COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Mike Slettebo, Wastewater Utility Supervisor
SUBJECT:Title
Approve Renewal of Cooperative Purchase Agreement and Annual Expenditures Over $50,000 with James, Cooke, and Hobson, Inc., for Wastewater Pumps and Parts (Mike Slettebo)
Body
FUNDING SOURCE:
Wastewater Utility Fund
PURPOSE:
To approve renewal of the cooperative purchase agreement and approve annual expenditures over $50,000, with James, Cooke, and Hobson, Inc., through its agreement with the City of Chandler, Arizona, under Contract Number WA7-936-3785 in accordance with City Code Section 3.10.010.5(A)(1).
BACKGROUND:
James, Cooke, and Hobson, Inc. (JCH), is the exclusive representative for Arizona municipalities for pumps and parts for Flygt, Gorman Rupp, Kaeser, and Cla-Val. Additionally, it is an exclusive factory authorized service and repair facility for Flygt pumps.
JCH is the original supplier for many of the City’s lift stations and treatment plant pumps. These pumps are proprietary.
Standardization with Flygt pumps for the same kind of replacement is within the current infrastructure.
Below is a list of the City’s past fiscal years’ (FY) annual aggregate spent with JCH:
FY 2014-15 - $122,588.08
FY 2015-16 - $166,089.03
FY 2016-17 - $177,059.05
FY 2017-18 - $134,704.30
FY 2018-19 - $141,644.59
Flygt pumps are standard on approximately half of the City’s Wastewater installations. The pumps used at these sites are proprietary.
Pumps are typically rebuilt every six or seven years and then replaced (absent any oddities) every 15 to 20 years, but can be destroyed by lightning strikes, power surges or internal damage within the sewer lines.
Lake Havasu City has 48 large lift stations with 102 pumps. There are currently 10 spares, most of which are specific to a location.
COMMUNITY IMPACT:
Preplanned asset replacement avoids unnecessary and excessive damage to City infrastructure and helps the City to provide better and more efficient service. Utilizing the cooperative purchase agreement for various water and wastewater pumps, equipment, parts and service provides greater efficiency and economy through leveraged pricing.
FISCAL IMPACT:
Sufficient funds for the immediate purchase of the pumps and for the purchase of various items over the course of the agreement are budgeted in the Wastewater Capital Replacement Fund (533.4210.422.6104) and the Wastewater Utility Fund (531.4210.422.4302, 531.4210.422.5220, and 531.4210.422.5228).
ATTACHMENTS:
N/A
SUGGESTED MOTION:Recommended ACtion
I move to approve renewal of the Cooperative Purchase Agreement for an additional two-year term with James, Cooke, and Hobson, Inc., and approve annual expenditures exceeding $50,000.