Placement: Consent Agenda
Action Requested: Motion / Vote
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Approve Contract #20210104 with Environment One Corporation to Provide Grinder Pumps and Related Parts for the Utility Systems Department
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Submitted By: Daniel Segui, Assistant Director, Utility Systems Department
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Utility Systems Department (“USD”)
2. Parties: City of Port St. Lucie and Environment One Corporation, a foreign profit corporation authorized to do business in the State of Florida (“E-One”)
3. Purpose: Purchase of E-One Grinder pumps and related parts for new construction, preventative maintenance of current systems and septic to sewer conversions.
4. New/Renewal/Modified: New
5. Duration: The Contract period shall be for three (3) years and shall automatically renew for additional one (1) year periods unless either party notifies the other party in writing at least 90 days before the end of the then current term that the Contract will not be renewed.
6. Benefits to Port St. Lucie: Connecting to the City’s wastewater system.
7. Cost to Port St. Lucie (Annual and Potential): The USD anticipates purchasing pump core units at a cost of $1,418 for each unit for a total of $11,153,360.53.
Presentation Information: N/A
Staff Recommendation: Move that the Council waive the procurement ordinance pursuant to Section 35.04(c), upon the request of the City Manager, and authorize this contract without competitive bidding.
Alternate Recommendations:
1. Move that the Council amend the recommendation and authorize this contract.
2. Move that the Council not approve this contract and provide staff with direction.
Background: The COVID pandemic continues to impact the USD with supply shortages of system materials required to install or maintain USD sewer systems. The USD has made two prior emergency purchases for materials in 2021 while working through the details of the attached contract with the vendor. The USD entered a pilot program with E-One in 2020. E-One is the founder of the pressure sewer market with over 50 years in business and has installed over 750,000 units and connects 200 homes a day globally. All of the prior units purchased by the USD have been encumbered.
Issues/Analysis: E-One is a Single Source Contractor who has agreed to supply the sewage grinder pumps and related equipment and related training and technical support services set forth on Exhibit “A” attached hereto and incorporated herein by reference to the City, and the City has agreed to purchase from Contractor 100% of its requirements for the Products and Services during the term of this Contract, to be used throughout the City’s Utility System. The City will issue a written annual order for the Products (showing a monthly delivery amount for the Products to be delivered for each 3-month period in that annual period), and the City will issue written order releases against that order for each 3-month period. Contractor will deliver the Products against the written order releases issued by the City. The City continues to experience shortages and delivery delays for grinder pumps and related parts. Approval of this contract would enable the USD to continue to install and maintain approximately 33,000 Myers grinder systems already installed, as well as to retrofit the existing systems upon failure to an E-One system. The USD is working with both E-One and Myers to purchase materials necessary to continue functioning at the highest level. The USD replaces approximately 220 Myers grinder pumps per month and will be “on-hold” unless this contract is approved.
Financial Information: The estimated cost to the Utility Systems Department is $11,153,360.53 from Account #439-3515-552330 and #438-3516-563000. The USD estimates purchasing 2,900 complete packages for conversions and new construction and 2,700 complete packages for preventative maintenance in FY 2022/2023.
Special Consideration: Section 35.04(c) of the City’s code authorizes a waiver of the provisions of the requirement to competitively bid certain purchases if, for good cause shown and upon written recommendation by the City Manager, the City Council, by affirmative vote, authorizes the purchase of goods, supplies, materials or services without competitive bid. Approval of this item is required to maintain sufficient inventory for new construction, continued maintenance of existing systems, and septic to sewer conversions.
Location of Project: Utility Service Area
Attachments: Contract signed by E-One and its Exhibit “A”
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: 7895
Legal Sufficiency Review:
Reviewed by Ella M. Gilbert, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.