Title
Resolution to Approve a Contract with Premier Pump, Inc., for Purchase of Six Effluent Pumps for the Wastewater Treatment Plant ($425,682.00)
Memorandum
Your approval is requested to award a Contract in the amount of $425,682.00 to Premier Pump, Inc., for the purchase of six vertical secondary effluent pumps for the City’s Wastewater Treatment Plant (WWTP).
Funding for this project has been budgeted and is available in the approved Sanitary Sewer Fund Capital Budget.
The WWTP has six 150 horsepower secondary effluent pumps that are approximately 35 years old. Typically, two pumps are used to continuously pump secondary effluent into sand filters that comprise the plant’s tertiary treatment process. Occasionally, when the Huron River is at high levels, additional pumps are used to pump secondary effluent simultaneously to the sand filters and the river.
Without sufficient secondary effluent pumping capacity, the WWTP would have to bypass tertiary treatment, risk discharging partially treated sewage into the Huron River or flood the treatment plant. Any such occurrence would be a violation of the WWTP’s discharge permit and expose the City to potential fines of up to $25,000.00 per day per violation from the Michigan Department of Environmental Quality.
Over the past three years, three of the secondary effluent pumps have failed. One of the pumps was irreparable, and the other two pumps were repaired but are not reliable for long-term use. The remaining three pumps are fully functional but in a worn condition. Owing to the nature of the malfunctions and criticality of the pumps, Hubbell, Roth & Clark, Inc. (HRC) completed an engineering study to analyze the cause of the pump failure and assess the condition of the remaining pumps. The results of this study indicated the conditions of all the pumps were generally similar and their replacement was recommended.
Sttaff reviewed HRC’s recommendations and concluded that due to their age and deteriorated condition, replacement of all six secondary effluent pumps was the most reliable and cost effective course of action. Failure of the secondary effluent pumps was unforeseen and consequently not included in the design of the Facilities Renovations Project (FRP) under construction at the WWTP currently. Efforts to include replacement of these pumps in the FRP and receive funding through the State Revolving Fund loan were rejected by the Michigan Department of Environmental Quality.
The fabrication and purchase of six secondary effluent pumps were specified and advertised. Bids were received from five vendors on April 10, 2014, and the bid tabulation is attached. Staff recommends that Premier Pump, Inc., be awarded a contract to supply the specified pumps at a cost of $425,682.00. a contingency in the amount of $22,000.00 is recommended.
Premier Pump, Inc., received Human Rights approval on June 20, 2014, completed a Conflict of Interest Declaration and is not subject to the City’s Living Wage Ordinance.
Staff
Prepared by: Ed Sajewski, Contract / Project Services Manager, WWTSU
Reviewed by: Craig Hupy, Public Services Administrator
Approved by: Steven D. Powers, City Administrator
Body
Whereas, Three of six secondary effluent pumps at the City’s Wastewater Treatment Plant (WWTP) have failed and all six pumps are in a worn and deteriorating condition;
Whereas, Hubbell, Roth and Clark (HRC) provided professional engineering services to investigate the failure and condition of the pumps to recommended repair or replacement options;
Whereas, WWTP staff reviewed HRC’s recommendations and concluded that the best value to the City was pump replacement;
Whereas, An Invitation to Bid (ITB) was advertised as ITB-4328 to which there were five respondents;
Whereas, HRC and City staff reviewed the five submissions for compliance with bid specifications;
Whereas, Premier Pump, Inc., satisfied all bid specification, including the City’s rejection and acceptance of various exceptions, all Contract Compliance approvals, Conflict of Interest declaration, and is considered the lowest responsible bidder; and
Whereas, Funds to finance this purchase were intended and are available in the approved Sanitary Sewer Fund Capital Budget;
RESOLVED, That City Council approve award of a contract with Premier Pump, Inc., in the amount of $425,682.00 for the purchase of six vertical secondary effluent pumps for the WWTP;
RESOLVED, That City Council approve a contingency amount of $22,000.00 to be available for amendments to the contract that are necessary;
RESOLVED, That the City Administrator be authorized to approve amendments to the contract up to $22,000.00, in order to make modifications to the pumps that may be necessary;
RESOLVED, That funds be available for the life of the project until expended without regard to fiscal year;
RESOLVED, That the City makes the following declaration for the purpose of complying with the reimbursement rules of Treasury Regulation 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended, that the City reasonably expects to reimburse itself for expenditures for the costs of the Project with proceeds of Bonds;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said agreement following approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized and directed to take the necessary administrative actions to implement this resolution.