SR-09-11-2012-3N1_
City of City Council Report
Santa Monica'
City Council Meeting: September 11, 2012
Agenda Item: 3 f
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
1
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.
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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:
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Martin astucha
Director of Public Works
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Forwarded to Council:
Rod Gould
City Manager