DATE: September 14, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator for Finance and Administration
Mark Hilty, Assistant City Administrator for Public Works
Michelle Hatcher, Water Management Director
Juan Davis, Water Reclamation Superintendent
Ivan Thurber, Water Reclamation Assistant Superintendent
Brian Wilcox, Purchasing Manager
SUBJECT:
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Acknowledge report of emergency purchase from Rebuild-it Services Group, LLC of Midvale, Utah of services related to rebuilding a drive unit for and replacing the existing drive unit at Water Reclamation Facility clarifier no. 5, in the total amount of $52,455 for the Water Reclamation Division of the Water Management Department (to be allocated to 431-89530-52213; Purchase Order No. PO2523)
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Purpose
The purpose of this memorandum is to report the emergency purchase of services related to rebuilding a drive unit for and replacing the existing drive unit at Water Reclamation Facility clarifier no. 5, in the total amount of $52,455 for the Water Reclamation Division of the Water Management Department.
Background
The drive unit for a wastewater treatment clarifier is what powers the mechanical works of the clarifier. On July 25, 2017, the drive unit for clarifier no. 5 at the City’s Water Reclamation Facility failed. On July 26, 2017, City staff asked Rebuild-it Services Group, LLC (RSG) (a) to diagnose what work needed to be done on a used drive unit that had previously been removed from clarifier no. 9 at the City’s Water Reclamation Facility (and was picked up at the Water Reclamation Facility by RSG on July 27, 2017) and (b) to prepare a proposal to rebuild that drive unit so that it could be repurposed for and replace the existing drive unit at Water Reclamation Facility clarifier no. 5. Staff compared the proposal, dated August 30, 2017 (which is in the total amount of $52,455), with what the City paid in 2016 for supply, delivery and installation of a new drive unit for clarifier no. 9, which was in the total amount of $69,115, and has now accepted that proposal and, on September 12, 2017, issued a purchase order, no. PO2523, for the diagnostic, rebuilding and replacement services.
The following excerpt from the City’s Purchasing Policy describes how emergency purchases are to be handled:
When in the judgment of the City Administrator, the Department Head or the Purchasing Manager there exists an emergency impinging on public health, safety or welfare and a purchase valued at or greater than $10,000 is necessary, then the competitive purchasing provisions contained in this Purchasing Policy may be waived; provided, however, that if the emergency purchase is valued at or greater than $25,000 it shall be reported to the Board of Mayor and Aldermen at its next scheduled meeting.
As the drive unit for a wastewater treatment clarifier is critical to the operation of that clarifier, and as each clarifier, including no. 5, at the City’s Water Reclamation Facility is critical to the year-round operation of the Water Reclamation Facility, staff determined that the services related to rebuilding a drive unit for and replacing the existing drive unit at Water Reclamation Facility clarifier no. 5 qualified as an emergency purchase. Further, as having the drive unit rebuilt as quickly as possible seemed (and still seems) imperative, staff concluded that competitively pricing the necessary services was not a viable option.
Financial Impact
The drive unit failure was not anticipated in the budget for fiscal year 2018. However, City staff believe the total cost of the repair may be absorbed in the Water Management Department budget for fiscal year 2018.
Recommendation
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Staff recommends that the Board of Mayor and Aldermen acknowledge receipt of this report of the emergency purchase from Rebuild-it Services Group, LLC of Midvale, Utah of services related to rebuilding a drive unit for and replacing the existing drive unit at Water Reclamation Facility clarifier no. 5, in the total amount of $52,455 for the Water Reclamation Division of the Water Management Department. Purchasing Manager Brian Wilcox believes the staff recommendation appears to be made in a fair and impartial manner based upon the information available, and that the emergency purchase appears to be justified.