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Home My WebLink AboutHA37860 Plumbing Re-Pipe Bldg 33 - One Quail PlaceSTAFF REPORT PALM DESERT HOUSING AUTHORITY HOUSING DEPARTMENT MEETING DATE: November 15, 2018 PREPARED BY: Jessica Gonzales, Senior Management Anal REQUEST: Waive competitive bidding and authorize the award of Contract No. HA37860 to New Construction Solutions, Inc. for Plumbing Re - pipe for Building No. 33 at One Quail Place Apartments in a total amount of $132,520. Recommendation By Minute Motion, that the Authority Board, 1) Waive the competitive bidding in accordance with Chapter 3.30.160 (I) of the City of Palm Desert Municipal Code and authorize the award of Contract No. HA 37860 to New Construction Solutions, Inc. for Plumbing Re -pipe for Building No. 33 at One Quail Place Apartments, the contract will be in a total amount of $132,520; and 2) Authorize the Director of Finance to set aside 10% contingency of $13,252 for unforeseen conditions; and 3) Authorize the Executive Director or designee to review and approve written requests for the use of the contingency amount of $13,252 for unforeseen conditions; and 4) Authorize the Executive Director and/or the Chairman to execute the negotiated contract and any documents necessary to facilitate the contract award and project. Monies are available in the Authority's capital replacement budget. Housing Commission Recommendation The Housing Commission will review this recommendation at its adjourned meeting of November 14, 2018. Upon request, a verbal report will be provided at the Authority's regular meeting of November 15, 2018. Strategic Plan This request does not apply to a specific strategic plan goal. November 15, 2018 — STAFF REPORT Housing Authority — Authorize award of contract to New Construction Solutions, Inc. Page2of3 Executive Summary In the past month, it was brought to staffs attention that there are plumbing Teaks in several units in building number 33 at One Quail Place. Staff submitted a claim to address the water intrusion to the Authority's insurance adjuster, VeriClaim. After further review of the issues, VeriClaim confirmed that in order to address the covered costs of the water intrusion repairs, that the Authority would need to repair, at its own cost, the interior pipes which involve rerouting the plumbing and abandoning the existing plumbing lines. VeriClaim has requested that the Authority take immediate action in order to prevent further property damage and so that repairs can be done quickly to reduce the insurers costs of relocation and remediation. Given these particular circumstances, the interests of the Authority and its residents will be best served by immediately contracting for this repair, without the additional time that would be needed to prepare plans and advertise bids. Staff recommends that the Authority Board authorize a contract with New Construction Solutions, Inc., in the amount not to exceed of $132,520, plus 10% contingency in the amount not to exceed $13,252 (for unforeseen changes) in accordance with Chapter 3.30.160 (I) of the City of Palm Desert Municipal Code. Background Analysis After staff was made aware that there were moisture and plumbing leaks in units of building number 33 at One Quail Place, leak tests were performed of the sewer lines, main water service lines, etc., by the property manager, RPM. RPM identified an underground leak active in a vacant unit. Having had a similar issue in five (5) other buildings at One Quail, staff contacted the Authority's insurance adjuster, VeriClaim, to review policy coverage and assist in repairing the issues at this building. VeriClaim approved the building damage repair with an understanding that if the source of the water intrusion is the interior pipe lines, the Authority would repair, at its own cost, the interior pipes. This will involve rerouting the plumbing and abandoning the existing plumbing lines. In order to prevent prolonged property damage, it is in the best interest of the Authority to waive the competitive bidding in accordance with Chapter 3.30.160 (I) of the City of Palm Desert Municipal Code and authorize contracting immediately for the repairs. If the contract were competitively bid, there would be a substantial delay before the repairs can be completed. The leak directly affects the public health, safety, and welfare of the building and residents. If the building damage repairs are not fixed expeditiously, there is high probability that construction costs will only increase. Additionally, VeriClaim, who is paying the costs of remediation, has requested that the Authority take immediate action so that repairs can be done quickly to reduce the insurance company's relocation and construction costs. Further, having issued the same scope of work for the Plumbing Re -pipe of Building No. 11 at One Quail Place Apartments on March 18, 2018, wherein no proposals were received, staff finds that pursuant to Chapter 3.30.160 (D) of the Municipal Code, that a competitive market does not exist and that the Authority will not gain a competitive advantage by using the formal bidding procedure. Staff requested a proposal from New Construction Solutions, Inc. ("New Construction") using the same specifications as building 11, except for the connections of November 15, 2018 — STAFF REPORT Housing Authority — Authorize award of contract to New Construction Solutions, Inc. Page 3 of 3 existing services varying (i.e., the boiler system servicing the building and the cold water shutoffs), to estimate the cost of the proposed re-routing of the plumbing for building 33. New Construction's proposal is as follows: ti New Construction Solutions, Inc. La Quinta, CA $132,520 New Construction's proposal is in line with past proposals with the additional costs related to the rock creek along the sides of the building and the extra valves due to more bathrooms. The Authority previously awarded contracts to New Construction for similar work in December 2016 and May 2018. Staff recommends that the Authority Board waive the bidding requirement and award the contract to New Construction for the Project in the total amount of the base bid of $132,520 with a 10% contingency reserved for any additional unforeseen conditions necessary to be completed, not to exceed $13,252. Staff also recommends that the Executive Director be authorized to review and approve written requests for the use of the contingency for these unforeseen conditions. Fiscal Analysis The fiscal impact of this contract is the cost of the contract itself in the amount of $132,520 plus 10% contingency in the amount of $13,252 (if used for unforeseen conditions) which will be paid from the Authority's capital replacement budget. LEGAL REVIEW R City Attorney greaves DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER et Moore t"-t Moore Director of Finance Director of Finance CONTRACTOR: New Construction Solutions, Inc. P.O. BOX 1436 La Quinta, CA 92247 Lauri Aylaian City Manager ATTACHMENTS: New Construction Solutions, Inc. Proposal (Dated November6, 2018) RY HOUSGAUTH 5"0 ON I I-15- WI VERIFIED BY: at)" Original on Tile with Citv Clerk's Offic ki-rli k., K-€i l , I\1 &9-a tLe. t,t)e ber mcg.han ►\LO S'. NEW CONSTRUCTION SOLUTIONS INC General Contractor- Plumbing and Electrical Services Build -Design and Construction Management Commercial and Residential. CA LIC # 813954 N.C.S DIR registration # :1000024674 P.0 BOX 1436 LA QUINTA, CA 92247 Phone : 760-861-1725 Fax : 760-692-9979 Email: imerabetCavahoo.com/ ismet@ ncs-contractor.com Web: www.ncs-contractor.com/ www.ncs-olumbina.com TO: PALM DESERT HOUSING AUTHORITY RPM COMPANY DESCRIPTION PRICE PROPOSAL 11/06/2018 JOB: PLUMBING RE -PIPE SERVICES FOR BUILDING 33 AT ONE QUAIL PLACE APARTMENTS Amount We hereby propose to furnish all labor, materials, equipment, tools, transportation and services, and to discharge all duties and obligations necessary and required to perform and complete the project mentioned above, the scope of work and required specifications were based on previous similar projects. Item No 1 2 Approximate Quantity 1 1 3 52 4 12 5 1 6 1 7 3 1 Units Description LS Mobilization/Demobilization LS Re-route Cold/Hot Water lines Overhead in Building 33 EA Provide and Install new Angle Stop Valves EA Provide and Install New Shower/Tub Valves for each Restroom. LS Abandon all existing water Lines Hot/Cold and Re -Route New Water Supply and return. LS Install four Yard boxes and 08 Isolation Valves For Hot/return water supply lines that services Every 04 units. EA Install Yard Box and Isolation Valves from Boiler for Hot water supply line and Return to each building (3400,3200, 3300.) Unit Cost $ 19,000.00 $ 39,900.00 $ 85.00 $ 1,400.00 $ 42,000.00 $ 4,100.00 $ 2,100.00 TOTAL TOTAL BID PRICE ( BASED ON BID SCHEDULE TOTAL OF UNIT PRICES) : $ 132,520.00. Total Amount $ 19,000.00 $ 39,900.00 $ 4,420.00 $ 16,800.00 $ 42,000.00 $ 4,100.00 $ 6,300.00 $ 132,520.00 1