Item 8CAGENDA ITEM # 8C
JULY 26, 2010
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Major Equipment for Wastewater and TMDL Compliance Project
Bid No. 0910-09
SUBMITTED BY: Donna Kaluzniak, Utility Directo
DATE: July 9, 2010
BACKGROUND: The City wishes to obtain high-quality, reliable wastewater equipment for the
TMDL wastewater plant upgrades at the best cost. The City Commission approved a Preselection
Process for major equipment. This process allowed the City's engineers to conduct research to
determine which manufacturers could provide proven, quality equipment meeting the necessary
specifications and request bids for that equipment.
Bids were solicited through the City's standard purchasing process, with the bid price guaranteed by
the vendor for a minimum of one yeaz. The engineers then analyzed the bids, along with the
manufacturer's technical data, to determine the lowest life cycle cost and/or best value for the City to
include factors such as maintenance issues and the equipment's history of successful installations.
A total of 12 companies submitted bids, with at least three vendors bidding for each type of
equipment. After conducting site visits, technical evaluation and life cycle cost analyses, the
f~.11.,7~,;7,R PAt1771Y7'7P1'1'I ;c rP~nmmen~ed fir preselection and placement into the final specifications:
;V11V Y~ 111
Equipment
Selected Equipment -
Equipment
Notes
Descri tion Cost
Turbo Blowers Turblex -Option B. $393,000 Lowest capital and life cycle cost.
Integrally Geared Numerous successful installations
Units and lop histo
Disk Filters Kruger, Inc. $455,800 Lowest life cycle cost due to
electrical usage. Numerous
successful installations and good
histo
Aeration System Aquarius $62,500 Lowest capital and life cycle cost.
-Diffusers Technolo ies, Inc. Non-mechanical a ui ment.
Mixer -Anoxic 1 Philadelphia Mixing $77,300 Lowest life cycle cost due to
Solutions electrical usage. Numerous
successful installations and good
histo
Mixer -Anoxic 2 Philadelphia Mixing $96,300 Lowest capital and life cycle cost.
Solutions Numerous successful installations
and ood histo
Total Equipment $1,084,900
Cost
AGENDA ITEM # 8C
JULY 26, 2010
The engineer's estimate based on typical contractor prices for the above equipment was
approximately $1.7 million. The City's equipment preselection process resulted in a savings of over
$600,000 for the wastewater treatment improvements by requiring the equipment manufacturers to
competitively bid the equipment.
BUDGET: The treatment plant upgrades to meet the TMDL are estimated at approximately $5.95
million, only a portion of which is for equipment. The total major equipment cost based on the
recommended equipment above is $1,084,900.
RECOMMENDATION: Approve the recommended wastewater treatment equipment for the
TMDL improvements at the prices in Bid No. 0910-09. This equipment and pricing will be written
into the Wastewater TMDL project specifications.
ATTACHMENTS: 1. Bid Tabulation form for Bid No. 0910-09
2. Technical Memorandum from JCEA
REVIEWED BY CITY MANAGER:
2
AGENDA ITEM # 8C
JULY 26, 2010
a
L
e
u ~
;R
~3~
~~
n
Z
0
E
o
~
5 ..
m
$$ ~ ~d
~
m
m
m
2
m
Z
F °
O L
~+a ~y ggo Z 2
~~ E
a
v~~
m
m
m o 0
~ ~° z° z° z° N g
n
a
m
~
m o
0
v_
v
'o
V
~
>_ '~
2 c
w m
2 m
Z m
2
o ~
2 m ~
N
H
u
c v
m
m v
ID v
ID v_
m
g
a°
~ o
z O
z o
z
Y
g
~ v
m ~
m 'o
m a
m
~
Y -
~
`a
~r- Y 2 Z Z
~~
v
~ $g4
bGF~~
'O
v
3y~ z° z ~$ ~~~
~
~' z° z°
~~a ~
~
o h o
~ ~ ~ g
~ v
m a
m
° v
m v
m
°
i~° v Z z ~ z
N
~~ .e
7~ccW m
~
F
~
E~ m
° m
z g
$ a
a~
~ m
° ~
°
Pa z ~~ z z
W~ N~N
~
m ~
m
~
N
L Z Z Z m
O
V N ~
~ C ~gJ 9o
j'09 ~
7
V O
~ ppp
U j
Z ~ U_ ~
(
~
,0;~
O
Z
O
2 N
C
~,
Qa N N
pm
b 0
S O U
C
m
m O
0O
~
m
9
m
L Z Z ~ 2 Z
F-
u
a c
~'0
v
°o
vi
°
v
0
v
m
v
~
a E
~ ~ m
z° ~
"', 1
z°
z°
z°
N
M
m
W c,
~ a
N pcp
N
Q
~
~ J u
gx V
x
F
N
~ ~ Q
3 4
of
3
rc
O E
~
J °~ ~
a
~ ~ E
~ c E
i
E
J a
~ t
n
V
V ~ E
r J
_ J
N
~
W
~ ;
O
~ a
y ~
x~
c F ~
K o
Q --
q a ~ a a
c
W ~C p
,
~ ~
ro c
X
~ ~ _
X p
~
! - Q t
E
d
' t
i $
m
d m Uu i u
~
U p
>>
0. ~
N
W~S
S
m
_ ~ W
~ F r
~~O
~Zp
UZF
J ~ ZZZ
~mQ
AGENDA ITEM # 8C
JULY 26, 2010
Technical Memorandum
Owner: City of Atlantic Beach
Project: Wastewater Treatment Plant No. 1 TMDL Improvements
Task: Major Equipment Procurement
Date: July 12, 2010
Prepared by: J. Collins Engineering Associates, LLC. (JCEA)
As recommended by JCEA, a Major Equipment Procurement effort was implemented for the
improvement to the City of Atlantic Beach's Wastewater Treatment Plant (WWTP) #1. This equipment
procurement program was for new major process equipment -aeration blowers, mixers, aeration diffusers,
and effluent filters. The criteria for selection of the Major Equipment are: life cycle costs (capital cost,
equipment efficiency and energy consumption), in addition other considerations are manufacturer's
history, number of units installed, maintenance requirements and onsite investigations of installed &
operating units.
Each Bidder was provided a "Equipment Prices and Technical Data Bid Form" which was in turn
submitted to the City in a formal bid process. Each bidder provided the above mentioned information to
the city on June 10, 2010.
The Major Equipment Procurement Program proved to be an effective method to select the best long term
equipment required for the City of Atlantic Beach Wastewater Treatment Plant No. 1 TMDL
Improvements Program for the following reasons:
Equipment Selected Has Lowest Overall Life Cycle Cost - In a traditional Design & Bid format,
it is the contractors (lowest bidder) who select the actual equipment and it is almost always
based only on Capital or Initial Cost. By considering a total life cycle cost (capital cost,
equipment efficiency and energy consumption), the "greenest", lowest total cost product is
selected.
Equipment Track Record & History - By investigating current installations of existing similar
equipment and discussing the operation and maintenance requirements of that equipment with
operating personnel, the City has the benefit of knowing that the equipment has a sound
performance track record.
Formal City Bidding of Equipment Produced Very Competitive Pricing -The major equipment
procurement program included at least three pre-selected equipment manufacturers for each type
of equipment. This ensured that competitive bidding would occur. In the traditional Design/Bid,
if a single (or possibly two) manufacturers are all that is listed, the bid prices cannot be expected
to be the lowest attainable. Prior to establishing the Major Equipment Procurement Program, the
estimates received from equipment vendors was in the $1.7 - $1.8 million dollaz cost range. The
formal bidding process resulted in total equipment costs of $1,085,000, which is at least a 36%
savings.
AGENDA ITEM # 8C
JULY 26, 2010
City Selects Ecluiyment -While the life cycle cost analysis of equipment identifies the lowest
overall equipment vendor, if two or more equipment alternatives are the same or very similar in
cost, the city could effectively select the equipment and not leave it to the contractor.
Extended Equipment Warranty -The Major Equipment Procurement Program required an
extended warranty for five years (3 years full and 2 prorated). In a conventional contractor bid
process the equipment warranty is just one year.
While the Equipment suppliers submitted costs (equipment and energy usage) and other technical data,
another consideration in the selection of the final equipment was site visits and meetings with other
municipal owners of similar equipment to verify the suitability for this project. The summaries of the
results and recommendations are detailed below:
Equipment Selected Equipment Equipment Notes
Descri tion Cost
Turbo Blowers Turblex -Option B. $393,000 Lowest capital and life cycle cost.
Integrally Geared Numerous successful installations
Units and Ion histor .
Disk Filters Kruger, Inc. $455,800 Lowest life cycle cost due to
electrical usage. Numerous
successful installations and good
histo
Aeration System Aquarius $62,500 Lowest capital and life cycle cost.
-Diffusers Technolo ies, Inc. Non-mechanical a ui ment.
Mixer -Anoxic 1 Philadelphia Mixing $77,300 Lowest life cycle cost due to
Solutions electrical usage. Numerous
successful installations and good
histo
Mixer -Anoxic 2 Philadelphia Mixing $96,300 Lowest capital and life cycle cost.
Solutions Numerous successful installations
and ood histor .
Total Equipment $1,084,900
Cost
JCEA recommends approval of the above equipment for installation on the project -City of Atlantic
Beach Wastewater Treatment Plant No. I TMDL Improvements.
Upon acceptance by the City, the selected equipment and their "bid" equipment costs will be written into
the main construction bid proposal. All general contractors therefore will bid using the same major
equipment costs. They must differentiate their bid based on the cost of work for which they are
responsible. Contractors purchase the equipment and hold the warranties until the project reaches
substantial completion, at which point the ownership passes to the City.