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ADOPT A RESOLUTION TO AUTHORIZE CONTRACT CHANGE ORDER NO. 5 WITH EVOQUA WATER TECHNOLOGIES
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to approve Contract Change Order (CCO) No. 5 with Evoqua Water Technologies LLC (Exhibit 1 to the Resolution) to extend the contract to August 31, 2024, for the payment of outstanding invoices in the amount of $30,063.74 and ratify the payment of charges for goods and services for a total not-to-exceed amount of $2,622,254.
It is further recommended that the City Manager be authorized to take all necessary and appropriate actions to carry out the purpose and intent of this resolution.
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Summary
The Municipal Utilities Department (MUD) is responsible for operation and maintenance of the City’s wastewater collections systems. The collection and conveyance of sanitary wastewater generates hydrogen sulfide (H2S) gas which is toxic and creates odors throughout the collection system. The MUD staff monitor H2S concentrations and chemically treats wastewater throughout the City to maintain H2S concentrations below 50 parts per million (ppm). Staff use chemical supply contracts to provide chemical dosing at three sanitary wastewater pumping stations to control the H2S gas and wastewater odors.
Between July 1, 2019, and August 31, 2023, MUD maintained a chemical supply contract with Evoqua Water Technologies (Evoqua) for the treatment of H2S in the sanitary collections system. Due to administrative and financial management errors, it was found that contract expenditures had exceeded the total approved amount by $520,364.
If approved, this action will approve CCO No. 5 with Evoqua to extend the contract to August 31, 2024, for the payment of outstanding invoices in the amount of $30,063.74 and ratify the payment of charges for goods and services for a total not-to-exceed amount of $2,622,254.
DISCUSSION
Background
The MUD Collections Division is responsible for operating and maintaining the City’s sanitary wastewater collections system, which conveys wastewater to the Regional Wastewater Control Facility (RWCF) for treatment. Presently, the City uses three chemical feed sites to maintain H2S gas concentrations below 50 ppm. Staff maintain chemical supply contracts for the treatment and control of H2S in the sanitary system.
In May of 2019, by Motion 2019-05-21-1117, the City Council awarded a chemical supply contract in the not-to-exceed amount of $1,819,900 to Evoqua. In May 2023, the City increased the contract not-to-exceed amount to $2,101.890. Unfortunately, during the administration of this contract, errors were found that failed to account for expenditures and sales tax correctly, which led to a discrepancy in the contract not-to-exceed amount.
Present Situation
In November 2023, MUD and ASD discovered these administrative errors and have worked to correct and rectify this discrepancy.
If approved by the City Council, CCO No. 5 will extend the subject contract termination date to August 31, 2024, and allow the MUD to pay the remaining balance of $30,063.74 and ratify the contract total charges for goods and services for a total not-to-exceed amount of $2,622,254.
FINANCIAL SUMMARY
Contract Change Order No. 5 increases the total not-to-exceed contract amount to $2,622,254. There are sufficient funds available in the MUD Wastewater Collections accounts to pay the total $30,063.74 in outstanding invoices from Evoqua.
This action has no impact on the General Fund or any other unrestricted funds.