HomeMy WebLinkAbout09/18/1990, C-10 - AWARD OF CONTRACT, WASTEWATER TREATMENT PLANT DIGESTER NO. 2 EMPTY AND CLEAN, CITY PLAN NO. P-38S, I II MEETING DATE:
i���Vll city O� San lU1S OB1SpO Sept. 18, 1990
NARAMe COUNCIL AGENDA REPORT ITEM NUMBER:n/D
FROM: William T. Hetland Prepared By: John E. Moss y ./�
Utilities Director Wastewater Division Manage;
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SUBJECT:
Award of Contract, Wastewater Treatment Plant Digester No. 2
Empty and Clean, City Plan No. P-38S, Phase II
CAO RECOMMENDATION:
By motion, approve the award to, and authorize the CAO to
execute, a contract with Biosystems Management International
in the amount of $29,200 for the Wastewater Treatment Plant
Digester No. 2 Empty and Clean project, City Plan No. P-
38S, Phase II.
DISCUSSION:
On December 21, 1989, Council adopted resolution No. 6732
(1989 Series) approving Plans and Specifications for
"Anaerobic Digester Cleaning Project-City Plan No. P-38S11.
This project has been identified as having three (3) phases
as there are three (3) digesters to be cleaned and repaired.
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On January 16, 1990 a contract was awarded to Biosystems
Management International (BMI) for cleaning of Digester No.
1. A subsequent repair contract for Digester No. 1 was
awarded in July 1990 completing Phase I of the three (3)
phase project. i
On September 4, 1990 bids were received for Phase II,
Digester No. 2 Empty and Clean. The engineer's estimate for
this work was $15, 000, based on the cost of the Phase I
empty and clean project. Two bids were received, with low
bid for the work being $29,200 from BMI. The Council action
on December 21, 1989, approving the plans and
specifications, authorized CAO award of the contracts if the
bids received were below the engineer's estimate. Since low
bid for this project exceeds the engineer's estimate by
$14,200 staff is now seeking Council approval to award.
Upon Council approval to award, the contract will be
executed by the CAO through established procedures for award
of Public Works contracts.
Staff has contacted the low bidder, BMI, to identify the
reason for the increased cost of this project. The
increased cost can be attributed to the contractor's
liability for removal of additional equipment prior to
cleaning the digester, increased Occupational Health and
Safety Administration (OSHA) requirements for this type of
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- -42AGe COUNCIL AGENDA REPORT
Digester Cleaning Project, Phase II, City Plan No. P-38S
September 18, 1990
Page 2
work, and the difficulty experienced with pumping the
inorganic materials (sand) which has built up in the City's
digesters.
FISCAL IMPACT:
Funding for this project is from the sewer fund and was
approved in the 1989-91 Financial Plan and Approved 1989-90
Budget (page E-7, Maintenance of Major Plant Equipment) in
the amount of $90,000. Additional funding needs for
completion of phase III of the project were identified and
approved in the 1990-91 Budget adjustment process in the
amount of $70,000 for completion of repairs to Digester No.
3 (page A-8 of the Approved 1990-91 Budget) .
TOTAL APPROVED FUNDING $160, 000
Prior expenditures for Phase I of this project are as
follows:
Digester 1 Empty and Clean $15,850
Digester 1 Repair $39 .785
TOTAL PHASE I $55,635
The cost for this portion of the project is as follows:
BMI (low) bid amount $29,200
Contingencies @ 5% S 1,460
PROJECT TOTAL $304,660
Engineers estimate as approved on
December 21, 1989. (Phase II Empty
and Clean) $150,000
This request is being made in conformance with the policies
and procedures established in the City Purchasing Control
Manual, section 403-3, Public Works Projects costing more
than $5, 000.
ALTERNATIVES:
Reject all bids and direct staff to re-advertise the
project. This option is not recommended as two (2) bids
were received for completion of the work and were
comparable, with low bid being $29,200 and the other being
$31,207. Staff would not anticipate a significant change in
the bid amounts as a result of re-advertising the project.
In addition it is imperative to complete the project in a
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WaGe COUNCIL AGENDA REPORT
Digester Cleaning Project, Phase II, City Plan No. P-38S
September 18, 1990
Page 3
timely fashion as delays could cause operational problems at
the wastewater treatment plant.
RECOMMENDATION:
By motion, approve the award to, and. authorize the CAO to
execute, a contract with Biosystems Management. International
in the amount of $29,200 for the Wastewater Treatment Plant
Digester No. 2 Empty and Clean project, City Plan No. P-
38S, Phase II.
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