DATE: July 15, 2019
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator for Finance and Administration
Michelle Hatcher, Water Management Director
Brian Wilcox, Purchasing Manager
SUBJECT:
title
Emergency purchase to rebuild pump no. 6 for main pump station at Water Reclamation Facility from Tech Industrial Sales and Service, Inc. of Nashville, Tennessee in the total amount of $60,838.05 for the Water Reclamation Division of the Water Management Department ($365,000 budgeted in line-item 431-89530-52213 for fiscal year 2019)
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Purpose
The purpose of this memorandum is to report the emergency purchase to rebuild pump no. 6 for main pump station at Water Reclamation Facility for the Water Reclamation Division of the Water Management Department.
Background
The Water Management Department Water Reclamation Division budget for fiscal year 2019 allocates $365,000 out of the Wastewater Fund for the purchase of machinery and equipment. The purpose of this procurement is to return to service influent pump no. 6 for the main pump station at the City’s Water Reclamation Facility. The purchase includes removal of the 450 hp pump from the main influent pump station, transportation to and from the service provider’s shop, disassembly, replacing worn parts (including bearings) with new factory parts to be supplied by the service provider, reassembly of the pump and re-installation of the pump at the same location at the Water Reclamation Facility.
City Purchasing Policy allows for the emergency purchase of products and services valued at or greater than $10,000 as follows:
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.
The emergency basis for pricing should be used only if necessary. Purchases that qualify as emergencies are to be based on emergency pricing only if another policy-compliant basis for pricing (e.g., federal General Services Administration (GSA) via GSA contract, State of Tennessee via Tennessee statewide contract (SWC), one of the cooperative purchasing arrangements recognized by the City) is not known to be available.
In this case, staff concluded that this purchase qualifies as an emergency purchase since (a) the pump is critical to the operation of the main influent pump station at the City’s Water Reclamation Facility, the long lead-time required for completion of the order to rebuild, and (c) another policy-compliant basis for pricing is not known to be available.
Financial Impact
The cost of the turn-key rebuild is in the total amount of $60,838.05.
The service provider, Tech Industrial Sales and Service, Inc. of Nashville, Tennessee, has indicated in writing that the total pricing represents the best municipal pricing possible at this time and in the foreseeable future for the quantity indicated.
City Water Management Department staff believe the total pricing is within what would be expected in the market place for this industry at this time.
Options
Given the emergency nature of the situation, the City Administrator executed this purchase for the rebuild of the pump. The purchase is being reported to BOMA consistent with policy.