HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/18/2015 - RESOLUTION 2015-074 APPROVING AN EXCEPTION TO THEAgenda Item 19
Item # 19 Page 1
AGENDA ITEM SUMMARY August 18, 2015
City Council
STAFF
Mark Kempton, Water Production Manager
Gerry Paul, Director of Purchasing & Risk Management
SUBJECT
Resolution 2015-074 Approving an Exception to the Use of a Competitive Purchasing Process for a
Hydrostatic Tractor with Aerator Manufactured by Brown Bear Corporation for the Fort Collins Water Treatment
Facility.
EXECUTIVE SUMMARY
The purpose of this item is to request an exception to the competitive purchasing process for a Brown Bear
brand 400 Hydrostatic Tractor with Aerator for the Fort Collins Water Treatment Facility. This specialized
equipment is required to process byproduct from the Water Treatment Facility and will replace a 28-year old
machine that has reached the end of its useful life.
Exception to Competitive Bidding Rationale:
City Code Section 8-161(d)(1)(a) authorizes the City’s Purchasing Agent to award a contract without
competition, if there exists only one (1) responsible source.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
The Fort Collins Water Treatment Facility currently manages and dries sludge using a 1987 model Hydrostatic
Tractor with Aerator manufactured by the Brown Bear Corporation of Corning, IA. The sludge, which is a
byproduct of the water treatment process, is removed from the Facility’s sedimentation basins and pumped to
several lagoons on the east side of the Water Treatment Facility. The sludge, when dried, is removed from the
site approximately once a year and transported to the Larimer County Landfill for disposal. In order to
adequately dry the sludge material, it needs to be turned over several times in the lagoons and air dried until
the material is dry enough to be transported to drying beds on the north side of the Facility. The Brown Bear
Hydrostatic Tractor with Aerator (Brown Bear) is a specialized piece of equipment used to turn over the sludge
in the lagoons and the drying beds. The Brown Bear is designed and manufactured specifically to operate in 3
to 4 feet of water, which allows it to operate in the lagoons without becoming stuck or damaged. The Water
Treatment Facility has utilized a Brown Bear tractor since 1987 and the tractor has performed effectively and is
critical to drying the sludge material. Utilities can no longer obtain new replacement/repair parts for the 28-year
old machine and it has reached the end of its useful life. Fort Collins Utilities has a critical operational
requirement to purchase the new Brown Bear tractor and aerator to replace the Facility’s current 28-year old
model.
Alternative solutions and vendors were investigated to understand the competitive environment and available
options. Representatives from other tractor manufacturers were consulted and the leading alternative offered
by Komptech was evaluated. After visiting the Facility and assessing the application, the Komptech
Agenda Item 19
Item # 19 Page 2
representative concluded their tractor with a rotating aerator attachment could not effectively perform the
drying functions in the lagoons/drying beds. It was determined Komptech’s tractor and similar equipment
produced by Komptech’s competitors would become bogged down in the wet sludge. Also, the electrical
systems on alternative tractors are located lower in the vehicle body, susceptible to severe damage from the
wet sludge. The Brown Bear’s electronics system is designed to be elevated out of deep sludge and high water
levels. The Brown Bear is designed specifically to operate in high water levels with features that make it
uniquely suited for this type of work.
The price quoted by Brown Bear is competitive with alternative equipment including Komptech. However, the
alternative equipment will not effectively work in this application. No viable alternative solution has been
identified to aerate and dry the Facility byproduct.
CITY FINANCIAL IMPACTS
The quoted cost to purchase the new Brown Bear is $439,066. This cost includes a $25,000 credit for the
trade-in of the Water Treatment Facility’s 1987 model Brown Bear, which the manufacturer will use for salvage
parts. The 2015 Minor Capital Budget for the Water Treatment Facility, which was approved as part of the
2015/16 Budgeting for Outcomes (BFO) process, includes a line item with a balance of $534,474 specifically
for the purchase of the new Brown Bear, if approved by City Council.
Alternative funding sources were also investigated including a cost sharing of a new Brown Bear with the
Soldier canyon Filter Plant (Soldier Canyon), which is located directly west of the Fort Collins Water Treatment
Facility. After comparisons of the required scheduled uses of the Brown Bear, and based upon a non-
recommendation of the sharing agreement from the Soldier Canyon Steering Committee, the proposed sharing
agreement was abandoned.
BOARD / COMMISSION RECOMMENDATION
At its July 16, 2015 meeting, the Water Board unanimously recommended that City Council adopt the
Resolution authorizing the sole source purchase of the Brown Bear Hydrostatic Tractor with Aerator.
ATTACHMENTS
1. Manufacturers Specification for Brown Bear Hydrostatic Tractor with Aerator (PDF)
2. Quote for Brown Bear Hydrostatic Tractor with Aerator (PDF)
3. Photos of Brown Bear Hydrostatic Tractor with Aerator (PDF)
4. Water Board minutes, July 16, 2015 (PDF)
Attachment 1 - Manufacturer’s description of 400 Hydrostatic Tractor
with Aerator
400 Hydrostatic Tractor
x DIESEL ENGINE POWER
x CAT C-7 diesel Engine Tier III compliant @ 250hp.
x *FULL TIME FOUR WHEEL DRIVE
x With selectable steering modes, "Crab-Coordinated-Front only."
x *HYDROSTATICS
x Axial piston hydraulic pumps (variable) and motors (fixed) provide infinitely variable and stepless power
transmission, efficiently at low operating temperatures.
x *HYDROSTATIC PROPEL DRIVE SYSTEM
x Gives infinite speed variations in all gear ranges. Instant forward/reverse shuttle in all four ranges, single
lever control.
x *HYDROSTATIC IMPLEMENT DRIVE SYSTEM
x Gives multiple attachment capability, front and rear.
x *PLANETARY AXLES (front and rear)
x Limited slip differentials and heavy drive lines transmit hydrostatic power to the ground.
x *MULTIPLE TIRE OPTIONS
x *UNITIZED MAIN FRAME
x Absorbs heavy shock loads, maintains power train alignment.
x *COMPONENTIZED POWER TRAIN
x Permits servicing of individual components without disturbance of the rest of the drive line.
x *ROPS & FOPS FOUR POST PROTECTION WITH CAB PACKAGE
x Isolated with rubber mounts to reduce noise and vibration. Comfortable operator seat, full instrumentation.
Standard with heater, pressurization, wiper, A/C and AM/FM radio.
x *FRONT IMPLEMENT ATTACHMENTS (optional)
x Category III H 3-point for attaching auger backfiller, auger composter, snowblower, sweeper broom, angle
dozer, brush rake, V-plow, forklift and more.
x *REAR IMPLEMENT ATTACHMENTS (optional)
x Backhoes, winches, scarifier/ripper, towable attachments and Category III 3 point.
ATTACHMENT 1
Attachment 2 – Manufacturer’s quote for 400 Hydrostatic Tractor with
Aerator
ATTACHMENT 2
Attachment 3 – Photographs of 1987 model Brown Bear
Picture 1 – Brown Bear turning sludge
ATTACHMENT 3
Picture 2 – Brown Bear turning sludge
Picture 3 – Brown Bear turning sludge
Picture 4 – Brown Bear Hydrostatic Tractor with Aerator
Excerpt from Unapproved July 16, 2015 Water Board Minutes
Sole Source Purchase of a Brown Bear Hydrostatic Tractor with Aerator for the Fort
Collins Water Treatment Facility
(Attachments available upon request)
Water Production Manager Mark Kempton summarized the proposed purchase of a Brown Bear
Hydrostatic Tractor with Aerator that will be used at the Water Treatment Facility. Alternative
equipment was evaluated; this was the best option. This purchase was anticipated and is in the
minor capital budget.
Discussion Highlights
x A board member inquired if written quotes were taken such that this was absolutely the
best option.
x A board member inquired about changing sludge practices such that this specialized
machine will not need to be purchased in the future.
Board Member Phyllis Ortman made a motion for the Water Board to recommend that the
City Council consider the sole source purchase of a Brown Bear Hydrostatic Tractor with
aerator for the Fort Collins Water Treatment Facility.
Board Member Alexander Maas seconded the motion.
Vote on the motion: It passed unanimously.
ATTACHMENT 4
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RESOLUTION 2015-074
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AN EXCEPTION TO THE USE OF A COMPETITIVE
PROCESS TO CONTRACT WITH BROWN BEAR CORPORATION FOR A
HYDROSTATIC TRACTOR WITH AERATOR FOR THE FORT COLLINS WATER
TREATMENT FACILITY
WHEREAS, the City of Fort Collins Water Treatment Plant produces sludge which is a
byproduct of the water treatment process and that sludge must be dried and removed from the
site approximately once a year and transported to the Larimer County Landfill for disposal;
WHEREAS, in order to dry the sludge it needs to be turned over several times in lagoons
where the water is 3 to 4 feet deep and air dried until it can be transported to the Landfill; and
WHEREAS, the City has been using a 1987 Brown Bear Hydrostatic Tractor with
Aerator to turn over the sludge in lagoons and the drying beds as it is a specialized piece of
equipment designed and specifically manufactured to operate in 3 to 4 feet of water without
becoming stuck or damaged; and
WHEREAS, the Water Treatment Facility has used the Brown Bear tractor effectively
since 1987 and the tractor is critical to drying the sludge, but the City can no longer obtain new
replacement or repair parts for the 28-year old machine and it has reached the end of its useful
life and it is necessary to purchase another piece of equipment; and
WHEREAS, alternative vendors and solutions were investigated to understand the
competitive environment and available options to replace the tractor; and
WHEREAS, such investigation included consulting with representatives from other
tractor manufacturers, and the leading alternative was manufactured by Komptech, however,
after visiting the Water Treatment Facility the Komptech representative concluded that their
tractor with a rotating aerator attachment could not effectively perform the drying function in the
lagoons/drying beds; and
WHEREAS, the electrical systems on alternative tractors are lower on the vehicle body
making them susceptible to severe damage from the wet sludge but the Brown Bear model is
designed to be elevated out of deep sludge and high water levels and is specifically designed to
operate in high water levels that make it uniquely suited to this work; and
WHEREAS, the price quoted by Brown Bear of $439,066.00 includes a $25,000.00
credit for the trade-in value of the 1987 tractor and such price is competitive with alternative
equipment, but such alternatives are not suitable for the City’s needs; and
WHEREAS, alternative funding sources were investigated including cost sharing with
the Soldier Canyon Filter plant but the Soldier Canyon Steering Committee issued a non-
recommendation of a sharing agreement; and
- 2 -
WHEREAS, the 2015 Minor Capital Budget for the Water Treatment Facility which
was approved as part of the 2015/2016 Budgeting for Outcomes process includes a line item with
a balance of $534, 474.00 specifically for the purchase of a new Brown Bear tractor, if approved
by City Council; and
WHEREAS, the sole source purchase of the Brown Bear Tractor was presented to the
City of Fort Collins Water Board on July 16, 2015 and the Board unanimously recommended
that the City Council adopt the Resolution authorizing the sole source purchase of the Brown
Bear Hydrostatic Tractor with Aerator; and
WHEREAS, the City Code Section 8-161(d)(1)(a) authorizes the City’s Purchasing
Agent to award a contract without competition if there exists only one (1) responsible source;
and
WHEREAS, the City’s Purchasing Agent and other City staff recommend the adoption of
this resolution; and
WHEREAS, the Purchasing Agent has determined that the single source exception is in
the City’s best interest and appropriate in connection with this procurement in order to maximize
the benefits to the City and minimize the risks to the City by purchasing the Brown Bear Tractor,
which has a design that is uniquely suited to the operation of the City of Fort Collins’ Water
Treatment Facility; and
WHEREAS, as required by City Code Section 8-161(d)(2), the Purchasing Agent has
submitted this determination to the City Manager, and the City Manager has approved it; and
WHEREAS, City Code Section 8-161(d)(3) requires prior approval of this purchasing
method by the City Council for all procurements which exceed Two Hundred Thousand Dollars
($200,000.00).
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that the City Council hereby adopts as its findings the recitals set forth above
and authorizes the Purchasing Agent to enter into a contract with Brown Bear Corporation
consistent with this Resolution for the purchase of a Hydrostatic Tractor with Aerator for use in
the Water Treatment Facility, and to do so as an exception to the City’s competitive procurement
requirements for the reasons set forth herein.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
18th day of August, A.D. 2015.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk