Title
Report regarding a resolution approving a first amendment to the contract purchase agreement with JWC Environmental, Inc. with a revised not to exceed the amount of $210,000 for FY 2021-22, and authorize the City Manager to execute any necessary agreements on behalf of the City of South San Francisco. (Brian Schumacker, Water Quality Control Plant Superintendent)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution approving a first amendment to the contract purchase agreement with JWC Environmental, Inc. with a revised not to exceed the amount of $210,000 for FY 2021-22, and authorize the City Manager to execute any necessary agreements on behalf of the City of South San Francisco.
Body
BACKGROUND DISCUSSION
In July 2017, the City Council approved Resolution 20-349 to refurbish Pump Station Sewage Grinders for FY’s 2017-22; not to exceed $160,000 per year with JWC Environmental (JWC).
The four major sewage pumping stations contain JWC sewage grinders. These stations continuously convey sewage to the treatment plant from the residential and industrial parts of South San Francisco and San Bruno. These devices shred paper and plastic items found in the sewage streams to help prevent pumps from clogging.
JWC is a sole source vendor. No other supplier manufactures repair parts for JWC grinders. JWC annually refurbishes sewage grinders at their Santa Ana, California repair facility, a service offered at a parts-only cost. There is no charge for the labor associated with JWC's repair of JWC grinders at their Santa Ana facility. By design, redundant systems exist to accommodate these rebuilds, and spare sewage grinder units are alternated from inventory annually.
If the Water Quality Control Plant Division ordered the parts and performed the work in-house, JWC would charge the City the same amount as if the units were shipped to JWC and repaired by their technicians. Therefore, having JWC complete the grinder refurbishments frees Plant staff to perform other maintenance tasks. Most importantly, work done at the JWC facility comes with a one-year warranty, which would not be available if City staff performed the work.
Staff needs additional budget authority for the following two reasons:
1) One of the larger sewage grinders needed unexpected repairs this year, not usually required during annual servicing - $42,000.
2) Due to the unforeseen Novel Coronavirus (COVID-19) pandemic and resulting supply chain challenges, the vendor costs increased. Vendors pass these costs on to the customer - $8,000.
Given the reasons identified, staff recommends approving an additional $50,000 to purchase parts and services for FY 2021-22. This addition will bring the total amount needed in FY 2021-22 to a not to exceed amount of $210,000 ($160,000 + $50,000 = $210,000).
RELATIONSHIP TO THE STRATEGIC PLAN
The City of South San Francisco promotes public health and environmental stewardship. Continuing to fund wastewater infrastructure systems positively affects the quality of life for South San Francisco residents, businesses and visitors by protecting public health and safety.
FISCAL IMPACT
Plant management includes the refurbishment of Sewage Grinders in the WQCP's annual operating budget with appropriate contingency. Sufficient funds exist in the pump station's annual operating budgets to cover this contract amendment.
CONCLUSION
Staff recommends that the City Council adopt a resolution approving a first amendment to the contract purchase agreement with JWC Environmental, Inc. (JWC) with a revised not to exceed the amount of $210,000 for FY 2021-22, and authorize the City Manager to execute any necessary agreements on behalf of the City of South San Francisco.