Title
Approving the procurement of water treatment membrane modules in the amount of $625,335, and authorizing the City Manager to execute the same.
Summary
This item is proposing to replace the water treatment membranes for train 4 that was discussed to originally occur in FY2024, however after discussion of the City’s contract with SUEZ, they would not be willing to extend that contract for another year as we are currently migrating away from their system as part of the water treatment plant expansion. Given that the existing contract has agreed to pricing and that the condition of train 4’s membranes are similar to those of train 5, it would be in the City’s best interest to issue a purchase order for the replacement membranes for train 4 before the purchasing contract expires. By issuing a purchase order before the contract expiration, the City would be saving roughly $330,000 on the membrane modules that will need to be replaced in FY2024.
As this would be a new order of membrane modules and would need to be placed in the queue for manufacturing, the City would not receive them until winter 2024 which would time well with our normal winter demand schedules to take the train down to replace the membranes.
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...
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