Title
Resolution to Approve Purchase of Liquid Oxygen for Water Treatment Plant Services from Matheson Tri-Gas Bid No. ITB-4682 (estimated $80,000.00/year)
Memorandum
Your approval is requested to authorize the purchase of approximately 200,000 CCF of liquid oxygen at $0.40/CCF from Matheson Tri-Gas, the lowest responsible bidder in response to ITB-4682. The Water Treatment Services Unit uses liquid oxygen to generate ozone, which it uses to disinfect drinking water. The estimated total cost of this chemical is $80,000.00 for FY22.
The following bids were received: Matheson Tri-Gas - $0.40/CCF
Metro Welding - $0.77/CCF
It is recommended that the resolution be approved to satisfy the Water Treatment Service Unit’s need for liquid oxygen to generate ozone to properly disinfect drinking water.
If Matheson Tri-Gas is unable to furnish the chemical or the required insurance, it is recommended that the WTSU Manager be authorized to accept the next lowest responsible bid for the purchase.
It is also recommended that the purchase agreement be extended for up to three (3), one-year (1) periods, if in the best interest of the City, limited to the annual price increases tied to the Producers Price Index (PPI) as outlined in the bid documents, and subject to the availability of funding.
Matheson Tri-Gas 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 Plant
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Tom Crawford, City Administrator
Body
Whereas, The Water Treatment Services Unit uses liquid oxygen to generate ozone, which it uses to disinfect drinking water.
Whereas, Matheson Tri-Gas provided the lowest responsible bid in response to ITB No. 4682 to supply liquid oxygen; and
Whereas, Matheson Tri-Gas complies with the requirements of the City’s Non-Discrimination Ordinance and Conflict of Interest Ordinance.
RESOLVED, That Council accepts the Matheson Tri-Gas bid of $0.40/CCF for liquid oxygen in accordance with the terms of Bid No. ITB-4682;
RESOLVED, That the City Administrator be directed to approve a purchase order with Matheson Tri-Gas for purchase of liquid oxygen in accordance with this resolution at $0.40/CCF, for a projected cost of approximately $80,000.00 for FY22;
RESOLVED, That the City be authorized to procure the same amount of liquid oxygen from another vendor if Matheson Tri-Gas is unable to furnish the chemical or the required insurance;
RESOLVED, That the City Administrator be authorized to renew the purchase agreement for up to three (3), one-year (1) periods subject to availability of funding and limited to the price escalation clause tied to the Producers Price Index (PPI) as outlined in the bid documents; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.