SUBJECT:
Title
Request Approval of Agreement Between Fluidyne Corporation and Marion County Utilities (Budget Impact - Neutral; expenditure of $140,000)
Body
INITIATOR: DEPARTMENT:
Tony Cunningham, P.E., Director Utilities
DESCRIPTION/BACKGROUND:
In July 2019, the Board approved contract 19B-112 for the construction of capacity and nutrient removal improvements at the Silver Springs Shores Wastewater Treatment Facility. These improvements included the purchase and installation of additional grit removal equipment manufactured by Fluidyne Corporation.
During the initial design phase of the project, equipment specifications were developed using 304 Stainless Steel. Quotes for proposed equipment were obtained for an estimated construction cost; however, by the completion of the design phase, the equipment specifications were modified requiring the use of 316 Stainless Steel instead. The composition of 316 Stainless Steel is more resistant to corrosion and is preferred since the headworks of the wastewater treatment plant is a corrosive environment. To help reduce the cost of construction, Marion County Utilities (MCU) procured the grit removal system through direct purchase from the manufacturer, but utilized the quote from the initial design phase, which was with the 304 Stainless Steel instead of the 316 Stainless Steel specification. The specified 304 Stainless Steel equipment was installed during construction.
In November 2022, the project reached completion and equipment was placed into service which included the new grit removal equipment. In January 2023, staff noticed excessive corrosion and degradation of the grit removal equipment resulting from Hydrogen Sulfide gases. After investigation by MCU staff and notifying the manufacturer, it was determined that the equipment was manufactured with 304 Stainless Steel per the quote utilized during procurement of the equipment. Staff began working with the manufacturer to develop a solution for the issue since the equipment was within the initial warranty period. After negotiations between MCU staff, County Attorney staff and the manufacturer, a tentative agreement was reached where the manufacturer will provide replacement equipment consisting of 316 Stainless Steel and Fiberglass at a reduced price of $140,000, a reduction of $150,000 from market price. Staff recommends approving settlement and purchasing new equipment at the discounted price.
BUDGET/IMPACT:
Neutral; expenditure of $140,000.
RECOMMENDED ACTION:
Recommended action
Motion to approve and authorize the Chairman to execute the Agreement with Fluidyne Corporation and to purchase new equipment at the discounted price.end