Title
MOTION TO APPROVE THE PURCHASE OF A REPLACEMENT TRANSFER PUMP FOR THE CITY’S WATER TREATMENT PLANT FROM PSI TECHNOLOGIES, INC. IN AN AMOUNT NOT TO EXCEED $55,550, PURSUANT TO SECTION 35.18(C)(7)(D) OF THE CITY'S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City's Code of Ordinances is titled "PROCUREMENT PROCEDURES, PUBLIC FUNDS".
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS".
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(7)(d) states that “When considered to be in the best interest of the city and recommended by the using department and the services to be performed are by the equipment manufacturer, manufacturer’s service representative or a distributor of the manufacturer’s equipment, the services may be procured without following the competitive sealed bid process”
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval."
- Section 35.21(A)(1) of the City’s Code of Ordinance states, "An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. The City’s Water Treatment Plant provides potable water to its residents and owns and operates it’s own potable water system which consists of seven (7) vertical turbine transfer pumps, a clear well, and the three storage tanks. Transfer pumps move treated (finished) water from the clear well (where disinfection occurs) to storage tanks on the Water Treatment Plant site prior to distribution to customers.
2. Five (5) transfer pumps were built in 1984, and another two (2) transfer pumps were added in 1994. One transfer pump is driven by a 20-horsepower motor while the other six have 50-horsepower motors.
3. Transfer pump No. 5, a 50-horsepower transfer pump, was recently removed for inspection and returned to the manufacturer for repairs following concerns over noise and poor performance. When the pump was inspected it was determined by the manufacturer that the pump is beyond repair because the pump, bowls, column, impellers, and head are severely corroded and are not reusable.
4. Upon determining the cost to repair pump No. 5 would not be cost effective and a replacement of the pump unit would be best, the manufacturer American-Marsh Pumps provided the Utilities Department the names of the authorized maintenance service and repair providers in Broward County. The Utilities Department reached out to PSI Technologies, Inc, Done Rite Pumps and Electromech for quotes. Done Rite Pumps and Electromech did not respond to the request for quotes.
5. Because of the pump’s specific dimensions, bolt circle diameters, and clearances; the ability to salvage parts from the City’s existing pump for spares; and the fact that this model matches several other transfer pumps already in use, warrants the City to make additional pump purchases manufactured by American-Marsh Pumps (a division of Wilo USA, LLC) using the maintenance service and repair of equipment exemptions, to repair the City’s potable water system.
Additionally, competitively bidding this pump would require approximately 4 to 6 months to complete the full bid cycle, in addition to the 6 to 9 months for fabrication and delivery time currently being proposed. The extended lead time for this purchase causes an operational risk to the adequate redundancy required for this facility to supply water to its customers as pump No. 5 is currently down.
6. The proposed replacement pump is manufactured by American-Marsh Pumps (a division of Wilo USA, LLC). Wilo is a global pump manufacturer, and PSI Technologies, Inc. is the most responsive local distributor for American-Marsh in the region. As such, PSI is uniquely qualified to provide the correct replacement pump that is compatible with the City’s existing potable water system infrastructure and system requirements.
7. On October 2, 2025, PSI Technologies, Inc. provided the City with a quote for the replacement transfer pump in the amount of $55,550. The replacement pump will require approximately 6 to 9 months to arrive from date of issuance of a purchase order.
8. This pump replacement to repair the potable water system is a short-term solution that will keep operations running while staff works with the City’s Water Continuing Consultant (Carollo Engineers) to develop a proposal for a comprehensive evaluation of the remaining pumps, along with needed improvements to the clear well under the capital improvement program. The evaluation will be followed by recommended long-term CIP improvements, anticipated within the next year or so.
9. Staff recommends the City Commission approve the purchase of a replacement transfer pump for the City’s Water Treatment Plant from PSI Technologies, Inc., in an amount not to exceed $55,550, pursuant to section 35.18(C)(7)(d) of the City’s Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $55,550
b) Amount budgeted for this item in Account No: Funds are available is account # 471-533-6031-546250-0000-000-0000- (R&M Equipment)
c) Source of funding for difference, if not fully budgeted: Not Applicable
d) 5 year projection of the operational cost of the project:
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Current FY |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
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Revenues |
N/A |
N/A |
N/A |
N/A |
N/A |
|
Expenditures |
$55,550 |
N/A |
N/A |
N/A |
N/A |
|
Net Cost |
$55,550 |
N/A |
N/A |
N/A |
N/A |
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not applicable.