Title
MOTION TO RATIFY THE CITY MANAGER’S APPROVAL OF THE EMERGENCY LEASE AGREEMENT WITH BURNETT LIME COMPANY, INC. FOR A TEMPORARY LIME FEED SYSTEM BY CAL~FLO SYSTEMS, PROVIDING FOR THE LEASE AND INSTALLATION OF THE SYSTEM, AND THE PURCHASE OF CAL-FLO LIME SLURRY IN AN AMOUNT NOT TO EXCEED $95,360.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. On January 3, 2019, the City Manager approved the emergency lease of a temporary Lime Feed System at the Water Treatment Plant in the amount of $95,360.
2. The water treatment plant operates three lime mixing and feed systems (Slakers) for the treatment of water hardness, all of which have reached their useful life.
3. The City has plans underway to replace one of them as well as the long-term study, design and construction of a complete replacement system in the next fiscal year. The Utilities Division has been faced with a situation where it is at risk of losing redundancy in the system due to the unreliability of one of the units. In an abundance of caution, the Utilities Division is recommending this temporary substitute system be put into place as a contingency.
4. Should the water treatment plant have a complete failure without redundancy, the result would be a significant need for the purchase of large quantities of wholesale water from the City’s interconnects for a lengthy period of time.
5. Per Section 35.18(C)(1) of the City’s Procurement Code; “In urgent cases of compelling emergency that require the immediate purchase of commodities or services, the City Manager is empowered to waive the competitive bidding or competitive proposals and authorize the Chief Procurement Officer to secure by open market procedure any commodities or services, notwithstanding the estimated cost of the commodities or services.”
6. The length of time necessary for the lease of the CAL~FLO lime feed system will depend on the amount of time it will take for the permanent Lime Feed System to be fully installed, however, the Utilities Division is estimating approximately a 12 month period.
7. Pursuant to Section 2 of the lease agreement, the City of Pembroke Pines will pay a lease payment of $3,000 per month, and an installation and removal fee of $38,000.
8. In addition, pursuant to Section 2C of the lease agreement, the City of Pembroke Pines will pay a purchase price of $0.085 per liquid pound of CAL~FLO lime slurry delivered.
9. Pursuant to Appendix C of the lease agreement, there is an annual charge of $930 for maintenance, which includes changing the oil in the gearboxes once a year and annual check on system, changing Hydratube in PULSA Series pump and Cater. In addition, charges for repair of CAL~FLO system are $45 per hour, plus parts. The Utilities Division is budgeting $2,000 for the possible repair costs.
10. The following is the cost breakdown for the year:
Description |
Yearly Amount |
Installation and Removal Fee |
$ 38,000 |
12 Month Lease |
$ 36,000 |
Annual Maintenance |
$ 930 |
$45 per hour repair cost, and parts |
$ 2,000 |
.085 per liquid poundLime Slurry |
$ 18,430 |
Total: |
$ 95,360 |
11. Request Commission to ratify the City Managers’ approval of the emergency lease agreement with Burnett Lime Company, Inc. for a temporary Lime Feed System by CAL~FLO Systems, providing for the lease and installation of the system, and the purchase of CAL-FLO lime slurry in an amount not to exceed $95,360.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $95,360.
b) Amount budgeted for this item in Account No: Funds will be expensed from account # 471-533-6031-44200 (Equipment)
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project: Not Applicable.
e) Detail of additional staff requirements: Not Applicable.