Download Report

CITY COUNCIL 4.3
City of Watsonville
Public Works and Utilities
MEMORANDUM
DATE:
April 22, 2015
TO:
Marcela Tavantzis, Interim City Manager
FROM:
Steve Palmisano, Director of Public Works and Utilities
Kevin Silviera, Wastewater Division Manager
SUBJECT:
Emergency Replacement Purchase in of Two Anaerobic
Digester Heat Exchangers, located at the City’s Wastewater
Treatment Facility at cost of $101,806
AGENDA ITEM:
April 28, 2015
By marcela.tavantzis at 4:45 pm, Apr 22, 2015
By Steve Palmisano at 4:08 pm, Apr 22, 2015
City Council
RECOMMENDATION:
It is recommended Council adopts a resolution approving an emergency replacement
purchase of two anaerobic digester heat exchangers, located at the City’s Wastewater
Treatment Facility.
DISCUSSION:
The Wastewater Division uses heat exchangers that capture the heat generated from
cogeneration which produces electricity used at the wastewater treatment facilities.
Both of these heat exchangers have been in service since the mid 1980’s and now require
replacement. Holes have developed inside the heat exchangers, causing a significant loss of
heating efficiency, and the loss of recirculating hot water used to heat the anaerobically
digesting sludge. The loss of this equipment would cause significant breakdown in the
wastewater treatment process; thus rendering this an emergency purchase. It was not possible
to inspect or anticipate a metal failure on the interior of this equipment in order to have properly
planned for replacement.
This equipment has been ordered as a direct replacement to match the installation piping and
foundations that already exists. The vendor is DC Frost Associates, Inc. Cost of this
equipment is $101,806, and City staff will remove the existing, and install the new heat
exchangers.
Section 3-5.07 of the Municipal Code and section 3.2.1 of the City Administrative Rules and
Regulations require formal public bids and Council approval for all purchases of equipment
which costs more than $50,000. Public bidding may be waived by the Council if staff
documents the cause of the emergency and the need to waive the public bidding process.
(WMC3-5.07, WAR&R§ 3.2.1) Section 3-5.07 and WAR&R §3.2.1 also permit the Council to
Page 1 of 2
4/22/2015 4:07 PM
M:\Public Works & Utilities\STAFF REPORTS\2015\04-28-15\Sole Source Replacement\Heat exchanger purchase.doc
waive its otherwise required formal bidding process when a commodity can be obtained from
only one vendor.
Staff believes this purchase does qualify as an emergency and therefore requests the Council
waive the formal bidding process.
STRATEGIC PLAN:
This equipment purchase is consistent with the strategic plan to maintain infrastructure and
maintain regulatory compliance.
FINANCIAL IMPACT:
Sufficient funds are available within the Sewer Enterprise fund for this unbudgeted capital
replacement purchase.
ALTERNATIVES:
None
ATTACHMENTS:
None
cc:
City Attorney
Page 2 of 2
R. Williams 4/22/2015 4:07:12 PM
M:\Public Works & Utilities\STAFF REPORTS\2015\04-28-15\Sole Source Replacement\Heat exchanger purchase.doc