AGENDA MEMORANDUM

Meeting Date: March 26, 2007

From:                          Jack Rogers, Gas Director

Subject:                      Purchase and install two odorant injection systems from The Avanti Company to replace obsolete units at Haines Creek and Leesburg gate stations.

Staff Recommendation:

Staff recommends approval of Purchase Requisition # 37979 for $26,015 to The Avanti Company for odorant injection systems.

Analysis:

DOT, OPS Part 192.625 requires natural gas suppliers to introduce odorant into their systems at a rate that is readily detectable by their customers and without wide variation in the level of odorant. The City of Leesburg Natural Gas Department has been in compliance over the life of its system.    In 1998 the gas department purchased YZ system odorization units for its Leesburg and Haines Creek natural gas systems from The Avanti Company, the sole source provider of this equipment in Florida. The Gas Department was notified during the budget process last year this equipment would be obsolete in early 2007, but replacement units were being manufactured by YZ Equipment.  Recently we were notified that replacement parts would no longer be available, and so we have decided to replace these obsolete systems with a new model.  The YZ line of odorization equipment has proven to be extremely reliable and meets all FDOT and Florida PSC requirements.  Staff recently surveyed several neighboring gas companies as well as Florida Gas Transmission and found that they utilize the same equipment  becauseequipment because of its reliability, local technical support, and advanced technology.  We were  unablewere unable to find equipment produced by another manufacturer in use in this area.  By continuing to utilize YZ equipment, replacement of much of our existing system including tubing, valves and flow switches, will not be necessary.  

This purchase request is for two replacement units.  The first for $12,735, replaces the unit at our Leesburg station on Hwy 44.  The second for $13,280 replaces the unit at Haines Creek and includes the software package required to program both units. 

Installation of this replacement equipment is required to maintain Florida Public Service Commission compliance. 

Options:

1.  Approve the purchase from The Avanti Company for $26,015; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

The total cost of both units is $26,015.  $30,712 is included in the 2006-07 budget for purchase of this equipment. 

Submission Date and Time:    3/21/2007 4:26 PM3/20/2007 3:00 PM3/20/2007 2:59 PM____

Department: ______Gas________ Prepared by:  __JR ____________                      Attachments:         Yes _X___   No ______ Advertised:   ____Not Required _X_____ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ___JR_____ Finance  Dept. __________________                                    Deputy C.M. ___________________                                          Submitted by: City Manager ________RS___________

Account No. _042 2099 532_64 10 Project No. __420003__________ WF No. ____________________ Budget  _____$30,712_________ Available ____$52,612_________