R2001-144 ACCEPTING THE BID - Laserfiche WebLink

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� y _ . � COUNCIL COMMUNICATION FORM PURCHASING & INTERNAL SERVICES MEMORANDUM #O1 - 51 July 25, 2001 TO: Honorable Mayor Howley and City Council FROM: Steve Garman, City Manager Beth Couter, Financial Management Director Deborah M. Perry,Purchasing Supervisorc�'� SUBJECT: Rescind carbon dioxide contract SUMMARY RECOMMENDATION: Staff recommends rescinding the contract of Continental Carbonics for cause. Staff also requests awarding remainder of contract from present - April 30, 2003 to the second low bidder of Air Liquide to furnish carbon dioxide for $62.00 per ton. BACKGROUND: On April 16, City Council approved awarding a contract to Continental Carbonics to furnish carbon dioxide for $59.38/ton. This chemical is used in the treatment of potable water. Its function is to lower the ph level due to lime. The City received a letter from i Continental Carbonics on July 9 indicating they were experiencing supply shortages. When staff I telephoned Continental Carbonics on July 23, they were unable to fill our order. Continental Carbonics indicated the supply problem could last at least 30 days. The City is not in a position to be without product in our treatment of potable water. In surveying the marketplace, the City is not able to obtain product on a short term basis that is cost effective to the City, and therefore requests the council rescind the contract with Continental Carbonics. Staff further requests awarding remainder of contract from the present - April 30, 2003 to Air Liquide, the second low bidder for carbon dioxide, for their bid price of $62.00/ton. The City uses between 550-750 tons of carbon dioxide annually. POTENTIAL OBJECTION: None. INPUT FROM OTHER SOURCES: Water Management is aware of supply problem and recommends cancellation of contract with Continental Carbonics. They further recommend awarding new contract to Air Liquide. STAFF REFERENCE: Rob Shirley, Water Production Manager, 424-2866, Deborah M. Perry, Purchasing Supervisor, 424-2762. Beth Couter, Finance Director, will be at the council meeting to answer questions the council may have about this purchase. BUDGET: Water Management Fund.