HomeMy WebLinkAbout7/7/1999 - STAFF REPORTS (28) DATE: July 7, 1999
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 1999/2000
fiscal year.
BACKGROUND:
The City of Palm Springs has had a long-term relationship with Nalco Chemical
through the use of its water treatment products and its accompanying technical
support in maintaining the City's co-generation 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 co-generation plants.
Damage to the co-generation 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 co-generation 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 specific 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 needs at the plants.
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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 co-generation and HVAC systems. Participation in this program in
fiscal year 1998/1999 resulted in approximately a 10% savings in chemical
costs. Renewing the existing Nalco purchase agreement for fiscal year
1999/2000 will continue to provide the best value and protection for the City's
HVAC equipment and co-generation facilities.
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 520-5641-48700.
SC?TT MIKE ELL, Director HAR,O''LD E. GOOD, Procurement Manager
Department of Facilities Procurement Division
ALLEN F. SMOOT, A.A.E.
Assistant City anger-----Op ations
APPROVED:
Cit Manager
ATTACHMENT:
1. State Price Schedule —v%t�ez�
2. Minute Order
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.
I HEREBY CERTIFY thatthis Minute Order, approving the purchase agreementwith Nalco
Chemical at the same volume pricing and conditions extended to the State of California for
a period of one year for an amount hot to exceed $60,000, was approved by the City
Council of the City of Palm Springs, California, in a meeting thereof held on the 71h day of
July, 1999.
BY:
PATRICIA A. SANDERS
Acting City Clerk
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