The URL can be used to link to this page

Home My WebLink About03.a. Follow-up to questions asked at the July 23, 3019 meeting regarding a certain check expenditure Page 1 of 16 Item 3.a. CENTRAL SAN August 28, 2019 TO: FINANCE COMMITTEE FROM: KEVIN MIZUNO, FINANCE MANAGER REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINSTRATION ANN SASAKI, DEPUTY GENERAL MANAGER ROGER S. BAILEY GENERAL MANAGER SUBJECT: FOLLOW-UP TO QUESTIONS ASKED AT THE JULY 23, 2019 MEETING REGARDING A CERTAIN CHECK EXPENDITURE At the July 23, 2019 Finance Committee meeting, Committee Members inquired about certain expenditures. This memo provides a follow-up to questions posed requiring additional research and/or feedback from other divisions. Page 9, Check#224461 - $82,788.90 to Alfa-Laval I nc. Alfa-Laval Inc. is the company that installed equipment associated with the treatment plant centrifuge. The Committee observed the labor proportion appeared high at approximately 57.3 percent of the total invoice, and asked for additional clarification. Staff Response: The District's contract with Alfa-Laval Inc. for centrifuge repair work specifies a fixed price for labor based on the scope of repairs needed. The Alfa-Laval Inc. invoice under question pertains to the disassembly, cleaning, inspection, and rebuild of one centrifuge rotating element. The Plant Maintenance Division oversees four centrifuges with five rotating elements interchanged between each of the centrifuges. These centrifuge elements are sent out based on 12,000 hours run time, which has generally resulted in one rotating assembly being sent out per year. The total time from sending an assembly unit out to receiving the assembly back has typically ranged between three to four months, an indication that there is significant labor involved in the refurbishment process. There is a sole-source contract in place with the original equipment manufacturer (OEM)for this work dating back to 2010. Staff has tried in the past to use a third-party service, but the work was unsatisfactory. Strategic Plan Tie-In GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage costs August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 4 of 202 Page 2 of 16 ATTACHMENTS: 1. Check No. 224461, Alfa-Laval Invoice and Payment 2. Quotation from Alfa-Laval dated March 1, 2019 August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 5 of 202 Page 3 of 16 Attachment 1 Check No. 224461 Date invoice Description Amount Number 05/31/19 279754248 EQUIP REPAIRS/TIME&MATRLS 82,788.90 ALFA-L1�VAL INC. 464 $2,788.90 Date Fund I Check No. Amount Central Contra Costa Sanitary District 106/27/20191 3406 1 224461 1 $-82,788.90 5019 Imhoff Place,Martinez,CA 94553-4392 WELLS FARGO BANK,MARTINEZ,CA 11-24/225 1210 8 PAY EIGHTY TWO THOUSAND SEVEN HUNDRED EIGHTY EIGHT AND 90/100 DOLLARS q-I GENERAL MANAGER ALFA-LAVAL SEPARATION INC, el- To DEPT 3227 3-5-- SECRETARY The PO BOX 123227 Order DALLAS TX 75312-3227 Of DEPUTY COUNTY AUDITOR THIS CHECK VOID 6 MONTHS AFTER DATE OF ISSUE 31.06221,L.GI ' 1: 1 2 1000 2481:1, 225 02 ?61411' August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 6 of 202 Page 4 of 16 OP invoice CENTRAL CONTRA COSTA SANITA- 1'' DISTFICT P,GCOt"P,�F�!Uwq��; t� AI`,iGUiti T r Recipient — . —b Delivery address Page: Central Contra Costa 1 Central Contra Costa Sanitary 1(2) * 'EMAIL INVOICES'** District ap@centralsan.org 5019 Imhoff Place Martinez,CA 94553 j ? _ Martinez,CA 94553-4316 UNITED STATES ItiVOICL ",r UNITED STATES AF' ov=_ C 0''rE Your reference � `r4 Customer r e ce 7 Please state at payment Central Contra Costa Invoice no 279754248 5019 Imhoff PI Your VAT reg no Goodsmark Your order date / Martinez,CA 94553-4316 02/01/2019 UNITED STATES Your order no Our reference 046974 Rev 1 Contact person Our reference Date Due date Steven Spencer Luke McCoy 05/31/2019 07/01/2019 Payment terms Delivery method Delivery date Net 30 Days Road Express 05/31/2019 Delivery terms(Incoterms 2010*) Order no Cust no DAP-Delivered At Place 0005016191 E1550550 Martinez Assignm.No 1 Ln Description Cust Poslltem VAT Inv qty Net price Amount 1 A 00 1.00 AMT 31,283.05 31,283.05 Parts 2 L 00 1.00 AMT 47,425.00 47,425.00 Labor Element shipped 5/22/19 CH Robinson Item value 78,708.05 Freight 1,500.00 Sales Tax 2,580.85 Alfa Laval Inc.(AL)will process personal data supplied by you for the purpose of enabling AL to perform any contractual obligations towards you and to fulfil AL's statutory obligations.An application by you for information of your personal data registered by us must be made in writing to AL. The general conditions of sale are according to AL's General Conditions Of Sale if nothing else is stated.An extra copy of these conditions will be sent to you upon request. The goods to be delivered may be subject to export license requirement.AL reserves the right to cancel the order without any liability for damage or loss arising out of or relating to the cancellation in the event such an export license is not granted by competent export control authority. Attention of the buyer is drawn to the following:Indirect,special and/or consequential damages are excluded from Suppliers liability and Supplier's total liability shall never exceed a maximum cumulative amount equal to 15%of the contract price.Should parts of the contract be held to be invalid or otherwise unenforceable in any jurisdiction, any other contract provisions shall not be affected. Alfa Laval Inc. Please send remittance to: Local sales office Contact 5400 Int.Trade Drive P.O.BOX 123227 Alfa Laval Inc. Richmond,VA 23231 Dallas,TX 75312-3227 3145 South Northpointe Drive United States Fresno,CA 93725 customerservice.fresno@alfalaval.com Fed. I.D.No.: 13-1681631 United States www.alfalaval.com August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 7 of 202 Invoice Page 5 of 16 Recipient Please state at payment Central Contra Costa Invoice no 279754248 Cust no Your reference E1550550 Order no Your order no Date Page: 0005016191 046974 Rev 05/31/2019 2(2) Ln Description Cust Pos/Item VAT Inv qty Net price Amount TO PAY USD 82,788.90 Alfa Laval Inc. Please send remittance to: Local sales office Contact 5400 Int.Trade Drive P.O.BOX 123227 Alfa Laval Inc. Richmond,VA 23231 Dallas,TX 75312-3227 3145 South Northpointe Drive United States Fresno,CA 93725 customerservice.fresno@alfalaval.com Fed. I.D.No.: 13-1681631 United States www.alfalaval.com August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 8 of 202 Page 6 of 16 Attachment 2 Quote to Repair u 3/1/19 Jon Nicolaus Central Contra Costa Quote to Repair PM75000 Rotating Assembly S/N 88-PM75000-145 without gearbox. Our report describing the condition of your equipment and advising the cost to repair is attached for your review. At the end of the document you will find a work authorization form for your execution and return. If you have and questions or concerns, feel free to contact me at (559) 287-3787. Best Regards, Luke McCoy August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 9 of 202 Page 7 of 16 JZN REPAIR SUMMARY PM75000 Rotating Assy. without Gearbox S/N 88-PM75000-145; 5016191 Basic Repair Rotating Assembly has been disassembled, cleaned and inspected to determine its present condition. Based on current OEM dimensions and standards, we recommend the following repairs. Replace all bearings, seals, o-rings, gaskets, damaged hardware, spacers, and lubricants with genuine Alfa Laval replacement components Assemble and prepare conveyor for balancing Assemble and prepare bowl for balancing Computer balance conveyor and bowl assemblies to OEM specifications Assemble rotating assembly complete for testing Test rotating assembly on test stand to OEM specifications Final inspection and prepare for paint Paint and palletize for shipment Conveyor: - No tiles are damaged Feed cone and flight faces have worn hardsurfacing. Hardsurface from the feed zone to the rear end of conveyor(48" from conveyor snout). Accelerator: - Urethane liner edges are worn. Replace w/ new Feed Zone Liner: - Urethane liner edges are worn. Replace w/ new. Nozzle Set: - No notable damage found. Feed Cone Inserts: - 3 of 8 are cracked. 8 of 8 carbide inserts are worn. Replace set w/new. Tension Bar: - Passed Inspections Spline Bushing: - Bead blast& primer back of part/cap. - Passed dimensional checks. Front Conveyor Seal Holder: - Repair Seal surface Rear Hub: - Remove epoxy coating to OD area. - Repair casing seal diameter(undersized and rub damage found). - Re-apply hard surfacing from O.D to flinger area. August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 10 of 202 Page 8 of 16 Rear Conveyor Bearing Seal Holder: - Passed visual and dimensional inspections. Front Hub: - Passed visual and dimensional inspections Plate Dam: - Passed visual inspection. Plate Dam Retainer: - Not notable damage found. Front Conveyor Hub: - Not notable damage found. Front Conveyor Hub Sleeve: - Repair seal diameter(undersized and worn). Front Conveyor bearing Retainer: - No notable damage found. Extension: - Remove epoxy coating to OD - Hardsurface OD from rear hub mating face to bowl mating face (including wind ring). Bowl Wear Ring: - No notable damage found. Bowl Shell: - No notable damage found. Bowl Seal Holder: - No notable damage found. Bowl Hub Seal Clamps: - Use as is as informed by customer previously NOTE: These clamps are not to OEM specifications, Alfa Laval cannot take liability for the use of these items. Seal Rings: - No notable damage found. Pillow Blocks: - No notable damage found. - Passed dimensional checks. Pillow Block Covers: - Modify to include drain holes per latest revision August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 11 of 202 Page 9 of 16 *% Flingers: - No notable damage found. Gearbox Adaptor: - No notable damage found. - Passed dimensional checks. Pulley: - No notable damage found. Rear Bowl Hub Nut: - No notable damage found. Pulley Seal Holder: - No notable damage found. Tension Bar Nut: - Repair worn seal diameter Feed Tube: - Did not receive. Lubrication System: - Nuts & oilers sent With return tubes - Use shop supplied lubrication system for test run Install customer provided return tubes when shipping Spline Shaft: - No notable damage found. This repair has an estimated completion time of 8 weeks, after receipt of order. August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 12 of 202 Page 10 of 16 D a�m a e. Dowcruament � L Central Contra Costa Sanitary LMC-181211-081305 February 19, 2019 District SO: 5016191 PM 75000 Rotating Assembly SN: 88 PM75000/145 Worn Front Conveyor Bearing Hub Seal Worn Small End Hub Lip Seal Area - ar Wb August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 13 of 202 Page 11 of 16 Cracked Feed Zone Liners . 4 Cracked Feed Zone Liners 2 August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 14 of 202 Page 12 of 16 Erosion of Feed Zone Targets (No replacement needed) Feed Accelerator Erosion r 3 August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 15 of 202 Page 13 of 16 Rounded Threads - wr+•• wwr�s�..w•�rw r r+• - •_ti��..r.s.ta::N--,•�..-�_ ._.rte' Stretched screws ss fes."... k ,4 o®r - -• _ ty i It If%*l.��r Skw! I._,r.1.i..w;� .�Y...^!•^fir l.,i'i - 'r 4 August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 16 of 202 Page 14 of 16 Bowl extension erosion caused by broken wear sleeve. i W Broken wear sleeve •k 5 August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 17 of 202 Page 15 of 16 Parts List PM75000 Rotating Assembly SN:88-PM75000-145 99159472 Kit, PM75000 R/A 1 $13,192.32 $13,192.32 9AB68M Grease 1 $139.97 $139.97 614267170 Accelerator Insert 1 $5,195.78 $5,195.78 6142672001 Feed Zone Insert 1 $670.90 $670.90 1 BGA71 B Screw 24 $10.10 $242.40 PC183952 Wear Sleeve 2 $999.32 $1,998.64 PD434951 Gasket 1 $6.32 $6.32 10AAC36 Expanding Dowel Pin 4 $167.73 $670.92 1 BHA63A Screw%-10 12 $12.39 $148.68 1 BHA43A Screw 8 $6.60 $52.80 PC159391 Bushing 1 $419.73 $419.73 6142004271 Insert(Set of 8) 1 $8,544.59 $8,544.59 Total.................$313283.05 www.alfalaval.com August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 18 of 202 Page 16 of 16 AUTHORIZATION TO REPAIR PM75000 Rotating Assy. without Gearbox S/N 88-PM75000-145; 5016191 The total charge for parts, labor and expenses associated with this repair is: DCI + Required Total Labor&Services $47,425.00 Required Parts subject to tax $31,283.05 Freight $1,500.00 Total Recommended Repair with Freight $80,208.05 This repair has an estimated completion time of 8 weeks, after receipt of order. Above prices include the amount of$8,745.00 from PO 046974. (Freight and DCI) We will disregard PO 046974 should you choose to issue a new PO for the total above, or PO 046974 can be updated to cover the total of$80,208.05. Above prices do not include applicable taxes Validity: 30 Payment Terms: NET 30 DAYS Warranty: Terms and conditions attached. Please execute the work authorization below and fax it to the number shown below. The equipment not approved for repair is subject to a service charge to cover the cost of disassembly, cleaning, inspection, quoting and repackaging. On occasion, more extensive damage is revealed during the course of the repair, in which case you will be contacted and advised of the possible impact to delivery and pricing. WORK AUTHORIZATION: Signing below is an authorization to proceed with the work described in the accompanying quotation. Authorized Signature: Date: Purchase order or Work order#: -> Email to the attention of Luke McCoy at luke.mccoy@alfalaval.com August 28, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 19 of 202