HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/01/2011 - RESOLUTION 2011-100 APPROVING AN EXCEPTION TO THEDATE: November 1, 2011
STAFF: Jim O’Neill
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 24
SUBJECT
Resolution 2011-100 Approving an Exception to the Use of a Competitive Process for the Purchase of Liquid
Aluminum Sulfate from General Chemical.
EXECUTIVE SUMMARY
The Fort Collins Water Treatment Facility is requesting to purchase liquid aluminum sulfate from General Chemical
as an Exception to the Competitive Process. Liquid aluminum sulfate (Alum) is used as the primary coagulant.
BACKGROUND / DISCUSSION
The Fort Collins Water Treatment Facility is 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 of the 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.
General Chemical is proposing to hold 2012 pricing at the 2011 level of $379/ton delivered for Fort Collins. The closest
alternative supplier is Thatcher Chemical out of Rowley, Utah at $384/ton; they are a distributor who buys it from
General Chemical; whereas the City is buying it direct from General Chemical out of its Denver facility, thereby giving
the City a shorter and more secure supply chain.
Spending for the last three years:
2011: year-to-date is $237,448 through October; current price is $379/ton.
2010: $288,161 at $379/ton.
2009: $300,616 at $389/ton.
Section 8-161 of the City Code states that any exemption to the use of competitive processes in excess of $200,000
must be approved by the City Council.
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)(1)(b).
FINANCIAL / ECONOMIC IMPACTS
Funds have been budgeted and are available for the purchase of liquid aluminum sulfate.
ENVIRONMENTAL IMPACTS
Environmentally the City has safeguards in place to prevent the leakage of alum into the sewer, or into a water way
of the US – secondary containment is provided. The City also has security measures for any chemical delivery to the
plant. The driver’s id is verified, as well as the chemical in the truck (through lab analysis) before they are allowed onto
the site. Alum is an irritant, but is not an extremely hazardous chemical.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
RESOLUTION 2011-100
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AN EXCEPTION TO THE USE OF A COMPETITIVE PROCESS FOR
THE PURCHASE OF LIQUID ALUMINUM
SULFATE FROM GENERAL CHEMICAL
WHEREAS, the Water Utility has historically purchased certain chemicals from particular
suppliers for use in testing the municipal water supply; and
WHEREAS, the City has for twelve years purchased liquid aluminum sulfate from General
Chemical; and
WHEREAS, the Purchasing Agent has determined that it is in the best interests of the City
to continue purchasing the liquid aluminum sulfate from General Chemical due to the consistent
quality of the product 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 the purchases; and
WHEREAS, the Purchasing Agent has determined that General Chemical is uniquely
qualified to supply liquid aluminum sulfate due to its proximity to Fort Collins and resulting
availability on short notice, and the compatibility of its product with City equipment; and
WHEREAS, Section 8-160(d)(l)b of the City Code authorizes the Purchasing Agent to
negotiate the purchase of supplies and services 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 product quality and delivery could impede the City's delivery of services to the public; and
WHEREAS, the Purchasing Agent has submitted the justification required by the City Code
for the purchase of these products without a competitive process to the City Manager for approval;
and
WHEREAS, the purchase price for the product is over $200,000; and
WHEREAS, the City Manager has concurred in the determination that it is in the best
interests of the City that the materials be acquired from General Chemical as an exception to the
competitive process; and
WHEREAS, Section 8-161(d)(3) of the City Code requires approval of this procurement by
the City Council since it involves more than $200,000; and
WHEREAS, Section 8-161(d)( 4) of the City Code provides that any procurement approved
by the City Manager or the City 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 the City Council hereby approves the purchase of liquid aluminum sulfate from
General Chemical as an exception to the City's competitive procurement requirements for the
reasons set forth herein.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st
day of November A.D. 2011.
Mayor
ATTEST:
City Clerk