Title
Consider a memorandum/resolution awarding Bid No. 22-20, Generator Project, to T. Morales Company Electric & Controls, Ltd. in the amount of $480,535.
Summary
DATE: May 17, 2022
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director of Public Works
SUBJECT: Authorize the Award of Bid No. 22-20, Generator Project to T. Morales Company Electric and Controls, Ltd. in the amount of $480,535.
BACKGROUND AND FINDINGS:
Senate Bill 3 (SB 3) of the 87th Texas Legislature requires all water providers to develop and implement an Emergency Preparedness Plan (EPP). A key factor of this plan is the ability to provide water to all customers at a 20-psi minimum pressure for at least 24-hours in the event of a system-wide power outage. The EPP, which was submitted to the Texas Commission on Environmental Quality (TCEQ) on February 28, 2022, includes the installation of backup generators at Pump Stations No. 6 and No. 7 to meet this requirement.
City staff advertised Bid No. 22-20, Generator Project for the installation of backup generators and other necessary equipment to interface with existing equipment at Pump Stations 6 and 7. Invitation to bid was advertised April 3rd and April 10th, 2022.
On April 21, 2022, submittals for Bid No. 22-20, Generator Project were opened and read aloud. The following five contractors submitted bids for this project:
Water & Sewer Division, along with Purchasing, evaluated each bid’s conformance with the bid information and instructions. Each bidder is ranked in accordance with the best value procedures. The determination of the best value to the City takes into consideration the qualifications, references, and cost of bidder. Utilizing this criteria, T. Morales Company Electric & Controls, Ltd. has been selected as the lowest responsible bidder and offers the best value for this project.
THE ALTERNATIVES CONSIDERED:
(1) Do not award Bid 22-20, Generator Project; this will result in the City not meeting the SB 3 requirement of beginning EPP implementation by July 1, 2022.
(2) Authorize the award of Bid 22-20, Generator Project to another Bidder.
(3) Authorize the award of Bid No. 22-20, to the lowest responsible bidder who offers the best value to the City, T. Morales Company Electric & Controls, Ltd.
Which alternative is recommended? Why?
Alternative two (3) is recommended because:
(1) T. Morales Company Electric & Controls, Ltd. has extensive experience with the installation of backup generator systems.
(2) T. Morales Company Electric & Controls has proven their quality and expertise with the installation of generator systems at other pump stations and lift stations throughout the City.
CONFORMITY TO CITY POLICY:
Per the Financial Management Policy, purchases of $50,000 or more by State law trigger the competitive procurement process. The invitation to bid uses the competitive sealed bid method. Requirements are clearly defined, negotiations are not necessary, and best value methods are the major determining factors for selection.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
Due to very long lead-times on generators $480,535 will be encumbered in FY22. However, delivery will not happen until FY23.
Is this a one-time or recurring expenditure?
One-time.
Is this expenditure budgeted?
Yes, funds are available in the Water & Sewer CIP account 387-8934-493.61-35, project code ARPA15.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes
RECOMMENDATION:
Authorize the award of Bid No. 22-20, Generator Project to T. Morales Company Electric & Controls, Ltd., authorize the City Manager, or designee, to execute a letter of agreement in the amount of $480,535 to T. Morales Company Electric & Controls, Ltd., and furthermore, authorize the City Manager, or designee, to execute any and all change orders within the amounts set by State and Local law.
DEPARTMENTAL CLEARANCES:
Public Works
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Bid
Bid Tab
Agreement
Certificate of Interested Parties