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Home My WebLink About11/5/2003 - STAFF REPORTS (7) DATE: November 5, 2003 TO: City Council FROM: Director, Department of Public Works/City Engineer and Director, Department of Procurement & Contracting PURCHASE OF WATER TREATMENT CHEMICALS FOR CO-GENERATION AND HVAC EQUIPMENT RECOMMENDATION: It is recommended that the City Council approve the purchase of water treatment chemicals with volume discount pricing per the California Multiple Award Schedule (CMAS) contract #4-02-68- 005A awarded to Ondeo-Nalco Company, in accordance with the CMAS terms and conditions, in a total amount not to exceed $65,000 for the 2003/2004 fiscal year. SUMMARY: For the past four years Council has approved the use of volume discount pricing offered by Ondeo- Nalco Company to the City based on the State of California's purchase agreement, resulting in a 10% savings to the City over prices otherwise available. Ondeo-Nalco has been awarded CMAS contract number 4-02-68-005A and is able to continue to offer discount pricing to the City. Staff recommends that the City Council approve the utilization of this discounted pricing for the fiscal year 2003/2004 allowing the continued cost savings to the City. BACKGROUND: The City of Palm Springs has had a long-term relationship with Ondeo-Nalco Company through the use of its water treatment products and its accompanying technical support in maintaining the City's co-generation and HVAC systems. Damage to the co-generation plants due to improper water treatment practices can cause substantial expense as well as unscheduled down time. Ondeo- Nalco's water treatment products and the value of its chemical testing procedures have proven to reduce costs. These procedures and products have proven to extend equipment life and limit damage to sensitive co-generation and HVAC equipment. Due to the nature of our co-generation facilities' diversified operation, previous low-bid chemical companies have not demonstrated the expertise needed for the specialized water treatment functions at the plants. They have also proven to be unreliable suppliers. Ondeo-Nalco's product line is specific to the treatment condition experienced at the plants due to its knowledge of methods used in chemical water treatment, metallurgy, and the protection of metal surfaces. Ondeo-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 CMAS Price Schedule outlines the commodity purchase unit pricing forvarious chemicals used to maintain co-generation and HVAC systems. Participation in the pricing schedule will allow the City to continue to receive the 10% savings as it has in the past, with additional savings of up to 45% on some chemicals purchased. �14 Staff recommends that City Council approve participation in the CMAS contract..for the purchases to be made in the fiscal year 2003/2004 in order to continue to provide the best value and protection for the City's co-generation and HVAC equipment. Funds are available in Account 520-5641-48700, Facilities Maintenance - Co-Gen Special Parts, Supplies and Repairs. HAROLD E. GOOD, CPPO, Director DAVID J. BARAKIAN, Director Procurement and Contracting Public Works/City Engineer APPROVED: at Manager xT�� Attachment: (1) Minute Order REVIEWED BY DEFT.DF FINANCE (2) CMAS Price Schedule"�� 10I15/2003 10: 22 7607708428 CITY OF PALM SPRINGS PAGE 03 • QMDEO Nalco July 14,2003 City of Palm Springs 425 North Civic Drive Palm Springs, CA 92262 Attn: 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 see that it even though California no longer has a Special State Pricing program, Ondeo Nalco continues to offer all their previous recipients of the state pricing program a 10%discount on their chemicals. Please note the table below. ONDEO BOOKPRICE DISCOUNT PERCENT PRODUCT PER POUND PRICING SAVINGS 23265.36 6.49 5.58 10% 2593.38 10.35 9.45 10% 2548.15 2.56 2,33 10% 2552,12 7.35 6.57 10% 2584.12 2.79 2.56 10% 2588.12 3.05 2.68 10% ST20.12 4.87 4.28 10% ST20,38 7.52 6,32 10% This offer will remain in effect until December 31, 2006. Ondeo Nalco has been awarded CMAS contract and is capable of offering CMAS pricing. If you have any further questions please don't hesitate to call me at 760-207-6593 or my District Administrator,Mona Forde at 310-900-5308. Respectfully, J. Curtis Akers Sales Representative U �� 10/15/20a3 10: 22 7607788428 CITY OF PALM SPRINGS PAGE K **.*0NDE0 Nalco July 14,2003 City of Palm Springs 425 North Civic Drive Palm Springs, CA 92262 Attn: 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 see that even though California no longer has a Special State Pricing program,Ondeo Nalco continues to offer all their previous recipients of the state pricing program a discounted CMASS price on their chemicals. Please note the table below. ONDEO BOOK PRICE CMASS PERCENT PRODUCT PER POUND PRICING SAVINGS 23265.36 6,49 4.21 35% 2593.38 10.35 10.35 NA 2548,15 2.56 2.56 N.A. 2552.12 7.35 7.35 NA 2584.12 2.79 2.79 NA 2588.12 3,05 3.05 NA ST20.12 4.87 2.70 45% ST20.38 7.52 5,64 25% Ondeo Nalco has been awarded CMAS contract and is capable of offering CMAS pricing. If you have any further questions please don't hesitate to call me at 760-207-6593 or my District Administrator,Mona Fordo at 310-900-5308, Respectfully, J. Curtis Akers Sales Representative 01-T 10/15/2003 10:22 760770042e CITY OF PALM SPRINGS PAGE 01 Department of General Services Procurement Division (!PS 707 Third Street, 200 Floor West Sacramento, CA 85605-2811 State of California MULTIPLE AWARD SCHEDULE Ondeo Nalco Company 4-02-68-0005A - Brand-Ondeo Nalco Chemicals Chemicals-Boiler Treatment Chemicals-Cooling Treatment Chemicals-Water Treatment (Above descriptions for marketing purposes only.Review convect for pruducrs/services evailable,l CONTRACT NUMBER: 4-02-68-0005A CMAS TERM DATES: 10/09/2002 through 04/30/2007 DISTRIBUTION: STATEWIDE The most current Ordering Instructions and Special Provisions and CMAS Terms and Conditions, produots and/or services and pricing are included herein. All purchase orders issued under this contract incorporate the following Ordering Instructions and Special Provisions and CMAS Terms and Conditions (dated January 2002). Agency non-compliance with the requirements of this contract may result In the loss of delegated authority to use the CMAS program. Contractor non-compliance with the requirements of this contract may result In contract termination. AVAILABLE PRODUCTS AND/OR SERVICES This contract provides for the purchase and warranty of water treatment chemicals for cooling towers, boiler systems, closed heating and cooling loops. Only products from the manufacturerisi listed below are avallable within the scope of this contract: Ondee Nalco Effective Date: 10/09/2002 CYN )IIA OKOR t P ogram Analyst, California Multiple Award Schedules Unit MINUTE ORDER NO. IT IS RECOMMENDED THAT THE CITY COUNCIL APPROVE THE PURCHASE OF WATER TREATMENT CHEMICALS WITH VOLUME DISCOUNT PRICING PER THE CALIFORNIA MULTIPLE AWARD SCHEDULE (CMAS) CONTRACT #4-02-68-005A AWARDED TO ONDEO-NALGO COMPANY, IN ACCORDANCE WITH THE CMAS TERMS AND CONDITIONS, IN A TOTAL AMOUNT NOT TO EXCEED $65,000 FOR THE 2003/2004 FISCAL YEAR. - -- - - - - - - - - - I HEREBY CERTIFY that this Minute Order approving the purchase of water treatment chemicals with volume discount pricing per the California Multiple Award Schedule(CMAS)contract#4-02-68- 005A awarded to Ondeo-Nalco Company, in accordance with the CMAS terms and conditions, in a total amount not to exceed $65,000 for the 2003/2004 fiscal year, was approved by the City Council of the City of Palm Springs California in a meeting thereof held on the 5th day of November, 2003. PATRICIA A. SANDERS City Clerk