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TO: Mayor Richard C. Irvin
FROM: David E. Schumacher, P.E.; Superintendent of Water Production
DATE: October 24, 2019
SUBJECT:
A resolution authorizing H3 Services LLC (Decatur, IN) to provide and install three protective liners in three existing sodium hypochlorite bulk storage tanks for the Water Production Division.
PURPOSE:
To obtain City Council authorization for the purchase of services to install three liners in three sodium hypochlorite bulk storage tanks at the City of Aurora Water Treatment Plant (WTP). H3 Services LLC (H3) will provide the liner and installation as a complete service.
BACKGROUND:
The Water Production Division (WPD) utilizes sodium hypochlorite in the disinfection process at the WTP. Sodium hypochlorite is a liquid chemical that is stored in one or more of four bulk storage tanks. The tanks themselves are constructed of concrete. The concrete surface requires protection from direct contact with the liquid sodium hypochlorite. When originally constructed in 2002, the concrete tanks were lined with an applied coating or paint. The WPD has struggled with multiple failures of this coating since 2002. Numerous costly and time consuming spot repairs have been made to the coating over the same period on an almost annual basis.
DISCUSSION:
After several years of investigation, in early 2019, the WPD became aware of a physical liner made of material that is compatible with sodium hypochlorite that could readily be installed in the bulk tanks in a manner similar to a swimming pool liner. The liner itself is a specialized material and is custom made to fit the exact dimensions of the specific bulk tank.
Prior to the work being completed, two vendors, including H3, who are qualified to perform this specific type of work were contacted for pricing. H3 was the only vendor to submit a quotation. The other vendor, after assessing the project, was no longer interested and did not submit a quotation. H3 performs specialized liner installations both nationally and internationally.
Subsequently, the WPD hired H3 to furnish and install a liner in bulk tank #4 at a cost of $24,950.00. This work was completed in May, 2019 and the liner is satisfactorily performing. The bulk tank #4 liner work was completed using budgeted funds made available as a 2019 Decision Package. In addition, the WPD has requested funding for the remaining three liners as a 2020/21 Decision Package, allotting $60,000.00 in 2020 (for two liners) and $30,000.00 in 2021 (for one liner). However, due to a friendly construction window and available 2019 budget funds, the WPD seeks to move forward with installation of one of the three remaining liners (bulk tank #3) to be completed by year-end at a cost of $24,950.00. Bulk tanks #1 and #2 are anticipated to be completed via funding from the 2020/21 Decision Package in the future.
Funds are available for bulk tank #3 in the 2019 City Budget in Account No. 510-4058-511-38-01, which currently provides $94,394.48. The 2020 requested budget will be reduced by $25,000 to reflect this accelerated purchase.
IMPACT STATEMENT:
Inability to utilize sodium hypochlorite bulk storage tank assets as planned and designed.
RECOMMENDATIONS:
That the attached resolution be submitted to the City Council authorizing the purchase and installation of three liners from H3 Services LLC in an amount not to exceed $84,950.00 and approval of a total project expense for all four liners not to exceed $109,900.00. It is further recommended that this matter be submitted to the Finance Committee for review and recommendation.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing H3 Services LLC to provide and install three protective liners in three existing sodium hypochlorite bulk storage tanks for the Water Production Division
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the Water Production Division has completed the installation of one protective liner in the existing sodium hypochlorite bulk storage tank #4 in 2019 at a cost of $24,950.00 and seeks to purchase and install protective liners for each of the three remaining sodium hypochlorite bulk storage tanks; and
WHEREAS, the Water Production Division seeks to install one of three liners with available funding by year-end 2019 and has requested a 2020/21 Decision Package to facilitate the remaining two liners; and
WHEREAS, H3 Services LLC is the only qualified vendor to perform this work and has submitted a proposal for $24,950.00 to complete one additional liner installation in 2019; and
WHEREAS, funds are available for bulk tank #3 in the 2019 City Budget Account No. 510-4058-511-38-01, with an available amount of $94,394.48; and
WHEREAS, per City of Aurora Code of Ordinances, Article 5, Section 2-355 (a) (6), any municipal work or public improvement, when the expense thereof will exceed twenty-five thousand dollars ($25,000.00), may be undertaken or constructed by contract or agreement without advertising for bids if authorized by a vote of three-fifths (3/5) of the members of the city council then holding office.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Purchasing Director is hereby authorized to issue a purchase order to H3 Services LLC for $24,950.00 and may increase the purchase order to an amount not to exceed $84,950.00 to include two additional liner installations to be performed in the future.