MEMORANDUM 07-68

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: April 18, 2007

Subject: Water Treatment Plant Improvements

Membrane Treatment Equipment Procurement

Intent to Award Contract

Public Works opened bids for the above referenced project on April 18. Two national membrane equipment suppliers were invited to submit bids. These companies were selected based on their ability to supply high quality, dependable equipment that had been incorporated into similar projects in the lower 48. These firms also had the capacity and experience necessary to support the operation and maintenance of their equipment here in Alaska. Below are the bid results:

A B C D E

Bidding Membrane Operating Membrane Building Total 20 yr

Firm System Cost Replacement Modification Present

Capital Cost (20 yr) (20 yr) Required Worth

GE - Zenon. $1,912,866 $1,164,616 $223,252 $512,705 $3,813,439

Siemen – US Filter $3,147,441 $ 915,287 $297,833 $ 0 $4,360,561

Public Works has reviewed the bids and evaluated the responsiveness of each bidder. The final apparent low responsive bidder is GE - Zenon. They have the lowest upfront capital cost and the lowest 20 year operation and maintenance cost. The award is based on the Total 20 Year Present Worth amount (column E); but the award amount is the Membrane System Capital Cost (column A).

The budget for the capital cost of this procurement is $2,000,000. The cost of the procurement of this equipment is within the established budget.

Recommendation: The City Council should authorize the City Manager to issue a Letter of Intent to Award to GE – Zenon, Oakville, Ontario, Canada. Upon meeting the conditions of the Bid Documents, the City Manager should be authorized to award the contract to GE - Zenon in the amount of $1,912,866; issue a Notice to Proceed; and execute all required documents needed to complete the procurement of this membrane water treatment equipment (in accordance with previous authorizations by the City Council). Fiscal Note: 215-865-5212