Title
Approving the procurement of water treatment membrane modules in the amount of $672,744, and authorizing the City Manager to execute the same.
Summary
This item is proposing to replace the water treatment membranes for train 5 which has significant wear and calcium deposition on the membrane module has the oldest modules of the trains at 8 years, and currently is out of service due the integrity testing being outside of the spec for the membranes to produce water. These membranes have seen significant use over the years including being repaired extensively after 2019 when zebra mussels were identified to have caused some damage to the membranes.
SUEZ Water Technologies & Solution was contacted and come on site to evaluate the repairability of the membranes given the calcium deposition on the membrane modules. This evaluation showed that any repairs performed could not be guaranteed to produce a membrane train that would produce acceptable results and stay in compliance with TCEQ regulations regarding membrane integrity testing.
While staff would prefer to repair the membrane train given the current water treatment plant expansion project that has begun, we would lose significant treatment capacity of the membranes if we were to make repairs and it may take longer than 6 months to complete repairs.
If replaced, this membrane train would allow the treatment plant to produce enough water to satisfy peak summer demand for the City while also allowing the City to meet summer demands until the surface water treatment plant expansion is completed in 2026.
SUEZ Water Technologies & Solutions is a sole source provider of the membranes that will be replaced. Membranes pricing is in line with the City’s contract with SUEZ guaranteeing prices for twenty (20) years subject to adjustment for inflation (consumer price index (CPI) All Urban Consumers according to US Bureau of Labor Statistics) or a maximum equivalent price per gallon of treatment capacity in the event that the module area/permeability etc. changes such that the same amount of feed water can be treated with fewer modules of the next generation design. The contract for this pricing was entered into on May 1, 2003 and will expire May 1, 2023. The City has received pricing based on the contract from SUEZ Water Technologies & Solutions concerning this purchase with a price of $672,744 for the purchase and installation of replacement water treatment plant membranes for train 5.
As these modules are going to have to be air transported from Hungary to United States, the proposal does not include the air freight costs associated with getting them sooner. After discussion with our SUEZ representative, the estimated additional costs would be an additional 15% above the cost for the membrane modules. That total has been incorporated into the total cost for this item. This item has been listed within the City's CIP budget for the past two years after numerous attempts by City staff to extend the life of the membrane modules for as long as possible.
Prior City Council Action
City Council approved the purchase of water treatment plant membranes for Trains 1 & 2 from SUEZ Water Technologies & Solutions in the amount of $994,060 at the July 9, 2019 meeting.
City Council approved the purchase of water treatment plant membranes for Train 3 from SUEZ Water Technologies & Solutions in the amount of $537,040 at the April 28, 202 meeting.
Deadline for City Council Action
Action is requested on March 28, 2023.
Funding Expected: Revenue __ Expenditure _X_ N/A __
Budgeted Item: Yes _X_ No __ N/A __
Amount: _$ 672,744__
1295 Form Required? Yes _X_ No __
Legal Review Required: N/A _X__ Required __ Date Completed: _____
Supporting documents attached:
Membrane Replacement Proposal
Sole Source Letter - Suez
Recommended Action
Staff recommends approving the procurement of water treatment membrane modules in the amount of $XXX, and authorizing the City Manager to execute the same.