SUBJECT/RECOMMENDATION:
Title
Approve a two year extension to existing contract to Carl Eric Johnson, of Lawrenceville, GA (BPO BR506957) for the purchase of Moyno Progressive Cavity Pumps and replacement parts for the contract period November 1, 2014 through October 31, 2016, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Public Utilities operates and maintains thirty-nine progressive cavity pumps that are in service at three Water Reclamation Facilities (WRFs), which are manufactured by Moyno, Inc. (Moyno). The Moyno pumps are used to transfer sludges, biosolids and other high viscosity fluids throughout the wastewater treatment processes. The City has standardized on the use of Moyno pumps for high solids pumping applications due to the large investment of existing equipment and the reliability of the equipment. Standardization of pumping equipment reduces redesign/retrofit of the piping systems and overall down time, which is critical to maintaining regulatory compliance at our wastewater treatment facilities. Standardization also reduces the required stocking of parts and replacement pumps, and increases the cost efficiency of maintenance operations.
On November 16, 2010, City Council approved a blanket purchase order to Carl Eric Johnson for Moyno Progressive Cavity Pumps and replacements parts for the contract period November 16, 2010 to October 31, 2012, in the amount of $125,000.00. The anticipated demand for pumps and parts was based primarily on the previous two year (Fiscal Year 2008 and 2009) purchases totaling nearly $103,000. On October 18, 2012, City Council approved the first date extension of this blanket purchase order, BR506957. That contract period was November 1, 2012 through October 31, 2014. The current BPO balance is $63,723.58. The amount used to purchase Moyno equipment over the last four years, $61,276.42, is considerably less than projected. The reduction in repair and replacement cost for the Moyno pumps is credited to an aggressive preventative maintenance program, prolonging the useful life of the pumps. Public Utilities requests a contract time only extension of 2 years as the balance of the BPO has sufficient funds at this time.
Carl Eric Johnson, Inc. (CEJ) is the sole authorized distributor of genuine Moyno pumps and replacement parts in Florida and Georgia. Both CEJ and Moyno, Inc. have been contacted regarding their respective business pricing strategies. Both companies have relayed that the prices quoted to Clearwater by CEJ are the current Moyno Municipal Market Base pricing. Moyno states that, "this allows us to keep our pricing competitive with our competition and provides the very best pricing available to the municipal market." Furthermore, Moyno verifies pricing from the distributor to the end customer by requiring copies of purchase orders to accompany factory orders. Sole source purchase of these pumps meet all requirements of Section 2.564(1)(b) of the Code of Ordinances.
APPROPRIATION CODE AND AMOUNT:
Appropriation Code: Amount Appropriation Comment
0421-01351-551000-535-000-0000 $29,115.84 Fiscal Year 14/15
0421-01351-551000-535-000-0000 $31,905.38 Fiscal Year 15/16
0421-01351-551000-535-000-0000 $2,702.36 Fiscal Year 16/17
Sufficient budget is available to fund this contract in the Water & Sewer Utility Fund operating cost center 0421-01351-550400-535-000-0000, Water Reclamation Facility Operations, for $29,115.84 of the Fiscal Year 14/15 year; is planned in the budget request to be brought forward for Fiscal Year 15/16 in the amount of $31,905.38; and in Fiscal Year 16/17 in the amount of $2,702.36.
USE OF RESERVE FUNDS:
N/A