Fiscal Note
The proposed resolution authorizes an amendment to a competitive contract with Maguire Iron, Inc. for services related to the maintenance of Reservoir 20. Maguire Iron, Inc. was selected via a competitive Request for Bid in the estimated amount of $1,300,000. The proposed amendment authorizes Maguire Iron, Inc. to restore the structural integrity of the reservoir and ensure no future areas of corrosion will occur at an estimated cost of $500,000. The total service contract, including amendments is estimated to be $1,800,000. Funding for the contract and proposed amendment is available in the Water Utility's 2026 Adopted Operating Budget. No additional appropriation is required.
Title
Authorizing a non-competitive contract amendment with Maguire Iron, Inc. for services related to the maintenance of Reservoir 20 (2829 Prairie Road) (District 20)
Body
WHEREAS, Madison Water Utility’s (MWU) Reservoir 20, located at 2829 Prairie Road, is a 4.2-million-gallon steel reservoir that was constructed in 1973, and beginning in 2026 was due for long-term maintenance that includes a full interior and exterior re-coating as well as structural condition assessments; and
WHEREAS, these repair and maintenance services were competitively bid at the end of 2025 with Request for Bids No. 14083-0-2025-BG, and through that competitive process Maguire Iron, Inc. (Maguire) was selected as the contractor to perform the necessary work, including providing for a structural condition assessment to determine if structural repairs will be needed; and
WHEREAS, a service contract was executed between the City of Madison (City) and Maguire in the spring of 2026, with work beginning in May 2026; and
WHEREAS, during their structural condition assessments, Maguire noted considerable corrosion of Reservoir 20’s interior roof rafters that, through the additional opinion of an independent structural engineer, have compromised the intended structural integrity of the reservoir; and
WHEREAS, consistent with the language of the original contract, Maguire has put forward a proposal that will restore the structural integrity of the reservoir and ensure that no future areas of corrosion will occur based on the required welding to complete their work, at a cost of $501,200; and
WHEREAS, MWU has reviewed Maguire’s proposal alongside their own consulting engineer and agrees that the work is necessary, and that it is in the best interest of the City to allow Maguire to proceed expeditiously with this additional work while the reservoir is empty and offline, and Maguire has agreed to perform the work with a 30 days extension of time to complete this additional work; and
WHEREAS, the original contract with Maguire includes an investigative scope of work that contemplated the possibility of future amendments if the need for this repair work is discovered during the investigative phase, and would require a contract amendment or change order; and
WHEREAS, while the RFB and contract contemplated the possibility of additional repairs, the cost of the necessary repairs exceeds $75,000 and MGO 4.26 requires Common Council approval for noncompetitive purchase of services over $75,000; and
WHEREAS, this amendment meets exceptions to noncompetitive selection in MGO 4.26(4)(a)7. because Maguire is already performing work on this water reservoir and it is therefore economical for the City on the basis of time and money to continue to use Maguire for this additional work; and
WHEREAS, the scope and timing of this additional work is critical to ensure that Reservoir 20’s structural integrity is restored as quickly as possible so that MWU systems can return to ideal operating conditions.
NOW, THEREFORE, BE IT HEREBY RESOLVED that the Finance Director or designee is authorized to execute a contract amendment with Maguire Iron, Inc. at the price indicated above, for the additional services and equipment required to maintain Madison Water Utility’s Reservoir 20 as described above, and amending the schedule to extend completion and related due dates by 30 days; and
BE IT FURTHER RESOLVED, that if needed, future contract amendments that do not exceed Madison Water Utility's approved budget or the intended scope of the original contract, as amended with this amendment, may be executed by the City Finance Director or designee, and the Water Utility General Manager, in a form approved by the City Attorney.