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SR-12-10-2013-3F - 205-008City Council Meeting: December 10, 2013 Agenda Item: 3—f^ To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Purchase Order and Bid Award Increases for Asbestos and Hazardous Materials Abatement Contractor Services Recommended Action Staff recommends that the City Council: 1. Approve a change order to purchase order 21994 -OF in the amount of $100,000 with Castlerock Environmental, a California -based company, for asbestos and hazardous materials abatement at various City facilities for the remainder of FY 2013 -14. This would result in a revised purchase order total not to exceed $150,000 through June 30, 2014. 2. Approve an increase in the amount of $100,000 to the bid award to Castlerock Environmental for asbestos and hazardous materials abatement from July 1, 2014, through January 8, 2016, for a new three -year amended agreement total not to exceed $350,000, with future year funding contingent on Council budget approval. Executive Summary The City contracts asbestos and hazardous materials abatement services as part of planned facility remodels or to address emergent health and safety issues. On January 8, 2013, Bid #4043 was awarded to Castlerock Environmental in an amount not to exceed $150,000 over a three -year period. The total amount paid under this agreement through October 2013 is $12,521. Staff anticipates another $104,000 in expenditures would be required to perform asbestos carpet/tile and ducting removal through FY 2013 -14 due to the scheduling of additional carpet, flooring and HVAC replacement projects since bid award. Staff would also use Castlerock Environmental for construction projects through the end of this agreement. Staff recommends Council approve a change order to purchase order 21994 -OF in the amount of $100,000 to cover purchases and any emergent/unplanned abatements through June 30, 2014. Staff also recommends an additional bid award increase in the amount of $100,000 for purchases and emergent/unplanned abatements from July 1, 2014, to January 8, 2016. Total purchases over the three -year agreement would not exceed $350,000. E Discussion On January 8 2013, Council awarded Bid #4043 in the amount of $150,000 to Castlerock Environmental for asbestos and hazardous material abatement services for a three -year period. After the bid award date, Facilities Maintenance Division staff identified a number of additional projects requiring asbestos abatement as part of carpet, flooring and heating, ventilation and air conditioning (HVAC) equipment replacements primarily at City Hall. In addition, Castlerock Environmental would assist the Architecture Services Division in completing construction projects requiring hazardous material abatement at various City facilities such as City Hall, Ken Edwards Center, and facilities at Memorial and Virginia Avenue parks. Services would be similar to those provided to the Facilities Maintenance Division, including mold /water damage mitigation and asbestos and lead abatement, but on a larger scale. Expenditures under the current agreement total $12,521, but staff estimates $104,000 in additional services would be required. In addition, approximately $34,000 would be required for any emergentunplanned abatements through the end of FY 2013 -14. Due to the additional projects identified and future usage planned including HVAC equipment replacement at City Hall penthouse and asbestos abatement at Beach Restroom #24, staff recommends Council approve a change order to purchase order 21994 -OF in the amount of $100,000 to cover purchases through June 2014 and an additional bid award increase in the amount of $100,000 for purchases and emergent/unplanned abatements from July 1, 2014, to January 8, 2016. Total purchases over the three -year agreement would not exceed $350,000. 2 Financial Impacts & Budget Actions The change order to be awarded to Castlerock Environmental is for an amount of $100,000, for an amended purchase order total not to exceed $150,000 in FY 2013 -14. Funds are available in FY 2013 -14 in various operating and capital improvement program budgets managed by divisions incurring the maintenance services. Services will be performed only if funds are available in the appropriate accounts. Budget authority for subsequent years will be requested in each budget cycle for Council approval. Future funding is contingent upon Council approval. Prepared by: Kevin Nagata, Administrative Analyst Approved: Martin Pastucha Director of Public Works K Forwarded to Council: Rod Gould City Manager