Agenda Item Wording:
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Award 5-year contract for WRF Aeration Systems - Authorize the City Manager to award a 5-year sole source contract, not to exceed $200,000 per year, totaling $1,000,000 over the life of the contract, to Environmental Dynamics International to supply repair and replacement parts to overhaul the aeration diffuser system at the Visalia Water Reclamation Facility (WRF).
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Deadline for Action: 10/7/2024
Submitting Department: Public Works
Contact Name and Phone Number: Ben Litwack, Public Works Manager, (559)713-4671, ben.litwack@visalia.city
Department Recommendation:
Staff recommends that Council authorize the City Manager to award a 5-year sole source contract, not to exceed $1,000,000.00 to Environmental Dynamics International for replacement parts to overhaul the Aeration Basins at the Visalia Water Reclamation Facility.
Background Discussion:
The Visalia Water Reclamation Facility (WRF) relies on aeration basins as a core component of its biological treatment process. These basins, which utilize diffused aeration to promote the breakdown of organic materials, are critical to the facility's ability to meet regulatory standards and efficiently treat wastewater. However, it has been several years since any significant maintenance has been performed on the aeration basins.
Industry best practices recommend that aeration basins undergo inspection and maintenance every 3-5 years to ensure optimal performance and prevent operational issues. Due to challenging operational conditions, the facility has deferred this necessary maintenance, increasing the risk of equipment failure, reduced efficiency, and potential non-compliance with discharge permits.
To address this, the WRF has developed a plan to perform a complete overhaul of one aeration basin per year, over the next five years, to ensure the long-term reliability of the treatment process. Environmental Dynamics International (EDI), the original equipment manufacturer, has provided a quote for the replacement parts needed for the overhaul of the first basin, totaling $163,048.38. This quote covers critical components such as diffusers and membranes, which are proprietary to EDI’s aeration system.
In light of potential unanticipated expenses or price increases during the course of the overhaul project, we are requesting an annual budget of $200,000. This will provide a buffer to address any unforeseen issues that may arise during maintenance, as well as to account for inflation or fluctuations in part prices over the five-year period.
By establishing a 5-year sole source contract with EDI, the WRF will ensure that the aeration basins receive the necessary maintenance with the correct replacement parts, minimizing downtime and maintaining operational efficiency.
Environmental Dynamics International (EDI) has been the sole provider of these parts since the installation of the aeration system. The compatibility and performance of EDI’s replacement parts are crucial to the optimal functioning of the system. Based on past procurement, EDI’s equipment has proven to meet the required standards for operational reliability, energy efficiency, and regulatory compliance.
This sole source procurement is justified for several reasons:
1. Proprietary Technology: The aeration basins at the WRF utilize a system designed and installed by EDI, with parts that are proprietary and specifically engineered for our current infrastructure. Other manufacturers’ parts may not meet the compatibility or performance specifications, which could lead to inefficiencies, higher operational costs, or system failures.
2. Operational Continuity: EDI replacement parts are essential to maintain the continuous and reliable operation of the aeration system. Disruptions in the aeration process could compromise the facility’s ability to meet discharge permit limits, potentially leading to regulatory violations, fines, and environmental harm.
3. Proven Performance and Reliability: Over the years, EDI has consistently provided high-quality parts that ensure the aeration basins operate efficiently. Their diffusers and membranes have been key to minimizing energy use while maximizing treatment efficiency. A sole source contract with EDI guarantees that the WRF will continue to benefit from these proven technologies.
4. Cost-Effectiveness: Engaging in a long-term sole source agreement allows the facility to lock in pricing and ensure the availability of critical parts without the delays associated with procuring items through a competitive bid process. This will also prevent costly emergency repairs and downtime that could arise from system failures due to inferior or incompatible parts.
Fiscal Impact:
Currently, $200,000 is budgeted annually within Capital Improvement Project CP0439 (Activated Sludge Overhaul) from the WRF Fund 431.
Prior Council Action: 05/20/2019 - Council granted authorization to award an annual soul source contract to Environmental Dynamics International with the option to renew up to four consecutive one-year terms.
Other: N/A
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
Authorize the City Manager to award a 5-year sole source contract, not to exceed $200,000 per year, totaling $1,000,000 over the life of the contract, to Environmental Dynamics International to supply repair and replacement parts to overhaul the aeration diffuser system at the Visalia Water Reclamation Facility (WRF).
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: 1. EDI Quote.pdf
2. EDI Sole Source Letter.pdf
3. 1 LEVINE ACT STATEMENT - EDI