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June 25, 2002
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SUBJECT: |
Authorization to Increase Expenditures Under an Existing Contract for the Overhaul of a Sedimentation Basin at the Water Pollution Control Plant (#F0206-80)(RTC#02-261) |
REPORT IN BRIEF
Approval is requested to modify and increase expenditures under an existing contract with the
D.W. Nicholson Corporation of Hayward for the overhaul of Sedimentation Basin #7 at the Water Pollution Control Plant
(WPCP).
BACKGROUND
On August 22, 2000, Council awarded a contract to D. W. Nicholson for the overhaul of WPCP Sedimentation Basins #4 and #8. Nicholson's bid of $89,250 ($44,625 per basin) was the lowest of three bids received in response to Invitation for Bids #F9904-65. The work was successfully completed, and the contract was closed. In October 2001, staff entered into an additional contract with D. W. Nicholson to overhaul Basin #7 for the same price bid on Basins #4 and #8 the previous year and under the specifications, terms and conditions included in Invitation for Bids #F9904-65. At that time, however, staff opted for a $5,000 upgrade from stainless steel replacement parts to a longer wearing (and newly available) fiberglass reinforced polyester material, placing the value of the new contract at $49,625 (tax included). Section 2.08.070 of the Sunnyvale Municipal Code exempts from competitive bidding situations where the solicitation of bids would be impractical, unavailing or impossible. In this case, staff determined that soliciting bids for Basin #7 would be unavailing since Nicholson agreed to hold its bid price from the previous year. At that time, Nicholson's bid of $89,250 for two basins was $58,488 lower than the second low bid.
DISCUSSION
After draining Basin #7 and removing the wear strips on the tank bottom to expose the rails and mounting hardware for replacement, staff discovered the physical construction of the tank bottom and rail placement is different from Basins #4 and #8 (and from the tank drawings). As a result, contract specifications must be modified and additional installation labor and additional materials are required which will increase the cost of the project to an amount requiring Council approval. FISCAL IMPACT Total additional cost will not exceed $2,500 for a total project cost of $52,125 (tax included). Funds are available in the Department of Public Works Environmental Division Account #020200.
RECOMMENDATION
It is recommended that Council authorize the requested modifications of an existing contract with the
D.W. Nicholson Corporation and increase the authorized expenditures under this contract from $49,625 to $52,125 (tax included).
Prepared by:
Elaine Wesely
Purchasing Officer
Reviewed by:
Mary J. Bradley
Director, Finance
Reviewed by:
Marvin Rose
Director, Public Works
Approved by:
Robert S. LaSala
City Manager
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