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HomeMy WebLinkAboutRESOLUTION 1991-07 Suggested eXT~ OF lmm~x Public Works A RESOLUTION OF THE cOUNCIL'OF THE CITY.OF 'KENAI, ALASKA' TRANSFERRING $11,500 IN THE' WATER AND .SEWER FUND FOR REPLACEMENT PUMPS IN THE SEWER TREATMENT'PLANT, WHEREAS, the Public Works. Direot°r.has requested $11,500 to replace obsolete pumps 'in ~he Sewer Treatnent Plant; and, WHEREAS, honey i.s available in the 'Sewer Treatment Plant utilities account as a result of HEA changing their calculation of electricity usage. NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following budget transfers be made: Water ~nd Sewer Fund From: STP-Utilities $11,500 To: STP-Repair & Maintenance Supplies. PASSED BY THE COUNCIL OF THE CITY of March, 1991. $11;500 OF KENAX, ALASKA, the 'sixth day Ra~nd He&s~e~-, vice Hayor ATTEST: Approved by Finance: (3/1/91) 17B1-lBB1 ~IOFIDALGO KENAi, ALABKA 00011 TELEPHONE ~8~- ?SSS FAX gO?.2e3~014 TO: Charlie Brown, FROH: Keith Kornelis, DhTB: March 1, 1991 lt~: Finance Director Public Works Director 'I Resolution ~ransferEingPunds $~,S00 from Ut~l~tios to R & H Supplies Please prepare a resolution transferring $11,500 from Utilities account to Repair and Maintenance Supplies account in the Sewer Treatment Plan Division of Public Works. The budget for Utilities was based on a new method that HEA said they were going to use to determine our power costs. This new method was based on our peak power usage. When HFJ% installed their new equipment to measure the peak power consumption our costs skyrocketed. Fortunately for the City, their new equipment broke down and we are back to the normal meter reading method which is tremendously lower. Based on our 01/31/91 expenditure statement we have spent $65~614 fOr'utilities~-'if 'we were-to continue, spending at the. same rate as in the pastour yearly. total would be $112,481 with our budget set at $155,000. Therefore we should have an excess of $42,519 inrUtilities. I am recommending to Council that we transfer $11,500 from Utilities to R & M Supplies. _need to. replace 2 Waste Pumps and 2 Digestor Sludge Pumps. b Bears nas negotiated a super deal for the City. Please see his attachment entitled "Justification for Purchase of New Progressive Cavity Pumps". Robbins & Myers is the only company willing to exchange our pumps for what it would cost to purchase a new rotor and starter for out existing pumps. The upgrade of our STP was about 10 years ago and our equipment is starting to show signs of wear. We have been and are continuing to repair and replace items as needed. JUSTIFICATION FOR PURCHASE OF NE# PROGRESSIVE CAVITY PUNPS Peabol~ The existing pumps are OBSOLETE, Manufacture of the & Barnes Pumps that were installed in the plant in 1981 was stopped in 1971. Parts manufacture was stopped in 1981. 2. Since 1981, parts have been progressively more expensive and had to be shipped in from points farther away as inventories were depleted. 3. Parts of any kind that are specific for these two pump models are no longer available .... " &. The t~o waste pumps have been running for 3 years without rebuild. Wear has reduced the efficiency of both units sevev~ly. One or both could fail at any time resulting in operating problems Robbing ~eyers,(Noyno), has offered to reestablished a purchase program that they offered to o~ners ~f other brand pumps several years ago. Under this offer they ~tll ~eplace the pump end of our existing pumps with their pumps. By using the same motors, gearboxes, and frames, we will save several thousand dollars.. As incentive to purchase from them, they will sell us the new pumps, delivered to the plant for what it costs to purchase a new' rotor and starer for our existing pumps,(the 2 main pieces required to rebuild these type of pumps, all of which are no longer available to us). The cost for each of the & pump units under the offer is;- #1FO38G1 .... $3,283 #1EO22G1 .... $2,508 The cost of purchasing each these without the offer from Robbins Meyers is; #1FO36G1 .... $7,$62 #lEO22G1 .... $5,856 includes freight units by themselves plus freight TOTAL COST WITHOUT OFFER ..... $26,836 PLUS FREIGHT TOTAL COST ~ITH OFFER ........ $11,S82 FREE FREIGHT TOTAL SAVINGS BY TAKING OFFER---$1S,2S&+ There 1~ a catch to the offer. The existing pumps must be. removed and isposed of. Ne cannot keep them. ~e currently have 2 Noyno pumps installed in 1982 to replace 2 Peabody out as they ~ere intended to. in the plant. They ~ere Barnes ~hich did not ~ork