(20)AR 090407 Emergency Repair Work on Well No 21

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ITEM #20 CITY OF COLTON AGENDA REPORT FOR THE COLTON UTILITY AUTHORITY MEETING OF SEPTEMBER 4, 2007 TO: HONORABLE CHAIRPERSON AND UTILITY AUTHORITY MEMBERS FROM: ERIC R. FRASER, DIRECTOR OF WATER & WASTEWATER OPERATIONS SUBJECT: APPROVE THE AWARD OF CONTRACT TO BAKERSFIELD WELL & PUMP FOR THE EMERGENCY REPAIR WORK ON WELL PLANT NO. 21. THE COST IS ESTIMATED TO EXCEED THE $25,000 AUTHORITY OF THE CITY MANAGER AND WILL BE REPORTED TO COUNCIL AS SOON AS THE INFORMATION IS AVAILABLE. DATE: AUGUST 23, 2007 BACKGROUND: Well No. 21 is one of the City's largest water -producing wells. The Well is essential in the Water Department's ability to provide adequate water and fire flows to the Central zone which serves customers in the Downtown, South Colton, La Loma Hills and Cooley Ranch areas. DISCUSSION/ANALYSIS: On August 19, 2007, the Water Utilities Operator reported to staff that Well Plant No. 21 was making a loud noise and water production had decreased by 50% of its capacity. Well Plant No. 21 was taken out of service in order to prevent further damage to the pumping plant. Bakersfield Well and Pump was hired to pull and inspect the pump. Bakersfield Well & Pump determined that the pump was worn out and had to be rebuilt. Bakersfield Well & Pump estimated repairs to exceed the $25,000 authority of the City Manager and will be reported to Council as soon as the information is available. Water Department staff consulted with the City Manager, who concurred that the situation was an emergency and that having Bakersfield Well & Pump begin work on Well Plant No. 21 was the most cost efficient method for obtaining the necessary emergency repairs. The actions of City staff in this instance complied with the City's existing purchasing regulations, which state that competitive bidding, either formal or informal, is not required in situations determined by the City Manager to constitute an emergency for a public project, pursuant to Public Contract Code sections 22035 and 22050. (Colton Municipal Code § 3.08.130.) Under such conditions, any alternative procedure may be used. In addition, the City Manager has authority to declare a public emergency and take any directly related and immediate action required by the emergency, up to a total of one hundred thousand dollars. (Ibid.) The City's purchasing regulations also require that, for projects of more than twenty-five thousand dollars, a report on the emergency and work performed must be provided at the next regular City Council meeting. In compliance with this requirement, this report is submitted to the City Council. Additionally, the City's purchasing regulations require that the City Council must determine, by a four-fifths vote, that there is a need to continue the action without the benefit of informal or formal