Submitted By: Rusella Bowes-Johnson
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Presentation By: Sean Lanier
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Department: Water & Sewer
STAFF RECOMMENDATION (Motion Ready):
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Approve a two-year contract with Airgas USA, LLC, for the provision of liquid carbon dioxide supply and delivery services with an estimated aggregate expenditure amount of $235,200
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence.
PROOF OF PUBLICATION:
ITB released to public: 1/24/2023
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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.
The current contract, WRS/210134, approved on 04/06/2021 with Airgas USA, LLC (Airgas) expires on 04/06/2023.
FINDINGS AND CONCLUSIONS:
On January 24, 2023 the City issued its Invitation to Bid (ITB) No.: WRS/230165 for liquid carbon dioxide supply and delivery. The bid closed on March 3, 2023, with one bid being received from Airgas USA, LLC (Airgas) on a cost per pound basis. The bid results were as follows:
Airgas’s bid price of $ 0.60 per pound reflects a $0.35 per pound increase from the previously contracted price of $0.25 per pound.
Staff recommends approval of a two-year contract award to Airgas for liquid carbon dioxide supply and delivery to WTP #1, with two (2) optional one-year renewals, with an estimated $117,600 in annual expenditures.
FISCAL IMPACT:
The Water Resources Department has budgeted sufficient funds in the FY23 and FY24 budgets in account string 455-030-301-533-53-52010.
PROCUREMENT REVIEW:
These goods and services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW: This agreement will be reviewed and approved for form and legality by the City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with amendments
• Deny
• Table
SUPPORT MATERIALS: Airgas USA Bid, Bid Tabulation, Liquid Carbon Dioxide Agreement