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REVISED AGENDA REPORT Item #1 CITY OF COLTON AGENDA REPORT FOR CITY COUNCIL Mtt I ING UI- TO: F TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: DILU DE ALWIS, FINANCE DIRECTOR SUBJECT: AWARD OF CONTRACT FOR THE COMPLETE OVERHAUL OF BLOWER ENGINE NO. 3 AT THE CITY OF COLTON WATER RECLAMATION FACILITY FOR THE WASTE WATER DEPARTMENT TO STEWART & STEVENSON INC. IN THE AMOUNT OF $59,017.00. DATE: MARCH 8, 2004 BACKGROUND The Colton Water Reclamation Facility (CWRF) utilizes methane/natural gas burning engines that drive blowers to supply air for the biological treatment process. There are currently two gas driven engines available for this purpose as well as one electric motor driven blower. Due to the high cost to operate the electric blower (-$650/day), it is only used in emergency situations. The engine that drives Blower No. 3 needs to be overhauled to ensure process reliability. DISCUSSION/ ANALYSIS The treatment process at the water reclamation plant generates methane gas that is used as a fuel source for two engines that drive blowers. Natural gas can also be purchased to operate these engines. The air produced by these blowers is utilized in the biological process and is necessary 24 -hours per day/seven days per week. Under current conditions, one gas driven blower is needed to provide air for the biological process. Normally, one engine is operating to meet these air requirements and the other is ready to be put into operation when the operating blower needs to be shut down for maintenance or as needed by the treatment process. In June 2003, maintenance staff determined that Blower Engine No. 3 needed to be overhauled due to low compression on six of the eight cylinders. The engine was taken out of service for this purpose. On February 17, 2004 the Central Services Division solicited sealed proposals for the complete overhaul of Engine #3. Staff mailed the request to three (3) vendors. The bid opening was held in the Central Services Office on February 26, 2004.Two (2) bids were received and evaluated. The two bids received were as follows: Thompson Mechanical, total bid price $61,716.00, and Stewart & Stevens Inc., total bid price $59,017.00. The bids were evaluated on total price for a complete overhaul. Both bids were complete and meet the City of Colton submittal requirements. Staff is recommending award of contract to the low bidder Stewart & Stevenson Inc. in the not to exceed amount of $59,017.00. FINANCIAL IMPACT Funds are available for the complete overhaul of Blower Engine No. 3 in the Wastewater Department Operations Equipment account #522-8200-8200-4955. ENVIRONMENTAL IMPACT None Staff recommends the City Council award the purchase of the complete overhaul of Blower Engine No. 3 to Stewart & Stevenson Inc. in the amount not to exceed $59,017.00. Report Prepared By: Nicole Mihld, Senior Buyer Page 1 of 2