Agenda Item No: K.1
AGENDA REPORT
DATE: December 3, 2024
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2024-272
Suspending Competitive Bidding and Authorizing the City Manager to Purchase Specialized Valves for the Waterman Water Treatment Plant from Frank Olsen Company
Funding Source: $210,155; Water Enterprise Capital Fund
Contact: Nigel Browne, (707) 428-7480
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The Waterman Water Treatment Plant (Waterman) implements a comprehensive preventative maintenance program to ensure water infrastructure assets remain in good operating condition, allowing the City to provide quality drinking water to its residents. Several large, specialized valves have been identified for replacement because of the maintenance program. Due to current market conditions, the lead time to receive the equipment upon order is 16-to-18 weeks. Staff recommends approving the resolution to authorize the purchase of these specialized valves.
DISCUSSION
The Fairfield Municipal Utilities (FMU) provides water to the residents of Fairfield and Vacaville on a continuous basis and employs staff who are responsible for maintaining infrastructure valued at over $500 million in the form of two water treatment plants, twelve concrete and steel reservoirs, sixteen treated water pump stations and over 370 miles of transmission and distribution pipelines, including all appurtenances (hydrants, valves, etc.), and approximately 34,000 water service accounts. To keep FMU’s water infrastructure assets in good operating condition, an on -going investment in the proper maintenance and repair activities is required.
Waterman uses large, specialized valves throughout the plant to contr ol the flow of water throughout the facility while producing drinking water. During routine inspections and maintenance, staff identified multiple large DeZurik valves in need of replacement. A proactive equipment replacement will avoid costly repairs and/or equipment failures, which would affect water production. Staff intends to perform phased, in-kind replacements for these valves. DeZurik equipment was specified in the original design of Watermen and the equipment has proven itself capable of meeting the needs and requirements of Waterman and has either met or exceeded the expected lifespan.
DeZurik equipment is sold through distributors that serve distinct sales areas. Fairfield is within the sales area of the Frank Olsen Company. As a result, Frank Olsen Company is the sole supplier from which Fairfield can purchase the required equipment. The City’s Administrative Policy for purchasing generally requires procurement of this value to be co mpetitively bid with a formal bid advertisement. However, the Fairfield Municipal Code (FMC) provides several exceptions to the formal bidding procedures, one of which allows the City Council to suspend competitive bidding, purchase directly from a vendor, and sole sourcing when it is in the best interests of the City. (FMC section 28.60 and 28.63).
Staff recommends that the council adopt the attached resolution to suspend competitive bidding and authorize the purchase of the specialized valves from Frank Olsen Company.
FINANCIAL IMPACT
The total cost for the valve purchase is in an amount not to exceed $210,155, which is comprised of the equipment cost of $182,743.35 and 15% for tax and freight in the amount of $27,411.65. The funds are budgeted in the Water Enterprise Capital Fund (Fund 462, Project CPW090029).
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may choose not to authorize the equipment purchase. This is not recommended, however, as not purchasing the equipment would leave Waterman vulnerable to equipment failure and potentially affect its ability to supply drinking water.
COORDINATED WITH
N/A
STAFF CONTACT
Nigel Browne, Management Analyst Senior
(707) 428-7480
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed Quote