Title
Agreement: Purchase of Endress+Hauser Equipment, Parts, Service, and Technical Support (Two-Thirds Vote Required) [Published for 10-day Review on 05/17/2024]
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FileID
File ID: 2024-00944
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to: 1) suspend competitive bidding in the best interest of the City, for the purchase of Endress+Hauser equipment, parts, service, and technical support; and 2) execute a Goods and Services Agreement with Endress+Hauser for equipment, parts, services, and technical support for a five-year term in an amount not-to-exceed $2,500,000.
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Contact
Contact: Deanne Neighbours, Logistics Manager, dneighbours@cityofsacramento.org, (916) 808-3536; Ray Wilderman, Operations & Maintenance Superintendent, rwilderman@cityofsacramento.org, (916) 808-8067; Charley Cunningham, Utilities Operation and Maintenance Manager, ccunningham@cityofsacramento.org, (916) 808-5518; Pravani Vandeyar, Director, pvandeyar@cityofsacramento.org, (916) 808-3765; Department of Utilities
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Agreement
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Description/Analysis
IssueDetail
Issue Detail: The Department of Utilities (DOU) has an ongoing need to purchase Endress+Hauser equipment and parts which are necessary to maintain, repair and upgrade the infrastructure of the City’s water treatment plants.
The purchase of Endress+Hauser equipment, parts, and technical support will ensure continued water treatment system functionality.
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PolicyConsiderations
Policy Considerations: City Council approval is required for agreements of $250,000 or more per City Code 3.64.020. This item was published for 10-Day review on May 17, 2024, in compliance with City Code.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The Community Development Department, Environmental Services Manager has determined that the proposed activity is not a project pursuant to the California Environmental Quality Act (CEQA). CEQA Guidelines Section 15378(b). The activity is a continuing administrative or maintenance activity involving the purchase of supplies and is not subject to CEQA. CEQA Guidelines Section 15060(c)(3). Future repair and maintenance activities at existing City facilities, that may utilize the purchased supplies, also would be exempt from CEQA review pursuant to CEQA Guidelines Section 15301.
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Sustainability
Sustainability: The proposed contract is consistent with the 2040 General Plan’s goals and policies related to public facilities and safety, including providing reliable water, wastewater, and stormwater drainage service to the City of Sacramento: (PFS-3.1) The proper maintenance of water treatment plants supports this goal.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The Department of Utilities (DOU) has an ongoing need to purchase Endress+Hauser equipment, parts, service, and technical support which are necessary to maintain, repair and upgrade the infrastructure of the City’s water treatment plants. To improve efficiency, the department has standardized equipment whenever there is a benefit in doing so. This allows for standardization of maintenance procedures and training, as well as reduced parts costs and inventory of spare parts on-hand. Endress+Hauser equipment has been proven to be reliable in ease of maintenance, longevity, and accuracy. Currently, over 95% of the flow meters and the majority of the radar level sensors in DOU systems are Endress+Hauser.
City Code Section 3.56.230 allows the City Council to suspend competitive bidding when the City Council determines that it is in the best interest of the City to do so.
Suspension of competitive bidding is in the City’s best interest because Endress+Hauser is the only authorized local supplier for sales, service, support, and warranty of Endress+Hauser equipment and parts. The purchase of Endress+Hauser equipment, parts, service, and technical support will ensure continued water treatment system functionality.
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FinancialConsiderations
Financial Considerations: Funding for the first year of this agreement of approximately $500,000 has been included in the proposed Fiscal Year 2024/25 DOU Budget. Funding for future fiscal years shall be subject to funding availability in the adopted budgets for the applicable fiscal year in an amount not-to-exceed $2,500,000 over the five-year term. Purchase orders encumbering funds under this agreement will not be created until needs and funding are identified in the applicable budget (operating, capital, multi-operating, or grants).
There are no general funds allocated or planned for this agreement.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Endress+Hauser is not an LBE. The minimum LBE participation requirement is waived as the City is suspending competitive bidding and utilizing an alternate procurement method to select a vendor.
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