Title
MOTION TO APPROVE AN AGREEMENT WITH PANTROPIC POWER, INC. FOR THE REPLACEMENT OF TWO (2) NEW GENERATOR MUFFLERS IN AN AMOUNT NOT TO EXCEED $79,708, 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, "A 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 Water Treatment Plant (WTP), located at 7960 Johnson St. is receiving specific renovations to its Electrical equipment, including some rehabilitation work for the two generator mufflers on-site.
2. An inspection was carried out by Jacob/OMI personnel that determined that the generator mufflers were rusted beyond repair and needed to be replaced entirely. Generators are a vital component of the WTP.
3. The Utilities Department solicited a quote from Pantropic Power. Pantropic Power is the authorized dealer for Caterpillar power generation, industrial marine and on-highway engines, Caterpillar parts, and service for the following 13 counties in Florida: Broward, Dade, Charlotte, Collier, Glades, Indian River, Hendry, Lee, Martin, Monroe, Okeechobee, Palm Beach, and St. Lucie.
4. Pantropic Power has the expertise to do this work. Additionally, as the manufacturer’s authorized dealer, Pantropic Power’s work includes a six-month warranty on labor and a year warranty on parts.
5. The cost to replace these two (2) mufflers is $79,708.00, including $250.00 for delivery.
6. The Utilities Department recommends the approval of an agreement with Pantropic Power, Inc. for the replacement of two (2) new generator mufflers in an amount not to exceed $79,708, pursuant to section 35.18(C)(7)(d) of the City's Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $79,708.
b) Amount budgeted for this item in Account No: $6,170 is available in account # 471-533-6031-546220-0000-000-0000 (R&M Generators)
c) Source of funding for difference, if not fully budgeted: Upon Commission's approval, a budget adjustment will be required to transfer $26,000 from account # 471-533-6031-546250-0000-000-000 (R&M Equipment) and $52,000 from Account # 471-533-6031-663000-0000-000-0000 (Improvements other than Buildings) to account # 471-533-6031-546220-0000-000-0000 (R&M Generators)
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 |
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Expenditures |
$79,708 |
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Net Cost |
$79,708 |
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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.