City Council Regular


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  ITEM 8.       
Meeting Date: 10/13/2020  
Submitted For: Craig Johnson
Department: Water Services  

Subject
AUTHORIZATION TO ENTER INTO AMENDMENT NO. 1 TO THE LINKING AGREEMENT WITH GRUBER TECHNICAL, INC. FOR UNINTERRUPTIBLE POWER SUPPLY NEW EQUIPMENT SERVICE AND MAINTENANCE
Presented by: Craig Johnson, P.E., Director, Water Services
Purpose and Recommended Action
This is a request for City Council to authorize the City Manager to enter into  Amendment No. 1 to the Linking Agreement with Gruber Technical, Inc. (Gruber) for uninterruptible power supply new equipment service and maintenance to increase the compensation available by $60,000 for a new not to exceed amount of $135,000 for the entire term of the agreement. 
Background
The City’s water and wastewater treatment processes consist of automated systems that rely on uninterrupted power supply (UPS) to provide fail-safe backup power during short-term power outages.  Many of the automated processes such as programmable logic computers, Supervisory Control and Data Acquisition (SCADA), security, process radios, and other treatment processes must continue to function during brief power outages.  Without UPS backup these systems will fail to operate in automatic mode and remote access to these systems will not be available. UPS’s are mission critical to ensure regulatory compliance is maintained and the security of department assets and process can be remotely monitored.  Resilience and reliability of all process equipment is essential for maintaining the rated treatment capacity of water treatment facilities and assuring compliance with all regulatory limits.  It is critical that water treatment facilities be reliable and available for services 365 days of the year.    
 
Water Services divisions have encumbered $67,172 of the $75,000 budgeted compensation for this agreement since November 2019. After obtaining the contract in November, an assessment was completed on several aging UPS devices.  The findings revealed that major components need to be and replaced.  Due to the increase in equipment reaching the end of its useful life, repair and replacement needs resulted in this Amendment to increase the not to exceed amount.  Gruber is the only vendor that the City currently contracts with that provides the UPS devices in use.  The contract rates have remained the same since entry into this contract, however; the volume of commodities and services utilized have increased. 






 
Analysis
Cooperative purchasing allows counties, municipalities, schools, colleges, and universities in Arizona to use a contract that has been 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. The cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code. 
 
On November 18, 2019, Gruber was awarded their contract by the State of Arizona, Department of Administration Procurement Office (ADSPO17-176584) through a competitive bid process and includes a provision for cooperative purchasing under the S.A.V.E. Cooperative Purchasing Agreement.   The City entered into Agreement (C19-1102) on November 12, 2019 and may be extended through July 16, 2022.  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 State of Arizona and Gruber will have the ability to secure services for UPS products, services, and hardware/software maintenance.  Due to equipment reaching the end of their useful life, repair and replacement needs exceeded original estimates resulting in this Amendment to increase funding. 
 
Previous Related Council Action
On November 12, 2019, Council authorized the City Manager to enter into a Linking Agreement with Gruber for uninterruptible power supply maintenance, parts and services and ratification of expenditures.
Community Benefit/Public Involvement
Maintaining an uninterruptible power supply ensures continued and efficient operations. Purchasing from cooperative contracts provides both competitive and optimal pricing for equipment and services.
 

Fiscal Impact
Fiscal Year: FY2020-21
Fiscal Year Amount Requested: $40,000
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 FY20-21 operating budget listed below. Expenditures beyond the current fiscal year are contingent upon Council budget approval.  Total expenditures are not to exceed $135,000 for the entire term of this agreement.
 
ORG CODE OBJECT CODE
60202725 525220
60202729 525220
60302738 525220
60302739 525220


 
 
Attachments
Gruber Agreement


    

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