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HomeMy WebLinkAbout2024 04 29 Regular 500 West WRF, Disk Filter PurchaseREGULAR AGENDA ITEM 500 CITY COMMISSION AGENDA | APRIL 29, 2024 REGULAR MEETING TITLE West WRF (Water Reclamation Facility), Disk Filter Purchase SUMMARY The West WRF is located in the western part of the City and provides wastewater treatment service and reclaimed water (RCW) to the City’s RCW distribution system. During the cleaning and rehabilitation of the WRF a temporary disk filter was added to the treatment process to provide additional filtration capacity. The existing sand filters are beyond the end of their service life and do not respond to changes in TSS well. The existing sand filters will be replaced with the new WRF construction. The temporary disk filter has provided additional reliability so that the facility can continue to produce public access RCW. Invitation to Bid (ITB) #05-21 JN for West Water Reclamation Facility Temporary Disk Filter was approved by Commission September 27, 2021 to Veolia Water Technologies, Inc. (VWT) as the lowest most responsible bidder. The equipment has performed well since deployment and has been leased on a month-to-month rental basis. The new WRF design is in progress and the new construction will be a number of years before completion. It has been determined the best path forward is to retain the existing disk filter equipment for reliability. The unit is still relatively new and should not have any major cost expenditures for some years. The City would incur significant cost to disconnect and return the existing rental equipment plus additional cost to install a new unit. A new disk filter is currently estimated to have a 22 to 36 week lead time for delivery. VWT and City staff have worked collaboratively to develop the lease-purchase agreement. The City will purchase the disc filter for a total of $354,150.00 for the equipment as outlined in the agreement, including spare parts and onsite services for 12 months. The City will continue to pay the monthly rental fee of $16,450 during the purchase payment period anticipated to be six months, which will be applied to the purchase price. The City will make three additional lump sum payments during the 6 month period to acquire ownership of the disc filter, totaling $255,450.00. The demobilization fee under the existing lease will not be charged and the transportation trailer will be returned to VWT. The equipment will become City property at the end of the purchase agreement time frame. VWT is offering an additional 12 months of service visits (six visits over months 13 to 24) for $19,985. One set of replacement panels is currently $52,500 plus freight. 26 Pursuant to Section 180.24, Florida Statutes, the need to purchase a disc filter was advertised by posting three notices in three conspicuous places in the City, one of which was on the door of the city hall, at least 10 days prior to the City Commission meeting. Further, Staff requests the City Commission waive the City’s competitive bidding requirements of the City’s Purchasing Policy for this equipment as the purchase is in the best interest of the City. As stated above, the City would incur significant cost to disconnect and return the existing rental equipment plus additional cost to install a new unit, which would have to be fitted for use at the plant. A new disk filter is currently estimated to have a 22 to 36 week lead time for delivery. FUNDING SOURCE RECOMMENDATION Staff requests the City Commission to waive the competitive bidding requirement of the City Purchasing Policy adopted by Resolution 2023-20 as it is in the best interest of the City for the purchase of the disc filter from Veolia Water Technologies, Inc. and to approved the lease-purchase agreement for the disc filter in the amount of $354,150.00, as well as the purchase of an additional 12 months of service (months 13 to 24) for $19,985, and a complete set of replacement panels for $52,500 plus a 10% contingency of $5,250 (contingency for panels only) for a total of $431,885.00. Additionally, authorization for the City Manager and City Attorney is requested to prepare and execute any and all applicable documents consistent with this Agenda item. 27 The following was provided to the City Commission by Finance Director Holly Queen at the April 29, 2024 City Commission Meeting during Item 500. 19 1+*M boo Approx, Invoice Date Description Amount Payment Due Date Cost of Lease Savings 5/13/2024 Rental 5/13/24 -6/12/24 $16,450 Net 30 3 Years 592,200 $ 238,060 6/13/2024 Rental 6/13/24 -7/12/24 $16,450 Net 30 4 Years 789,600 $ 435,450 1 _ ---- 450 Net 30 8/13/2024 Rental 8/13/24 - 9/12/24 $16,450 Net 30� 9/13/2024 Rental 9/13/24 - 1 011 2/24 $16,450 Net 30 10/13/2024 Rental 10/13/24 11/12/24 $16,450 Net 301 N.A 1 st(initial) buyout payment $63,862.50 5/12/2024 N/A 2nd buyout payment $127,725.00 9/9/2024 N/A 3rd (final) buyout payment $63,862.50 10/13/2024 $354,150, 7/13/2024 Complete set of replacement filter panels (not including labor or freight) - PO $52,416 Net 30 issued — 5/13/2024 with delivery— 60 days 11/13/2024 - 1/12/2025 Continuance of Onsite Service, 1 Visit $0.00 N/A 1/13/2025 - 3/12/2025 Continuance of Onsite Service, 1 Visit $0.00 N/A 3/13/2025- 5/12/2025 Continuance of Onsite Service, 1 Visit $0.00 N/A 5/13/2025 -7/12/2025 Additional service, 1 visit $3,330.83 Net 30 7/13/2025 -9/12/2025 Additional service, 1 visit $3,330.83 Net 30 9/13/2025- 11/12/2025 Additional service, 1 visit $3,330,831 Net 30 11/13/2025 - 1/12/2026 Additional service, 1 visit $3,330.83 Net 30 i 1/13/2026 - 3/12/2026 Additional service, 1 visit $3,330.83 Net 30 I 3/13/2026 -5/12/2026 Additional service, 1 visit $3,330.83 Net 30 Warranty- parts, labor, and freight (when operating within design parameters 5/13/2024 - 11/12/2024 and recommendations) $0 N/A Warranty- parts (when operating within design parameters and 11/13/2024 - 3/12/2025 recommendations) $0 N/A signed and payment by 5/12/23