Consideration and Approval of Purchase: One (1) Wastewater Lagoon Dredge with attachments for Wildcat Hill Wastewater Treatment Plant (Approve purchase of dredge for Wildcat Hill Wastewater Treatment Plant).

The Utilities Division-Wastewater Treatment Section needs to replace the existing Dredge equipment to maintain operations and the current level of service. The existing Dredge is 35 years old, has reached the end of it's asset life, and needs replacement. The existing unit has over 42,000 operational hours and the replacement criteria is 9,000 hrs. The existing Dredge has significant wear on the power train, hydraulic systems, and wear parts.

The winning bid price of the Dredge equipment, with attachments, is $304,691.70 which includes all applicable sales taxes and delivery fees. The Utilities Department budgeted $275,000.00 for this equipment replacement  in fiscal year 2015 in account # 203-08-311-1116-0-4402. The balance of $29,691.70 will come from the Wastewater reserve account 203-08-375-3235-0-4466.

Maintain and deliver quality, reliable infrastructure and utility services. The dredge is utilized daily in the summer operations in the solids handling process at Wildcat Wastewater Treatment plant.

No

 

Option 1--Approve the purchase from VMI Equipment Company as the lowest responsive and responsible bidder in the amount of $304,691.70 for the replacement of existing dredge equipment.

Option 2-- Approve the monthly rental of used dredge equipment for $15,900 per month. Nineteen months (19) of rental fees would be equivalent to the purchase price of the new Dredge.

Option 3-- Reject the bid and continue to use the existing 1980 Dredge equipment. According to the equipment manufacturer this equipment is beyond its design life. Continuing to use the existing Dredge will increase repair and maintenance costs and decreasing reliability of this 35 year old piece of equipment. As of 1/1/15 the City has spent over $254,000 maintaining this piece of equipment over the past 34 years.

The initial IFB, bid # 2015-07, for the dredge equipment was advertised back on August 19, 2014.  The City received two (2) bids for this equipment and both bids were determined to be non-responsive. The previous bid specifications required a larger horsepower diesel motor and redundant hydraulic system requirements. The City changed the motor and hydraulic equipment specifications to allow for more competitive bidding and additional cost savings and advertised a second IFB, bid # 2015-26, which resulted in lower equipment costs and will have lower fuel costs for the life of equipment.

This equipment is critical to the Wildcat Hill Wastewater Treatment plant operations. The equipment being purchased will replace an existing 35 year old piece of equipment used in daily operations. The Fleet replacement criterion for this type of equipment at the City is a maximum of 25 years age and/or 9,000 operating hours. The dredge equipment being replaced has exceeded the age (now 35 years) as well as the number of operating hours (42,000 hours). The equipment being presented to City Council for replacement purchase has been reviewed, evaluated and approved by the Fleet Management Committee, which is comprised of Public Works-Fleet staff, Utilities Management and maintenance staff.

The purchase being recommended was reviewed and approved by the Fleet Committee. Dredge equipment is specialized and there are no local manufacturers of this type of equipment. VMI Dredge Equipment Company, located in Cushing Oklahoma, was the lowest responsive and responsible bidder.

City Council members approved the FY15 funding for this equipment during the previous budget cycle. Capital Improvement funding was reviewed and approved in April 2014.

The replacement of the lagoon dredge equipment will help reduce the amount of downtime, as well as additional repair costs associated with the existing dredge equipment. This replacement will help ensure a reliable operation in the solids handling operations at the Wildcat Hill Facility during the summer months, which allows the Utilities department to effectively provide wastewater treatment services to the citizens of Flagstaff in a safe and reliable manner.

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