DATE: October 16, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator / CFO
Michelle Hatcher, Water Management Director
Brian Wilcox, Purchasing Manager
SUBJECT:
title
Acknowledge report of sole-source purchase from BAR Environmental Supply of Nashville, TN in the estimated total amount of $40,940 for one (1) new comminutor core to replace a failed unit for the Water Reclamation Division of the Water Management Department
body
Purpose
The purpose of this memorandum is to report the sole-source purchase of one (1) new comminutor core to replace the core of one of the Water Reclamation Facility comminutors that failed recently.
Background
A comminutor is a piece of equipment that is used to grind up or pulverize the contents of the influent (raw wastewater or sewerage) at it enters the City’s wastewater treatment plant at 135 Claude Yates Drive. Comminutors are necessary for the proper operation of the Water Reclamation Facility.
City Purchasing Policy allows for the following category of sole-source purchases valued at or greater than $25,000 not to require individual authorization by the Board of Mayor and Aldermen (but which shall be reported to the Board):
• Repairs to, maintenance of, licenses for and/or maintenance agreements for products already in use by the City, so long as the product manufacturer representative has stated in writing that the vendor is the sole source available to the City, and so long as the vendor has stated in writing that the quoted pricing is the lowest municipal unit pricing available at that time and in the foreseeable future for the quantity indicated.
Staff believes the purchase of the new comminutor is a sole-source purchase. Evidence to support this opinion includes:
• The comminutor core must be manufactured by JWC Environmental so that it may fit the core housing already in place at the Water Reclamation Facility.
• The manufacturer has only one authorized dealer for the sales territory that includes Franklin and has stated in writing that BAR Environmental Supply of Nashville is the sole source available to the City of Franklin for this purchase.
Financial Impact
The quoted pricing for the new core, which is to be installed by the City employee workforce at the Water Reclamation Facility, equals $38,615 plus an estimated $2,325 for freight, for an estimated total amount of $40,940. BAR Environmental Supply has indicated in writing that the quoted pricing represents the best municipal pricing possible now and in the foreseeable future for the quantity indicated. Staff believes the quoted pricing is within what currently would be expected in the market place for this industry. This purchase, for which the City expects to take delivery in December, is not anticipated in the FY2018 budget.
Recommendation
rec
Staff recommends that the Board of Mayor and Aldermen acknowledge receipt of this report of sole-source purchase from BAR Environmental Supply of Nashville, TN in the estimated total amount of $40,940 for one (1) new comminutor core to replace a failed unit for the Water Reclamation Division of the Water Management Department. Purchasing Manager Brian Wilcox believes the proposed sole-source purchase appears to be justified.