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HomeMy WebLinkAbout7/19/2000 - STAFF REPORTS (20) DATE: July 19, 2000 TO: City Council FROM: Director, Department of Facilities, and Procurement Manager PURCHASE OF WATER TREATMENT CHEMICALS RECOMMENDATION: That the City Council approve extending the existing purchase agreement for water treatment chemicals from Nalco Chemical at the same volume discount pricing that it has set for the State of California, according to the state's terms and conditions, for a total amount not to exceed $60,000 for the 2000/2001 fiscal year. BACKGROUND: The City of Palm Springs has had a long-term relationship with Nalco Chemical through the use 4 of its water treatment products and its accompanying technical support in maintaining the City's cogeneration and HVAC systems. This relationship has resulted in Nalco being the supplier of choice for the City in purchasing water treatment products for the City's cogeneration plants. Damage to the cogeneration plants due to improper water treatment practices can cause substantial expense as well as unscheduled down time. Nalco's products and the value of its chemical testing procedures have proven to reduce costs. This has been accomplished by the chemicals themselves and through effective inspections provided by Nalco. These procedures and products have proven to extend equipment life and limit possible damage to sensitive machinery. Due to the nature of our cogeneration facilities' diversified operation, previous low-bid chemical companies have not demonstrated the expertise needed for specialized water treatment functions at the plants. They have also proven to be unreliable suppliers. Nalco's product line is spec to the treatment conditions experienced at the plants due to its knowledge of methods used in chemical water treatment, metallurgy, and the protection of metal surfaces. Nalco has developed a good working relationship with the City and has consistently performed above normal expectations through its responsiveness to the City's chemical need at the plants. The State of California Price Schedule, on file in the office of the City Clerk, outlines the commodity purchase unit pricing for various chemicals used to maintain cogeneration and HVAC systems. Participation in this program in fiscal year 1999/2000 resulted in approximately a 10%savings in chemical costs. Renewing the existing Nalco Purchase Agreement for fiscal year 2000/2001 will continue to provide the best value and protection for the City's HVAC equipment and cogeneration facilities. 1#74 Procurement Manager, pursuant to the requirements of Municipal Code Section 3.12.270.6, finds that the competitive process conducted by the State of California for the proposed purchase is adequate to protect the public interest and that the total value of the services is likely to be less through the proposed cooperative purchase than could be obtained through the City's independent purchasing. Funds are available in Account 520-564148700, Cogan Special Parts and Repairs. EPOTT MIKES LL, Director HAROLD E. GOOD, CPPO partment of Facilities Procurement Manager REVIEWED BY WE OF F WIDE APPROVED: tx C' n er ATTACHMENT: 1 Minute Order 1'1 441 gal 4 =,7 M A d O© ® P.O.BOX B90 0 LONG BEACH,CALIFORNIA 90901 0 AREA 31 O-BO4-0078 June 27,2000 City of Palm Springs 425 North Civic Drive Palm Springs,CA 92262 Atm.: Mr. Jan Anderson Dear Mr.Anderson: The following table lists all of the water treatment chemicals that are currently being utilized at your facility. You will find that it demonstrates the savings you are receiving by utilizing the state pricing vs. our regular book price. NALGO ORIGINALS STATE SPER PERCENT PRODUCT PERPOUND POUND SAVINGS 2548 2.42 2.18 10.0 2552 638 5.92 10.0 25M 2.55 230 10.0 2599 2.67 2A0 10.0 2590 &94 8.05 10.0 2593 7.97 7.17 10.0 2807T 6.18 5.56 10.0 2818 3.29 2.95 10.0 2827 4.95 4A6 10.0 2833 4.65 419 10.0 2837 6.45 5.81 10.0 2840 926.12/11LBS 833.51/11 LBS 10.0 4360T U." 10.76 10.0 If you have any further questions please don't hesitate to call me at(619)572-4640 or my secretary at(310)604-0078. Respectfully, �•Zj� �. Michael Bliss b� MM:mIf cc: Mr. Scott Mikesell CORPORATE OFFICES ONE NALGO CENTER 0 NAPERNLLE ILLINOIB 80663-t 19B 0 AREA 70B.3D3-1000 DapaMnM of Gameal Sarioaa Procwwnont DWMon P.O.Box I1428W SacranMntq CA 94204-Ml STATE OF CALIFORNIA STATE PRICE SCHEDULE STATE PRICE SCHEDULES ARE NOT CONTRACTS. AN AGENCY IS NOT REQUIRED TO PURCHASE FROM A STATE PRICE SCHEDULE IF LIKE ITEMS AND BRANDS ARE AVAILABLE ELSEWHERE AT A LOWER PRICE SHOULD YOU REQUIRE A LARGE QUANTITY OF AN ITEM LISTED ON AN BPS. IT MAY BE TO YOUR ADVANTAGE TO SUBMIT AN ESTIMATE FOR PURCHASE ON A COMPETITIVE BASIS. THIS PRICE SCHEDULE SHALL NOT BE CONSTRUED AS A COMMITMENT TO PURCHASE ANY OR ALL OF OUR REQUIREMENTS FROM THE FIRM LISTED ON THE PRICE SCHEDULE IT MERELY INDICATES THAT THE VENDOR WILL ACCEPT ANY ORDERS STATE AGENCIES MAY PLACE WITH THE FIRM IN ACCORDANCE WITH THE TERMS OF THIS STATE PRICE SCHEDULE. PRODUCT Water Treatment Chemicals SPS NO. 2-00-68-02 EFFECTIVE: 07-01-2000 through 06-30-2001 VENDOR: Nalco Chemical Company SMC CLASS: Soso DISTRIBUTION CODE: P-68-02 SUPERSEDES SPS: 2-99-68-02 To obtain assistance or report non-complianoe by Vendor, call or write: Department of General Services, Procurement Division, P. O. Box 942804, Sacramento, Cal'domia 94204-0001, or call Sharon DuBose, (916) 323-8628, CALNET 473-8628. 1�1� 3 SPS No.2-00-68-02 Page 2 TAX sales&Use: Plus Fed.Excise: Exempt VENDOR I.D.NO. 600846 TERMS: Net 30 days MINIMUM ORDER: 5 gallon pail MAXIMUM ORDER $15,000 excluding applicable taxes. F.O.B.POINT: Destination DELIVERY: 7-21 days(Varies based on package size,etc) ORDERING PROCEDURE: Show SPS number,quantity,description and pricing on each Contract/Delelgation Purchase Order,Form Std.65,or the approved agency form and issue to: NORTHERN CALIFORNIA SOUTHERN CALIFORNIA CENTRAL CALIFORNIA Nalco Chemical Company Nalco Chemical Company Nalco Chemical Company 1000 Burnett Ave.,Ste 430 2111 East Dominguez Street 605 Standiford Avenue,Ste.K Concord,CA 94520-2000 P.O.Box 220 Modesto,CA 95350-1000 (925)676-0541 Long Beach,CA 90801 (209)525-9047 (310)638-7836(Los Angeles Area) (310)604-0078(Southern California) Invoices will be rendered from: Nalco Chemical Company,One Nalco Center,Naperville,IL 60563-1198 Submit a copy of each Contract/Delegation Order to the State Department of General Services,Procurement Division. NOTE TO LOCAL AGENCIES: Suppliers are willing to accept orders from local agencies within California. However,this State Price Schedule is a result of negotiation rather than competitive bidding. Therefore,please consult your Legal Counsel before utilizing this State Price Schedule. AGENCY NOTE: DRUG-FREE WORKPLACE CERTIFICATION The vendor(s)on this State Price Schedule,by having submitted a signed Drug-Free Workplace Certification, certified under penalty of perjury under the laws of the State of California that the vendor(s)will comply with the requirements of the Drug-Free Workplace Act of 1990(Government Code Section 8350 at seq.)and will provide a drug-free workplace by taking the actions required of Government Code Section 8355(a),(b),and(c). Based on the above,when ordering against this State Price Schedule,using agencies are not required to have the vendors)submit a Drug-Free Workplace Certification FOR 810 REPORTING PURPOSES,VENDOR IS IDENTIFIED AS: Large Business jl� &AL — JANICE KING,MANAGER ACQUISITIONS BRANCH ,614 MINUTE ORDER APPROVING THE PURCHASE AGREEMENT WITH NALCO CHEMICALATTHE SAME VOLUME PRICING AND CONDITIONS EXTENDED TO THE STATE OF CALIFORNIA FOR A PERIOD OF ONE YEAR FOR AN AMOUNT NOT TO EXCEED $60,000. I HEREBY CERTIFY that this Minute Order,approving the purchase agreement with Nalco Chemical at the same volume pricing and conditions extended to the State of California for a period of one year for an amount not to exceed $60,000, was approved by the City Council of the City of Palm Springs, California, in a meeting thereof on the Wh day of July, 2000. BY: PATRICIA A. SANDERS City Clerk w*da*wvwzoPnvw-dr" �� �