May 16, 2006

SUBJECT: Authorization to Amend an Existing Contract for On-Call Maintenance and Repair Services at the Water Pollution Control Plant (F0505-79)

REPORT IN BRIEF

Approval is requested to amend an existing contract with the D.W. Nicholson Corporation of Hayward by increasing authorized expenditures for the performance of on-call maintenance and repair services at the Water Pollution Control Plant (WPCP).

BACKGROUND

Blanket Purchase Order No. 27908-B was established on November 17, 2005, to allow the WPCP to use D.W. Nicholson’s mechanical expertise to perform maintenance and repair services on a project-by-project basis during a one-year period.  The contract was initiated under the City Manager’s authority to award contracts of $50,000 or less.  

The blanket order has made it possible to complete a number of corrective repairs at the Plant, including repairs to the polymer feed pumps, the No. 2 Pond Recirculation pump, the No. 7 grit pump, the No. 9 grit pump check valve, and the fume hood, as well as to make some necessary modifications to the facility.   

DISCUSSION

Maintaining a facility that is more than forty years old means that there are often maintenance and repair issues that must be addressed quickly if the Plant is to continue to meet the City’s needs.  Being able to use a Class “A” licensed engineering firm with extensive wastewater experience to complete these projects on an expedited basis has been an extremely cost effective and efficient way for WPCP staff to address ongoing issues at the aging facility.

Although the blanket purchase order will not expire until November 13, 2006, the amount expended under the contract is nearing $50,000, thereby requiring Council action if services are to continue. Staff, therefore, requests authorization to increase the value of this contract from $45,000 to $75,000 to cover services through November 13, 2006. 

FISCAL IMPACT

The requested additional expenditures will increase the total value of Blanket Purchase Order No. 27908-B by $30,000, making a new contract not-to-exceed amount of $75,000. Funds are available in the Department of Public Works Environmental Services Division Program 342 – Wastewater Management.

RECOMMENDATION

It is recommended that Council amend an existing Blanket Purchase Order with D.W. Nicholson Corporation, by authorizing increased expenditures up to $75,000 in substantially the same form as the attached Change Order, for on-call maintenance and repair services at the Water Pollution Control Plant.

Prepared by:

Elaine Wesely

Purchasing Officer

Reviewed by:

Mary J. Bradley

Director, Finance

Reviewed by:

Marvin Rose

Director, Public Works

Approved by:

Amy Chan

City Manager

Attachments

A. Draft Change Order(pdf)
B. Blanket Purchase Order No. 27908-B(pdf)