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Item 4.12 Pool Heater Repair
~~~~ OF~Dp~~2 ~~'~~ll STAFF REPORT CITY C L E R K DUBLIN CITY COUNCIL File # ^^2 5~ ~-~~ ~ ©~-.~o DATE: January 19, 2010 TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager SUBJE Pool Heater Repair Report Prepared by Paul McCreary, Assistant Director of Parks and Community Services EXECUTIVE SUMMARY: The heater for the main pool at the Dublin Swim Center is broken and in need of major repairs. The Dublin High School Swim Team was scheduled to begin using the pool during the first week of February 2010. It will take six to eight weeks to receive the replacement parts for the heater. In order to obtain the parts as quickly as possible, Staff recommends the City Council waive the formal competitive bidding requirements. FINANCIAL IMPACT: The estimated cost of the repairs, including aten-percent contingency, is $31,500. In order to proceed with the repairs a budget change will be required allocating the funds from the Budgeted Contingent Reserve. RECOMMENDATION: 1) Adopt Resolution to waive the competitive bidding requirements for the Pool Heater Repair Project and authorize the City Manager to enter into an agreement not to exceed $31,500. 2) Approve the Budget Change for Fiscal Year 2009/2010. 3) Direct Staff to incorporate the Project into the Capital Improvement Program as presented in this Staff Report. ~~~ Submitted by: Parks and Community Services Director Reviewed by: Administrative Services Director Reviewed by: Assistant City Manager ~~ Page 1 of 3 ITEM NO. n ~ DESCRIPTION: The heater for the main pool at the Dublin Swim Center recently developed a leak. Staff had the heater inspected by two firms specializing in commercial heaters. Both firms indicated that the heat exchanger, fire brick and the support for the fire brick all need to be replaced. It appears there was a leak inside the heater. That leak produced water which turned to steam/water vapor inside the heating unit. This water vapor is highly acidic because of the water chemistry and the off gas from the heating unit itself. This acidic water vapor caused the heat exchanger and support pieces for the fire brick to rust and corrode. The leak also brought moisture into the heating unit which absorbed into the fire brick. The fire brick is a light porous material that prevents the heater casing from getting too hot. In an appropriately functioning heater this fire brick stays dry. The moisture that entered the fire brick caused the brick to crack and lose its structural integrity. The heater was installed in 1999. According to the firms this is a typical problem for a ten year old commercial pool heater. The proposed repair project entails purchasing a heavy duty "cupro-nickel" heat exchanger, which has twice the strength of the old copper unit. The repair will also include a "cold water solutions system" to minimize condensation developing within the boiler. It's estimated the repairs would extend the useful life of the heater by approximately five to eight years. IMPACT ON CITY AND SCHOOL DISTRICT PROGRAMS The lead time to obtain the parts is six to eight weeks. Until those parts can be installed the pool cannot be heated to temperatures adequate for City and School District programs. The City's aquatic programs and classes are supposed to begin during the first week of April for Spring Break. The Dublin High School Swim Team was scheduled to begin using the pool during the first week of February. Staff contacted the School District Superintendent and Dublin High School Administration in early January to notify them of the problem and assist with finding alternative pool space for the Swim Team program. Staff put the Athletic Director in contact with the City of San Ramon, which has available space at the Dougherty Valley High School aquatic complex. WAIVER OF COMPETITIVE BIDDING REQUIREMENTS In order to expedite this repair and minimize disruption to the public, Staff is recommending the City Council adopt a Resolution (Attachment 1) to exempt the project from competitive bidding requirements and authorize the City Manager to enter into an agreement for such work in an amount not to exceed $31,500. Under the common law doctrine articulated in the case of Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal.App.3d 631, a public agency may award a contract without competitive bidding if it would not produce an advantage to the public. If the project is not exempted from competitive bidding requirements, the formal bidding of the project would require an additional month to prepare the bid documents, allow for the bidding period, and then prepare the agreement for consideration by the Council on March 2. This could delay the opening of the Swim Center until mid-May. By contrast, City staff estimates that if the project were approved without competitive bidding tonight the work could be completed as soon as mid-March. An additional delay in opening the Swim Center would prevent the public Page 2 of 3 from participating in City and School District programs at the Swim Center. This in turn would result in a loss of revenue to the City that it would otherwise receive from City programs. Although it is recommended the Project be exempted from formal bidding, Staff has obtained two informal bids for the repair. One is from the City's contractor for pool maintenance and repairs, East Bay Pool Service, and the other from Aqua Temp of Pleasanton as follows: Aqua Temp $28,584.19 East Bay Pool Service $31,800.00 If the City Council concurs, the City Manager would negotiate and execute the agreement with Aqua Temp, or another contractor, if an agreement is not reached with Aqua Temp, to complete the work for an amount not to exceed $31,500 including aten-percent contingency. Staff would develop a new Capital Improvement Program (CIP) project and fund it from the Budgeted Contingent Reserve. Attachment 2 is the proposed CIP project narrative, and Attachment 3 is a budget change allocating $31,500 from the Budgeted Contingent Reserve. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The School District and Dublin High School Administration were originally notified of the heater problem on January 4, 2010. A copy of this Staff report was also sent to the School District Superintendent. ATTACHMENTS: 1. Resolution to exempt the Pool Heater Repair Project from competitive bidding requirements and authorize the City Manager to enter into an agreement for such work in an amount not to exceed $31,500. 2. Capital Improvement Program Project Narrative 3. Fiscal Year 2009/2010 Budget Change Page 3 of 3 RESOLUTION NO. XX -10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN *********** TO WA~V~EXEMPT THE POOL HEATER REPAIR PROJECT FROM TkII~COMPETITIVE BIDDING REQUIREMENTS ~^,-~~ Dnni LJCATCC o~n~~o oon ~~~T AND AUTHORIZE THE CITY MANAGER TO ENTER INTO AN AGREEMENT FOR SUCH WORK IN AN AMOUNT NOT TO EXCEED $31,500 WHEREAS, the City of Dublin operates and maintains the Dublin Swim Center; and WHEREAS, it was recently discovered that the pool heater is in need of major repairs "the Pool Heater Repair Proiect") and that the lead time to obtain the necessary parts to complete the re air is six to eight weeks; and WHEREAS, the Dublin Swim Center is scheduled to open for operations during the first week of February 2010, and it is necessary that a working pool heater be in place as soon as possible to ensure that the water temperature is suitable for such activities; and WHEREAS, the Pool Heater Repair Proiect is a public work subiect to competitive bidding under California Public Contract Code section 20162 and projects subiect to competitive bidding under the Public Contract Code are not subiect to the City's Purchasina Ordinance (Chapter 2 36 of the Dublin Municipal Code); and WHEREAS, City staff has informed the City Council that competitive bidding of the Pool Heater Repair Proiect would delay the opening of the Dublin Swim Center until the middle of May 2010, due to the time needed to prepare the specifications and bid package the bidding period and the lead time for contractors to obtain the necessary parts WHEREAS, the City Council hereby finds that competitive bidding of the Pool Heater Repair Proiect would result in the public losing access to an important public facility and incurring additional expense, including, but not limited to additional expense due to delay and the loss of revenue to the City as a result of the facility not being operational and therefore competitive bidding of such work will not produce an advantage for the public and WHEREAS, therefore the Citv has the authority to award a contract for the Pool Heater Repair Proiect, without competitive bidding under the established common-law doctrine articulated in the case of Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal App 3d 631 NOW, THEREFORE, the City Council of the City of Dublin does RESOLVE to waive the competitive bidding requirements for the peat-Pool h~Heater ~2pa+~Re air pf9j26~ProjeCt and authorize the City Manager to enter into an agreement for such work in an amount not to exceed $31, 500 , ATTACHMENT 1 PASSED, APPROVED AND ADOPTED this 19t" day of January, 2010, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk 1365122.1 Mayor ATTACHMENT 1 RESOLUTION NO. XX - 10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN TO EXEMPT THE POOL HEATER REPAIR PROJECT FROM COMPETITIVE BIDDING REQUIREMENTS AND AUTHORIZE THE CITY MANAGER TO ENTER INTO AN AGREEMENT FOR SUCH WORK IN AN AMOUNT NOT TO EXCEED $31,500 WHEREAS, the City of Dublin operates and maintains the Dublin Swim Center; and WHEREAS, it was recently discovered that the pool heater is in need of major repairs ("the Pool Heater Repair Project") and that the lead time to obtain the necessary parts to complete the repair is six to eight weeks; and WHEREAS, the Dublin Swim Center is scheduled to open for operations during the first week of February 2010, and it is necessary that a working pool heater be in place as soon as possible to ensure that the water temperature is suitable for such activities; and WHEREAS, the Pool Heater Repair Project is a public work subject to competitive bidding under California Public Contract Code section 20162, and projects subject to competitive bidding under the Public Contract Code are not subject to the City's Purchasing Ordinance (Chapter 2.36 of the Dublin Municipal Code); and WHEREAS, City staff has informed the City Council that competitive bidding of the Pool Heater Repair Project would delay the opening of the Dublin Swim Center until the middle of May 2010, due to the time needed to prepare the specifications and bid package, the bidding period, and the lead time for contractors to obtain the necessary parts; WHEREAS, the City Council hereby finds that competitive bidding of the Pool Heater Repair Project would result in the public losing access to an important public facility and incurring additional expense, including, but not limited to, additional expense due to delay and the loss of revenue to the City as a result of the facility not being operational, and therefore competitive bidding of such work will not produce an advantage for the public; and WHEREAS, therefore the City has the authority to award a contract for the Pool Heater Repair Project, without competitive bidding, under the established common-law doctrine articulated in the case of Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal.App. 3d 631. NOW, THEREFORE, the City Council of the City of Dublin does RESOLVE to waive the competitive bidding requirements for the Pool Heater Repair Project and authorize the City Manager to enter into an agreement for such work in an amount not to exceed $31,500. ATTACHMENT 1 PASSED, APPROVED AND ADOPTED this 19th day of January, 2010, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Mayor ATTACHMENT 1