Title
Resolution to Approve Purchase of Carbon Dioxide (CO2) for Water Treatment Services from Matheson Tri-Gas Inc., ITB-4583 (estimated $70,000.00/year)
Memorandum
Your Approval is requested to authorize the purchase of approximately 560 tons of Carbon Dioxide (CO2) at $125/ton. The Water Treatment Services Unit uses CO2 in the softening process and to reduce the cost of disinfection. The estimated total cost of this chemical is $70,000.00 for FY20.
The City received the following bids:
Air Products and Chemicals (non-responsive) $117.50/ton
Praxair (non-responsive) $119.50/ton
Matheson Tri-Gas $125.00/ton
Metro Welding $125.00/ton
It is recommended that Council accept the bid and award a purchase order to Matheson Tri-Gas Inc., as the lowest responsible bidder, to provide the Water Treatment Service Unit with Carbon Dioxide (CO2). The lowest two bids would not accept the terms and conditions of the City's purchase orders and were therefore considered non-responsive. Matheson Tri-Gas was chosen over Metro Welding because Metro Welding failed to acknowledge the addenda in their bid. The term changes requested were at odds with the City's risk management policies. Due to the necessity for carbon dioxide, the City also recommends authorization to purchase from another vendor if Matheson Tri-Gas Inc. is unable to provide this good in a timely manner.
It is also recommended that the purchasing agreement be extended for up to three additional one-year periods if the vendor is agreeable and if in the best interest of the City. Price increases would be available annually per the federal producer price index (PPI) at vendor's written request at time of renewal.
Budget/Fiscal Impact: Funds are budgeted in the FY20 Operations and Maintenance Budget for the Water Supply System Fund.
Staff
Prepared by: Sarah Page, Drinking Water Quality Manager, Water Treatment Services
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. ...
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