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HomeMy WebLinkAboutItem 6c. Authorize replacement of Actoflo Mixer Gearboxes as part of Water Treatment Plant Major Facility Maintenance Item 6c Department: Utilities Cost Center: 6003 For Agenda of: 3/7/2023 Placement: Consent Estimated Time: N/A FROM: Aaron Floyd, Utilities Director Prepared By: Mychal Boerman, Utilities Deputy Director - Water Miguel Barcenas, Utilities Deputy Director-Engineering and Planning Shawna Scott, Utilities Special Projects Manager SUBJECT: AUTHORIZE THE REPLACEMENT OF ACTIFLO MIXER GEARBOXES AS PART OF WATER TREATMENT PLANT MAJOR FACILITY MAINTENANCE RECOMMENDATION 1. Approve the purchase and installation of replacement parts for the City’s Water Treatment Plant (WTP) Actiflo Mixer Gearboxes and authorize the City Manager to execute a Sole Source Purchase Agreement with MISCOwater in the amount of $500,322; and 2. Authorize the use of Water Fund Undesignated Capital for the purchase and installation of replacement parts for the City Water Treatment Plant Actiflo Mixer s in the amount of $255,322, Specification No. 1000542-05; and 3. Find the project exempt from the California Environmental Quality Act (CEQA). POLICY CONTEXT The City Utilities Department is responsible for providing uninterrupted water service to the community, the California Polytechnic State University campus, and the San Luis Obispo County Regional Airport. This project will provide necessary facility maintenance including the purchase of replacement parts to continue providing water service the community and contract based customers. DISCUSSION Background The City’s Water Treatment Plant (WTP) was originally constructed in 1961. In 1995, a significant upgrade to the plant was completed to meet changing water quality requirements. In April 2008, another major upgrade project was completed that replaced older equipment, added additional storage capacity for treated water, and enhanced treatment processes. The ongoing maintenance of the facilities and equipment at the WTP is necessary to prolong the useful life of the facilities and to ensure staff’s ability to operate the plant and treat water to state and federal standards. Page 17 of 375 Item 6c Proposed Project The City’s potable water is treated by a multi-step process including the mixing of aluminum sulfate (alum) and polymer flocculant1 with water to start a coagulation process. The alum and polymers neutralize the electrical charges on the fine particles in the water, allowing them to coagulate into larger particles and clumps (flocculation process). The next step in the water treatment process is ballasted flocculation, which improves the settling properties of suspended solids by adding a weighting or ballast material, such as micro-sand. The settled material is then collected and processed to separate the undesirable solids for disposal and return the ballast material back into the treatment cycle. The ballasted flocculation system at the City’s WTP is an Actiflo® system, which includes six Philadelphia mixer gearboxes. The gearboxes were installed during the 2008 upgrade project described above and have an expected lifespan of 15 to 20 years. During an annual maintenance review, the technician recommended replacement of the gearboxes because they are at the end of their useful life. Based on the age of the equipment, the gearboxes need to be replaced, as the coagulation process is critical for the treatment and disinfection of the City’s potable water. The proposed maintenance project in cludes the purchase and in-kind replacement of six Philadelphia mixer gearboxes, including the polymer mixing unit’s gears, bearings, associated equipment related to the coagulation system, and gear oil. An authorized and factory-trained technician will supervise installation of the equipment and perform a factory-approved start-up and testing to ensure successful replacement and operation. The purchase would be sole sourced, as explained further in the Fiscal Analysis, below. Previous Council or Advisory Body Action The purchase of replacement parts for the Actiflo® Mixers is included in the City’s 2021- 23 Financial Plan and Financial Plan Supplement. Public Engagement The Project has been identified as a priority project in the Financial Plan Capital Improvement Plan, which is available for public review. CONCURRENCE The City’s Finance Director concurs with the Utilities Department ’s findings that the recommended purchase is consistent with required considerations for sole source purchasing. The project is consistent with the City’s Fiscal Health Contingency Pla n because the equipment replacement is necessary to continue providing potable drinking water to City customers, an essential service of the City. 1 A polymer is a substance that has a molecular structure consisting predominantly or entirely of a large number of similar units bonded together. A flocculant is a substance that reacts with solids suspended in the water to form clumps (flocs). Page 18 of 375 Item 6c ENVIRONMENTAL REVIEW The City prepared a Notice of Exemption for the Generator Project in accordance with the California Environmental Quality Act (CEQA) (Attachment A). The Project is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15301 (Existing Facilitie s). The project qualifies for this exemption because it consists of the in -kind replacement of equipment at the Water Treatment Plant and would not increase the capacity of the existing facility. FISCAL IMPACT Budgeted: Yes Budget Year: 2022-23 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost Water Fund CIP 1000542 $245,000 $245,000 $0 N/A Undesignated Capital (Completed Projects) $1,412,903 $255,322 $1,157,581 N/A Total $1,657,903 $500,322 $1,157,581 N/A The purchase of replacement parts for the Actiflo® Mixers is included in the City’s 2021- 23 Financial Plan Supplement (Water Fund Capital Improvement Plan, Water Treatment Plant Major Facility Maintenance (Project No. 1000542-05). The Supplemental Budget document identifies a total of $245,0002 for the project in fiscal year 2022-23, noting that an additional $75,000 will be recommended in the 2023-25 Financial Plan for further retrofits related to the polymer mixing system, for an estimated total of $320,000. Of this amount, $245,000 is identified in the City’s approved Financial Plan. Due to escalating supply costs, equipment purchase and installation including freight delivery is estimated to be $416,935 (Attachment B, Sole Source Letter and Bid Estimate). Inclusive of a 20% contingency, the total project cost would be $500,322. Therefore, an additional $255,322 is needed from the Water Fund, Undesignated Capital (Completed Projects) to fully fund the Project. The approximate current balance in Water Fund undesignated capital (funds remaining from completed projects) is $1,412,903. 2 The 2022-23 Financial Plan Supplement includes the original $35,000 identified in the 2021 -23 Financial Plan and a supplemental $210,000 for the project, resulting in a total of $245,000. Page 19 of 375 Item 6c Estimated Construction Costs Philadelphia Mixer Bearing Replacements $416,935 Contingency (20%) $83,387 Total Project Cost $500,322 Sole Source Justification The City’s Municipal Code allows for sole source purchases under specific situations. Municipal Code Section 3.24.060 dictates that certain acquisitions can be purchased from a single “sole-source” without engaging in bidding procedures. Staff must justify their sole- source purchases through one of the following criteria as set forth in the Code: A. When the amount to be expended is less than the bid requirement amount which shall be specified by resolution of the council; B. When an emergency purchase is made to address a si tuation that creates an immediate and serious need for equipment, supplies, or services that cannot be met through normal purchasing procedures and where the lack of such equipment, supplies or services would seriously threaten the functioning of city government, the preservation of property, or the health or safety of any person; C. When the item(s) to be purchased can be obtained from only one vendor or supplier; D. When supplies or equipment have been uniformly adopted in the city or otherwise standardized; E. When the purchase will be made cooperatively with one, or more, other units of government, or from a local dealer within the city limits that can provide the same brand, model and configuration of item(s) identified in cooperative purchase agreement(s) at or below the cooperative purchasing net cost within the same terms and conditions; F. When reasonably necessary for the preservation or protection of public peace, health, safety or welfare of persons or property; or G. When, given the indeterminate nature of the city’s need, a request for proposal will result in a more favorable and efficient comparison of supplies, equipment and/or services. This item qualifies as a sole source purchase under criteria C as the equipment needs to be replaced in-kind, Philadelphia Mixing Solutions, LLC is the only supplier of the necessary equipment, and there is only one company (MISCOwater) that is authorized by Philadelphia Mixing Solutions, LLC to sell parts and provide service in the regional area including San Luis Obispo. Page 20 of 375 Item 6c ALTERNATIVES Deny or defer approval to purchase. The City Council may choose to deny or defer the approval to purchase the equipment. Staff does not recommend this alternative as the purchase and installation is needed to maintain equipment critical to the WTP’s potable water treatment process and compliance with state and federal drinking water standards. ATTACHMENTS A - WTP Actiflo Mixers Replacement Notice of Exemption B - MISCOwater and Philadelphia Mixing Solutions Sole Source Letter and Bid Estimate C - Project Vicinity Map (Specification No. 1000542-05) Page 21 of 375 Page 22 of 375 Notice of Exemption To: Office of Planning and Research From: City of San Luis Obispo 1400 Tenth Street, Room 121 Community Development Department Sacramento, CA 95814 919 Palm Street San Luis Obispo, CA 93401-3249 County Clerk County of San Luis Obispo Filing Not Required 1144 Monterey Street, Suite A San Luis Obispo, CA 93408 Project Title: Water Treatment Plant Actiflo Mixers Replacement Spec. 1000542-05 Project Location: Stenner Canyon Water Treatment Plant Project Location - City: Unincorporated, SLO County, CA Project Location - County: San Luis Obispo Description of Project: The proposed maintenance project includes the purchase and in-kind replacement of six Philadelphia mixer gearboxes, including the polymer mixing unit’s gears, bearings, associated equipment related to the coagulation system, and gear oil. Name of Public Agency Approving the Project: City of San Luis Obispo Name of Person or Agency Carrying Out the Project: City of San Luis Obispo Exempt Status (check one): Ministerial (Section 21080(b)(1); 15268; Declared Emergency (Sec. 21080(b)(3); 15269(a)); Emergency Project (Sec. 21080(b)(4); 15269(b)(c) Categorical Exemption. State type and section number: 15301, Class 1, Existing Facilities Statutory Exemptions. State code number: Reasons why project is exempt: The project qualifies for this exemption because it is a maintenance project and consists of the in-kind replacement of equipment at the Water Treatment Plant, and would not increase the capacity of the existing facility. Lead Agency Contact Person: Shawna Scott Area Code/Telephone/Ext. (805) 781-7176 If filed by applicant: 1. Attach certified document of exemption finding. 2. Has a notice of exemption been filed by the public agency approving the project? Yes No Signature:______________________________ Date: __February 7, 2023________________ By: Shawna Scott, Special Projects Manager (sscott@slocity.org) Page 23 of 375 Page 24 of 375 Philadelphia Mixing Solutions LLC Headquarters, Service & Technology Center 1221 East Main Street, Palmyra, PA 17078, USA Service & Technology Center 7210 Harms Road, Houston, TX 77041, USA +1 717-832-2800 www.philamixers.com Mixing Solutions Limited Venture House, Bone Lane Newbury • Berkshire RG14 5SH, UK +44 1635 275300 www.mixingsolutions.com Philadelphia Mixing Solutions Asia Pvt Ltd. EFC Offices Spaces LLP Unit No. 2202 A, 2nd Floor Rajiv Gandhi InfoTech Park, Phase 1 Hinjewadi Pune 411057. India +91 22 6241 2008 /67732000 www.philamixers-asia.com 10/6/22 City of San Luis Obispo 879 Morro St San Luis Obispo, CA 93401-7314 To whom it may concern, Philadelphia Mixing Solutions, LLC. designs and manufactures equipment for the water and wastewater industries. All the equipment and components are specified according to each application per a set of specifications, tolerances, and standards. Philadelphia Mixing Solutions, LLC is the only supplier of its named equipment. MISCOwater is Philadelphia Mixing Solutions’ sole authorized representative for products in the municipal water and wastewater industries for the state of California. Regards, Austin Bashline Regional Sales Manager 717-679-7161 austin.bashline@spxflow.com Page 25 of 375 ALBUQUERQUE AURORA FOOTHILL RANCH LAS VEGAS PLEASANTON TEMPE 27101 Burbank, Suite B ● Foothill Ranch, CA 92610 ● T 949-458-5555 ● F 949-458-5500 www.miscowater.com Date: 02/01/2023 To: City of San Luis Obispo Attn: Steve Dunton, WTP Chief Maintenance Technician. Subject: Sole Source Turn-Key Proposal for replacement of (6) PHILADELPHIA MIXER GEARBOXES at WTP located at 1900 Stenner Creek Rd, San Luis Obispo, CA. Proposal: MISCOwater will provide a turn-key and sole source replacement of the existing (6) PHILADELPHIA MIXER GEARBOXES, Model Number 3855M, Reference Serial Numbers: 05DEJ0613, 05DEJ0614, 05DEJ0615, 05DEJ0616, 05DEO0617, 05DEO0618 according to the scope outlined in the following proposal: • Provide and install OEM gearboxes and their high-speed mounting for 210TC Frame and output shaft. (Customer to reuse drive stand, motor, and wetted parts). • Provide Authorized and Factory Trained Field Service Technician to supervise installation and perform factory approved start-up. (2 days). • Dispose of replaced gearboxes. • Option A: Provide the factory recommended food grade gear oil* – price adder applies. Page 26 of 375 Scope of proposal: • MISCOwater will provide and install new PHILADELPIA MIXER GEARBOXES per the manufacturer’s guidelines. • Remove and dispose of the (6) existing gearboxes. • Disconnect and reconnect the existing (soft wired in conduit) electrical connection to the mixers. • Provide a Factory Trained and Authorized Technician to observe and advise on the installation and perform the Factory approved Equipment Start-Up Service (2- days included). • Provide a 1-year warranty on equipment and installation. • Option A: Provide (2) 55-gallon drums of Factory Recommended Food Grade Gear Oil. (*Each Mixer requires approximately (7) gallons of oil at start-up and then an oil change is required at 500 hours or 4 weeks of service, whichever comes first). • As the Sole Source and Authorized Representative for Philadelphia Mixers in California MISCOwater will provide a Sole Source Letter. Excluded: • Sales tax. • Freight and Shipping. • Permits, fees and or performance bonds if required. • Any item / work not specifically named. • Engineering Services, and or stamped engineering documents. • Seismic calculations. • Concrete restoration. • Hazardous material handling or disposal. • Gear boxes are shipped without gear oil. Installation of the oil is not included in this proposal. We can perform this for an added cost if desired. Page 27 of 375 Pricing: MISCOwater proposes to offer this turn-key proposal for the price of: Option A: $369,980.00 Per Scope listed above. Option B: $11,955.00 Price adder to Supply recommended Food Grade Gear Oil. Both Option A and B: $381,935.00 • Estimated sales tax: add approximately $23,650.00 based on install location. • Estimated Freight: add approximately $7500.00. Our proposal/quotation is valid to 03/31/2023. About: MISCOwater is a licensed General Contractor in the State of California and can offer this project on an installed, turn-key, and sole source basis as replacement in kind. Founded in 1974, MISCOwater is a highly regarded manufacturer’s representative, equipment supplier and installation General Contractor with many successful direct to customer delivery projects completed. We are licensed, bonded, and insured and will provide a Reference list upon request for your assurance and confidence in our ability to perform. Additionally, MISCOwater employ’s a full-time professional Project Manager to oversee our direct to customer delivery projects. Our Project Manager has more than a decade in the profession and has successfully managed and completed multimillion-dollar projects, including schools, prisons, and municipal water treatment projects. Page 28 of 375 Notes: • The MISCOwater Standard Terms and Conditions apply to this proposal. Included herein. • Freight and Shipping shall be Prepaid and Added (FSP-PPA), FOB Shipping Point from SPX Flow, Philadelphia Mixing Solutions, LLC to Customer Location. • The estimated time to shipment after a purchase order is received is 20-22 weeks. • We ask that the Customer drain the oil from the gear boxes the day before the start of our arrival. Disposal of the old/used gear oil is not included in the proposal. • The Customer should have a fork truck or boom truck to off load the equipment from the shipper. Due to prevailing market conditions, it is difficult for MISCOwater and its sub-suppliers to ascertain cost and delivery time with certainty. As such, all prices and dates for execution/delivery are quoted by MISCOwater based on the costs and availability of materials and labor at the date of quotation. If the actual cost to MISCOwater of executing the order increases by more than 5% between the date of the quotation and the date of completion of the order, such increase shall be added to the price of the order. MISCOwater may also demonstrate such increase by applying a price index chosen by MISCOwater in good faith and applied to all or part of the price. Further, MISCOwater shall not be responsible for any delays beyond its reasonable control due to a shortage/lack of availability of materials including increased lead times by its sub-suppliers, staff shortages or transportation disruptions. Regards, Steve Wallace Territory Sales Manager MISCOwater 27101 Burbank, Suite B Foothill Ranch, CA 92610 949-540-5806 mobile swallace@miscowater.com Page 29 of 375 Rev. 06/07/2016 MISCOWATER – TW ASSOCIATES TERMS & CONDITIONS OF SALE 1. ACCEPTANCE When the Buyer signifies acceptance of this quotation by submission of a Purchase Order or signed MISCOWATER Quotation, it shall become a binding contract when accepted and signed by an authorized signer of the Seller (MISCOWATER). Any changes or amendments to this proposal made by the Buyer must have MISCOWATER’s approval in writing to become a part of this contract. 2. DELIVERY Any shipment or delivery date recited represents our best estimate, but no liability, direct or indirect, is assumed by MISCOWATER for failure to ship or deliver on such dates. Unless otherwise directed, MISCOWATER shall have the right to make early or partial shipments and invoices covering the same to Buyer shall be due and payable in accordance with payment terms hereof. FOB shall be origin. 3. APPROVAL DRAWINGS Any preliminary drawings or literature attached to our quotation are for illustration purposes only to show approximate arrangements. Specific drawings and submittal data will be furnished for approval as required after receipt and acceptance of the Buyer’s order. Fabrication of products or equipment ordered will not begin until approval and direction to proceed is received in writing. 4. PAYMENT Payment terms, upon credit approval, are Net 30 Days from the date of each invoice issued for each partial or final shipment. Flowdown provisions are not accepted. Retention is not allowed. In the event any payment becomes past due, a charge of 1.5% will be assessed monthly. 5. TAXES AND BONDS Taxes and bonds are NOT included in our pricing. Any applicable taxes or bonds will be added to the price and shown separately on each invoice. 6. CLAIMS AND BACKCHARGES Buyer agrees to examine all materials immediately upon delivery and report to Seller (MISCOWATER) in writing any defects or shortages noted no later than 10 days following the date of receipt. The parties agree that if no such claim is made within said time, it shall be considered acceptable and in good order with respect to any defect or shortage which would have been revealed by such an inspection. In no event will MISCOWATER be responsible for any charge for modification, servicing, adjustment or for any other expense without written authorization from MISCOWATER prior to the performance of any such work. 7. SECURITY INTEREST & TITLE Until all amounts due MISCOWATER have been paid in full, Seller shall retain a security interest in the product and have all rights of a secured party under the California Uniform Commercial Code, including the right to repossess the product or equipment without legal process. 8. WARRANTY MISCOWATER warrants that the product furnished will be free from defects in material and workmanship when installed, operated and maintained under design conditions and in accordance with the manufacturer’s written instructions. Warranties will expire (18) months after shipment or twelve (12) months after start-up, whichever occurs first. Expandable items such as filter or scrubber media are excluded from this warranty. THIS WARRANTY, INCLUDING THE STATED REMEDIES, IS EXPRESSLY MADE BY SELLER AND ACCEPTED BY PURCHASER IN LIEU OF ALL OTHER WARRANTIES. SELLER MAKES NO WARRANTIES, EXPRESSED OR IMPLIED, OF MERCHANTABILITY, FITNESS OR OTHERWISE, WHICH EXTEND BEYOND THE DESCRIPTION OF THE PRODUCT HEREIN. SELLER WILL NOT BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL OR LIQUIDATED DAMAGES, AND IN NO EVENT SHALL BE LIABLE FOR ANY AMOUNT IN EXCESS OF THE PURCHASE PRICE OF THE PRODUCT PURCHASED ON THIS ORDER. The foregoing is Seller’s only obligation and Buyer’s exclusive remedy for breach of warranty, and, except for gross negligence and willful misconduct, the foregoing is Buyer’s exclusive remedy against Seller for all claims arising hereunder or relating hereto. Buyer’s failure to submit a timely claim as provided shall specifically waive all claims for damages or other relief. 9. CANCELLATION Should this order be cancelled, Buyer shall be obligated to pay for the level of work performed and products shipped. Work performed includes any engineering, calculations, preparation of submittals, drawings, and/or travel to job site in relation to this order. 10. FIELD WORK Unless specifically stated on our quotation, installation, start-up service, supervision, operation and training are not included in our pricing of product. 11. COMPLETE AGREEMENT These terms are intended by the parties as a final expression of their agreement and are intended also as a complete and exclusive statement of the terms of their agreement. No course or prior dealings between the parties and no usages of the trade shall be relevant to supplement or explain any term used in this agreement. This agreement supersedes all prior representations and agreements with respect to the matters set forth herein and may be modified only by a written agreement to and signed by each of the parties. MISCOWATER: By: Title: Title: Date: Date: Page 30 of 375 CHORRO/MURRAY/MEINECKE SEWER REPLACEMENT PROJECT 1 OF 1 0 SCALE IN FEET 800 PROJECT LOCATION N U P R R FOOT HI L L CALIFORN IA CHORROGRANDCALIFORN IASANTA ROSA JOHNSON MAR S H PISM O JOHNSONBROAD SOUTH HIGUERAMAD O N N A PR A D O PRADO TANK FARM BROADLAURELORCUTT TANK F A R M ORCUTTBROADSOUTH HIGUERALO S O SO S V A L L E Y RO AD US HIGHWAY 101CAL POLY LAG U N A L A K E STENNERCREEK ROADProject Location 00 2000' 4000' Water Treatment Plant Actiflo Mixer/Bearing Gear Replacement Page 31 of 375 Page 32 of 375