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AUTHORIZATION FOR EMERGENCY REPAIRS TO A DEWATERING CENTRIFUGE AT THE WATER RECLAMATION FACILITY BY HILLER SEPARATION & PROCESS, L.L.C., IN THE AMOUNT OF $31,675 AND BUDGET APPROPRIATION FROM WATER RECLAMATION FUND BALANCE.
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Background: In 2009, the Water Reclamation Facility installed two dewatering/thickening centrifuges as part of the Sludge Improvement Project. One centrifuge was dedicated to dewatering bio-solids for land application and the other was dedicated to thickening waste activated sludge for removal from the activated sludge system. During the recent Phase 2 Project, two additional thickening centrifuges were added to get more flexibility in our operation. All units are a critical part of the ongoing bio-solid reduction at the facility. The new centrifuges operate 10 to 16 hours per day, seven days per week. The original centrifuges operate as backup and are used during maintenance.
Discussion: After many years of continuous operation, one of the original dewatering centrifuges is in need of major repair. The unit was taken out of service in late June due to operating issues. Hiller Separation & Process LLC (Sole Source Manufacturer) was brought in to access the problem. Their assessment indicated many repairs are needed due to several different issues. In their evaluation the main drive unit (a planetary gear) will need replacing along with other associated equipment. The total repair cost estimate will be $31,674.15 which includes installation and shipping. Repairs would take about three to four weeks to complete. Funds are being requested from Water Reclamation Fund Balance (032-0000-253.20-00) and will be transferred to accounts (032-5545-432.32-04) Machinery, Equipment & Parts and (032-5545-432.42-11) Plant & Operating Equipment Services and (032-5545-432.47-02) Freight & Shipping.
Machinery, Equipment & Parts (032-5545-432.32-04) - $ 9,675
Plant & Operating Equipment Services (032-5545-432.42-11) - $18,000
Freight & Shipping (032-5545-432.47-02) - $4,000
Total Estimate: $31,675
Section 8-203 requires that City Council approve all purchases of supplies, equipment or contractual services where the valuation exceeds $25,000. One of the exceptions in Section 10-203 is:
(a) (2) Emergency supplies, materials, equipment, or contractual services which are necessary to maintain operations. Such purchases shall receive prior approval from the City Manager.
The City Manager approved the emergency purchase on September 13, 2017. The centrifuge has been ordered and should arrive in approximately four weeks. The emergency repair request is because of the essential need for this equipment. As mentioned, the centrifuges are used 10-16 hours a day, seven days a week to help remove solids from the treatment stream. Without the use of this equipment, the solids inventory in the treatment stream may build up and eventually exit through the effluent stream and possibly exceed the permitted allowance. This is a sole source purchase because the replacement parts are internal to this specific centrifuge and are not generic items that can be purchased from other manufactures.
Recommendation: That City Council approve this expenditure in the amount of $31,675 to Hiller Separation & Process, L.L.C. Additionally, City Council is requested to approve an appropriation of $31,675 from the Water Reclamation Fund Balance (032-0000-253.20-00) and will be transferred to accounts (032-5545-432.32-04) Machinery, Equipment & Parts and (032-5545-432.42-11) Plant & Operating Equipment Services and (032-5545-432.47-02) Freight & Shipping.