Title
MOTION TO APPROVE THE PURCHASE OF THREE (3) REPLACEMENT TRANSFER PUMPS FOR THE CITY’S WATER TREATMENT PLANT (WTP) FROM PSI TECHNOLOGIES, INC. IN AN AMOUNT NOT TO EXCEED $149,625, 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 $100,000, 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 (WTP) utilizes seven (7) vertical turbine transfer pumps to convey treated, filtered, and disinfected potable water from the clearwell to three (3) on-site above-ground storage tanks prior to distribution to customers. One of the seven pumps is a smaller "jockey" pump that is no longer adequate for the required operational demands and has been removed from service.
2. On October 15, 2025, the City Commission approved the purchase of one replacement transfer pump for $55,550 to replace Transfer Pump No. 5 after it failed and was determined to be beyond economical repair. Due to manufacturing lead times, the pump was delivered on June 25, 2026, approximately eight months later, and has since been installed (by City staff) and is operating satisfactorily. Given the age and condition of the remaining transfer pumps, staff is requesting the purchase of three (3) additional replacement pumps as part of the City's ongoing renewal and replacement program.
3. Staff recommends purchasing American-Marsh pumps because they have demonstrated reliable long-term performance and are compatible with the City's existing infrastructure, including common bolt circle diameters, flange configurations, and mounting plate designs. Standardizing on the American-Marsh brand will allow the pumps to be installed in any transfer pump location as needed, simplify maintenance, maximize the use of common spare parts, and allow serviceable existing pumps removed during the project to be retained as emergency backup units.
4. The estimated manufacturing and delivery lead time for these pumps is six (6) to nine (9) months. Procuring the pumps now will help ensure they are available before additional pump failures occur.
5. PSI Technologies, Inc. (an authorized distributor for American-Marsh) submitted an estimate of $49,875 per pump for three (3) replacement transfer pumps, for a total cost of $149,625. This represents approximately a 10% cost reduction compared to the single replacement pump purchased in October 2025.
6. Standardizing on American-Marsh pumps will increase the City's inventory of compatible equipment, reduce maintenance complexity, improve parts availability, and enhance operational reliability. Given the age and condition of the existing pumps, timely replacement of at least three (3) units is essential to maintaining continuous water service.
7. The replacement pumps are manufactured by American-Marsh Pumps (a division of Wilo USA, LLC). Wilo is a global pump manufacturer, and PSI Technologies, Inc. is the local distributor for American-Marsh in this region. As such, PSI is qualified to provide replacement pumps that are fully compatible with the City's existing potable water system and operational requirements.
8. Staff recommends the City Commission approve the purchase of three (3) replacement transfer pumps for the City’s Water Treatment Plant from PSI Technologies, Inc., in an amount not to exceed $149,625, pursuant to section 35.18(C)(7)(d) of the City’s Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $149,625
b) Amount budgeted for this item in Account No: Funds are available in Account no. 471-533-6031-664165-0000-000-0000- (Pump)
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project:
|
|
Current FY |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Revenues |
|
|
|
|
|
|
Expenditures |
$149,625 |
|
|
|
|
|
Net Cost |
$149,625 |
|
|
|
|
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