City Council Regular


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  ITEM 7.       
Meeting Date: 10/13/2020  
Submitted For: Craig Johnson
Department: Water Services  

Subject
AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH DYKMAN ELECTRICAL, INC. FOR VARIABLE FREQUENCY DRIVES
Presented by: Craig Johnson, PE., Director, Water Services
Purpose and Recommended Action
This is a request for City Council to authorize the City Manager to enter into a Linking Agreement with Dykman Electrical, Inc.(Dykman) for variable frequency drives in an amount not to exceed $500,000 for the entire term of agreement. The term of the agreement is from the effective date through July 16, 2025. 
Background
The Water Services Department provides safe and reliable water and wastewater services for City of Glendale residents and businesses.  In delivering these services, the Department uses variable frequency drives (VFD) in both the water and wastewater process applications to control the speed of motors for various types of equipment.  The ability to adjust the speed of a given device allows for energy efficiency by permitting the device to operate in the optimal power consumption range for a given demand.  The ability to quickly procure VFDs, new parts and accessories, maintenance and repair services on an as-needed basis is fundamental to the overall mission of continuous delivery of water and wastewater services.
Analysis
Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative.  Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing.  The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes.  This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.
 
On July 17, 2020, Dykman was awarded their contract by City of Phoenix (Contract Number 152730-0) through a competitive bid process and includes a provision for cooperative purchasing under the S.A.V.E. Cooperative Purchasing Agreement.  The City’s Materials Management and the City Attorney’s Office have reviewed and approved the utilization of the agreement for the defined services, and concur the cooperative purchase is in the best interest of the City. 
 
This linking agreement with the City of Phoenix and Dykman will have the ability to supply VFD’s, new parts and accessories, VFD technical knowledge, maintenance and repair services on an as-needed basis.
Previous Related Council Action
On August 8, 2017, Council authorized the City Manager to enter into a Linking Agreement with Dykman for variable frequency drives, parts, accessories and service.
Community Benefit/Public Involvement
Contracted vendors provide for immediate access to parts and service for these mission-critical devices to minimize downtime, meet the water and wastewater treatment needs of our community, ensure equipment reliability, and continue to remain in compliance with state and federal regulatory requirements.
 

Fiscal Impact
Fiscal Year: FY2020-21
Fiscal Year Amount Requested: $100,000
Budgeted Y/N?: Y
Account: Various
Transfer Required? Y/N: N
If Yes, what account will be used?:
Budget and Financial Impacts:
Funds are available in the Water Services FY2020-21 operating budget. Expenditures will be charged to Fund 6020-Water and 6030-Wastewater, account 525220 Equipment Maintenance in various divisions. Total expenditures are not to exceed $500,000 for the entire term of this agreement. Expenditures beyond the current fiscal year are contingent upon Council budget approval. 
 
Attachments
Dykman Agreement


    

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