title
APPROVE CONTRACT CHANGE ORDER WITH CARRIER RENTAL SYSTEMS
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize the City Manager to execute Contract Change Order No. 2 for digester gas dryer system rental for the Municipal Utilities Department Facilities, with Carrier Rental Systems, for a total contract amount of $115,435.70 and extend contract end date to July 23, 2019.
2. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and the motion.
body
Summary
The Municipal Utilities Department (MUD) contracted with Carrier Rental Systems to provide a rental dryer for a period of one year. If approved by Council, this action will extend the contract through July 23, 2019, and authorize funds for the rental system to support the City’s cogeneration system.
By this action, the City Council will authorize the City Manager to execute the Contract Change Order No. 2 (Attachment A) in the amount of $41,166.72 for the Gas Dryer Rental and extend the rental of the units through July 23, 2019.
DISCUSSION
Background
The existing gas dryers are not functioning properly, causing the cogeneration engines to frequently shut down and risking potential fines from the Air Pollution Control District for digester gas release. The rental of additional gas dryer equipment was necessary to reduce incidents of gas release while the design and construction of permanent replacement units was completed.
On January 20, 2018, a Request for Proposal (RFP) for the design and installation of a new gas dryer system was issued. On February 22, 2018, two proposals were received and opened. Upon review, staff determined it was cost efficient, and timely, for City staff to design and construct the replacement system and the proposals did not progress. Quotes for the gas dryer system rentals were solicited to stabilize the cogeneration operations while City staff designed the system. The size and power of the rental units needed are not readily available from many suppliers. Companies with systems large enough, and the ability to deliver and install, were contacted for quotes with the following results:
|
Company |
Location |
|
Carrier Rental Systems |
Phoenix, AZ |
|
Comfort Air (non-responsive) |
Stockton, CA |
|
American Chiller (non-responsive) |
Modesto, CA |
Following the quote solicitation process, contract (No. 2018-02-23-S002) was executed under City Manager’s authority with Carrier Rental Systems on February 20, 2018. This contract included rental of a gas dryer system with an air-cooled chiller and a heat exchanger. Once the system was installed, it could not support the City’s Cogeneration loads and an additional heat exchanger was required. In addition to the heat exchanger, extra work was necessary to install a condensate separator and auto-drain to remove moisture from the gas lines, allowing for the system to run properly.
Present Situation
The initial rental contract authority totaled $53,297.80 for 12 months, excluding taxes. To run the cogeneration engines properly, reliable chiller and heat exchanger(s) are used to remove moisture from the digester gas. Unfortunately, the unit initially installed was unable to support the City’s cogeneration system and an additional heat exchanger was required. These items were included in Change Order No. 1, which totaled $20,971.18, revised the contract total to $74,268.98 and limited the rental period through January 8, 2019. Change Order No. 2 would extend the rental period to July 23, 2019, with an additional total cost of $41,166.72 as shown below in order for staff to purchase and install the permanent replacement units selected:
|
|
Existing Contract (including CCO 1) |
Change Order No. 2 |
Contract Total |
|
Rental |
$58,261.95 |
$37,767.66 |
$96,029.61 |
|
Freight |
$2,750.00 |
$0.00 |
$2,750.00 |
|
Subtotal |
$61,011.95 |
$37,767.66 |
$98,779.61 |
|
Extra Work - Labor |
$5,125.00 |
|
$5,125.00 |
|
Extra Work - Parts |
$2,650.00 |
|
$2,650.00 |
|
Taxes |
$5,482.03 |
$3,399.06 |
$8,881.09 |
|
Total Contract |
$74,268.98 |
$41,166.72 |
$115,435.70 |
Staff recommends Council authorize the City Manager to execute Contract Change Order No. 2, approving additional funds, and extending the contract date through July 23, 2019.
FINANCIAL SUMMARY
There are sufficient funds available in the FY 2018-19 Budget in the Wastewater Plant Maintenance and Repair Services (account number 431-4331-575) to execute Change Order No. 2 in the amount of $41,166.72 with Carrier Rental Systems. The revised length of contract is for an 18-month term. The estimated not-to-exceed cost for the full term is $115,436. There is no impact to the General Fund, or any other unrestricted fund, from this action.
Attachment A - Contract Change Order No. 2 with Carrier Rental Systems