R2011-78 RESCINDING BID AND AWARDING PURCHASE ORDER

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COUNCIL COMMUNICATION FORM PURCHASING & INTERNAL SERVICES MEMORANDUM #11-20 May 11, 2011 TO: Honorable Mayor McElroy and City Council FROM: Ryan P. McCrady, City Manager Ron Neufeld, Financial Management Director Deborah M. Perry, Purchasing Supervisork SUBJECT: Purchase of carbon dioxide SUMMARY RECOMMENDATION: Staff recommends awarding contract to Continental Carbonics to furnish bulk carbon dioxide. BACKGROUND: On April 18, 2011 City Council approved a bid of various water treatment chemicals. In particular, was the award to Praxair for bulk carbon dioxide for $57.49/ton. Prior to shipping product, Praxair asked the City to sign an agreement which modified the bid specifications to allow for revisions. Since the City is unwilling to accept the alternate language, Praxair will not provide the carbon dioxide. The second low bidder of Continental Carbonics is willing to provide the carbon dioxide per the bid specification. Continental Carbonics has provided carbon dioxide to the City in the past, most recently last fiscal year. Carbon dioxide is used to lower the PH in potable water. POTENTIAL OBJECTION: None INPUT FROM OTHER SOURCES: Water Management requested the change of vendor and recommend approval of the bid. STAFF REFERENCE: Keith Alexander, Director of Water Management, 424-2863. Don Giger, Water Production Operation Supervisor, 424-2866. Keith will be at the council meeting to answer any questions the council may have about this purchase. BUDGET: $58.50/ton from the Water Operating Fund.