COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Thilak Fernando, Wastewater Superintendent
SUBJECT:Title
Action: Sole Source Purchases of Wastewater Treatment Plant Parts, Equipment, and Service from Parkson Corporation (Thilak Fernando)
Body
FUNDING SOURCE:
Wastewater Utility Fund
PURPOSE:
To approve a sole source purchase of Wastewater Treatment Plant parts, equipment, and service in accordance with City Code §§ 3.10.010.2 (Sole Source), 3.10.010.3(A)(2), 3.10.020.3, and 3.10.030.1.
BACKGROUND:
The Lake Havasu City Public Works Department, Wastewater Division, utilizes Parkson Corporation for replacement parts, equipment, and services as they are the original equipment manufacturer and supplier of the Mulberry and Island Treatment Plant’s wastewater processing equipment (Aeration Basins, Clarifiers, Fuzzy Filters, and Screens). Parkson is the exclusive supplier for these replacement parts and equipment in the United States.
This proposal is to replenish our inventory parts on hand and support the wastewater infrastructure. We are looking to replace about $210,000 in parts for our inventory. The parts used on this equipment are proprietary and, at this time, there are no other dealers, distributors or service organizations that can supply units to fit this equipment.
Sole source purchases over the last several years from Parkson have been as follows:
Fiscal Year 2021-22: $61,518.00
Fiscal Year 2022-23: $32,967.03
Fiscal Year 2023-24: $180,286.61
Fiscal Year 2024-25: $210,000.00 (estimated)
COMMUNITY IMPACT:
Adhering to scheduled maintenance and asset replacements avoids unnecessary and excessive damage to our existing wastewater infrastructure. Having inventory of our necessary parts will prevent down time, other equipment failures that could lead to spills, and ADEQ permit violations due to those failures.
FISCAL IMPACT:
Funds are allocated and available in the Fiscal Year 2024-25 Wastewater Utility Fund budget.
ATTACHMENTS:
Sole Source Justification from Parkson Corporation including quotes.
SUGGESTED MOTION:Recommended action
I move to approve sole source purchases for parts, equipment, and services from Parkson Corporation for Mulberry and Island Wastewater Treatment Plants for an estimated amount of $210,000, the final total of which will not exceed the amount available in the annual budget.