HomeMy WebLinkAboutRatify - C34282 - PDAC Chemical Cost OverrunSTAFF REPORT
CITY OF PALM DESERT
COMMUNITY DEVELOPMENT DEPARTMENT
MEETING DATE: September 6, 2018
PREPARED BY: Johnny Terfehr, Management Analyst
REQUEST: Ratify the City Manager's approval of chemical cost overrun for Knorr
Systems, Inc. (C34282) at Palm Desert Aquatic Center in the amount
of $9,646.07 for fiscal year 2017/2018.
Recommendation
By Minute Motion, ratify the City Manager's approval of chemical cost
overrun for Knorr Systems, Inc. (C34282) at the Palm Desert Aquatic Center
(PDAC) in the amount of $9,646.07 for fiscal year 2017/2018.
Strategic Plan
The ongoing maintenance of the PDAC sustains one of the City's premier recreational
facilities, which provides pervasive recreation and exercise opportunities consistent with
the objectives of the Strategic Plan.
Background Analysis
The City Council awarded Contract No. C34280 to Knorr Systems, Inc. on May 28,
2015. The contract includes all of the major maintenance activities and chemical
acquisition for the PDAC. The contract was extended for the second of two optional
renewal periods this past 2017/2018 fiscal year. In April 2018, an increase to the
contract in the amount of $20,000 was approved to cover necessary chemicals,
supplies, and maintenance work procured through Knorr Systems, Inc.
Staff underestimated chemical acquisition needs in the amount of $9,646.07. The use of
chemicals at the PDAC is largely a function of weather, bather load, and efficiency of
the mechanical system leading to varying costs from year to year. Maintenance of the
proper chemical balance is required to protect the health and safety of the pool users.
Staff verbally approved acquisition of additional chemicals to maintain healthful
conditions during the last two months of the fiscal year, when weather conditions were
causing high usuage. The City has recently procured a new chemical and maintenance
contractor for this facility and is seeking their guidance for ways to improve the
productivity of the PDAC mechanical system.
September 6, 2018 - Staff Report
Contract No. C34280 Knorr Systems, Inc. Cost Overrun
Page 2 of 2
Fiscal Analysis
The contract with Knorr Systems, Inc. was awarded for $83,596.00 plus $16,700.00 for
any necessary extras. The City Council also approved an additional $20,000 change
order in April 2018 for a total of $120,296. This expenditure will bring the total cost for
maintenance and chemical acquisitions to $129,942.07. Funds for this additional
expense are available in Fund 242 Accounts in the FY 2017/2018 operating budget.
LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER
N/A
?-c
Ryan Stendell
Robert W. Hargreaves Director of Community
City Attorney Development
VENDOR:
Ja iet Moore
Director of Finance
Knorr Systems, Inc.
2221 South Standard Avenue
Santa Ana, CA 92707
ATTACHMENTS: 1. Memo to City Manager dated August 14, 2018
Lauri Aylaiirc
City Manager
CITY OF PALM DESERT
COMMUNITY DEVELOPMENT DEPARTMENT
INTEROFFICE MEMORANDUM
Date: August 14, 2018
To: Lauri Aylaian, City Manager
From: Johnny Terfehr, Management Analyst
Subject: Palm Desert Aquatic Center (PDAC) Chemical Cost Overrun
During the PDAC's FY 2017/2018 operations year, chemical acquisition costs exceeded the
contracted (C34282) estimate by a total $9,646.07. The contract for Knorr Systems, Inc.
was awarded (and amended) in the following amounts:
Base Contract Amount:
City Directed Extras:
Change Order No. 1:
Total expenses prior to June 2018:
Remaining Balance:
June Billings:
Total Overage Amount:
$ 83,596.00
$ 16,700.00
$ 20,000.00
$120,296.00
($113,716.19)
$ 6,579.81
($ 16,225.88)
($ 9,646.07)
The required chemicals were authorized by staff as a necessary cost to keep the facility
open and consistent with the "extra work" clause in the terms and conditions of the
agreement. Costs associated with this contract can vary widely due to weather conditions
and bather Toad (patrons in the water). The overage' amount inclusive of Change Order No.
1 represents a total contract overrun of approximately 30%. Staff has recently procured a
new chemical and maintenance contractor for this facility and are seeking their guidance for
ways to improve productivity of the PDAC mechanical system.
I am seeking the City Manager's approval to pay the additional cost of $9,646.07, which can
be ratified at the City Council meeting of September 6, 2018.
Please indicate
your decision below. Approved Denied
LAI AYLAIAN, CITY MANAGER