Summary Sheet- RFCA SUMMARY
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CITY OF TEMPE Meeting Date: 1/8/2026 REQUEST FOR COUNCIL ACTION Agenda Item: 7B18 ACTION: Approve one-year contract renewals with Nu Flow Services of Phoenix, LLC, and RKS Plumbing & Mechanical, Inc., for residential sewer line repair services from the property line to the City’s sewer main. FISCAL IMPACT: The total cost of the contracts will not exceed $375,000. Sufficient funds have been appropriated in the Water and Wastewater Capital Improvement Program (CIP) Project 3221001 (WatSew – Lines in Right-of-Way), for anticipated expenditures during the current fiscal year and next fiscal year, contingent upon City Council approval of the City’s annual budget. RECOMMENDATION: Approve the contract renewals. BACKGROUND INFORMATION: (WUD23-081-01 & 02) On January 26, 2023, City Council awarded one-year contracts with four, one-year renewal options to Nu Flow Services of Phoenix, LLC and RKS Plumbing & Mechanical, Inc. Under these contracts, the awarded firms perform repairs for residents to their sewer service lines as part of the City’s Water/Sewer permit program. These contracts include repair and construction related services such as saw cutting, excavation, backfill and surface restoration, with the majority of work often performed in the right-of-way. If approved, this renewal will be the third of four available renewal options. Contractor Performance The performance of the Contractors was rated by City staff as follows: RKS Plumbing Nu Flow Services Measuring Criteria Meets Does Not Meet Meets Does Not Meet Contract personnel are responsive X X The quality of products or services delivered X X Timeliness of performance X X Follow-up skills in resolving complaints X X Promptness and accuracy of pricing X X Renewal Pricing RKS Plumbing requested an 11% price increase in the labor portion of its contract. This is RKS Plumbing’s first request for a price increase since contract inception (three years ago). Labor shortages, high demand, and inflation are the cause of rate increases in the plumbing market. RKS is the primary vendor on this contract (98% of spend) and its new rates are competitive and in-line with the second vendor, Nu Flow, who agreed to renew without a price increase. 2 Based on the circumstances noted above, staff considers the price increase from RKS Plumbing to be fair and reasonable. ATTACHMENTS: N/A STAFF CONTACT(S): Craig Caggiano, Deputy Public Works Director - Water, (480) 858-2160 Department Director: Laura Calder, Financial Services Director Legal review by: Dave Park, Sr Assistant City Attorney Prepared by: Eric Kraenzle, Senior Procurement Officer