M&C Review


COUNCIL ACTION:  Approved on 2/12/2019 

DATE: 2/12/2019 REFERENCE NO.: **P-12298 LOG NAME: 13P19-0022 TURBINE SERVICE MJR WATER
CODE: P TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:  

Authorize Execution of a Two-Part Contractor Services Agreement with EthosEnergy Light Turbines, LLC with Part One Being a One-Time Turbine Exchange in the Amount of $727,888.00 and Part Two Providing for Ongoing Maintenance, Parts, Repairs and Services in the Annual Amount Up to $200,000.00 for a Total Initial Contract Amount Up to $927,888.00 and Provide for Renewal Options for Part Two Services (ALL COUNCIL DISTRICTS)


RECOMMENDATION:

It is recommended that the City Council authorize execution of a two-part Contractor Services Agreement with EthosEnergy Light Turbines, LLC with part one being a one-time turbine exchange in the amount of $727,888.00 and part two providing for ongoing maintenance, parts, repairs and services in the annual amount up to $200,000.00 for a total initial contract amount up to $927,888.00 and provide for up to four annual renewal options for part two maintenance services.

 
DISCUSSION:

The Water Department identified the need for a new turbine at the Village Creek Wastewater Reclamation Facility (VCWRF) and also desires to enter into an annual agreement with the vendor to provide maintenance, turbine parts, repairs, and service on an as-needed basis. One of the two turbines needs to be replaced as it has over 30,000 hours of run time, which is the threshold recommended by the manufacturer for a complete rebuild of the turbine. Exchanging the existing turbine with a performance-tested rebuilt turbine instead of attempting to rebuild the existing turbine on-site is a strategy utilized to limit the amount of downtime at the VCWRF. Staff, via the Purchasing Department, issued an Invitation to Bid (ITB) consisting of detailed specifications to eight vendors. The ITB was advertised in the Fort Worth Star-Telegram December 5, 2018, December 12, 2018, December 19, 2018, December 26, 2018, January 2, 2019, and January 9, 2019. On January 10, 2019, the City received two responses, from Solar Turbines, Inc. and Ethos Energy Light Turbines, LLC.

The evaluation team included staff from VCWRF and Water Department. The evaluation factors included pricing, experience with Taurus 60 engine exchanges, overhaul trouble shooting and service, references, schedule - from notice to proceed to installation and commissioning, including removal of the existing unit - and warranties and performance guarantees. The evaluation team compared bid responses to the evaluation factors (see attached evaluation scores) and recommends awarding the contract to EthosEnergy Light Turbines, LLC. The evaluation team finds the pricing to be fair and reasonable and that Ethos Energy Light Turbines, LLC's bid provides the best value for the City. No guarantee has been made regarding the amount of part two maintenance services that will be ordered. The contract will allow the maintenance unit prices to be increased at a renewal period so long as the City approves the increase in advance.

M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible.

AGREEMENT TERM - This Agreement shall be effective upon full execution. Part one turbine exchange is subject to the schedule proposed by the vendor and the Agreement provides for liquidated damages for failure to timely complete. The initial part two services agreement term shall expire one year after the effective date. The City shall have four annual renewal options for part two services. Renewals do not require additional City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during a renewal term.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that funds are available in the current operating budget, as appropriated, of the Water and Sewer Fund.  Prior to an expenditure being made, the participating departments have the responsibility to validate the availability of funds.

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Submitted for City Manager's Office by:
Susan Alanis (8180)
Originating Department Head:
Kevin Gunn (2015)
Additional Information Contact:
Cynthia B. Garcia (8525)
Jane Rogers (8385)

 
 
ATTACHMENTS
  EthosEnergy 1295_2019-442965_Redacted.pdf