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HomeMy WebLinkAbout _ 4.11(a)--Purchase of Blower for Clear Creek Wastewater Treatment Plant CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Authorize the purchase of Atlas Copco blower in the amount of $189,526.98 for the City of Redding Clear Creek Wastewater Treatment Plant; and approve additional funding in an amount not to exceed $30,000 for taxes and contingency. Fiscal Impact The Wastewater Utility Division has sufficient funds available in the approved Fiscal Year 2022-23 budget for this purchase. Alternative Action The City Council (Council) could choose not to approve the purchase or the additional funds and, instead, provide alternative direction to staff. This would result in the need to identify a different brand, make, or model blower which would be time consuming and could result in no match being found increasing the potential for regulatory action. Background/Analysis On July 21, 2020, the Council approved the purchase of a new Atlas Copco Blower for the Clear Creek Wastewater Treatment Plant (CCWWTP) to replace chronically failing HSI blowers. The blower was purchased with the intent to evaluate the product and, if reliable, move forward with this unit make and model to replace the remaining blowers. The Atlas Copco blower was installed and has performed well. As a result, staff recommended, and the Council approved at its meeting on February 15, 2022, both the purchase of a second Atlas Copco blower for the CCWWTP and the systematic replacement of remaining blowers with similar units at the CCWWTP as time and budget allow. The second blower has been received and is currently being installed. Staff recommends purchasing the third blower this budget year. MEETING DATE: February 7, 2023 ITEM NO. 4.11(a) FROM: ***APPROVED BY*** caukland@ci.redding.ca.us btippin@cityofredding.org SUBJECT: 4.11(a)--Authorize Purchase of Blower for Clear Creek Wastewater Treatment Plant Chuck Aukland, Public Works Director Report to Redding City Council January 30, 2023 Re: 4.11(a)--Purchase of Blower for Clear Creek Wastewater Treatment Plant Page 2 Per Redding Municipal Code 4.20.080 – Bidding – When dispensed with. A. Purchase of supplies, services, or equipment shall be by bid procedures pursuant to Sections 4.20.120 and 4.20.130, except that bidding may be dispensed with only in the following circumstances: 4. When a sole-source procurement is based on standards previously adopted by the City Council; Blowers are an integral part of the biological wastewater treatment process. Without a constant supply of air, the biological organisms cannot survive and the treatment process would cease to function. New and reliable blowers will provide the air which is needed to allow the CCWWTP to operate properly and continue to meet all regulatory requirements. Environmental Review This action is not a project as defined by the California Environmental Quality Act, and no further action is required. Council Priority/City Manager Goals • This agenda item is a routine operational item. Attachments Clear Creek 3rd ZB Proposal R00 7-21-20 Staff Report 2-15-22 Staff Report Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 Proposal Clear Creek WWTP City of Redding Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 Date: December 29, 2022 Attn: Mr. Chris Kindig Project: Clear Creek WWTP 3rd ZB6 for HSI replacement – City of Redding, CA We thank you for your above referenced inquiry, and are pleased to submit our quotation for your consideration. Please see the next page for a summary of our offer. Full details can be found in subsequent pages. We hope you find our quotation in line with your requirements. However, if you have any questions, please do not hesitate to contact us. Sincerely, Gatlin Gold Joel Santos P.E. Regional Municipal Sales Manager Applications Engineer Southern and Western U.S. Email: joel.santos@atlascopco.com Email: gatlin.gold@us.atlascopco.com Phone: 281-594-5036 Phone: 281-776-4941 Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 ZB 5-6 VSD+ ATLAS COPCO OIL-FREE CENTRIFUGAL BLOWER The Atlas Copco ZB 5-6 VSD+ is the latest generation of magnetic bearings centrifugal blowers It includes advanced features ensuring efficiency to its maximum as well as enhanced reliability. Its plug-and-play design provides simple installation and easy access for service activities. The Atlas Copco magnetic bearing technology provides operational peace of mind and full control over the rotating component. No matter the conditions, the machine controls and adjusts the shaft’s position at any given time, guaranteeing an optimal operation. Coupled to a highly efficiency permanent magnet motor, this machine is the ideal combination of efficiency and reliability. Having an efficient technology is only the first step towards the machine’s total efficiency. The Atlas Copco ZB 5-6 VSD+ is also delivered with a state of the art packaging, minimizing the losses from the air entry point to the discharge flange. The extra touch to the Atlas Copco ZB 5-6 VSD+ is given to the cooling circuits. Proper cooling is built into the blower’s design. Streams of fresh air are running within and around internal components to ensure the lowest possible operating temperature. Thanks to the internal close water loop circuit, the motor and variable frequency drive are maintained at a constant temperature, no matter the environmental or the operating conditions. This design provides an extended reliability as well as an increased lifetime of the machine. The Atlas Copco ZB 5-6 VSD+ features even more unique benefits. From the modulating blow-off valve extending the machine’s turndown, to the magnetic bearing controller continuous power feed without the need of a UPS, these are making the ZB 5-6 VSD+ the perfect product for any low pressure application. Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 Reliability Atlas Copco magnetic bearing technology The Atlas Copco magnetic bearing technology is a strong active technology. At any moment, the full control of the shaft is ensured thanks to the magnetic force adjusting the shaft's position, no matter the conditions. This technology: • Ensures a full control over the rotating assembly and a complete adjustment of the shaft’s position in order to face any operating conditions • Has unlimited starts and stops and no contact between stator and rotor at any given moment • Does not require the use of process air to operate or to cool down components • Combines air and water cooling to ensure extended components’ lifetime within a compact and powerful design • Does not require the use of a UPS (power battery bank) to provide power to the magnetic bearing controller Built-in cooling paths The Atlas Copco ZB 5-6 VSD+ turbo blower has an advanced cooling design. Several dedicated paths are present to provide the optimum cooling requirement: • The magnetic bearing cooling path is using fresh air from outside of the blower which is cleaned and ducted directly onto the bearings • The internal cooling path also uses fresh cleaned air from outside of the machine to circulate around the mechanical components such as the permanent magnet motor • The Electrical cubicle cooling path is taking fresh air from the bottom of the cubicle to the top, cooling down every cubicle component • The water cooling path runs through the permanent magnet motor and high frequency drive, maintaining these key components at their optimum operating temperature Regulating blow-off valve With its new regulating algorithm, the Atlas Copco ZB 5-6 VSD+ features a regulating blow-off valve. This component brings huge benefits to the machine: • It allows a quick response to dynamically adjust its position during the blower’s operation • It provides an extended turndown in the area where traditional turbo blowers would surge or shutdown • It bridges flow gaps between blowers running in parallel, allowing the process to be accurately provided with the exact amount of flow needed Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 Efficiency Atlas Copco centrifugal blower Atlas Copco has a long history with centrifugal equipment. For more than a decade, the ZB high-speed turbo blower range proved its superior efficiency. With this new generation, the ZB 5-6 VSD+ continues the success story, putting efficiency in the front line of this product’s benefits. The product includes: • Magnetic bearing technology for high efficiency operation without the consumption of process air • High-efficient permanent magnet motor for reduced losses along the speed range and an optimum operation in the complete blower’s operating map • State-of-the-art impeller designed to operate at dedicated pressure levels • Premium labyrinth seal reducing leakages and energy losses over the compression stage Separated process air path Too often, process air is mixed with cooling air within centrifugal turbo blowers, increasing the power consumption of the machine. The Atlas Copco ZB 5-6 VSD+ is changing this habit and is built with a dedicated air path going to the process, ensuring minimal pressure drops as well as minimal temperature increase. This feature: • Guarantees energy savings by separating cooling air paths to the process air path and increased flow delivered from the machine • Ensures the lowest discharge air temperature to the process • Allows simple ducting for air intake from a remote location Plug-and-play package When designing blowers, Atlas Copco makes a priority to build simple, easy to install and serviceable machines. The Atlas Copco ZB 5-6 VSD+ is a perfect example of this mindset. The machine: • Includes all necessary components straight from the factory • Requires a single electrical connection to feed all the machine’s electrical components • Has a reduced footprint and installation space required around the machine • Is easily transportable with forklift slots embedded within the base frame Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 Working principle Traditionally, process air is used to cool down components in centrifugal turbo blowers. This, however, has a serious impact on the performance. There is no better way to cool down a component than having a dedicated stream of fresh air. The Atlas Copco ZB blower separates the cooling paths from the process path as it is presented below. The process air path Air is taken from the atmosphere (A), passes through a set of baffles (B) reducing its noise, it is filtered by high- efficiency filters (C) before entering the element via a direct connection. The impeller, which is spinning at high speed (D) provides energy to the air which then will turn into pressure. Air is then delivered to a discharge cone and passes by a high-efficiency check valve (F) before entering the process. The modulating blow-off valve (G) and noise cancelling silencer (H) are present to derivate air from the main line for either protection or regulation purposes. Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 The magnetic bearing cooling air system Air is taken from the atmosphere (A), passes through a set of baffles reducing its noise (B), is filtered through a high-efficiency filter (C) before blown into the bearings via two air fans (I). After cooling down the magnetic bearings, the warm air is being rejected to the centralized location at the top of the machine, which can be ducted or piped outside of the blower room if needed. The closed-loop water system Atlas Copco ZB turbo blowers use an internal water and glycol circuit to cool down the permanent magnet motor and high frequency drive assuring to use them at their best efficiency regardless of the operating or ambient conditions. The closed loop is set-up as followed: a pump (J) circulates the mix through the line, starting with the water-cooled high frequency drive (K) and then followed by the water cooled permanent magnet motor (E). Depending on the required cooling capacity, a thermostatic valve (L) adjusts the flow going to the heat exchanger (M) or back to the pump (J). The heat exchanger includes in the air-cooled machine variants a variable speed air fan to regulate the required cooling power in the most precise way. If there is no need to cool down the liquid after the motor, none of it is passing by the heatsink, totally removing the power consumption of the cooling fan. Heated air from the heat exchanger is then driven towards the centralized cooling air grid before being rejected into the atmosphere (ducted, piped or none of these). Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 Proposal The following is a price summary for this quotation. Please see item specific pages for more details. Item Number Description Equipment Qty Price 001 Magnetic Bearing Turbo Blower ZB6 VSD+ 250 I 1 $189,526.98 SCOPE OF SUPPLY: Any work or equipment beyond the scope of this proposal will be performed or provided only after customer approval and acceptance by our company. No assumption should be made that anything not specifically defined is included. VALIDITY: This quotation is valid for 60 days. PRICE: The price quoted is for all items purchased at one time. Partial orders may be subject to a price adjustment. PAYMENT TERMS: Progress payments TAXES: Not Included FREIGHT: Included SHIPMENT: 24 Weeks from signed and approved submittals SUBMITTALS: Submittal generation 4-6 weeks from approval of PO WARRANTY: 12 months from shipment. START-UP: Included QUALITY STANDARDS: All our manufacturing locations are ISO 9001-2008 certified. TERMS AND CONDITIONS: Our Standard terms and conditions are attached. Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 Scope of Supply Equipment Item 001: Magnetic Bearing Turbo Blower – ZB6 VSD+ 250 I - ZB6 Variable speed direct drive single stage Oil-less turbo compressor o Full noise canopy. The blow off valve and silencer is mounted within the sound canopy and is not shipped loose for field installation o High efficiency 2 Micron Inlet Filter o Blow Off Silencer o Integrated VSD frequency converter o Starters for main drive motor and magnetic bearings o 250kW (335HP) Permanent Magnet Synchronous Motor  Air and Liquid Cooled  1000 Ohm Platinum Winding RTD’s o Baseplates o Vibration isolators o Supports o Blow-off Valve o O&M Manuals o Local control panel  Advanced Elektronikon® MkV control and monitoring system  Hardwired & CAN Communication protocol Standard o 16” Discharge Flange - Included Options o Ethernet IP Communications o Anchor Pads - Field Installed Accessories o 16” Wafer Check Valve - Testing o Factory standard mechanical run test (Unwitnessed) o Factory Standard Performance Test Report (Unwitnessed) Start-up & Training o (1) Trip for (1) Days each for installation check, Start-up & Training Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 Clarifications General: 1. Installation, piping, elbows, spool pieces, piping hardware, piping gaskets, anchor bolts, housekeeping pads, and wiring to be provided by others. 2. This proposal is based on Atlas Copco’s ZB magnetic bearing high speed turbo blower. Exception is taken to any brand names mentioned in the spec other than Atlas Copco. Brand specific items are provided where noted in this proposal. Accessories and other appurtenances shall meet or exceed the intent of the specifications. 3. On VFD equipped blowers an adequately sized fast acting fuse or circuit breaker must be provided by the contractor. 4. Note that given the uncertain and dynamic nature of the COVID outbreak and resulting disruptions to supply chains, some suppliers have issued “protective” or “rolling” force majeure notices and have indicated an inability to meet previously quoted lead times. Atlas Copco shall not be responsible for delays associated with supply chain deficiencies of specified components related to this project. Atlas Copco will immediately notify the client of any such delays and will when applicable, offer options that could best meet the delivery schedule. Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 9001:2015 CERTIFICATE OF APPROVAL: Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 Terms and Conditions of Sale GENERAL – Unless otherwise expressly agreed in writing by a duly authorized representative of Atlas Copco these terms and conditions supersede all other communications and agreements and notwithstanding any conflicting or different terms and conditions in any order or acceptance of Purchaser, all sales and shipments shall exclusively be governed by these terms and conditions. When used herein “affiliates” shall mean Atlas Copco AB and its wholly-owned subsidiaries. Section headings are for purposes of convenience only. “Products” as used herein shall include products, parts and accessories furnished Purchaser by Atlas Copco. Orders shall be subject to acceptance at Atlas Copco Compressors LLC’s principal corporate offices in Rock Hill, South Carolina. DELIVERY – Unless otherwise agreed in writing, Products manufactured, assembled or warehoused in the continental United States are delivered F.O.B. shipping point, and Products shipped from outside the continental United States are delivered F.O.B. point of entry. Where the scheduled delivery of Products is delayed by Purchaser or by reason of any of the contingencies referred to in Section 5. Atlas Copco may deliver such Products by moving it to storage for the account of and at the risk of Purchaser. Shipping dates are approximate and are based upon prompt receipt of all necessary information and approvals from Purchaser. Atlas Copco reserves the right to make delivery installments. SECURITY AND RISK OF LOSS - Upon request from Atlas Copco, Purchaser agrees to execute a security agreement covering the Products sold or other assets and to perform all acts which may be necessary to perfect and assure a security position of Atlas Copco. Notwithstanding any agreement with respect to delivery terms or payment of transportation charges, the risk of loss or damage shall pass to Purchaser and delivery shall be deemed to be complete upon delivery to a private or common carrier or upon moving into storage, whichever occurs first, at the point of shipment for Products assembled, manufactured or warehoused in the continental United States or at the point of entry for Products shipped from outside the continental United States. PAYMENT – If Purchaser fails to pay any invoice when due, Atlas Copco may defer deliveries under this or any other contract with Purchaser, except upon receipt of satisfactory security for or cash in payment of any such invoice. A service charge of the lesser of 1% per month or the highest rate permitted by applicable law shall be charged on all overdue accounts. Failure on the part of Purchaser to pay invoices when due shall, at the option of Atlas Copco, constitute a default in addition to all other remedies Atlas Copco may have under these conditions of sale or applicable law. If, in the judgment of Atlas Copco, the financial condition of Purchaser at any time prior to delivery does not justify the terms of payment specified. Atlas Copco may require payment in advance or cancel any outstanding order, whereupon Atlas Copco shall be entitled to receive reasonable cancellation charges. If delivery is delayed by Purchaser, payment shall become due on the date Atlas Copco is prepared to make delivery. Should manufacture be delayed by Purchaser, pro rata payments shall become due if and to the extent required at Atlas Copco by its contracts with the manufacturer. All installment deliveries shall be separately invoiced and paid for without regard to subsequent deliveries. Delays in delivery or non-conformities in any installment shall not relieve Purchaser of its obligations to accept any pay for remaining installments. FORCE MAJEURE – Atlas Copco shall not be liable for loss, damage, detention, or delay, nor be deemed to be in default from causes beyond its reasonable control including but not limited to acts of God, fire, storm, strike or other concerted action of workmen, act or omission of any governmental authority or of Purchaser, compliance with import or export regulations, insurrection or riot, embargo, quarantine, epidemic, pandemic, delays or shortages in transportation, or inability to obtain necessary engineering talent, labor, materials, or manufacturing facilities from usual sources. In the event of delay due to any such cause, the date of delivery will be postponed by such length of time as may be reasonably necessary to make up for such delay. NEW PRODUCT WARRANTY – Atlas Copco warrants to the Purchaser that all stationary compressors, portable compressors, compressed air dyers, Atlas Copco-designed compressor parts and other Products manufactured by Atlas Copco and affiliates shall be free of defects in design, material and workmanship for a period of fifteen (15) months from date of shipment to Purchaser, or twelve (12) months from date of initial start-up, whichever occurs first, except as set forth below or in the New Products Warranty attached hereto. Should any failure to conform with this warranty appear prior to or after shipment of the Product to Purchaser during the specified periods under normal and proper use and provided the Product has been properly stored, installed, handled and maintained by the Purchaser, Atlas Copco shall, if given prompt notice by Purchaser, repair or replace, the non-conforming Product or authorize repair or replacement by the Purchaser at Atlas Copco’s expense. Replaced Products become the property of Atlas Copco. Atlas Copco warrants Products or parts thereof repaired or replaced pursuant to the above warranty under normal and proper use, storage, handling, installation, and maintenance, against defects in design, workmanship and material for a period of thirty (30) days from date of start-up of such repaired or replaced Products or parts thereof or the expiration of the original Product warranty, whichever is longer. When the nature of the defect is such that it is appropriate in the judgment of Atlas Copco to do so, repairs will be made at the site of the Product. Repair or replacement under applicable warranty shall be made at no charge for replacement parts, F.O.B. Atlas Copco Warehouse, warranty labor, serviceman transportation and living costs, when work is performed during normal working hours (8 a.m. to 4:30 p.m. Monday through Friday, exclusive of holidays). Labor performed at other times will be billed at the overtime rate then prevailing for services of Atlas Copco personnel. The Atlas Copco warranty does not extend to Products not manufactured by Atlas Copco or affiliates. As to such Products, Purchaser shall be entitled to proceed only upon the terms of that particular manufacturer’s warranty. The Atlas Copco warranty does not apply to defects in material provided by Purchaser or to design stipulated by Purchaser. Used Products, Products not manufactured by Atlas Copco or affiliates and Products excluded from the above warranties are sold AS IS with no representation or warranty, and ALL WARRANTTIES OF QUALITY, WRITTEN, ORAL, OR IMPLIED, other than may be expressly agreed to by Atlas Copco in writing, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTIABILITY OR FITNESS, ARE HEREBY DISCLAIMED. Any services performed by Atlas Copco in connection with the sale, installation, servicing or repair of a Product are warranted to be performed in a workmanlike manner. If any nonconformity with this warranty appears within 45 days after the services are performed, the exclusive obligation of Atlas Copco shall be to re-perform the services the services in a conforming manner. THE FOREGOING WARRANTIES ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES OF QUALITY, WRITTEN, ORAL OR IMPLIED, AND ALL OTHER WARRANTIES, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS ARE HEREBY DISCLAIMED. Correction of nonconformities as provided above shall be Purchaser’s exclusive remedy and shall constitute fulfillment of all liabilities of Atlas Copco (including any liability for direct, indirect, special, incidental or consequential damage) whether in warranty, strict liability, contract, tort, negligence, or otherwise with respect to the quality of or any defect in Products or associated services delivered or performed hereunder. Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 LIMITATION OF LIABILITY – IN NO EVENT SHALL ATLAS COPCO BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, however arising, whether in warranty, strict liability, contract, tort, negligence or otherwise, including but not limited to loss of profits or revenue, loss of total or partial use of the Products or facilities or services, downtime cost, or claims of the Purchaser for such or other damages whether on account of Products furnished hereunder or delays in delivery thereof or services performed upon or with respect to such Products. Atlas Copco’s liability on any claim whether in warranty, strict liability, contract, tort, negligence or otherwise for any loss or damage arising out of, connected with, or resulting from this contract or the performance or breach thereof, or from the design, manufacture, sale, delivery, resale, repair, replacement, installation, technical direction of installation, inspection, servicing, operation or use of any Product covered by or furnished under this contract shall in no case (except as provided in the section entitled “Patent Indemnity”) exceed the purchase price allocable to the Product or Part thereof which gives rise to the claim. All causes of action against Atlas Copco arising out of or relating to this contract or the performance hereof shall expire unless brought within on year of time of accrual thereof. PRICES – Prices to the Purchaser shall be the Atlas Copco list price in effect at time of order. Atlas Copco may, upon thirty (30) days prior written notice to Purchaser, change prices, or other terms of sale affecting the Products, by issuing new price schedules, bulletins or other notices. This contract applies to new Products only. Purchases of used equipment shall be on terms to be agreed upon at time of sale to Purchaser. This price does not include any Federal, state or local property, license, privilege, sales, service use, excise, value added, gross receipts, or other like taxes which may now or hereafter by applicable to, measured by or imposed upon or with respect to this transaction, the property, its purchase, sale, replacement, value, or use, or any services performed in connection therewith. Purchaser agrees to pay or reimburse Atlas Copco, its subcontractors or suppliers any such taxes, which Atlas Copco, its subcontractors or suppliers are required to pay or collect or which are required to be withheld by Purchaser. The price shall also be subject to adjustment in accordance with the published Price Adjustment Clauses, which price adjustment information shall supersede the terms of this Section 8, where inconsistent herewith. INFORMATION FURNISHED PURCHASER – Any design, manufacturing drawings or other information or materials submitted to the Purchaser and not intended for dissemination by Purchaser remain the exclusive property of Atlas Copco and may not, without its consent, be copied or communicated to a third party. PATENT INDEMNITY – For purposes only of this Section 10, where used, the designation “Atlas Copco” shall be deemed to mean Atlas Copco North America Inc. and its subsidiaries. Atlas Copco shall at its own expense defend any suits or proceedings brought against purchaser insofar as based on an allegation that Products furnished hereunder constitute an infringement of any claim of any patent of the United States of America, other than a claim covering a process performed by said Products or a product produced by said Product, provided that such Products are manufactured by Atlas Copco, are not supplied according to Purchaser’s detailed design, are used as sold by Atlas Copco. Purchaser shall have made all payments then due hereunder, and Atlas Copco is notified promptly in writing and given authority, information and assistance for the defense of said suite or proceeding; and Atlas Copco shall pay all damages and costs awarded in any suit or proceeding so defended, provided that his indemnity shall not extend to any infringement based upon the combination of said Products or any portion thereof with other Products or things not furnished hereunder unless Atlas Copco is a contributory infringer. Atlas Copco shall not be responsible for any settlement of such suit or proceeding made without its written consent. If in any suit or proceeding defended hereunder any Product is held to constitute infringement, and its use is enjoined, Atlas Copco shall, at its option and its own expense, either replace said Products with non-infringing Products; or modify them so that they become non-infringing; or remove them and refund the purchase price and the transportation costs thereof. THE FOREGOING STATES THE ENTIRE LIABILITY OF ATLAS COPCO AND AFFILIATES WITH RESPECT TO PATENT INFRINGEMENT. To the extent that said Products or any portion thereof are supplied according to Purchaser’s detailed design or instructions, or modified by Purchaser, or combined by Purchaser with equipment or things not furnished hereunder, except to the extent that Atlas Copco is a contributory infringer, or are used by Purchaser to perform a process, or produce a product, and by reason of said design, instructions, modification, combination, performance or production, a suit or proceeding is brought against Atlas Copco, Purchaser agrees to indemnify Atlas Copco in the manner and to the extent Atlas Copco indemnities Purchaser in this Section 10 insofar as the terms hereof are appropriate. ASSIGNMENT – Any assignment of this contract or any rights hereunder, without prior written consent of Atlas Copco by a duly authorized representative thereof shall be void. TERMINATION – Any order or contract may be cancelled by Purchaser only upon payment of reasonable charges (including an allowance for profit) based upon costs and expenses incurred, and commitments made by Atlas Copco. PARTIAL INVALIDITY – If any provision herein or portion thereof shall for any reason be held invalid or unenforceable, such invalidity or enforceability shall not affect any other provision or portion thereof, but these conditions shall be construed as if such invalid or unenforceable provision or portion thereof had never been contained therein. REMEDIES – The remedies expressly provided for in these conditions shall be in addition to any other remedies, which Atlas Copco may have under the Uniform Commercial Code or other applicable law. SMARTLINK: The equipment may include a data monitoring service called SMARTLINK. The data received by Atlas Copco may be used by Atlas Copco and certain third party distributors and contractors for the purpose of increasing overall customer service. Atlas Copco will use commercially reasonable efforts to ensure that Purchaser’s data is kept confidential. Purchaser acknowledges that the use of the SMARTLINK is provided “as is”, that use of the service is entirely at Purchaser’s risk, and that Atlas Copco may discontinue the SMARTLINK service at any time. Purchaser may request discontinuance of the SMARTLINK service at any time. NOTE: Sale of the equipment or services described or referred to herein at the price indicated is expressly conditioned upon the terms and conditions set forth on the front and back of this page. Any confirmatory action by the Purchaser hereunder, or any acceptance of such equipment of services, shall constitute assent to said terms and conditions. Any additional or different terms or conditions set forth in the Purchaser’s order or other communications are objected to by Seller and shall not be effective or binding unless assented to in writing by an authorized representative of Seller. Quote No. C20221213JS Revision No. 00 Date: December 29, 2022 PAYMENT TERMS Unless expressly agreed to in writing on a specific contract or order, our standard payment terms are: For orders under $75,000 the payment terms shall be Net 30 days from date of shipment. For orders over $75,000 or with lead times greater than six months the following terms shall apply: 1. Domestic Shipments NET 45 for all progress payments A. 20% of the contract value upon approval of submittal package B. 60% of the contract value upon satisfactory completion of factory tests or shipment from factory C. 15% of the contract value upon delivery to site D. 5% of contract value upon commissioning and/or beneficial use, not to exceed 90 days from start up For late payments, the customer agrees to pay the greater value of $250 per business calendar day for payment not received or A. 1.5% of the invoice value if not paid in full within 10 business days of the agreed upon NET 45 terms B. 2.5% of the invoice value if not paid in full within 20 business days of the agreed upon NET 45 terms C. 3% of the invoice value per calendar month if not paid in full 2. Export Shipments All export shipments are subject to purchaser arranging for an irrevocable letter of credit in favor of Atlas Copco Compressors LLC, from a recognized American bank. Should the order fall in a category that requires progress payments, the letter of credit shall be arranged to release payment in accordance with the agreed payment schedule. 3. Payment Retention Payment retention will not be allowed. An irrevocable bank letter of credit will be furnished at Atlas Copco’s expense in lieu of retention. 4. Credit Approval All terms are subject to credit approval by Atlas Copco Compressors LLC. CANCELLATION SCHEDULE The following cancellation schedule shall apply to orders once released to manufacture. Definitions: Standard Stocked Equipment - equipment as shown in the current catalog and available for shipment from the US Distribution Center. Standard Non-Stocked Equipment - equipment as shown in the current catalog but not currently stocked at the US Distribution Center. Engineered Equipment - equipment requiring customized features not shown in the current catalog. Orders for Standard Non-Stocked Equipment A) After production has started: * 40% of equipment price B) After production has been completed: * 60% of equipment price Orders for Engineered Equipment A) After production has started * 40% of the base machine price * 40% of optional equipment of purchased materials will be charged B) After production has completed * 60% of the base machine price * 100% of optional equipment CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Approve the Evaluation and Purchase Agreement with Atlas Copco Compressors LLC, in the amount of $130,000 for an air blower at the Clear Creek Wastewater Treatment Plant, and approve additional funding in the amount not to exceed $20,000 for shipping and handling, taxes, installation, and start up and commissioning services. Fiscal Impact The Wastewater Utility Division has sufficient funds available in the approved Fiscal Year 2020- 21 budget for this purchase. Alternative Action The City Council has the option to not approve the agreement and the allocation of additional funds and provide alternative direction to staff. Background/Analysis As part of the Clear Creek Wastewater Treatment Plant (CCWWTP) expansion project in 2012, five (5) new Houston Service Industries (HSI) air blowers (blowers) were installed as components of the updated wastewater treatment process. These blowers have been problematic in their inability to reliably operate and function as designed from the time of installation. Years of repairs, services, and replacements at the cost of the manufacturer have yet to remedy all issues, particularly on one of the five blowers. The original five year warranty period for the blower units formally ended in 2017. Atlas Copco Compressors LLC (Atlas Copco) has subsequently purchased HSI and has been working with the City of Redding (City) to correct the problems. Even though the warranty period has expired on the blowers, Atlas Copco has continued to provide service to the City in a good faith effort to try and remedy the problems. MEETING DATE: July 21, 2020 ITEM NO. 4.11(b) FROM: ***APPROVED BY*** caukland@ci.redding.ca.us btippin@cityofredding.org SUBJECT: 4.11(b)--Evaluation and Purchase Agreement with Atlas Copco Compressors LLC, for an Air Blower at the Clear Creek Wastewater Treatment Plant Chuck Aukland, Public Works Director Report to Redding City Council July 13, 2020 Re: 4.11(b)--Evaluation & Purchase Agreement Atlas Copco Compressors LLC, for Air Blower at CCWWTP Page 2 The proposed Evaluation and Purchase Agreement (Agreement) is a remedy from Atlas Copco to provide the City with a new blower that is believed to better suit the needs of the CCWWTP. The blower will be replacing a non-operational blower so there is no interruption in service or process. The agreement will allow the City to install and operate this new blower on a trial basis for up to 90 days. If the blower meets the operational needs, the City can purchase the blower at cost from Atlas Copco. If the blower does not meet operational needs, the City can return the blower and pursue other options. The agreement has been approved as to form by the City Attorney. Council Priority/City Manager Goals This agenda item is a routine operational item. Attachments Evaluation and Purchase Agreement (available online) CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Authorize purchase of Atlas Copco blower in the amount of $190,948.53 for the City of Redding Clear Creek Wastewater Treatment Plant; and approve additional funding in an amount not to exceed $30,000 for shipping and handling, taxes, and start-up and commissioning services. Fiscal Impact The Wastewater Utility Division has sufficient funds available in the approved Fiscal Year 2021- 22 budget for this purchase. Alternative Action The City Council (Council) could choose not to approve the purchase and additional funds and provide alternative direction to staff. Background/Analysis As part of the Clear Creek Wastewater Treatment Plant (CCWWTP) expansion project in 2012, five (5) new Houston Service Industries (HSI) air blowers (blowers) were installed as part of the updated wastewater treatment process. The functionality and operation of these blowers has been unreliable from the time they were installed. Despite the manufacturer covering the cost of years of repairs, services, and replacements the problems have not been remedied and the blowers continue to experience issues. Atlas Copco has subsequently purchased HSI and has been working with the City of Redding (City) to correct the problems. MEETING DATE: February 15, 2022 ITEM NO. 4.11(f) FROM: ***APPROVED BY*** caukland@ci.redding.ca.us btippin@cityofredding.org SUBJECT: 4.11(f)--Authorize Purchase of Blower for Clear Creek Wastewater Plant Chuck Aukland, Public Works Director Report to Redding City Council February 9, 2022 Re: 4.11(f)--Authorize Purchase of Blower for Clear Creek Wastewater Plant Page 2 On July 21, 2020, the Council approved an Evaluation and Purchase agreement with Atlas Copco to provide the City with a new blower on a “Trial and Buy” basis. This blower has proven to be much more reliable and has a wider range of airflow that better suits the needs of the CCWWTP. The City completed the purchase of this blower in 2021. Subsequently, the other HSI blowers are failing, and currently, there are only two of the five blowers operating as designed, including the newest installed blower. Atlas Copco has provided a quote to purchase another blower to replace one of the inoperable blowers. As time and budget allows, the inoperable HSI blowers will be systematically replaced with new Atlas Copco blowers in future budget cycles. The air blowers are some of the most critical pieces of equipment for CCWWTP and must be operational in order to operate the biological process of the plant. Council Priority/City Manager Goals • This agenda item is a routine operational item. Attachments Quote No. 2915353 (available online) 7-21-20 Staff Report (available online)