Title
Resolution to Approve Purchase of Liquid Oxygen for Water Treatment Plant Services from Metro Welding Supply Corporation, Bid No. ITB-4581 (estimated $96,000.00/year)
Memorandum
Your Approval is requested to authorize the purchase of approximately 200,000 CCF of liquid oxygen at $0.48/CCF from Metro Welding Supply Corp., the sole bidder in response to ITB-4581. 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 $96,000.00 for FY20.
Because of the necessity of liquid oxygen, City staff recommends authorization to: (1) purchase this product from another vendor if the Metro Welding is unable to perform and (2) extend the City’s purchase order for up to 3 additional 1-year periods if in the best interest of the City. In the latter case, 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 available in the approved FY20 Water Supply System Operations and Maintenance Budget. Future purchase agreements are subject to Council budget approval.
Staff
Prepared by: Sarah Page, Drinking Water Quality Manager, Water Treatment Services
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The Water Treatment Services unit uses liquid oxygen in its water disinfection process;
Whereas, Metro Welding Supply Corporation’s bid was the lowest responsible in response to ITB-4581; and
Whereas, Metro Welding Supply Corporation complies with the requirements of the Non-Discrimination Ordinance;
RESOLVED, That the City Council accepts Metro Welding Supplies’ bid of $0.48/CCF for liquid oxygen in accordance with the terms of Bid No. ITB-4581;
RESOLVED, The City Administrator be directed to approve a purchase order with Metro Welding Supply Corporation for the purchase of liquid oxygen in accordance with this resolution at a projected cost of $96,000.00;
RESOLVED, The City be authorize to procure the same amount of liquid oxygen from another vendor if Metro Welding is unable to perform in a timely and otherwise adequate manner;
RESOLVED, The City Administrator be authorized to renew the purchase order authorized by this resolution for up to 3 1-year periods, subject to availability of funding and limited to the price escalation clause detailed in the ITB; and
RESOLVED, The City Administrator be authorized to take the necessary administrative actions to implement this resolution.