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ADOPT A RESOLUTION TO AUTHORIZE A PROFESSIONAL SERVICES AGREEMENT WITH THE HACH COMPANY FOR MUNICIPAL UTILITY INSTRUMENTATION SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to award a three-year Professional Services Agreement to the Hach Company of Loveland, CO, in the not-to-exceed amount of $683,935.80 for utility instrumentation services.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Municipal Utilities Department (MUD) uses various instrumentation equipment during water and wastewater treatment. These laboratory instruments must be serviced every few months to ensure they are working per the manufacturer’s specifications. Instrument services include a wide variety of analytical checks, repairs, and instrument calibration of water quality analyzers for water and wastewater. These instruments are necessary to meet permit compliance testing for water quality assurance and meet State and Federal regulations.
On October 18, 2023, the City advertised an Invitation for Bids (IFB) for a comprehensive field service package for instrumentation services. One bid was received and evaluated. Staff recommends that the City Council adopt a resolution awarding a three-year contract to the Hach Company of Loveland, CO, in the not-to-exceed amount of $683,935.80 for instrumentation services (Exhibit 1 to the Resolution).
DISCUSSION
Background
The MUD laboratory, water and wastewater treatment facilities (Facilities) rely on a comprehensive service contract to monitor, repair and calibrate laboratory equipment used in water quality testing to ensure compliance with State and Federal regulatory standards. To maintain compliance, it is imperative that the equipment undergoes regular testing and calibration.
Field services include all parts, labor, and travel for onsite repairs, onsite calibrations, factory recommended maintenance (including required parts), unlimited technical support calls, and free firmware updates.
Present Situation
The MUD advertised an IFB for a Comprehensive Field Service Package in The Record on October 18, 2023, and on the City’s Bid Flash webpage.
On November 16, 2023, one sealed bid was received. The vendor Hach Company of Loveland, CO, provided the following bid:
|
Company Name |
Average Cost over 1 Year |
Total Cost over 3 Years |
|
Hach Company |
$ 227,978.60 |
$ 683,935.80 |
The average annual cost for instrumentation services is $227,978.60, with a not-to-exceed amount of $683,935.80 over the three-year term. The proposed contract governs the extent of the instrumentation services.
The bid amount submitted by the Hach Company is comparable to the existing fee schedule, reflects current costs to the vendor and is a fixed cost for all three years. This contract does not allow for price increases due to fuel, labor, or other costs.
The bid received by the Hach Company is regular in all aspects and meets all requirements. The Hach Company is familiar with drinking water processes, procedures and regulations and has extensive experience with instrumentation services.
Staff recommends that the City Council award a three-year contract with the Hach Company in the not-to-exceed amount of $683,935.80 for utility instrumentation services (Exhibit 1 to the Resolution).
FINANCIAL SUMMARY
There is sufficient budget in the Water Treatment Plant Special Services, Wastewater Treatment Facility Maintenance Equipment Services, and Laboratory Equipment Services accounts in Fiscal Year 2024-2025 budget through annual allocations for instrumentation services as shown in the table below:
|
Division |
Annual Cost |
Total 3-year Not-to-Exceed Amount |
|
Water |
$123,084.41 |
$369,253.22 |
|
Wastewater |
$78,742.66 |
$236,227.98 |
|
Lab Services |
$26,151.53 |
$78,454.60 |
|
TOTAL |
|
$683,935.80 |
Funds for future services will be budgeted in the same accounts in subsequent fiscal years and presented to the City Council for approval through the annual budget development process.
There is no impact to the City’s General Fund or any other unrestricted funds from this action.