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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance CFO: Antonio Puente, Jr. DATE: March 31, 2020 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract with Xylem Water Solutions U.S.A., Inc., for the purchase of equipment, materials and parts for the operation and maintenance of the ultraviolet disinfection system at the Wastewater treatment plants; providing for the expenditure of funds therefor; and providing an effective date (IFB 7299 – awarded to Xylem Water Solutions U.S.A., Inc., in the five (5) year not-to- exceed amount of $550,000). INFORMATION/BACKGROUND The ultraviolet (UV) disinfection systems operated by the Wastewater Utility at the Pecan Creek Water Reclamation Plant (PCWRP) is required by the Texas Commission on Environmental Quality to disinfect the effluent to the bacteria limits in the wastewater treatment facility's wastewater permit. The purpose of this contract is to provide parts and supplies for the Water Reclamation disinfection systems. The Water Reclamation plant has a Wedeco Ultraviolet system to disinfect effluent flows prior to discharge to Lake Lewisville. Title 30 Texas Administrative Code Chapter 217 (30 TAC §217) requires that the owner keep enough parts on hand to facilitate repairs in case of emergency. 30 TAC §217.293 – Ultraviolet Light Disinfection Systems Redundancy Requirements requires specifically that: (a) An ultraviolet (UV) disinfection system must include at least two banks positioned in series in a disinfection channel. (b) A UV light disinfection system must meet the dosage requirements determined in §217.295 of this title (relating to Ultraviolet Light Disinfection Dosage and System Sizing) under all conditions. (c) An owner must maintain an inventory of replacement equipment, including lamps, ballasts, quartz sleeves, banks, and modules, to replace equipment during emergency repairs and scheduled maintenance. The minimum inventory of replacement lamps, ballasts, and quartz sleeves is described in §217.298(b) of this title (relating to Ultraviolet Light Disinfection System Cleaning and Maintenance). City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 30 TAC §217.293(b) states that: A UV system must include the following replacement parts, as a percentage of the total system, equal to at least: (1) 5% of the lamps; (2) 2% of the ballasts; and (3) 5% of the quartz sleeves. To meet TCEQ requirements, the discharge permit limits, and protect human health and the environment, the Utility requires these replacement parts to be on hand and available for purchase from a reliable manufacturer. UV lamps are the only component of the UV Disinfection available from other manufacturers. In August 2019 400 lamps were purchased from an aftermarket company, UV Doctor. They stated that their lamps carried the same specification as the lamps supplied by the OEM and would operate in our existing system. Unfortunately, these parts were found to be greatly inferior and the purchase price was ultimately refunded to the City. The UV Doctor branded lamps experienced or caused: a. An initial lamp failure rate of 33.0% b. 5.0% of the shipment were the wrong part c. Initial allocation of six (6) man days for bulb change out required two (2) man weeks due to failures. d. A Manager's time to collect and compile the necessary data to prepare a report for submission to the distributor and lamp manufacturer. e. A significant time delay in restoring the UV disinfection system to 100% operational capacity due to this exercise. f. Some of the UV Doctor lamps are currently in service but lamps continue to fail at an accelerated rate after less than 1000 hours in service (typical life is in excess of 10,000 hours). The Utility further investigated another UV lamp source named UV Superstore. Two lamps were purchased for evaluation, and the lamps we received would not connect to our system. UV Superstore was informed of the issue and another two (2) lamps were sent, which were also incompatible with our system. These lamps were returned with a full refund. Invitation for Bids was sent to 132 prospective suppliers of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. One (1) bid meeting specification was received by Xylem Water Solutions U.S.A., Inc. NIGP Code Used for Solicitation: 890-Water Supply, Groundwater, Sewage Treatment, & Related Equipment Notifications sent for Solicitation sent in IonWave: 132 Number of Suppliers that viewed Solicitation in IonWave: 12 HUB-Historically Underutilized Business Invitations sent out: 4 SBE-Small Business Enterprise Invitations sent out: 32 Responses from Solicitation: 1 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) This item will go to the Public Utilities Board (PUB). RECOMMENDATION Award a contract with Xylem Water Solutions U.S.A., Inc., for the purchase of equipment, materials and parts for the operation and maintenance of the ultraviolet disinfection system at the Wastewater treatment plants, in a five (5) year not-to-exceed amount of $550,000. PRINCIPAL PLACE OF BUSINESS Xylem Water Solutions U.S.A., Inc. Charlotte, NC ESTIMATED SCHEDULE OF PROJECT This is a five (5) year contract. FISCAL INFORMATION These items/services will be funded by the Wastewater operating budget account 640100.6525 on an as needed basis. The budgeted amount for the purchase of equipment, materials and parts for the operation and maintenance of the ultraviolet disinfection system at the Wastewater treatment plants for the next 5 years is $550,000. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Frank Pugsley, 940-349-8086. Legal point of contact: Mack Reinwand at 940-349-8333.