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Agenda Item 4DAGENDA ITEM # 4D PLY 25, 2011 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Extension of Annual Contract — Electrical Motor and Pump Repairs Bid No. 0910 -11 SUBMITTED BY: Donna Kaluzniak, Utility Direct (r DATE: July 8, 2011 BACKGROUND: On July 28, 2010, bids were opened for the City annual contract for Electrical Motor and Pump Repairs. The low bidder was Specialty Marine, Inc. They successfully met all bid requirements. This work requires specialized skill, experience and equipment. Specialty Marine's personnel have the required background, knowledge, experience and equipment. This contract was bid less than a year ago during the recession, and Specialty Marine's prices were 18% below the next lowest bid and 18% below that of the previous annual contract, therefore staff did not believe the City would benefit by re- bidding the contract at this time. City has spoken to Specialty Marine, Inc. regarding an extension of their current contract for one year at the current rates and they have agreed. As per Bid No. 0910 -11: "The City reserves the right to renew the contract for two additional one -year periods pending a mutual agreement between the City and the vendor, and a review of the contract performance by vendor for the previous year." The vendor has agreed to renew his contract, and staff has been pleased with the performance of this contractor. BUDGET: These services are used on an as- needed basis, and funding is included in the Water and Sewer Funds in the amount of approximately $90,000 under account numbers 400- 5502 -533- 3400, 410 - 5506 -535 -3400 and 410 - 5508 -535 -3400. RECOMMENDATION: Extend the annual contract for electrical motor and pump repairs for one additional year to Specialty Marine, Inc. at the current contract prices. ATTACHMENTS: 1. Letter of agreement to extend contract from Specialty Marine, Inc. REVIEWED BY CITY ANAGER: b // 1JU/ 21111 10:17 9042476403 SPECIALTY MARINE AGENDA ITEM # 4D JULY 25, 2011 July 8.2011 Mr. Mike Wham) spe6alty mari Inn, RE:. Extension of 13;d No, 09101.1 Dear Mr. Whalen: CITY OIF ATLANTIC, $rt AClr OVARTMENT OF PU61„ 1C WORI(S 1200 SAN1)P1PHR LANE ATLANTIC f31 ACH, FLORMA 32.233,43 18 Tr,LEPHONC: (904) 247 -5834 FAX: (904) 247 -,5343 SUNCOM: 552 -5$34 www,ro;lh.u5 As you are awarr,, the a, niial contract with i.he City of Atlantic Reach .for Electrical Motor and Pump Repairs expires August 31, 2.01 I. We would like to extend the contract for another year at the cUITC.nt prices, if this is acceptable to your company, If Qeceptable, [flsxse sign below and return to me by Tuly 14, 2011 so l call prepare a staff report for the City Cotlnm.ission' We look A«rword to recenl-.ite)t /] ing that we conthwe our contract with your compgny, Sit�ce��ely, 1, - )Utl.rla .l; al uznialc Utility Dircrctor SPECIALTY MA3UNF,, INC. AGREES TO EXTEND THE CONTRACT WITH THE CITY OF ATLANTIC BE AT THE PRWES SUBMITTED dN AMID NO, 0910 -11 FOR AN ADDITIONAL Y1[+CAR EFFECTIVE. SEPTEMBER 1, 2011. b Mike W.halcii l7 tie