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HomeMy WebLinkAbout17 Tank Cleaning Inspection ReportAGENDA ITEM #17 Page 1 of 3 MEETING DATE:April 6, 2022 TO:Board of Directors FROM:Chad J. Reed, Water Utility Director SUBJECT:Consideration of a Contract with Liquivision for Water Tank Cleaning and Inspection Project APPROVED BY____________________________ Brian C. Wright, General Manager RECOMMENDATION: Authorize the General Manager to execute an agreement with Liquivision, for cleaning the District tanks and inspection reports in the amount of $20,245 plus a 10% change order authorization for a total not to exceed amount of $22,269.50. DISCUSSION: To maintain and preserve the reservoirs of the District, our tanks need to be cleaned and inspected every five years. There are two ways this procedure can be accomplished. First, drain the tanks and perform the services, then disinfect the tanks and bring them back into service. Secondly, is to disinfect a diver that can enter the reservoir and perform all of the necessary tasks associated with cleaning and inspecting. While both are good methods and have their place, the quantity and scope of work will dictate the proper method. Due to the limited scope that needs to be performed on the reservoirs the diver approach was chosen. The Board of Directors approved the procurement and Rubicon Applied Divers as the lowest responsive bidder in December 2021 as part of the 2022 Annual Procurements approval. The contract was signed by Rubicon Applied Divers on January 7, 2022 and counter signed by the District on January 27, 2022. Since January 27, 2022 the following events have occurred: Page 2 of 3  February 16, 2022 – Staff followed up with the contractor as proof of insurance had not been received and was needed for the notice to proceed to be executed. At the same time, Staff re-verified the contractors standing with the California Contractors State License Board which showed the contractor’s license as being expired. Staff asked for updated proof of licensing at the same time.  February 17, 2022 – Staff received an email stating that a court order prevented a reply to the District. Staff had an additional contact email so they reached out to the contractor via that email address to attempt to gain clarity on insurance, contractor’s license status, as well as the mentioned court order in the auto response to our first email. The contractor responded stating that the auto-generated email staff received was “false” and he provided additional contact information and a commitment to provide updates on insurance and his licenses status shortly. The contractor also posed some questions about the insurance requirements to staff.  February 18, 2022 – Staff responded to the contractor clarifying the insurance requirements of the contract and reiterating the need for an updated California Contractors License copy.  March 1, 2022 – Staff had a phone call with the contractor during which time he explained all the necessary paperwork for his California Contractors License had been submitted to the state and that his license would be updated within 10 business days.  On March 22, 2022 – More than the ten days had passed and the issue of the contractor’s license had yet to be resolved. Staff sent a letter via Fedex to the contractor expressing the District’s desire to cancel the contract as the State of California has placed a hold on his ability to work in the state.  March 23, 2022 at 12:39pm our letter, cancelling the contract, was received by the contractor’s office staff. There has been no communication with the contract since that time. Given the critical nature of this work, and the District’s desire to maintain this service staff has proactively reached out to the second lowest bidder, Liquivision, to see if they would have the time and availability to enter into contract with the District. They have confirmed their availability and willingness to honor their initial price quote. Staff also verified their current standing with the DIR, California Contractors License Board, and Secretary of State and they are in good standing. Therefore, staff believes it is in the best interest of the District to cancel the original contract with Rubicon Applied Divers and proceed with next lowest bidder Liquivision in an expedited manner to ensure this work can be completed during the summer of 2022. OBJECTIVES & GOALS: 1.05.020 Objectives: 3. Provide reliable and high quality water supply and distribution system to meet current and future needs. Page 3 of 3 6. Manage the District in an effective, efficient and fiscally responsible manner. 1.05.030 Goals: 1. Manage for Financial Stability and Resiliency. FISCAL IMPACT: There is a $500.00 difference between the two vendors  Rubicon Applied Divers $19,750.00  Liquivision $20,245.00  The budgeted 2022 Annual Procurement amount for this work was $30,000 and included as a budgeted component of Maintenance of Sources (GL 2.7.691) ATTACHMENTS: None.