Title
MOTION TO APPROVE AN AGREEMENT WITH R&M SERVICE SOLUTIONS, LLC., TO PROVIDE VALVE EXERCISING AND MAINTENANCE SERVICES FOR THE CITY'S WATER SYSTEM, UTILIZING PRICING ESTABLISHED BY THE TOWN OF JUPITER ITB # W2423, NOT TO EXCEED $198,975, PURSUANT TO SECTION 35.18(C)(5) OF THE CITY’S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is regarding "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(5) of the City’s Code of Ordinances, “Commodities or services that are the subject of contracts with the state its political subdivisions or other governmental entities including the United States Government, are exempt from the competitive procurement process.”
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission Approval."
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. Regular maintenance and assessment of the approximately 10,950 valves in the City’s water system is essential for proper operation and is required by rule under Section 62-555.350 of the Florida Administrative Code. Specifically, valve maintenance and assessment include location and identification of the valves, cleaning out the valve box so that the valve nut is accessible, cycling the valve open and closed to ensure it is operating, raising the valve box lid if necessary to make sure it is flush with the land surface, and recording its position and other information in the City’s geographical information (GIS) system.
2. Valve exercising is not included in the current Jacobs (OMI) utilities operations contract and at this time it is the responsibility of the City. Valve exercising and maintenance requires specialized training, experience, and equipment, or the valves can be damaged. A contractor that specializes in this work will perform it more efficiently. R&M Service Solutions, LLC. (“R&M”) has considerable expertise in valve exercising and maintenance and Utilities Staff have had positive experience with their work in the past.
3. The City has previously contracted with R&M to locate and exercise water system valves west of Flamingo Road to the west end of the city's service area. Approximately 6,200 valves have been located on the west side, leaving about 4,800 to be located and assessed on the east of Flamingo Road. The City’s Utilities staff plans on having R&M complete these services prior to September 30, 2025. Then city staff will provide OMI with the most complete database of known water system valves for operational purposes.
4. On April 30, 2024, the Town of Jupiter entered into an agreement with R&M Service Solutions, LLC., pursuant to the award of ITB # W2423, entitled “Valve and Hydrant Maintenance Contract” for a two-year period, which allows for a two-year renewal term and then a one-year renewal term for a total Contract period of five (5) years.
5. The Town of Jupiter’s agreement includes various line items, including: Exercise Water Main Valve with Hydrant Flushing for $42.00 per valve.
In addition, the City confirmed with both the Town of Jupiter and R&M Service Solutions, LLC., that under their agreement, if R&M Service Solutions, LLC. was tasked to find a valve based on the agency’s information and was unable to locate it, despite reasonable and documented efforts, the Town of Jupiter would pay them the same rate of $42 per valve not found.
6. The Utilities staff has determined that it is imperative to have a specialized Contractor find and exercise valves. Based on last year’s efforts, Utilities staff have negotiated the following rates with R&M Service Solutions, LLC., based on the Town of Jupiter’s IFB # W2423:
$42.00 per valve for valves located and exercised by Contractor
$21.00 per valve for valves not located by Contractor
$21.00 per valve for valves located by City and exercised by Contractor
7. The Utilities Staff has solicited a proposal from R&M Service Solutions, LLC. for an amount not to exceed $198,975, based on the estimated quantities:
4,500 Valves to be located and exercised by Contractor
475 Valves located by the City
8. The Utilities Department has worked to develop this Agreement with R&M for these services for an initial period through April 29, 2026, with an option to renew the agreement subject to Town of Jupiter renewing their own agreement. This contract would be for an interim period to prepare to have the City's Operation Contractor (OMI, Inc.) eventually take over this task as outlined in their separate Agreement for the longer term. The City’s Utilities staff plans on having R&M complete these services prior to September 30, 2025, and services will be paid based on services rendered and on an as-needed basis.
9. Staff recommends for the City Commission to approve the agreement with R&M Service Solutions, LLC., to provide valve exercising and maintenance services for the City's water system, utilizing pricing established by the Town of Jupiter’s ITB # W2423, not to exceed $198,975, pursuant to Section 35.18(C)(5) of the City’s Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $198,975.
b) Amount budgeted for this item in Account No: Upon Commission's approval, funds will be transferred into account # 471-533-6032-546150-0000-000-0000 (R&M Land & Bldg.)
c) Source of funding for difference, if not fully budgeted: $198,975 is available in account # 471-533-6032-664400-0000-000-0000 (Other Equipment)
d) 5 year projection of the operational cost of the project: The agreement is for an initial period through April 29, 2026, however the City’s Utilities staff plan on having R&M complete these services prior to September 30, 2025.
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Current FY |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
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Revenues |
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Expenditures |
$198,975.00 |
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Net Cost |
$198,975.00 |
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e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? No, however, a feasibility analysis was performed for a separate item, on this same Commission meeting agenda, related to the new OMI agreement that would be effective October 1, 2025. The new OMI agreement includes completing these valve exercising efforts going forward, once these valves are fully inventoried and turned over with that expectation.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not applicable.