Placement: Consent Agenda
Action Requested: Motion / Vote
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Ratify Amendment #5 and Approve Amendment #6 to Contract #20210104 for Grinder Pumps & Related Parts.
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Submitted By: Robyn Holder, CPPB, Procurement Management Division (PMD).
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Robyn Holder, CPPB (PMD).
2. Parties: City of Port St. Lucie and Environment-One Corporation.
3. Purpose: To continue to supply the Utility Systems Department (USD) with grinder pumps and parts for residential and commercial wastewater collection systems.
4. New/Renewal/Modified: Modified.
5. Duration: The initial term was three (3) years with automatic one (1) year renewals. The proposed Amendment #6 renewal term will be through 3/31/2027.
6. Benefits to Port St. Lucie: Maintain the growth in the City by providing new & replacement sewer grinder systems.
7. Cost to Port St. Lucie (Annual and Potential): The 5.30% PPI increase equals approximately $724,451.98 for a new estimated annual cost up to $14,393,357.31. Future expenditures will be identified in each fiscal year’s approved budget.
Presentation Information: N/A.
Staff Recommendation: Move that the Council ratify Amendment #5 and approve Amendment #6 to Contract #20210104 for the annual price adjustment and additional parts for grinder pumps with Environment-One Corporation.
Alternate Recommendations:
1. Move that the Council amend the recommendation and ratify Amendment #5 and approve Amendment #6 to Contract #20210104.
2. Move that the Council not ratify Amendment #5 nor approve Amendment #6 to Contract #20210104 and provide staff with direction.
Background: The Utility Systems Department (USD) currently serves approximately 84,955 wastewater accounts, of which, 44,985 are residential properties utilizing sewer grinder systems. Between August 2020 and June 2021, USD conducted a pilot program evaluating Environment-One grinder systems alongside other comparable systems. The results of the pilot indicated that Environment-One systems offered lower maintenance requirements and improved diagnostic capabilities within their control panels.
Environment-One was awarded the single-source contract on March 28, 2022, for the supply of grinder pumps, related parts and services.
Amendment #6 - The contract allows for an annual price adjustment based on the PPI. This year’s price adjustment is an increase of 5.30%. This Amendment allows for a time extension through March 31, 2027.
Amendment #5 - This Amendment allowed for a time extension through June 30, 2026.
Issues/Analysis: Council approval is needed for this Amendment based on the increase to the price under City Code of Ordinances, Sections 35.09(b) (stating that the City Manager can approve price increases up to 25% of the original contract price), and 35.09(c) (stating that any change in price exceeding the City Manager’s authority in Section 35.09(b) requires authorization by City Council). Staff has reviewed the Amendment and finds the new pricing to be fair and reasonable.
Financial Information: Funds are appropriated in the Utility Connection Fees Fund / Sewer-Field / Grinders (#439-3515-552330-00000 and the Renewal & Replacement Fund / Preventative Maintenance / Improvements O/T Building (#438-3516-563000).
Special Consideration: None.
Location of Project: Utility Service Area.
Attachments:
1. Amendment #6 signed.
2. Amendment #5.
3. Amendment #4.
4. Amendment #3.
5. Amendment #2.
6. Amendment #1.
7. Original Contract.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 26141-12.
Legal Sufficiency Review:
Reviewed by Alyssa Lunin, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.