Title
Consider and take action on a resolution authorizing agreements with Boxx Modular, Inc. for 1) the renewal of a 36-month rental agreement in the amount of $60,710 for the existing modular office building at the Dallas Salmon Wastewater Treatment Plant (DSWWTP) and 2) a new 38-month rental agreement in the amount of $114,646 for an additional modular office building at the DSWWTP for a total not to exceed amount of $175,356 (Director of Public Works)
Background:
Approval of this item will authorize the renewal of a 36-month rental agreement for the existing modular office building from June 15, 2025 through June 30, 2028 in an not to exceed amount of $60,710; and a new 38-month rental agreement for an additional modular office building from May 1, 2025 through June 30, 2028 in an not to exceed amount of $114,646 with Boxx Modular, Inc. both located at DSWWTP, 703 N. Wisconsin Ave. for a total not to exceed amount of $175,356. Boxx Modular, Inc. was selected based on product availability, historical service (existing building), and fair market pricing from TIPS Contract #24020201. The utilization of this contract meets formal bidding requirements.
This agenda item addresses two rental contracts for administrative and operations modular office space required to operate the City’s Dallas Salmon WWTP, until permanent facilities are funded and constructed. DSWWTP is the City’s largest wastewater treatment facility and serves approximately 75 percents of the City’s existing service area. The proposed contracts address the existing modular office building that was installed in 2020 and provides an additional modular office building, approved FY2025 Budget, for field operations staff (dual-sex restrooms and showers, training room, unisex locker area, workspace for daily and inclement weather operations). The continued utilization of the existing modular building eliminates the cost of utility/communication reconnections and extensive staff relocation efforts if a new modular building was selected. Boxx Modular has provided excellent service and is required to maintain all critical functions of the buildings (HVAC, roof, external structure, etc.) during the contract period. The approximate cost to purchase the two temporary buildings is $300,000 and would require the City to assume all maintenance obligations and future removal costs.
Utilization of the temporary offices at DSWWTP provides the following:
• Restores proper level of ON-SITE command & control leadership of an “A-Major WWTP
• Enhances staff moral as we work towards the permanent solution for building replacement
• Restores and enhances safety during daily and inclement weather operations
• Further ensures the ability to maintain regulatory compliant treatment performance
COST SUMMARY (See Attachment 4 for Detailed Cost Breakdown):
Existing Modular Building - $60,710
• Monthly Rental - $53,640 ($1,490/month x 36)
• Future Demobilization - $7,070
Additional Modular Building - $114,646
• Monthly Rental - $81,776 ($2,152/month x 38)
• Mobilization and Future Demobilization - $32,870
GRAND TOTAL - $175,356
Incidental Cost for the Additional Modular Building is estimated at $38,000 - Utility (power, water & sewer), Communications Connectivity, Furniture, Lockers, and misc. site work. Estimated cost was approved in the FY25 Budget.
Fiscal Year Budget Impact:
Existing Temporary Building - $60,710
FY25 - $4,470
FY26 - $17,880
FY27 - $17,880
FY28 - $20,480**
Additional Temporary Building - $114,646
FY25 - $34,137*
FY26 - $25,824
FY27 - $25,824
FY28 - $28,861**
*Mobilization and set-up cost included
**Demobilization and tear-down included
Staff recommends Council’s consideration of approval for the proposed rental and services contracts with Boxx Modular based on product availability, historical service, and fair market pricing from the TIPS Contract# 24020201.
Attachments:
1. Proposed Resolution
2. Exhibit A1 - Agreement with Boxx Modular, Inc. (Existing Bldg.)
3. Exhibit A2 - Agreement with Boxx Modular, Inc. (Additional Bldg.)
4. Cost Detail
5. Vendor Report Card
CONTRACT ORIGINATION: Agreements have been reviewed by the City Attorney’s Office
FUNDING
{X} Funds in the amount of $38,607 are available from the Wastewater Department as follows: Building & Ground Repair Account #10207500-52150 ($4,470) and Equipment Account# 10207500-55730 ($34,137) for FY25. The remaining balance of $136,749 will be requested pending council’s future approval from Wastewater Department’s Building & Ground Repair Account# 10207500-52150 as follows: ($43,704) for FY26, ($43,704) for FY27, and ($49,341) for FY28.
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor #1 - Develop and Maintain our Infrastructure