REPORT TO THE CITY COUNCIL June 26, 2014 FROM: STEPHEN A. HOGG, Assistant Director Department of Public Utilities - Wastewater Management Division BY: BARRY SCHWARTZ, Chief of Facilities Maintenance Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Award a contract for one 300 ton chiller in the amount of $137,878.65 to Norman S. Wright Duckworth - Bid File 3333 (Council District 3) ..Body RECOMMENDATION Staff recommends City Council award a contract to Norman S. Wright Duckworth in the amount of $137,878.65 for the purchase of one 300 ton chiller. EXECUTIVE SUMMARY The Department of Public Utilities, Wastewater Management Division (WMD), solicited bids for one 300 ton chiller. The lowest bid was received from Norman S. Wright Duckworth in the amount of $137,878.65. Norman S. Wright Duckworth is responsible and responsive to the intent of the specifications. BACKGROUND The WMD is replacing one 300 ton chiller that is currently 19 years old and has reached the end of its useful life.? The refrigeration compressors, tanks and lines are degrading to a non-repairable state. The replacement of this existing 300 ton chiller is necessary in order for the WMD to provide refrigerated air into the WMD Headworks Motor Control Rooms. Without the ability to provide refrigerated air into WMD Headworks Motor Control Rooms, the motor controllers will overheat and fail causing the raw sewage pumps to stop pumping and the WMD will not be able to maintain discharge compliance under state and federal regulations. A Notice Inviting Bids was published on April 28, 2014 and posted on the City's website. The specifications were distributed to 35 prospective bidders, and posted at ten Builders Exchanges. Two sealed bid proposals were received and publicly opened on May 20, 2014. The bid proposals were for $137,878.65 and $166,861.31. Norman S. Wright Duckworth was the lowest responsive bidder with a submitted bid of $137,878.65. Staff determination was posted on the City Website on Wednesday June 4, 2014. Staff recommends that a Purchase Order in the amount of $137,878.65 be issued to Norman S. Wright Duckworth as the lowest responsive and responsible bidder. The bid price is 31% below the original budget allocation of $200,000.00. ENVIRONMENTAL FINDINGS This agreement does not meet the definition of a Project under the California Environmental Quality Act (CEQA) and therefore is exempt from the CEQA guideline requirements. Therefore, no further CEQA analysis is required. LOCAL PREFERENCE The local preference does not affect the award of this contract because two local bids were received. FISCAL IMPACT This project located in Council District 3 is identified in the FY14 Budget as TC00123. Funds in the amount of $200,000.00 are available and appropriated in the Wastewater Enterprise Fund No.40501. The fiscal impact of this award would be $137,878.65 and will have no impact on the General Fund. Attachment: * Bid Evaluation