Title
AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH FOSTER ELECTRIC MOTOR SERVICE, INC., FOR EQUIPMENT REPAIR AND MAINTENANCE
Staff Contact: Craig Johnson, P.E., Director, Water Services
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into a linking agreement with Foster Electric Motor Service, Inc., (Foster) for equipment repair and maintenance in an amount not to exceed $50,000 for the initial term; and authorize the City Manager, at the City Manager’s discretion, to extend the agreement for two (2) additional two-year terms, in an amount not to exceed $250,000 for the entire term of the agreement. This cooperative purchase is available through an agreement between the City of Chandler and Foster, agreement no. WA5-936-3480, and can be extended through June 30, 2021.
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Background
The City’s water treatment and distribution; and wastewater collection and treatment systems include an array of pumps, mixers, processing and filtering equipment. From time to time, this equipment needs rehabilitating or replacing. Even though the system has redundant and backup equipment available, the loss of equipment reduces the service level capacity. So time is of the essence to get the equipment back in service. Having “on-call” repair contractors reduces the time equipment is out of service.
The City has contracted with multiple repair vendors as most vendors do not repair all brands or types of equipment and some have exclusive responsibilities for specific manufacturers. The City intends to contract with additional firms as they become available.
Analysis
Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.
On June 12, 2015, the City of Chandler entered into agreement no. WA5-936-3480, for the repair and maintenance of equipment. This agreement permits its cooperative use by other governmental agencies. The City of Glendale Materials Management and the City Attorney’s Office have reviewed and approved the utilization of the agreement for the defined services, and concur the cooperative purchase is in the best interest of the city.
Previous Related Council Action
On October 25, 2016, Council approved the linking agreement with Hennesy Mechanical Sales for equipment repair and maintenance at various water and wastewater facilities.
Community Benefit/Public Involvement
Maintained equipment ensures reliable and sufficient water and wastewater services for the community.
Cooperative purchasing typically produces the lowest possible volume prices and allows for the most effective use of available funding. The bids are publicly advertised and all Arizona firms have an opportunity to participate.
Budget and Financial Impacts
Funding is available in the FY2016-17 Water Services operating budget. Annual budget appropriation thereafter is contingent upon Council approval. The budget will be encumbered only as electrical parts are needed.
Cost |
Fund-Department-Account |
$50,000 |
2360-17160-523400, Arrowhead Water Reclamation Facility |
|
2360-17170-523400, West Area Water Reclamation Facility |
|
2400-17280-523400, Central System Maintenance |
|
2400-17250-523400, Pyramid Peak Water Treatment Plant |
|
2400-17260-523400, Cholla Water Treatment Plant |
|
2400-17290-523400, Water Distribution |
|
2400-17310-523400, Oasis Surface Water Treatment Plant |
|
2400-17320-523400, Oasis Groundwater Water Treatment Plant |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?