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HomeMy WebLinkAbout10B - Qualified Vendor List MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT FEBRUARY 5, 2006 10B STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS CONSIDER APPROVAL OF A REPORT REGARDING ESTABLISHMENT OF A QUALIFIED VENDOR LIST AND ENGINEERING SERVICES CONSULTANT POOL Introduction The purpose of this agenda item is to seek authorization from the Council to establish a Qualified Vendor List and Engineering Services Consultant Pool. History In accordance with City purchasing guidelines staff has obtained quotes or bids from vendors for materials and services. Typically the vendors used by the City are local and have completed previous work or services for the City. City Purchasing Policies specify the minimum number of vendor quotes that must be solicited is dependent on the level of expenditure. Engineering Services, which falls within the "professional services" category does not require competitive bidding. In the past the City has solicited cost proposals from engineering firms, but many times recommended the selection of a firm that has provided quality services to the City on past projects and whose fees have been reasonable. The City has not previously established a Qualified Vendor List or Engineering Services Consultant Pool. Staff and the City Attorney believe that both concepts should be implemented to facilitate greater competition and assure qualified vendors and consultants. Current Circumstances The City Council has indicated to staff a preference to have as many quotes and proposals as possible for materials, projects and services. This preference is based on getting the best value for residents. City purchasing guidelines set a threshold of $50,000 for advertising and obtaining competitive bids. Under this threshold staff is permitted to obtain competitive quotes and forgo going through the competitive bidding process. To best address concerns expressed by the Council, staff proposes the following: 1) Establish a Qualified Vendor List: This will streamline the process for getting quotes and prices for materials and services. By establishing a list of vendors and contractors that have been qualified by the City, the Council can better make decisions that provide the best value for the City. This will also alfow vendors who have not worked for the City the opportunity to provide R\Agenda Reports\2007\02 05 2007\Vendor agenda.doc www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 services as long as they meet the criteria adopted by the City Council. Additionally it will provide staff with the ability to obtain the most cost effective quotes in a timely manner. Staff will advertise the list to allow vendors the opportunity to become qualified. 2) Formalize the City's Enqineerinq Consultant Services Pool: Currently the City utilizes a variety of consultants who have completed work previously for the City and have a record of quality, cost effectiveness and have consistently represented the City's best interests. There are numerous consulting firms that provide service at all levels of quality in the area. When using an open proposal process, the City's ability to ensure quality is typically compromised by the lowest cost proposal. Typically the low cost proposals from untested firms result in low quality and poor service. Ultimately these consultants end up costing the City more due to errors and inconsistent service. For that reason City Staff believes a consulting pool consisting of consultants who provide the best service and overall value to the City is important. City Staff will need to establish selection criteria for engineers and other consultants and advertise the process. Staff proposes to do the following: A) For specialty services such as Lift Station Design, SCADA Support, Water System Analysis, Groundwater Engineering, Construction Inspection, Wetland Services and Bridge Inspection continuity is very important. These services require continuity from project to project to ensure quality services from the City. For those reasons staff proposes to appoint specialty technical services on an annual basis similar to City finance and administrative consultants. B) For general projects in the areas of municipal engineering, transportation engineering and surveying staff proposes to establish a consultant pool. The City would open this pool every 2-3 years to allow other interested consultants to be considered. Every 2-3 years existing consultants in the pool would be reevaluated against other interested consultants to ensure value and quality to the community. The pool will allow staff to obtain a minimum of three proposals for all projects. Because the proposals would come from the City's established Consultant Pool the issues of quality and long term commitment to the City's vision and goals would be assured. Utilizing the Pool the Council could select the Consultant providing the best value for the City without concerns regarding their commitment to the City. A very similar process was used for the Water Treatment Plant selection. ISSUES: Staff feels that establishment of the Vendor List, appointment of Specialty Consultants and Engineering Pool will allow the City to select the best value on services and materials while assuring quality. Because Staff utilizes specialty consultants on a daily basis it is anticipated that staff will bring a list back to the City Council as soon as possible. The establishment of the qualified Vendor List and Engineering Consultant Pool is R:\Agenda Reporis\2007\02 05 200?\Vendor agenda.doc anticipated to take 2-3 months. In the interim staff recommends that the City proceed in accordance with current policy and utilize current consultants. FINANCIAL IMPACT: Staff feels that the implementation of the Vendor' List and Consultant Pool will allow the City to make decisions based on best value and thereby save the City money. ALTERNATIVES: The alternatives are as follows: 1. Accept this report and direct staff to establish a Qualified Vendor List and Engineering Services Pool for City Council Approval. 2. Direct staff to provide the City Council with a list of critical service consultants for appointment on an annual basis. 3. Deny this item for a specific reason and provide Staff with direction. 4. Table this item until some date in the future. RECOMMENDED MOTION: Review d by: ] Alternatives 1 and 2 R:\Agenda Reports\2007\02 05 2007\Vendor agenda.doc