Loading...
Exhibit 1- Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance CFO: Antonio Puente, Jr. DATE: February 4, 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 HACH Company, for the purchase of various items for the municipal laboratory, water production, water reclamation, and wastewater collection departments, which is the sole provider of these products, in accordance with Texas Local Government Code 252.022, which provides that procurement of commodities and services that are available from one source are exempt from competitive bidding, and if over $50,000 shall be awarded by the governing body; and providing an effective date (File 6898 - awarded to HACH Company for one (1) year, with the option for two (2) additional one (1) year extensions, in the total three (3) year not-to-exceed amount of $300,000). The Public Utilities Board recommends approval (7 - 0). INFORMATION/BACKGROUND The water and wastewater departments use various HACH Company products in their daily operations for testing, monitoring and real-time control of their plants' operations as well as flow measurement in the wastewater collection system. These products from HACH are fully integrated into the daily water and wastewater operations, and only available from HACH. Hach is the sole source provider of its equipment and replacement parts. Due to the complex technical nature of water quality monitoring both at the water treatment plant and in the water distribution system, as well as the strict regulatory reporting requirements, replacement parts and reagents from alternate vendors would not be compatible. Additionally, calibration and repair services are specific to the instrumentation as well. The City of Denton water treatment plants rely on Hach turbidity, chlorine, pH, phosphorus, dissolved oxygen, ammonia and many other monitoring parameters to supply and maintain their equipment for their regulatory requirements. For Water Production to replace all of their existing Hach equipment, it would cost approximately $400,000 plus the added costs of programming, and training plant personnel on new equipment. In addition, the Phosphorus measuring on-line instrumentation made by HACH used in Pecan Creek Water Reclamation Plant is integrated into the fiber network of the SCADA. The output from the HACH equipment controls the chemical dosages required for the plant to meet its TCEQ permit. In 2015, when this equipment was purchased, it cost the City of Denton approximately $145,000. To replace it with another brand would costs at least this much plus it will require extra costs for reprogramming the PLC to match the logic controller for another brand. For Water Reclamation and Collections to replace all of their existing Hach equipment, it would cost approximately $350,000-400,000, plus the added costs of programming, and training plant and collection system personnel on new equipment. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Section 252.022 of the Local Government Code provides that procurement of sole source commodities and services are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On January 27, 2020, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award with a contract to HACH Company, as a sole source supplier, for the purchase of various items for the municipal laboratory, water production, water reclamation, and wastewater collection departments in an one (1) year, with the option for two (2) additional one (1) year extensions, in the total three (3) year amount not-to-exceed $300,000. PRINCIPAL PLACE OF BUSINESS HACH Company Loveland, CO FISCAL INFORMATION These products and services will be funded through the using department’s budget on an as-needed basis. Review of purchases for the last three fiscal years which includes the current fiscal year shows purchases of about $100,000 per year between the water and wastewater departments. 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.