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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/19/2006 - RESOLUTION 2006-129 APPROVING THE PURCHASE OF CHEM ITEM NUMBER: 21 AGENDA ITEM SUMMARY DATE: December 19, 2006 FORT COLLINS CITY COUNCIL STAFF: James P. O'Neill SUBJECT Resolution 2006-129 Approving the Purchase of Chemical Additives for Fort Collins Water Utility and Water Reclamation Facility. RECOMMENDATION Staff recommends adoption of the Resolution. FINANCIAL IMPACT Funds have been budgeted and are available for the purchase of special rotary hydrated lime, liquid aluminum sulfate, hydrofluosilicic acid 23%, cationic polymer and 60% calcium carbonate/40% magnesium hydroxide. EXECUTIVE SUMMARY The Fort Collins Water Treatment Facility (FCWTF) is requesting to purchase, special rotary hydrated (SRH) lime for alkalinity addition or pH adjustment from Mississippi Lime. It is also requesting to purchase hydrofluosilicic acid 23%(HFS)from LCI Ltd for use as the fluoride source. Fort Collins Water Reclamation is requesting approval to purchase from Aqua Ben the cationic polymer for dewatering the centrifuge and dissolved air floatation processes. It also is requesting approval to purchase from ACM Corporation the 60% Calcium Carbonate/40% Magnesium Hydroxide product for pH control. The Resolution will authorize the purchase of these chemicals as an exemption to the use of competitive bid or proposal as provided in Section 8-161(d)(4). BACKGROUND Mississippi Lime has been the vendor in the past and is an excellent vendor. Pricing of this product has changed little in the last four years. The SRH lime is a food grade lime that mixes with the water to achieve the correct pH faster and causes less sludge at the bottom of the mixing tanks. Other types of lime require more product to attain the necessary pH and require the mixing tanks to be cleaned more often due to the faster accumulation of non-mixed lime sludge. The FCWTF has also experienced performance problems with the lime feeder. Through experimentation of different brands, purity, and density of lime, the WTF found that the SRH lime significantly reduced the December 19, 2006 -2- Item No. 21 feeder performance problems by eliminating deposits of lime on all interior surfaces of the mix tanks. A mixture of lime and carbon dioxide is used in the water stabilization program to inhibit corrosion in the water distribution plumbing. To this date,the City has not been able to find another company that makes special rotary hydrated lime. The Fort Collins Water Treatment Facility(FCWTF)is also requesting to purchase liquid aluminum sulfate (Alum) from General Chemical for use as the primary coagulant. Delivery of alum is required within 24-hours after order placement;therefore proximity ofthe supply source is a primary concern. General Chemical has been the City's vendor in the past and is an excellent vendor. The proximity of the manufacturing facility in Denver assures continuity of supply that cannot be attained from other sources;also,weight of the product in liquid form causes transportation cost to be a major cost factor. The Fort Collins Water Treatment Facility(FCWTF)is also requesting to purchase hydrofluosilicic acid 23% (HFS) from LCI Ltd for use as the fluoride source. Reliable supply source for HFS is difficult to obtain due to scarcity of suitable source conditions. Also, HFS is highly corrosive, making it imperative to have a secure transportation supply chain,which we currently have with LCI due to the City's longstanding relationship with the vendor. Fort Collins Water Reclamation is also requesting approval to purchase from Aqua Ben our cationic polymer for dewatering the centrifuge and dissolved air floatation processes. To date, the 686N polymer is the only one tested extensively in our centrifuges and approved with satisfactory results. This product is stored in close proximity to our site and available within 24 hours between order and delivery. Aqua Ben has provided consistent performance, timely delivery, and consistent product characteristics. Fort Collins Water Reclamation is also requesting approval to purchase from ACM Corporation the 60% Calcium Carbonate/40%Magnesium Hydroxide product for pH control. The 60/40 Nutracite is a dry, mined product that works very well in the secondary system for pH elevation. Due to the extra cost of hauling water, we are migrating to the dry product. This vendor is the only one that supplies this product. This product is also much safer to handle than other chemicals (i.e. sodium hydroxide) and is not as hydroscopic as other dry alternatives. Section 8-161 of the Code states that any exemption to the use of competitive processes in excess of$100,000 must be approved by the City Council. RESOLUTION 2006-129 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE PURCHASE OF CHEMICAL ADDITIVES FOR FORT COLLINS WATER UTILITY AND WATER RECLAMATION FACILITY WHEREAS, the Water Utility and Water Reclamation Facility have historically purchased certain chemicals from particular suppliers for use in testing the municipal water supply; and WHEREAS, the Purchasing Agent has determined that it is in the best interests of the City to continue purchasing these same chemicals from the same suppliers due to the consistent quality of the products for processing, the reduction of feeder performance problems, and the reliability and cost of delivery(due to proximity of supply); and WHEREAS, funds have been budgeted and approved in the Water Utilities budget and are available for such purchases; and WHEREAS, Section 8-161 (d)(1)(a) of the Code of the City of Fort Collins authorizes the Purchasing Agent to negotiate the purchase of supplies and services without utilizing a competitive purchasing process where the Purchasing Agent determines that only one responsible source exists; and WHEREAS, the Purchasing Agent has determined that for each of the following chemicals: rotary hydrated lime, hydrofluosilicic acid 23%, cationic polymer and 60% calcium carbonate/40% magnesium hydroxide, the suppliers are uniquely qualified, either due to proximity to Fort Collins or because of the compatibility of their product with City equipment; and WHEREAS, Section 8-160(d)(1)b. of the Code of the City of Fort Collins authorizes the Purchasing Agent to negotiate the purchase of supplies and service without utilizing a competitive process where the Purchasing Agent determines that although a particular material or service is available from more than one responsible source, a competitive process cannot reasonably be used, or, if used, will result in a substantially higher cost to the City, will otherwise injure the City's financial interests or will substantially impede the City's administrative functions or the delivery of services to the public; and WHEREAS, the Purchasing Agent has determined that use of another source for liquid aluminum sulfate would result in substantially higher transportation costs to the City, and that less reliable delivery could impede the City's delivery of services to the public; and WHEREAS, the Purchasing Agent has submitted the requisite justification for the purchase of these products as exceptions to the competitive process to the City Manager for approval; and WHEREAS, the cost for all five products are already over $100,000 or are anticipated to increase due to market demand; and WHEREAS, the City Manager has reviewed and concurred in the determination that these acquisitions should be exceptions to the competitive process; and WHEREAS, Section 8-161(d)(3) requires approval of this purchasing method by the City Council for items costing more than ONE HUNDRED THOUSAND DOLLARS ($100,000) prior to acquisition; and WHEREAS, Section 8-161(d)(4) of the Code provides that any procurement approved by the City Manager or the Council as an exception to competitive purchasing requirements may be used as the basis for a negotiated purchase of additional quantities of the same materials or services within a period of five years. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Council hereby approves the purchase of special rotary hydrated lime from Mississippi Lime; liquid aluminum sulfate from General Chemical; hydrofluosilicic acid 23% from LCI Ltd; cationic polymer from Aqua Ben; and 60% calcium carbonate/40% magnesium hydroxide from ACM Corporation as exceptions to the City's competitive procurement requirements. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of December, A.D. 2006. Mayor ATTEST: City Clerk