lake, MN 55372 � CITY COUNCIL AGENDA REPORT MEETING DATE: NOVEMBER 25, 2013 AGENDA #: 5G PREPARED BY: KATY GEHLER, DIRECTOR OF PUBLIC WORKS AND NATURAL RE- SOURCES PRESENTED BY: KATY GEHLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ENTERING INTO THE CITY'S STANDARDIZED CONTRACT FOR ELECTRICAL CONTRAC- TOR SERVICES AND AUTHORIZING THE MAYOR AND CITY MANAG- ER TO EXECUTE THE DOCUMENT ON BEHALF OF THE CITY DISCUSSION: Introduction The purpose of this agenda item is to select a vendor for the 2014 Con- , tracted Electrical services for the City of Prior Lake. ' Hi StOry ' The city is fortunate to have a highly qualified staff who possess a diverse number of specialties which are prerequisite to maintaining city infrastruc- ture. However as you might imagine there are certain areas of expertise where the staff does not or is prohibited from operating. Electrical services is one such area. While we do have staff capable of completing certain electrical functions, state building code as well as the complexity of some of the electrical work required, necessitates that the city contract with pro- fessional electrical firm. Historically staff obtained quotes for each electrical maintenance project in accordance with our purchasing policy (written quotes for >$1,000). This process takes time away from both staff and electricians alike without re- sulting in any particular advantage to the taxpayer, city or vendor. As such, it was getting difficult to get electrical vendors to bid more routine or minor projects. In addition, staff had knowledge of other communities contracting for electrical services. Contracting can provide the following benefits: 1. Work volume allows contractors to keep prices lower than incre- mental work. 2. The City has a known resource for emergency repairs 24/7/365. 3. The selected vendor gains knowledge of our systems making them more efficient. 4. Reduces the amount of staff time managing purchasing including the quoting process, contract development, insurance documenta- tion, etc. This is especially important in emergency situations. 5. Provides opportunity for vendors to bid without the process becom- ing overly burdensome. Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com Current Circumstances A Request for Proposals (RFP) was sent out that required the bidder to provide skilled, experienced and prompt service for a wide variety of elec- trical work at various city facilities including buildings, athletic fields, lift sta- tions, street lighting and water treatment and distribution facilities. Work under this contract will be covered by a master agreement which defines hourly rates and fees. However, the detailed scope of service for each pro- ject would be completed at the time of work and approved prior to the initia- tion of the service through a work order. The City Attorney has reviewed the RFP and contract documents. Because electrical services can be very technical, the selection process included criteria to gauge the bidder's knowledge. For example, one ven- dor may have a lower hourly rate, but due to less knowledge requires twice the time to complete the job as another vendor. The bid form included scenarios depicting various fictitious but reality based electrical needs which the vendors were asked to provide a solution and anticipated cost. Proposals were due on Monday, November 18, 2013, opened and evaluat- ed by staff that included the Maintenance Superintendent, Public Works Assistant, and Public Works Director. The City received 4 proposals. The evaluation of proposals included both objective and subjective analysis. The following scale was used to judge the vendors: • Proper Submission and Completeness of RFP (10%) • Ability to Provide Service (30%) • Experience and References (30%) ', • Charges for Services (30%) !, The table below notes the scores for the four vendors out of a possible 40. Hayes Electric provided the lowest hourly rates in addition to having an ex- cellent working knowledge of the City's systems. It is recommended that the City enter into a year-long contract with Hayes Electric to provide elec- trical service for 2014 with the option to extend the agreement up to two years on agreement of both parties. The hourly rates proposed by Hayes are equal to the rates we presently pay. The rates for renewal will be as quoted given agreement of both parties. If there is not agreement, the City would go through a similar selection process. Evaluation Score Hayes Electric 37 Gunner 36 Kahuna Electric 16 Cal-Tek Electric, Inc 25 ISSUES: Considering the technical nature of electrical work, time efficiency required for repairs, and need to comply with the City's purchasing policy, contract- ing for electrical services represents a good value to the Prior Lake tax- payer. 2 FINANCIAL Funds are appropriated within the general and enterprise fund operating IMPACT: budgets to accommodate electrical services. The total 2012 electrical ser- vices expenditures across all accounts was about $40,000. ALTERNATIVES: 1. Adopt the attached resolution awarding bid for one year to Hayes Elec- tric and authorizing execution of the city's standardized contract. 2. Table this item for a specific reason. 3. Deny this item for a specific reason and provide staff with direction. RECOMMENDED Staff recommends Alternative #1 MOTION: 3 o � rxr � � U tr� 4646 Dakota Street SE '�iv�so'��` Prior Lake, MN 55372 RESOLUTION 13-xxx A RESOLUTION ACCEPTING BIDS AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A CONTRACT WITH HAYES ELECTRIC ON BEHALF OF THE CITY FOR ELECTRICAL SERVICES Motion By: Second By: WHEREAS, Electrical services are necessary to maintain city facilities, athletic fieltls, street lights, and sanitary sewer facilities; and WHEREAS, A"Request for Proposals for Contracted Electrical Services" was prepared and sent to all interested vendors; and WHEREAS, Proposals were evaluated based on the following criteria: • Proper Submission and Completeness of RFP (10%) • Ability to Provide Service (30%) • Experience and References (30%) • Charges for Services (30%); and WHEREAS, A total of four (4) proposals (provided in the chart below) were received for the identified services, with the best value being provided by Hayes Electric; and Com an Address Score Hayes Electric 7160 250th St E 37 Points Ham ton, MN 55031 Gunnar Electric 7960 Eden Prairie Rd 36 Points Eden Prairie, MN 55347 Kahuna Electric 6170 Sue Ann Ln 16 Points Prior Lake, MN 55372 Cal-Tex Electric 17001 Fish Point Rd 25 Points Suite 104 Prior Lake, MN 55372 WHEREAS, Hayes Electricaf resented the followin hourl rates for electrical services: Master Electrician $82.00 Master Electrician Night/WE $123 Master Electrician Emergency Call Out $123 Apprentice/other staff $45 Apprentice/other staff Night/WE $67.50 Apprentice/other staff Emergency Call Out $67.50 NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Hayes Electric shall provide Electrical Services for the period November 25, 2013 — December 31, 2014 with the option of renewal upon agreement from both parties 3. Hayes Electric shall enter into the City's Standardized Agreement for Contractor Services as approved by the City Attorney 4. The Mayor and City Manager are authorized to execute the contract on behalf of the City with Hayes Electric 5. Funds for this purpose shall be appropriated from the various departments in the General and Enterprise Funds PASSED AND ADOPTED THIS 25th DAY OF NOVEMBER 2013. YES NO Hedber Hedber Keene Keene McGuire McGuire Morton Morton Souku Souku Frank Boyles, City Manager