City Council Meeting: September 11, 2012

Agenda Item: 3-N 

To:                   Mayor and City Council 

From:              Martin Pastucha, Director of Public Works

Subject:          Contract Modification for Operations, Maintenance and Management Services (OMMS) for the Charnock Well Field

 

 

Recommended Action

Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to Contract No. 9239 in the amount of $556,048 (includes a 15% contingency) with Siemens Water Technologies Corporation, a California-based company, to provide operations, maintenance, and management services (OMMS) for the Charnock Well Field.  This will result in a new four-year contract in the amount of $1,112,096.

 

Executive Summary

On July 13, 2010, Council awarded Contract No. 9239 to Siemens Water Technologies Corporation to provide operations, maintenance and management services for the Charnock Well Field for two years with the option to renew.  Staff evaluated the cost of operations and determined that it is more cost-effective to extend the OMMS contract than to add City staff to operate the treatment facility. Therefore, staff recommends a first modification to Contract No. 9239 in the amount of $556,048 with Siemens Water Technologies Corporation for an additional two years at the same price, terms, and conditions as the first two years of the contract. 

 

Background

On July 13, 2010, Council approved an agreement with Siemens Water Technologies Corporation in the amount of $556,048 for the operations, maintenance, and management services (OMMS) of the Charnock Well Field for two years, with the option to renew.  In 2010 staff recommended the use of an OMMS contractor as a cost-effective alternative to increasing City staff for the limited term of ten years the Charnock treatment facility was anticipated to be in operation.  Staff estimated that operating and maintaining the treatment facility using limited-term City staff would require a minimum of 1.5 full-time employees to provide daily coverage as necessary to operate the treatment system. In contrast, operations by contract forces can be accomplished with one full-time operator, with support and supervision by existing City staff, as an OMMS contractor will assume the additional responsibility of providing coverage for any after-hour calls, weekends, and holidays on as-needed basis.  In the July 13, 2010, staff report, a cost saving comparison table was presented and demonstrated the financial benefit of awarding the OMMS contract to Siemens Water Technologies Corporation.

 

Discussion

Near the end of the initial two-year contract with Siemens Water Technologies Corporation to operate and maintain the Charnock Well Field, staff evaluated the performance of Siemens Water Technologies and found the services performed by Siemens Water Technologies to be satisfactory.  The contract with Siemens has allowed plant operators at the City’s main treatment plant to focus on operations and optimization of the new Reverse Osmosis (RO) treatment unit and other appurtenances and equipment.  As a result, staff recommends a first modification to Contract No. 9239 in the amount of $556,048 with Siemens Water Technologies Corporation to continue providing operations, maintenance and management services for the Charnock Well Field for the next two years.

 


 

Financial Impacts & Budget Actions

The contract modification to be awarded to Siemens Water Technologies Corporation is $556,048 for two years. Funds in the amount of $278,024 for the first year are included in FY 2012-13 budget at account 05672.555060.  Budget authority for subsequent years will be requested in each budget cycle for Council approval.  Future funding is contingent upon Council approval.

 

Prepared by: Gil Borboa, Water Resources Manager

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

 

Martin Pastucha

Director of Public Works

 

Rod Gould

City Manager