Agenda Item 8CAGENDA ITEM # 8C
MARCH 12, 2012
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Award of Additive Alternate No. 3 for Bid 1011 -16 —
Standby Generator Replacement
SUBMITTED BY: Donna Kaluzniak, CEP, Utility Directo
DATE: March 2, 2012
BACKGROUND: On July 11, 2011 the City Commission awarded the contract for Bid No.
1011 -16 Sludge & Odor Control Improvements to WPC Industrial Contractors, LLC.
At that time, staff recommended that the City not award Additive Alternate No.3 — New 100 KW
Generator. This Additive Alternate bid item was to replace an existing 30OKW generator with a
new, smaller 100 KW generator. With the changes to the more efficient equipment, the larger
generator size is not necessary. The existing 300 KW generator is an older generator, however
staff believed we could continue to use it for several more years without excessive maintenance
costs.
Recently, staff found that the generator's fuel tank will need replacement at a cost of
approximately $24,000. In light of that expense and concerns that there may be other unknown
repair costs in the next few years, staff would like to revisit the recommendation to award this
Additive Alternate, as it may be more cost effective to do so than to pay for repairs on an old,
too -large unit that may become obsolete over the next several years.
BUDGET: The bid amount for Additive Alternate No. 3 — New 100 KW Standby Generator
was $72,000. The contractor was asked if the price was still valid, and WPC requested a small
increase of $460 to reflect the increased cost of the copper wire. The $72,460 is available in the
contingency amount of $215,700.
RECOMMENDATION: Award Additive Alternate No. 3 — New 100 KW Standby Generator
to WPC Industrial Contractors, LLC in the amount of $72,460, and authorize the City Manager
to sign Additive Alternate No. 3.
ATTACHMENTS: 1. Copy of email from WPC noting request of Additional $460 for
increased cost of copper wire.
REVIEWED BY CITY MANA
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