Title
Resolution to Approve Purchase of Carbon Dioxide (CO2) for Water Treatment from Pain Enterprises, Bid No ITB-4022 ($59.50/ton, estimated $30,000.00/yr)
Memorandum
Your approval is requested to authorize the purchase of approximately 500 tons of carbon dioxide (CO2) at $59.50/ton for the water treatment process from Pain Enterprises. The Water Treatment Service Unit uses carbon dioxide in softening process and reducing the cost of disinfection. The estimated total cost for the purchase of the Carbon Dioxide is $30,000.00.
In response to the City's bid no ITB-4022, the following bids were received:
Pain Enterprises - $54.50 CO2 + $5/ton Freight ($59.50/ton total)
Continental Carbonic - $65/ton
Praxair - $90/ton
Air Liquide - $148/ton
It is recommended that the resolution be approved to satisfy the Water Treatment Service Unit's requirement of carbon dioxide for FY10 from Pain Enterprises 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.
In the event Pain Enterprises is unable to furnish the chemical, it is requested that the City Administrator be authorized to accept the next lowest responsible bidder for the carbon dioxide purchase.
Purchases of CO2 in FY10 and future extensions will be funded in the Operations and Maintenance Budget for the Water Supply System, if so approved by Council.
Staff
Prepared by: Larry Sanford, Asst Manager, Water Treatment Services
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, The Water Treatment Service Unit uses carbon dioxide (CO2) in softening process and reduce the cost of disinfection;
Whereas, Contracts for supplying estimated requirements are the most stable and cost-effective way of meeting treatment needs;
Whereas, Of the four bids received to supply CO2 per Bid No ITB-4022, Pain Enterprises submitted the lowest bid; and
Whereas, Pain Enterprises received Human Rights approval on May 19, 2009;
RESOLVED, That Council accept the Pain Enterprises bid of $59.50/ton for CO2 and freight in accordance with the terms of Bid No ITB-4022;
RESOLVED, That the City Administrator be directed to enter into a purchasing agreement in accordance with this resolution at a projected cost of approximately $30,000.00 for FY10;
RESOLVED, That the agreement may be renewed for up to three one-year periods provided both parties agree to an extension;
RESOLVED, That the City Administrator be directed to accept the next lowest responsible bidder if Pain Enterprises is unable to furnish adequate supplies;
RESOLVED, That the purchase of CO2 in the estimated amount of $30,000.00 be funded by the approved FY10 Operations 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.