Agenda Item 8CAGENDA ITEM # 8C
JANUARY 10, 2011
AGENDA ITEM: Utility Contractor Annual Service Contract
Bid No. 1011 -02 j
SUBMITTED BY: Donna Kaluzniak, Utility Director&
DATE: December 21, 2010
BACKGROUND: The City uses an annual contractor to perform utility repairs and
constiuction in the water, sewer and stormwater systems, and occasionally to perform site work
for other departments. The contract includes distribution/collection pipework and mechanical
work on equipment at the 6 major water and wastewater treatment plants and 30 lift stations.
The contract was advertised and seven bidders submitted prequalification packages. Four bidders
were prequalified, contingent upon receipt of positive references. Three contractors submitted
bids based on a one -hour project with all labor and equipment resources. Jax Utilities
Management (JUM) was the apparent low bidder for the contract:
Description
Callaway
Gruhn
.Tax Utilities
Contracting
May, Inc.
Manage
Total Cost without
$667.28
$505.00
$423.25
Overhead & Profit
Ov erhead & Profit %
23%
20%
19%
Overhead & Profit
$87.38
$101.00
$80.42
Mobilization Cost
$200
$0
$75
Total Project Cost
$667.28
1 $606.00
1 $578.67
After the bids were received, Gruhn May, Inc. requested copies of the prequalification and bid
documents and submitted a challenge to the qualifications of the low bidder. This challenge
noted that JUM did not meet the qualifications, including a statement that JUM has no current
references that include mechanical work on treatment plants and lift stations as required.
Upon receiving the references, Jax Utilities Management's reference from JEA for force main
repair work was only noted as "Fair," which would be questionable as a positive reference. The
other two references, though rated "Good," were for storm water work only, not for mechanical
work at plants or lift stations.
Staff contacted Vice President Mike James, by phone to discuss the challenge. During the phone
discussion, Mr. James noted that for the last 4 -5 years, JUM had been performing storm water
work only and he thought the company may not meet the prequalification requirements. Staff
sent the challenge letter to Mr. James for his response.
AGENDA ITEM # 8C
JANUARY 10, 2011
Mr. James response included a review of the history of JUM's work in the utility management
and maintenance, and noted the numerous utilities they operated and maintained from 1975 to
2007. However, he notes that most of the people they were involved with are retired or deceased,
and no additional positive references were provided regarding any mechanical work on treatment
plants or lift stations. He does note that JUM has a current contract with the City of Jacksonville
to maintain small stations and package plants (small plants that are all contained in one tank).
The City's intent was to hire a contractor currently performing all aspects of the contract work,
with current positive references to be all - inclusive. It is staff's opinion that Jax Utilities
Management does not have current positive references to indicate they meet the qualifications
for performing the required water and sewer infrastructure work, especially the mechanical work
at the treatment plants and lift stations and should be disqualified.
BUDGET: Funds are budgeted in the amount of $ 150,000 in the following accounts from the
Water, Sewer and Stormwater Funds: 400 - 5502 -533 -3400, 400 - 5504 -533 -3400, 410- 5506 -535-
3400, 410 - 5508 - 535 -3400 and 470 - 0000 -538 -3400.
RE COMMENDATION: Award the bid for Utility Contractor Annual Service Contract to
Gruhn May, Inc. at the prices provided for Bid No. 1011 -02.
ATTACHMENTS: 1. Bid tabulation form
AGENDA ITEM # 8C
JANUARY 10, 20I1
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AGENDA ITEM # 8C
G R U H N MAY, INC. JANUARY 10, 2011
Q 19, 0
Water & Sewer Contractors
6897 Phillips Parkway Drive, North Jacksonville, Florida 32256
Telephone 904 - 262 -9544 Fax 904 - 268 -0679
November 23, 2010
Donna Kaluzniak
City of Atlantic Beach
902 Assisi Lane
Atlantic Beach, Florida 32233
RE: Bid No. 1011 -02 Pre - Qualification for Utility Contractor Annual Service
Contract
After reviewing the Pre - qualification package submitted by Jax Utilities Management,
Inc. we are challenging the previous decision granting them approval. We are requesting
a follow -up review of the references and experience submitted by Jax Utilities
Management, Inc.
The references listed by Jax Utilities Management, Inc. (see attachment "A ") will
substantiate our claim that Jax Utilities Management has never held a Service Contract to
provide for the repair and maintenance of water and wastewater, plants, facilities,
collection or distribution lines, lift stations or mechanical repairs with a "local unit of
government or agency" let alone the three as required by the bid specifications. Two of
the listed references are Public Works contacts that Jax Utilities Management, Inc.
contracts with for storm drain projects and the other was a "contract" engineer and not an
employee of JEA. None of the references / experience attributed to these individuals meet
the minimum requirements listed in the Instructions to Bidders.
Additionally, we at Gruhn May, Inc. have recently provided fabricated pipe (both in the
field and shop fabricated) and miscellaneous metals to Jax Utilities Management, Inc. for
projects they were constructing and have every reason to believe they do not have the
capability to provide these services with their own forces. A welding machine and cutting
torches are not all that is needed to fabricate pipe / miscellaneous metals. As you are
aware, the vast majority of the services required under this contract involve the piping
and valves in the plants, lift stations and facilities where the need for fabricating pipe and
fittings not only saves valuable time but prevents small problems from becoming major
disasters.
STATE OF FLORIDA
LICENSED CONTRACTORS
CLI CO43134 CLI CO24580 CG CO58974 CB CO41665
AGENDA ITEM # 8C
JANUARY 10, 2011
Also, we have attached a copy of the officers of the corporation (attachment "B "), as it
appears on the Department of State website, to verify the pre - qualification package and
the bid forms were signed by a duly authorized officer of the corporation, who has legal
authority to bind the corporation.
Thank you for your prompt attention to this matter and we look forward to hearing from
you in the near future.
Sincerely,
Gordon Gruhn
AGENDA ITEM # 8C
JANUARY 10, 2011
YYATOk AND WART9WATJDI IUTKJTWB
• CONBU.TATION • OP61 IM • ADWASMTION
• CONSTRUCTION • k4ARATENANCE • RBO LATORY
October 20, 2010
Positive References
1. City of Jacksonville, Florida
Louis Lawrence
904472 -2859
904 -996 -2898 Fax
LouisL@coj.net
2. Jacksonville Elechic Authority
Ejaz Ahmed
904- 6654662
904 -665 -7455 Fax
ahmac@j'ea.com
3. Clay County Public Works
Jim Friendly
904529 -5282
904529 -3693 Fax
j1m.fr1endy0co.clay.fl.us
I�
"A aAG k,,,+ A
AGENDA ITEM # 8C
JANUARY 10, 201I
- 2010 FOR PROFIT CORPORATION ANNUAL REPORT
DOCUMENT# 459044
Entity Name: JAX UTILITIES MANAGEMENT, INC.
Current Principal Place of Business:
5465 VERNA BLVD
JACKSONVILLE, FL 32205 US
Current Mailing Address:
P.O. BOX 6898
JACKSONVILLE, FL 32236 US
FEI Number: 59- 1562165 FEI Number Applied For ( )
Name and Address of Current Registered Agent:
BRANNEN, W M
5465 VERNA BLVD
JACKSONVILLE, FL 32205 US
FILED
Feb 24, 2010
Secretary of State
New Principal Place of Business:
New Mailing Address:
FEI Number Not Applicable ( ) Certificate of Status Desirod ( )
Name and Address of New Registered Agent:
The above named entity submits this statement for the purpose of changing its registered office or registered agent, or both,
in the State of Florida.
SIGNATURE:
Electronic Signature of Registered Agent Date
Election Campaign Financing Trust Fund Contribution ( I.
OFFICERS AND DIRECTORS:
Title:
PD
Name:
JAMES, H R
Address:
5465 VERNA BLVD
City -St -Zip:
JACKSONVILLE, FL 32205
Title:
VDAS
Name:
JAMES, KELLY M
Address:
5465 VERNA BLVD
City -St -Zip:
JACKSONVILLE, FL 32205
Title:
VSD
Name:
BRANNEN, WILLIAM M
Address:
5465 VERNA BLVD
City -St -Zip:
JACKSONVILLE, FL 32205
Title:
VDAS
Name:
JAMES, CHARLES B
Address:
5465 VERNA BLVD
City -St -Zip:
JACKSONVILLE, FL 32205
rt
I hereby certify that the information indicated on this report or supplemental report is true and accurate and that my electronic
signature shall have the same legal effect as if made under oath; that l am an officer or director of the corporation or the receiver
or trustee empowered to execute this report as required by Chapter 607, Florida Statutes; and that my name appears above, or
on an attachment with all other like empowered.
SIGNATURE: WILLIAM M BRANNEN VSD 02124/2010
Electronic Signature of Signing Officer or Director Date
AGENDA ITEM # 8C
JANUARY 10, 2011
WATER AND WASTEWATER UTILITIES
• CONSULTATION • OPERATION - ADMINISTRATION
• CONSTRUCTION • MAINTENANCE - REGULATORY
December 8, 2010
Ms. Donna Kaluzniak
Utility Director
City of Atlantic Beach
905 Assisi Lane
Atlantic Beach, FL 32233
RE: Bid No. 1011 -02 —Utility Contractor
Dear Ms. Kaluzniak,
I am writing in response to your e-mail dated December 3, 2010 regarding the challenge you
received regarding the above referenced bid.
Your first item refers to Jax Utilities Management, Inc.'s (JUM) references. JUM was
formed in 1974 as a utility management company, after its management realized there
was a need for experienced personnel to maintain, operate, construct and consult with the
system owners, regarding the utility systems they owned. We were retained by the
owners of water and sewer utilities and given full responsibility for the operation of the
utilities. This included all billing, maintenance and repairs of the water and wastewater
plants, transmission lines, services and fire hydrants. We were required to be available
24 hours a day, 365 days a year.
In 1974 Cedar Hills Utilities, Inc. and its subsidiaries were sold to the City of
Jacksonville (City) and JUM was formed to continue management operations for the
City. After a few years we also had contracts with the City to run San Mateo and Oakhill
Utilities, bringing our customer total to approximately 10,000 which accounted for
approximately 21 % of the Cities customers. We managed these utilities from 1975
through 1986.
The City of Atlantic Beach purchased the Bucaneer system in Mayport and retained JUM
to rebuild and operate the system for approximately 3 years.
In 2007, Intercoastal Utilities Inc., a system we operated since 1983 was sold to St. Johns
County (County). The County requested that we continue to operate the system for an
additional 6 months.
P.O. BOX 6898 • JACKSONVILLE, FLORIDA 32236 -6898 - (904) 779 -5353 • FAX (904) 779 -5733 -
AGENDA ITEM # 8C
JANUARY 10, 2011
JUM has one service contract with the City of Jacksonville Parks Department to
maintain, check and repair lift stations and small package plants. We have had this
contract since 2006 and it is in the process of being renewed for 5 additional years.
Also, since October 2001 JUM has continuously worked for the City of Jacksonville by
winning lowest bidder contracts for County Wide Drain Line Replacement and /or New
Drainline Construction, Ditch Cleaning / Rehabilitation County Wide and Continuous
Storm Drain Cave in and Repair. The Continuous Storm Drain Cave in and Repair is in
the process of being renewed for 2 renewal periods of 3 years each.
JUM has managed operations, billing, emergency maintenance, water and wastewater
plants, lift stations, force mains, water mains, reuse mains in Duval, Clay, Nassau and St.
Johns County for the City of Jacksonville, ITT Rayonier, Southside Utilities, St. Johns
Service Company, Gate Land (Ponte Vedra and Southside Utilities) from 1975 to 2007.
Unfortunately, most of the people that we were involved with have retired or are
deceased.
Listed below are some of the utilities systems we operated.
Intercoastal Utilities St. Johns County
Canal Utilities
Sunray Utilities
Sunray Utilities
Fruit Cove Utilities
Duval County
Nassau County
St. Johns County
St. Johns County
• JUM does have a shop and personnel for fabricating miscellaneous metals located at
5465 Verna Blvd. Jacksonville, FL 32205
• The person that signed the prequalification package and bid form was Charles
Freshwater, Vice President and Asst. Secretary. Please see the attached Secretary's
Certificate.
I hope this letter clarifies the qualifications of JUM as outlined in the invitation to bid
prequalification requirements. If you have any questions or need further information, please let
me know.
Sincerely,,
� v
Mike James
Vice President