Submitted By: Rusella Bowes-Johnson
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Presentation By: Rusella Bowes-Johnson
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Department: Water & Sewer
STAFF RECOMMENDATION (Motion Ready):
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Approve a two-year renewal of the contract with Airgas USA, LLC, for the provision of liquid carbon dioxide supply and delivery services in the amount of $284,000
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OCALA'S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Water Treatment Plant #1 (WTP#1) uses a conventional lime softening process to produce drinking water. Liquid carbon dioxide is used to stabilize the water and extends the life of the distribution system piping. Carbon dioxide is used as an alternative to acids, which is less corrosive and hazardous than sulfuric or hydrochloric acid. A Carbon dioxide feed can provide high-level process control, along with this product being safe and easier to handle. Carbon dioxide is added to enhance coagulation in treatment for improved settling and lower the PH level to the acceptable range.
FINDINGS AND CONCLUSIONS:
On March 21, 2023, Council approved the award of a two-year contract to Airgas USA, LLC (Airgas) for the supply of liquid carbon dioxide to Water Treatment Plant No. 1. (the "Original Agreement") at a rate of $.60/pound. The Original Agreement offered one additional two-year renewal option.
The Water Resources Department desires to exercise the sole renewal option for the term March 8, 2025 through March 7, 2027. Airgas has requested a price increase to $.645 per pound for the renewal term. Airgas's 7.5 percent price increase is consistent with FDOT's inflation index. Airgas's request for a price increase was supported by adequate documentation and is less than the 10% increase threshold imposed by the Original Agreement and the 8% gas index for the preceding 12-month period. This fact, combined with the historical lack of competition in this region for these services, supports the approval of the requested increase.
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