HomeMy WebLinkAbout6/19/2002 - STAFF REPORTS (17) DATE: June 19, 2002
TO: City Council
FROM: Director, Department of Parks, Recreation and Facilities and Director of
Procurement and Contracting
PURCHASE OF WATER TREATMENT CHEMICALS
RECOMMENDATION:
It is recommended that the City Council approve the purchase of water treatment chemicals
from Nalco Chemical at the volume discount pricing that Nalco has set for the State of
California, according to the State's terms and conditions, in a total amount not to exceed
$60,000 for the 2002/03 fiscal year.
SUMMARY:
For the past three years City Council has approved the use of the volume discount pricing
offered by Nalco Chemical to the City based on the State of California's purchase agreement
for water treatment chemicals with Nalco. Thisdiscounted pricing has resulted in a 10%savings
to the City over prices otherwise available. Staff asks that City Council approve the utilization
of the discounted pricing for fiscal year 2002/03 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 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. 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. 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 services. 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 plant.
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 2001/02 resulted in approximately
a 10% savings in chemical costs.
Staff recommends that City Council approve utilizing the pricing agreementfor purchases to be
made in fiscal year 2002/03 in order to continue to provide the best value and protection for the
City's co-generation and HVAC equipment.
1��
Award Informal Bid for Radios
June 19, 2002
Page 2
Funds are available in Account 520-5641-48700.
AC OTT MIKESELL, Director HAROLD E. GOOD, CPPO, Director
Dept of Parks Recreation and Facilities of Procurement and Contracting
APPROVED
City Manager
ATTACHMENTS:
1. Minute Order
REVIEWED BY DEPT.OF FINANCE
ri�J�
II,A �
MINUTE ORDER NO.
APPROVE THE PURCHASE OF WATER
TREATMENT CHEMICALS FROM NALCO
CHEMICAL AT THE VOLUME DISCOUNT
PRICING THAT NALCO HAS SET FOR THE
STATE OF CALIFORNIA,ACCORDING TO THE
STATE'S TERMS AND CONDITIONS, IN A
TOTAL AMOUNT NOT TO EXCEED $60,000
FOR THE 2002/03 FISCAL YEAR.
I HEREBY CERTIFY that this Minute Order, approving the purchase of water
treatment chemicals from Nalco Chemical at the volume discount pricing that
Nalco has set for the State of California, according to the State's terms and
conditions, in a total amount not to exceed $60,000 for the 2002/03 fiscal year,
was adopted by the City Council of the City of Palm Springs, California, in a
meeting thereof held on the 191h of June, 2002.
PATRICIA A. SANDERS
City Clerk
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