17-0919_LAYNE CHRISTIANSEN COMPANY_Agenda Report_E8TO :
FROM :
City of San Juan Capistrano
Agenda Report
Honorable Mayor and Members of the City Council
~n Siegel, City Manager
SUBMITTED BY: Steve May, Public Works & Utilities Director~~
PREPARED BY: Noreen Swiontek, Senior Management Analyst
DATE : September 19, 2017
9/19/2017
E8
SUBJECT: Consideration of Ratification of Emergency Purchases Related to
Water Well Repairs for Layne Christensen Company and Industrial
Power & Automation
RECOMMENDATION :
Ratify Emergency Purchase Authorizations for water well rehabilitation and mechanical
and electrical equipment removal and replacement, for a cumulative total amount of
$45,984 (Layne Christensen Company) (Industrial Power & Automation).
DISCUSSION/ANALYSIS:
In August 2017, the mechanical equipment at the City's Capistrano Valley Water District
(CVWD) Well #1 failed, and shortly thereafter the electrical supply variable frequency
drive at the site also failed. These failures reduced the ability to deliver water to the
City's Groundwater Recovery Plant (GWRP). The cost of the lost water production from
the GWRP was estimated to be approximately $1,000 per day. An expedited
competitive bidding process would have taken at least two weeks longer than the
informal quotes obtained for the repair work in two days. A two week delay would have
cost approximately $14,000.
To avoid this cost of lost water production, the Emergency Purchase process was used
in accordance with the City Council Purchasing Policy 126, which authorizes the City
Manager to purchase goods, supplies, equipment, materials and services without
following the standard purchasing procedures (i.e. competitive bidding) when the public
health, safety or welfare of the community would be affected. Emergency purchases
must be submitted to the City Council for ratification. Accordingly, staff is requesting that
the City Council ratify purchases approved via the Emergency Purchase Authorization
process in the total amount of $45,984, as identified in two attached Emergency
City Council Agenda Report
September 19, 2017
Page 2 of 3
Purchase Authorization Forms (Attachments 1 and 2), and as outlined in the following
table.
umma ry o e pa1r OS S S fR . C t
Vendor Emergency Work Cost
Layne Christensen Rehabilitate Well and Replace $40 ,335
Company Mechanical equipment
Industrial Power & Replace Electrical Variable $ 5,649
Automation Inc. Frequency Drive
Total $45 ,984
Similar water well rehabilitation for three City well sites was competitively bid in April
2017. On May 16, 2017, the City Council awarded contracts to the low bidders for the
two components of that work . The repair work for the CVWD Well #1 was added as
change orders to those two existing contracts. The change orders for Layne
Christensen Company ($40,335) and Industrial Power & Automation Inc. ($5,649) are
included as Attachments 3 and 4, respectively.
FISCAL IMPACT:
The Emergency Purchase Authorizations cumulative total of $45,984 is available in the
current budget for Water Operations.
ENVIRONM ENTAL IMPACT:
In accordance with the California Environmental Quality Act (CEQA), the recommended
action is exempt from CEQA per Section 15061 (b )(3), which is the general rule that
CEQA applies only to activities that have the potential for causing a significant effect on
the environment. Where it can be seen with certainty that there is no possibility that the
activity in question may have a significant effect on the environment, the activity is not
subject to CEQA. Rehabilitation and replacement of equipment for an existing water
well site would not be an activity with potential to cause significant effect on the
environment, and therefore is exempt from CEQA.
PRIOR CITY C OUNCIL REVIEW:
There has been no prior City Council review of this item .
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS :
This item will be submitted to the Utilities Commission on the same date of this City
Council meeting. If the Utilities Commission does not recommend ratification of the
emergency purchases, then that information will be reported during this City Council
meeting.
City Council Agenda Report
September 19, 2017
Page 3 of 3
NOTIFICATIONS :
Layne Christensen Company
Industrial Power & Automation Inc.
ATTACHMENTS:
Attachment 1 -Emergency Purchase Authorization, Layne Christensen Company
Attachment 2-Emergency Purchase Authorization, Industrial Power & Automation Inc.
Attachment 3 -Change Order to Construction Contract with Layne Christensen
Company
Attachment 4-Change Order to Construction Contract with Industrial Power &
Automation
EMERGENCY PURCHASE
AUTHORIZATION FORM
As a Department Head, I have determined that an emergency condition exists that could
interrupt the public health, safety or welfare of the community if the normal bidding procedures
were followed. You are therefore authorized to proceed immediately to purchase, without the
bidding process, any necessary material, labor, equipment or supplies needed to normalize the
emergency condition.
. h' . GWRP Well CVWD #I stopped working and requires immediate repair
1. Descnbe t IS emergency · for optimum peiformance of the plant.
2. Location of this emergency : 32510 Del Zura in the City of San Juan Capistrano
3. Estimated Cost of Materials/Supplies/Equipment, $ 18,000
4. Selected Vendors Layne Christensen Company
5. Estimated Cost of Labor/Installation $ 22,335
6 . Selected Vendors Layne Christensen Company
All emergency purchases that would otherwise require the formal bidding procedure shall be
submitted to the City Manager for his presentation to the City Council for ratification at the next
regular Council meeting.
Date to be ratified by City CounciJ _S--=ep:....t_e_m_b_e,_· 1_9_,_2_0_17 _______________ _
Accounts Payable w · pay ap roved vendor invoices with an appropriate and valid
purchase order number issued from Finance. If a purchase order number was not issued for
any reason other than those listed above prior to procurement, the department shall explain
below the circumstances regarding the need for payment without a City issued Purchase
Order.
7 . Reason for executing purchase without Purchase Order:
for each day that the 11'ell is out ofsen·ice, staff estimates lost income t?( approximately $2,200 (grant funding &
deht service not covered).
Attachment 1
Page 1 of 1
EMERGENCY PURCHASE
AUTHORIZATION FORM
As a Department Head, I have determined that an emergency condition exists that could
interrupt the public health, safety or welfare of the community if th~ normal bidding procedures
were followed. You are therefore authorized to proceed immediately to purchase, without the
bidding process, any necessary material, labor, equipment or supplies needed to normalize the
emergency condition .
. . GWRP Well CVWD #1 electrical motor drive failure must be replaced
1. Descnbe th1s emergency : for efficient deliveTJI o.fwater to the plant for treatment.
2. Location of this emergency : 32510 Del lura in the City of San Juan Capistrano
3. Estimated Cost of Materials/Supplies/Equipment, $ 2,000
4. Selected Vendors lndustr;al Power & Automation
5. Estimated Cost of Labor/Installation $ 3,649
6. Selected Vendors industrial Power & Automation
All emergency purchases that would otherwise require the formal bidding procedure shall be
submitted to the City Manager for his presentation to the City Council for ratification at the next
regular Council meeting.
Date to be ratified by City Council _S.....:ep'-t_e_m_b_eJ_· 1_9_.2_0_1_7 _______________ _
Accounts Payable will ay approved vendor invoices with an appropriate and valid
purchase order number issued from Finance. If a purchase order number was not issued for
any reason other than those listed above prior to procurement, the department shall explain
below the circumstances regarding the need for payment without a City issued Purchase
Order.
7 . Reason for executing purchase without Purchase Order:
for t>ach day thattht! 1rell is outc~f'sen•ict!, staff l'slinwtt!s lost i11come t!f approximate~\· $2,200 (grant{unding &
di'ht SI'ITice not corered).
Attachment 2
Page 1 of 2
Industrial Power & Automation
31805 Temecula pkwy #170
Temecula, CA 92592
UC.#936700
Q"i1-7F;4-71 n7
Bill To:
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano
92675
Date Invoice No.
08/31/17 1515
Item
P.O . Number Terms
Verble Glenn Net30
/
Description /
QUOTEDSALE Emergency supply and install of 50hp vfd t/
TAX
Project
Quantity
1
1
Invoice
Rate Amount
5,500.00 5,500.00
149.00 149.00
~~t ~ ~I_£ ~
6. ~
Total $5,649.00
Attachment 2
Page 2 of 2
EXHIBIT "A"
CHANGE ORDER FORM
City of San Juan Capistrano 32400 Paseo Adelanto
San Juan Capistrano, CA 92675
(949) 493-1171
Contract Change Order # 3
Project: Well Facility Equipment Replacement Change Order No.: 3
Orig. Contract Amt.: $99,623.46 45 Days
Contract No. CIP 17807
Contractor: Layne Christensen Company Prev. Appvd. Changes: $6,636.45 46 Days
Owner: City of San Juan Capistrano This Change: $40,335 .00 46 Days
Revised Contract Amt.: $146 ,594.91 137 Days
This Change Order covers changes to the subject contract as described herein. The Contractor
shall construct, furnish equipment and materials, and perform all work as necessary or required
to complete the Change Order items for a lump sum price agreed upon between the Contractor
and City of San Juan Capistrano, otherwise referred to as Owner.
Increase/ Contract
Item (Decrease) Time
No . Description of Changes in Contract Extension,
Amount Days
1 CVWD #1 Well Emergency Rehabilitation and Repair $40,335 46
2
Totals $40,335 46
This Contract Change Order consists of 2 pages and any exhibits attached to this Contract Change
Order shall not be part of the Contract Change Order unless specifically initialed by or on behalf of both
the Contractor and the City of San Juan Capistrano .
61147.02100\20950242 .3
Contract Change Order# 3 _______ _ Page 1 of 2
1 EXHIBIT "A"
Change Order Form
Attachment 3
Page 1 of 2
The amount of the contract will be increased by the sum of $40.335 and the contract time shall
be extended by 45 working days. The undersigned Contractor approves the foregoing Change Order
# as to the changes, if any, in the contract price specified for each item including any and all
supervision costs and other miscellaneous costs relating to the change in work, and as to the
extension of time allowed, if any, for completion of the entire work on account of said Change Order#.
The Contractor agrees to furnish all labor and materials and perform all other necessary work,
inclusive of the directly or indirectly related to the approved time extension, required to complete the
Change order items. This document will become a supplement of the contract and all provisions will
apply hereto. It is understood that the Change Order shall be effective when approved by the Owner.
Contractor accepts the terms and conditions stated above as full and final settlement of any and all
claims arising out of or related to the subject of this Change Order and acknowledges that the
compensation (time and cost) set forth herein comprises the total compensation due for the work or
change defined in the Change Order, including all impact on any unchanged work. By signing this
Change Order, the Contractor acknowledges and agrees that the stipulated compensation includes
payment for all Work contained in the Change Order, plus all payment for any acceleration or
interruption of schedules, extended overhead costs, delay, and all impact or cumulative impact on all
Work under this Contract. The signing of this Change Order acknowledges full mutual accord and
satisfaction for the change and that the stated time and/or cost constitute the total equitable
adjustment owed the Contractor as a result of the change. The Contractor hereby releases and
agrees to waive all rights, without exception or reservation of any kind whatsoever, to file any further
claim or request for equitable adjustment of any type, for any reasonably foreseeable cause that shall
arise out of, or as a result of, this Change Order and/or its impact on the remainder of the Work under
the Contract.
Accepted :
Recommended:
Approved:
Item
No .
(Signature) Contractor's Authorized Representative Date
Date
Date
Justification for Change(s)
Rehabilitation and Repair of this well is required for optimum performance of the Groundwater
Recove Plant.
This Contract Change Order consists of 2 pages and any exhibits attached to this Contract Change
Order shall not be part of the Contract Change Order unless specifically initialed by or on behalf of both
the Contractor and the City of San Juan Capistrano .
Contract Change Order # 3
61147.02100120950242.3 2
Page 2 of 2
EXHIBIT "A"
Change Order Form
Attachment 3
Page 2 of 2
EXHIBIT "A"
CHANGE ORDER FORM
City of San Juan Capistrano 32400 Paseo Adelanto
San Juan Capistrano, CA 92675
(949) 493-1171
Contract Change Order# 4
Project: Well Facility Equipment Replacement Change Order No.: 4
Orig. Contract Amt.: $10,290.00 90 Days
Contract No. CIP 17807
Contractor: Industrial Power & Automation Prev. Appvd. Changes: $0.00 0 Days
Owner: City of San Juan Capistrano This Change: $5,649 .00 47 Days
Revised Contract Amt.: $15,939.00 137 Days
This Change Order covers changes to the subject contract as described herein. The Contractor
shall construct, furnish equipment and materials, and perform. all work as necessary or required
to complete the Change Order items for a lump sum price agreed upon between the Contractor
and City of San Juan Capistrano, otherwise referred to as Owner.
Increase/ Contract
Item (Decrease) Time
No. Description of Changes in Contract Extension ,
Amount Days
1 CVWD #1 Emergency Well Electrical Equipment $5 ,649.00 47 Replacement (Variable Frequency Drive
2
Totals $5,649.00 47
This Contract Change Order consists of 2 pages and any exhibits attached to this Contract Change
Order shall not be part of the Contract Change Order unless specifically initialed by or on behalf of both
the Contractor and the City of San Juan Capistrano.
Contract Change Order# 4 _______ _ Page 1 of 2
Attachment 4
Page 1 of 2
The amount of the contract will be increased by the sum of $5.649 .00 and the contract time shall
be extended by 46 working days. The undersigned Contractor approves the foregoing Change Order
# as to the changes, if any, in the contract price specified for each item including any and all
supervision costs and other miscellaneous costs relating to the change in work, and as to the
extension of time allowed, if any, for completion of the entire work on account of said Change Order#.
The Contractor agrees to furnish all labor and materials and perform all other necessary work,
inclusive of the directly or indirectly related to the approved time extension, required to complete the
Change order items. This document will become a supplement of the contract and all provisions will
apply hereto. It is understood that the Change Order shall be effective when approved by the Owner.
Contractor accepts the terms and conditions stated above as full and final settlement of any and all
claims arising out of or related to the subject of this Change Order and acknowledges that the
compensation (time and cost) set forth herein comprises the total compensation due for the work or
change defined in the Change Order, including all impact on any unchanged work. By signing this
Change Order, the Contractor acknowledges and agrees that the stipulated compensation includes
payment for all Work contained in the Change Order, plus all payment for any acceleration or
interruption of schedules, extended overhead costs, delay, and all impact or cumulative impact on all
Work under this Contract. The signing of this Change Order acknowledges full mutual accord and
satisfaction for the change and that the stated time and/or cost constitute the total equitable
adjustment owed the Contractor as a result of the change. The Contractor hereby releases and
agrees to waive all rights, without exception or reservation of any kind whatsoever, to file any further
claim or request for equitable adjustment of any type, for any reasonably foreseeable cause that shall
arise out of, or as a result of, this Change Order and/or its impact on the remainder of the Work under
the Contract.
Accepted :
Recommended :
Approved:
Item
No.
(Signature) Contractor's Authorized Representative Date
Date
o/-12-(?
Date
Justification for Change(s)
Replacement of electrical equipment at this well site is required for optimum performance of
the Groundwater Recove Plant.
This Contract Change Order consists of 2 pages and any exhibits attached to this Contract Change
Order shall not be part of the Contract Change Order unless specifically initialed by or on behalf of both
the Contractor and the City of San Juan Capistrano.
Contract Change Order # 4 Page 2 of 2
Attachment 4
Page 2 of 2