Item Coversheet
  CITY COUNCIL AGENDA MEMO
MEETING DATE: 6/12/2023
DEPARTMENT:Public Works-CIP Construction
DIRECTOR:
AGENDA ITEM:Approval of expenditure in the annual amount of $400,000 for Water System Valve Maintenance Program.
RECOMMENDED ACTION:Purchase from Existing Contract

ITEM SUMMARY

To approve the purchase of a Water System Valve Maintenance Program for a one (1) year contract with four (4) one-year City optional renewals for Public Works Department in the estimated annual amount of $400,000 from Hydromax USA through an existing contract; and authorizing the City Manager to execute all necessary documents. (City of Garland Contract BL-9148) Approved





BACKGROUND

The Public Works department maintains approximately 50,000 water valves in the City’s water system. These valves allow Public Works staff to isolate segments of the City’s water system to fix breaks, perform system improvements and connect new mains to the existing system.

 

Asset management best practices from the American Water Works Association recommend that each valve in a water system be exercised at least once every five years as part of a valve maintenance program. A valve maintenance program reduces long-term water system costs by restoring inoperable valves to service, extending service life of existing valves, improving water quality, optimizing pumping efficiency and reducing water service shutdown times and areas affected.

 

Before 2020, Public Works staff had a valve exercising program for smaller system valves. However, due to aging infrastructure, an increase in emergency repairs, and a shortage in staffing, it has not been feasible to continue to dedicate personnel full-time to a valve maintenance program. Reallocating current staff would reduce personnel available for daily emergencies such as water main breaks and other regulatory activities such as water quality flushing.

 

Public Works staff has reviewed a contract between the City of Garland and Hydromax USA LLC for a valve maintenance program. The contract is for Fiscal Year 2022-23 and has four optional annual renewals running through Fiscal Year 2026-27. Public Works staff is requesting to utilize this contract for a valve maintenance program at the City of Plano. The estimated expenditure for the City is $400,000 each year for the length of the contract (5 years).

 

If this contract is not awarded by City Council, the City will see increased costs due to premature replacement of inoperable valves and additional customers without water when repairs are needed to the water system.

 

The funding for this expenditure is coming from the Water Fund (36).

 

The City is authorized to purchase from a cooperative purchasing program with another local government or a local cooperative organization pursuant to Chapter 271 Subchapter F of the Texas Local Government Code and by doing so satisfies any State Law requiring local governments to seek competitive bids for items. (City of Garland Contract BL-9148 and the City of Plano internal contract number 2023-0365-I)

FINANCIAL SUMMARY/STRATEGIC GOALS

Funding for this item is available in the Water CIP and is planned for future years, as well.  Award of the Water System Valve Maintenance Program contract, in the total amount of $2,000,000, will leave a current year balance of $600,000 for future water system expenditures. 

 

Approval of this item will support the City's Strategic Plan Critical Success Factor of being an Excellent, Innovative, and Accountable City Government.