Title
Resolution to Approve Purchase of Anhydrous Ammonia for Water Treatment from Tanner Industries, Inc. (ITB 4672) (Estimated $41,000.00/year)
Memorandum
Your approval is requested to authorize the purchase, under the City’s standard purchase order terms, of anhydrous ammonia for the water treatment process. The Water Treatment Services uses approximately 25 tons/year of anhydrous ammonia as part of its disinfection process in the treatment of drinking water. The estimated cost of this chemical for FY22 is $41,000.00.
The following bids were received: Tanner Industries, Inc. - $1,640.00/ton
Airgas - $1,740.00/ton
It is recommended that the resolution be approved to satisfy the Water Treatment Service Unit’s requirement for anhydrous ammonia from Tanner Industries, Inc. as the lowest responsible bidder.
If Tanner Industries, Inc. is unable to furnish the chemical or the required insurance, it is requested that the WTSU Manager be authorized to accept the next lowest responsible bid for the purchase.
It is also recommended that the purchasing agreement be extended for up to two (2), one-year (1) periods provided both parties agree to an extension, and with an optional price increase tied to the Producers Price Index (PPI) as outlined in the bid documents, and subject to the availability of funding.
Tanner Industries, Inc. complies with the requirements of the City’s Non-discrimination ordinance and Conflict of Interest ordinance.
Budget/Fiscal Impact: Funds are specifically budgeted for this purchase in the approved FY22 Operations and Maintenance Budget of the Water Supply System.
.Staff
Prepared by: Rebecca Lahr, Drinking Water Quality Manager, Water Treatment Services
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Tom Crawford, City Administrator
Body
Whereas, The Water Treatment Services Unit uses anhydrous ammonia for disinfection in the treatment of drinking water;
Whereas, Tanner Industries, Inc. provided the lowest responsible bid to supply anhydrous ammonia; and
Whereas, Tanner Industries, Inc. complies with the requirements of the City’s Non-Discrimination Ordinance and Conflict of Interest Ordinance.;
RESOLVED, That Council accepts the Tanner Industries, Inc. bid of $1,640.00/ton for anhydrous ammonia in accordance with the terms of ITB 4672;
RESOLVED, That the City Administrator be directed to approve a purchase order with Tanner Industries, Inc. for the purchase of anhydrous ammonia in accordance with this resolution at $1,640.00/ton, for a projected cost of approximately $41,000.00 for FY22;
RESOLVED, That the City Administrator be authorized to renew the purchasing agreement for up to two (2), one-year (1) periods provided both parties agree to an extension, and with an optional price increase tied to the Producers Price Index (PPI) as outlined in the bid documents, and subject to the availability of funding;
RESOLVED, That should Tanner Industries, Inc. be unable or fail to furnish the chemical, the WTP is authorized to accept the next lowest responsible bid for the purchase and issue a purchase order accordingly; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.