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Home My WebLink About7/18/2001 - STAFF REPORTS (10) t� DATE: July 18, 2001 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 2001/2002 fiscal year. SUMMARY: For the past two years Council has approved the extension of the existing purchase agreement for water treatment chemicals from Nalco Chemical.This same discounted pricing set for the State of California resulted in a 10% savings to the City. Staff asks that this discounted pricing agreement be approved for the fiscal year 2002 allowing the continued cost savings to the City. BACKGROUND: The City of Palm Springs has had a long-term relationship with Nalco Chemical through the use of its watertreatment 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 improperwater 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. 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 1999/2000 resulted in approximately a 10% savings in chemical costs. Renewing the existing Nalco purchase agreement for fiscal year 2001/2002 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. eS%OTT MIKESELL, Director HAROLD E. GOOD, CPPO, Director epartment of Facilities Department of Purchasing and Contracts APPROVED: City Manager ATTACHMENT: 1. State Price Schedule 2. Minute Order REVIEWED BY DEPL OF FINANCE �A � 07/05/01 15:40 FAX WATERGY SALES U 003 ..y . vw rnwurvcmicrvi � 916 322 4497 ). Jun-12-01 1 :08PM, Page Department of General Servicos Procurement Division �a P.O.Box 9428114 Q m Sacramento,CA 94204-0001 x e STATE OF CALIFORNIA C'tllro eN�' STATE PRICE SCHEDULE •TATE PRICE SCHEDULES ARE GUARANTEED PRICE LISTS BY SUPPLIERS, AN AGENCY IS NOT REQUIRED TO PURCHASE FROM STATE PRICE SCHEDULE IF LIKE ITEMS AND BRANDS ARE AVAILABLE ELSEWHERE AT A LOWER PRICE. SHOULD YOU .EQUIRE A LARGE QUANTITY OF AN ITEM LISTED ON AN SP5, IT MAY BE TO YOUR ADVANTAGE TO SUBMIT AN ESTIMATE FOR URCHASE ON A COMPETITIVE BASIS. HIS PRICE SCHEDULE SMALL NOT BE CONSTRUED AS A COMMITMENT TO PURCHASE ANY OR ALL OF OUR REQUIREMENTS ROM THE FIRM LISTED ON THE PRICE SCHEDULE. IT MERELY INDICATES THAT THE VENDOR WILL ACCEPT ANY ORDERS TATE AGENCIES MAY PLACE WITH THE FIRM IN ACCORDANCE WITH THE TERMS OF THIS STATE PRICE SCHEDULE. PRODUCT Water Treatment Chemicals SPS NO. 2-01-68-02 ;FFECTIVE: 07-01-2001 through 06.30-2002 'ENDOR: ONDEO NALCO COMPANY MC CLASS: 6850 ISTRIBUTION CODE: P-68-02 UPERSEDES SPS: 2-00-68-02 I obtain assistance or report non-compliance by Vendor, call or write: Department of General �rvices, Procurement Division, P. O. Box 942804, Sacramento, California 94204-0001, or call iaron DuBose, (916) 323-8628, CAL.NET 473-8628- $A 3 07/05/01 15:40 FAX WATERGY SALES 2004 uy . uu. inuuununuvi , 916 222 4497 Jun-12-01 1 :08PMi Page 3 SPS No. 2-01-68-02 Pace 2 TAX: Sales &Use: Plus Fed, Excise- Exempt VENDOR I. D,NO. 673369 (ONDEO Nalco Co„ Vallejo,California) 687271 (ONDEO Nalco Co., Long Beach, California) 734388 (ONDEO Nalco Co., Modesto,California) PERMS: Net 45 days vIINTMTTM ORDI R: 5 gallon pail v1AXIMUM ORDER: $25,000 excluding applicable taxes, .O.B. POINT: Destination -)FLTV1:RY: 7 - 21 days (Varies based on package size,etc,) )RDERING PROCEDURE: Show SPS number,quantity, description and pricing on each Contract/Delelgation 'urchase Order,Form Std. 65, or the approved agency form and issue to- 4ORTHERN CALIFORNIA SOUTHERN CALIFORNIA CENTRAI,CALIFORNIA )NDEO Nalco Company ONDEO Nalco Company ONDEO Nalco Company .95 Glen Cove Marina Rd., Ste.200 2111 East Dominguez Street 605 Standiford Avenue, Ste. K lallejo, CA 94591 P. O, Box 220 Modesto, CA 95350-1000 707) 645-7171 Long Beach, CA 90801 (209) 525-8047 'AX: (707)645-7057 (310)638-7836(Los Angeles Arca) FAX: (209)525-8263 (310)604-0078 (Southern California) FAX: (310) 638-6251 nvoiccs will be rendered from: ONDEO Nalco Co., One ONDEO Nalco Center,Naperville, IL 60563-1 198. for ONDEO Nalco Co, Naperville, IL address,the Vendor I.D. # is 600846. submit a copy or each Contlact/Dclegation Purchase Order.Form Std. 65, to the State Department of General krvices, Procurement Division, Data Entry Llnit. TOTE TO LOCAL AGENCIES: Suppliers are willing to accept orders from local agencies within California. lowever, this State Price Schedule is a result of negotiation rather than competitive bidding_ Therefore, please onsult your Legal Counsel before utilizing this State Price Schedule, AGENCY NOTE: DRUG-FRFF. WORKPLACE CERTIFICATION he vendor(s) on this State Price Schedule, by having submitted a signed Drug-Free Workplace Certification, ertified under penalty of perjury under the laws of the State of California that the vendor(s) will comply with the =quirements of the Drug-Free Workplace Act of 1990(Government Code Section 8350 ct sell.)and will provide a rug-free workplace by taking the actions required of(iovernment Code Section 8355 (a), (b),and (c), ,ascd on the above, when ordering against this State Price Schedule, using agencies are not required to have the endor(s) submit a Drug-Free Workplace Certification, OR 810 REPORTING PURPOSES, VENDOR IS IDENTIFIED AS: Large Business 4 ' IANICE KING, MANAGER ACQUISITIONS BRANCH gh 1 c. MINUTE ORDER NO. 6887 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, IN 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, in an amount not to exceed $60,000, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 18th day of July, 2001. PATRICIA A. SANDERS City Clerk