Submitted By: Jimmy Lopez
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Presentation By: Sean Lanier
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Department: Engineering
STAFF RECOMMENDATION (Motion Ready):
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Approve increased expenditure under the piggyback/cooperative purchasing agreement between the City of Ocala and SGS Contracting Services for emergency repairs to the Softening Basin Lime Accelerator #1 and Lime Silo, with an additional 10% contingency added to the existing contract amount for a total contract not to exceed $1,255,196
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Water Treatment Plant No. 1 (WTP #1) was built in early 1970s, and Basin #1, the oldest of the two basins, has severe structural deterioration which required emergency rehabilitation and repair. Basin #2 is approaching three years of in-service time while Basin #1 has been undergoing repair. The average in-service time for a softening basin is 12 months. With Basin #1 still out of service, there is no redundancy in the event of a problem occurring in Basin #2.
After a competitive solicitation process, Gainesville Regional Utility (“GRU”) awarded GRU Contract No. 2019-039-L (the “GRU Agreement”) for general contractor services to SGS Contracting Services, Inc. (SGS) on June 10, 2019, for a term commencing on execution and ending on April 30, 2022. The GRU Contract offered two optional one-year extensions upon mutual agreement of the parties.
After evaluation of GRU’s general contractor solicitation and the bid offered by SGS in response, Procurement staff determined that the use of an intergovernmental cooperative purchasing method would maximize best value to the City for services related to the repair of Basin #1 at WTP #1. On January 4, 2022, Council approved a piggyback agreement with SGS (Contract No. WRS/211055) in the amount of $1,141,087 for a term ending on April 30, 2022, and adopting the two optional one-year renewal terms available under the GRU Agreement.
On May 1, 2022, GRU exercised its option to renew the GRU Agreement for the first of two available renewal terms, through April 30, 2023. The City wanted to utilize SGS for continued emergency repairs at WTP #1 and the City’s renewal piggyback agreement with SGS was approved on April 21, 2022, for a term ending April 30, 2023.
During the course of the repairs, SGS found that the interior of the structure is deteriorated more than was initially believed. A change order for an unforeseen structural repair in the amount of $79,568.50 has been submitted by SGS.
FINDINGS AND CONCLUSIONS:
Staff is requesting a 10% contingency in the amount of $114,108.70 and to allow the City Engineer to approve the requested change order and issue additional change orders for any other unforeseen conditions or conflicts discovered during the remaining repair and rehabilitation of Basin #1. With the contingency, the total project budget is not to exceed $1,255,195.70. Staff recommends approval.
FISCAL IMPACT:
Funds available FY 2023 in account 308-030-266-533-69-65010.
PROCUREMENT REVIEW:
These services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
The underlying agreement and amendments were reviewed and approved for form and legality by former City Attorney, Robert Batsel, Jr.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny