Broken Arrow Municipal Authority
Meeting of: 07/31/2023
Title:
title
Approval of and authorization to execute a budget transfer request to fund the reconditioning and repair of two gearboxes
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Background:
On June 19, 2023 the City Council voted and adopted the annual budget for FY 24. In effort to be transparent, it is an internal policy to bring to the Authority a request to re-appropriate funds from one project to another or re-appropriate fund for a new project or purchase not already approved by the Authority.
The main treatment process train consists of (2) Basins with (4) 150hp motor/gearbox aerators, two in each basin. These aerators provide dissolved oxygen for biological treatment of the water.
On July 9, 2023, three of the four aerators failed, one with an electrical issue and the other two with gearbox failures. On July 10th, we were able to fix the electrical issue and move it to the West Basin to make a treatment basin (half of the operation). Recently the sole source equipment manufacturer, Ovivo, built a repair shop in the USA. The upcoming 2024 Aerator Project No. 2454180 was budgeted for $120,000 to buy a backup gearbox. The lead time is 18 months after receipt of PO. Ovivo has submitted a quote to tear down and recondition the two gearboxes for $150,000 and 18 weeks on the repair. The quoted cost does not cover replacement parts. Given the current situation, while trying to stay in compliance with federal regulations, staff is requesting a budget transfer of $200,000 from Blower Project No. 2454170 to Aerator Project No. 2454180. The additional funds would cover the emergency repair of the two gearboxes and any replacement parts needed. Four years ago, staff tried unsuccessfully to get a gearbox repaired through a secondary source. These gearboxes will be going directly to the manufacturer for repair.
Cost: N/A
Funding Source: BAMA Capital Budget
Requested By: Cynthia S. Arnold, Finance Director
Approved By: City Manager’s Office
Attachments: Budget Transfer Request FY 2024
Recommendation:
recommend
Approve and authorize execution of a budget transfer request to fund Project 2454180 and approve the repair.
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