Title
Resolution to Approve Purchase of Liquid Oxygen for Water Treatment Services from Air Liquide Industrial U.S. LP, Bid No ITB-4380 (estimated $73,400.00/yr)
Memorandum
You're approval is requested to authorize the purchase of liquid oxygen (LOX) for the water treatment process. The Water Treatment Services Unit uses liquid oxygen to generate ozone which is used to disinfect drinking water. The estimated total cost of this chemical for FY16 is $73,400.00.
The City received the following bids:
Air Liquide Industrial U.S. LP |
$0.367/ccf (hundred cubic feet) |
Progressive Industries |
$1.75/ccf + additional fees |
Praxair |
No Bid |
Univar |
No Bid |
It is recommended that Council accept the bid and award a purchase order to Air Liquide Industrial U.S. LP, as the lowest responsible bidder, to provide the Water Treatment Services Unit with liquid oxygen for FY16.
It is also recommended that the purchasing agreement be extended for up to three additional one-year periods at no increase in cost if the vendor is agreeable and if in the best interest of the City.
Funds are specifically budgeted for this purchase in the approved FY16 Operations and Maintenance Budget for the Water Supply System Fund.
If Air Liquide Industrial U.S. LP is unable to furnish the liquid oxygen, it is requested that the City Administrator be authorized to accept the next lowest responsible bidder for the liquid oxygen purchase.
Staff
Prepared by: Larry Sanford, Assistant Manager, Water Treatment Services
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Steven D. Powers, City 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 Industrial U.S. LP's bid is the lowest responsible bid for the supply of liquid oxygen per Bid No. ITB-4380;
Whereas, Funding for the purchase of liquid oxygen is available in the FY16 approved Operation and Maintenance Budget of the Water Supply System Fund; and
Whereas, Air Liquide Industrial U.S. LP complies with the requirements of the Non-discrimination Ordinance;
RESOLVED, That Council accepts Air Liquide Industrial U.S. LP's bid of $0.367/ccf for LOX in accordance with the terms of Bid No. ITB 4380;
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 $0.367/ccf, for a projected cost of $73,400.00 for FY16;
RESOLVED, That the City Administrator be authorized to renew the purchasing agreement for up to three one-year periods provided both parties agree to an extension and subject to availability of funding;
RESOLVED, That the City Administrator be directed to accept the next lowest responsible bidder if Air Liquide Industrial U.S. LP is unable to furnish adequate supplies during the Contract period; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.