SUBJECT: CONSENT AGENDA
Consideration Of A Resolution Authorizing The Purchase Of Submerged Membrane Replacement Modules From Evoqua Water Technologies LLC In The Amount Of $281,960 And Setting Forth Details In Relation Thereto
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DEPARTMENT: PUBLIC WORKS
PRESENTER: Gary Behlen, Public Works Director
Bruce Chameroy, Chief Water Operator
Russell Pennington, Deputy Director of Public Works
FISCAL INFORMATION:
Cost as Recommended: $296,000
Balance Available: $296,000
Budget Line Item Number: 500.70.110.605000.100045
New Appropriation Required: No
STAFF RECOMMENDATION: Approving the Resolution authorizing said purchase, authorizing the appropriate Town officer to execute said purchase, authorizing Staff to expend contracted funds and contingency funds.
Recommendation
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SUMMARY AND BACKGROUND OF SUBJECT MATTER:
On June 28, 2016, the Board of Trustees authorized Staff to proceed with the purchase and installation of membrane replacement modules, which would replace one of the three existing submerged membrane cells at the Water Treatment Plant. The Town received a reduced price for the modules due to an ordering change from another customer of the module vendor. Regular price is approximately $1,000 per module. The Town was able to obtain a price of $550 per module plus installation costs.
The existing membranes are 11 years old and are close to their life expectancy. The current plan was to replace the remaining two submerged membrane cells over the next two years. The 2017 budget included $400,000 to replace one cell and the 2018 budget included $450,000 to replace the last cell for a project total of $850,000 over the next two years.
The membrane replacement project for the first cell that was approved by the Board of Trustees in June is now underway. In discussions with the vendor, the vendor is now able to extend the same price for enough modules to complete the remaining two submerged membrane cells. The total price for the 500 modules and installation would be $281,960.00 and the modules would be required to be purchased this year. This extended price offer would give the Town of Erie an estimated cost savings of $568,040 when compared to the overall estimated project cost of $850,000 that is currently in the 2017 and 2018 projected budgets.
In order to be able to fund this project and to capitalize on the estimated savings to the Town of Erie this year, the project can be funded with cost savings from other 2016 budgeted projects.
If the Board of Trustees grants project approval, the funds appropriated for this project in 2017 and 2018 will be removed from the future budgets.
Staff recommends that the Board of Trustees approve this resolution allowing Staff to take advantage of this saving opportunity and awarding the purchase contract to Evoqua Water Technologies LLC, in the amount of $281,960.00.
Project Cost Summary
Purchase $ 281,960
Contingency (5%) $ 14,040
Total $ 296,000
Project Schedule
Notice of Award October, 2016
Notice to Proceed November, 2016
Construction Complete December, 2016
ATTACHMENTS:
a. Resolution