GALLUP CITY COUNCIL
TUESDAY, AUGUST 14, 2018; 6:00 P.M.
Jackie McKinney, Mayor
Linda Garcia, Councilor, Dist. 1 Allan Landavazo, Councilor, Dist. 2
Yogash Kumar, Councilor, Dist. 3 Fran Palochak, Councilor, Dist. 4
Maryann Ustick, City Manager
Curtis Hayes, City Attorney
Summary:The City of Gallup and the UMWA, Local 1629 have reached an agreement on a contract re-opener based on the provisions of Article II, Section G., of the existing collective bargaining agreement and addenda settlement agreements. The agreement entails an increase in Employer contributions for Health Insurance premiums; a 2% wage increase and foregoing an economic re-opener in October. The effective date of the 2% wage increase for bargaining unit members will be on the first full pay period in October while the increase in Health Insurance cost share will start the first full pay period in September which follows the insurance plan year. The bargaining unit is comprised of blue collar-type positions as indicated in the attached classification list.
The Engineer of Record and construction quality assurance is DePauli Engineering and Surveying of Gallup, NM. Time for completion is 120 days.
City Staff opened bids on 24 July 2018. There were only two bidders. Bid tabs are provided by attachment (a). Engineer’s cost estimate is provided as Attachment (b).
Fiscal Impact: TLC Company of Albuquerque, NM submitted the apparent low bid of $1,646,581.79 including NMGRT. Project budget is $782,150 short. See the current estimated project budget provided as Attachment (c).
Recommendation: City Staff considers TLC Company to be the “responsive low bidder” and their bid to be a “fair and reasonable” price. Staff recommends:
Summary: During the FY19 Budget Process, the City Council determined that ICIP Funds for Wastewater Projects would be provided from Fund 202 – Environmental Surcharge, for FY19 Wastewater Projects.
The $250,000 Wastewater Collections Miscellaneous Improvements Line item, was inadvertently listed as being funded from Fund 202, specifically 202-1525-474.48-45. Funds are available to fund line item 508-6062-443.48-45 from the Wastewater Enterprise Fund (Fund 508).
Staff requests that the Wastewater Collections Miscellaneous Improvements Line item funding source be changed from 202-1525-474.48-45 to 508-6062-443.48-45.
The Wastewater Enterprise funding source is more appropriate, as one of the purposes of the line item is to respond to unforeseen system repairs and improvements, which can be a combination of Operation and Maintenance Issues, as well as Capital issues.
Fiscal Impact: Increase of $250,000 in available funds to Fund 202, Environmental Surcharge Fund, and potential expenditures up to $250,000 to Fund 508, Wastewater Enterprise Fund.
Recommendation: Recommend approval to change the Wastewater Collections Miscellaneous Improvements line item source from 202-1525-474.48-45 to 505-6062-443.48-45 with necessary budget adjustments.
During the February 28, 2018 Regular Council Meeting The City of Gallup (City) approved the bid award of the subject project to Adame Construction, the lowest responsive bidder. The bid award was in the amount of $751.017.21. The bid award was significantly lower than the $1,000,000 budgeted for the project in the City ICIP, in line item 306-6063-444.48-99 Project No. JU1849.
The City of Gallup (City) opened bids for the installation of a bulk water fill station purchasing and accounting system for its Bataan Water Loading Station located at 412 Bataan Veterans’ Road on May 24, 2018, with Elemech, Inc. of Aurora, IL being selected as the lowest responsive bidder. Council approved the purchase and installation of two units during its June 26, 2018 Regular Meeting.
Both units have been installed at a total cost of $68,000, and are working well. During July 2018, operational issues arose with the bulk water loading station located at the East Plant off of Hasler Valley Road. After consulting with IT Staff and attempting to obtain assistance from the equipment manufacturer which is now out of business, Utilities Staff spoke with the Elemech, Inc. Project Engineer and requested a cost quote for a new system at the East Plant. The cost proposal received from Elemech was $24,000, which is less than that for the Bataan Station due to (1) the lack of requirement for a coin based system at the East Plant and (2) the lack of a tight time constraint to install the system.
Funds for the purchase and installation of the unit are available in account 306-6063-444.48-20, Project No. JU1850, which has a $6,800 balance remaining after the purchase and installation of both units for the Bataan Water Loading Station units. The remaining $17,200 can be transferred from 506-6063-444.48-99, the Water Distribution Repair fund.
The vendor has agreed to provide and install a unit for the East Side Plant, and City Purchasing Staff have agreed that the bid award can be extended for another unit, using the original bid as a basis for the award.