COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Thilak Fernando, Wastewater Superintendent
SUBJECT:Title
Approve a Sole Source Purchase 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 §§ 3.10.010.3(A)(2) and 3.10.020.3.
BACKGROUND:
The Lake Havasu City Public Works Department, Wastewater Division, utilizes Parkson Corporation (formerly Schreiber) for replacement parts, equipment, and services as they are the original equipment manufacturer and supplier of the Mulberry (MTP) and Island Treatment Plant’s (ITP) process equipment (Aeration Basins, Clarifiers, Fuzzy Filters, and Screens). Parkson is the exclusive supplier for these replacement parts, equipment, and service in the United States for the MTP and ITP.
Replacement clarifier scraper blades, aeration basin diffusers, racks, and down tubes for MTP for a not-to-exceed amount of $170,000 were approved by City Council on November 14, 2023, and purchased. However, additional unforeseen parts need to be ordered for additional repair and maintenance that is higher than the original not-to-exceed sole source expenditure. Furthermore, it is likely there will be subsequent aggregate repair and maintenance expenditures exceeding $50,000 which requires City Council approval.
A quote in the amount of $17,700 (not including freight) has been received for six (6) new wheels for MTP. Parts are tax-exempt, and the estimated freight will add 10%; the estimated total is $19,470.
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. Parkson designs, manufactures, and services the 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: To Date is $180,286.61
COMMUNITY IMPACT:
Adhering to scheduled asset replacements avoids unnecessary and excessive damage to existing infrastructure, which will prevent equipment failures that could lead to spills and ADEQ permit violations.
FISCAL IMPACT:
Funds have been included and allocated for Fiscal Year 2023-24 in the Wastewater Utility Fund budget. Any funds spent above $19,470 will be verified by staff as available in the Wastewater Utility Fund expenditure budget prior to authorizing those purchases.
ATTACHMENTS:
Sole Source Justification from Parkson Corporation
SUGGESTED MOTION:Recommended aCtion
I move to approve a sole source purchase of six new wheels for the Mulberry Wastewater Treatment Plant Aeration Basins and Clarifiers from Parkson Corporation in the amount of $19,470, and for annual expenditures to exceed $50,000 up to the amount allocated in the Wastewater Treatment Fund budget through Fiscal Year 2024 for additional unforeseen parts as required for additional repair and maintenance.