Title
Resolution to Approve Purchase of Liquid Oxygen for Water Treatment from Air Liquide Industrial U.S. LP, Bid No. ITB-4154 (estimated $74,000.00/yr)
Memorandum
Your approval is requested to authorize the purchase of liquid oxygen (LOX) for the water treatment process. The Water Treatment Services uses liquid oxygen to generate ozone which is used to disinfect drinking water. The estimated total cost of this chemical for FY12 is $74,000.00
The only bid received was:
Air Liquide Industrial U.S. LP $0.37/ccf
It is recommended that the resolution be approved to satisfy the Water Treatment Services Unit's requirement of liquid oxygen for FY12 from Air Liquide as the lowest responsible bidder.
It is also recommended that the purchasing agreement be extended for up to three additional years at no increase in cost if the vendor is agreeable, and if the City deems it to be in its best interest.
Funds are specifically budgeted for this purchase in the approved FY12 Operations and Maintenance Budget for the Water Supply System.
Staff
Prepared by: Larry Sanford, Assistant Manager, Water Treatment Services
Reviewed by: Sue F. McCormick, Public Services Administrator
Body
Whereas, The Water Treatment Services Unit uses liquid oxygen (LOX) in daily operations for disinfection of the drinking water;
Whereas, Contracts for supplying estimated requirements are the most stable and cost-effective way of meeting water treatment needs;
Whereas, Air Liquide's bid is the only bid received for the supply of liquid oxygen per Bid No. ITB-4154; and
Whereas, Air Liquide Industrial U.S. LP received Human Rights approval on May 4, 2011;
RESOLVED, That Council accepts Air Liquide's bid of $0.37/ccf for LOX in accordance with the terms of Bid No. ITB-4154;
RESOLVED, That the City Administrator be directed to approve a purchase order with Air Liquide Industrial U.S. LP for purchase of LOX in accordance with this resolution at $.037/ccf, for a projected cost of approximately $74,000.00 for FY12;
RESOLVED, That the City Administrator be authorized to renew the purchase order for up to three one-year periods provided both parties agree to an extension and subject to the annual appropriation of funds in FY13, FY14 and FY15;
RESOLVED, That the purchase of liquid oxygen to be funded from the approved FY12 Operation and Maintenance Budget of the Water Supply System; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.