Explanation
BACKGROUND: Columbus City Council passed Ordinance number 0423-2006 on March 13, 2006 for the Division of Power and Water to purchase water treatment chemical carbon dioxide from EPCO Carbon Dioxide Products (UL005269). On June 23, 2006 EPCO Carbon Dioxide Products notified the City that they could no longer continue to service the City's carbon dioxide requirements effective immediately. This water treatment chemical is critical to the Division's ability to maintain a safe and clean drinking water supply to the City of Columbus and surrounding communities. The Division of Power and Water, based on the provisions of Columbus City Code Section 329.27, has received the Mayor's permission, from a letter dated June 27, 2006, to immediately purchase carbon dioxide and to work with the Purchasing Office to ensure a competitive process, for this project. The Purchasing Office informally solicited bids from all known suppliers of carbon dioxide. Of the five known suppliers of carbon dioxide Praxair was the lowest, responsive, and responsible bid received. Currently the Purchasing Office is in the process of formally advertising for bids with the intention of having a contact in place by August 1, 2006. The Division of Power and Water would like to enter into a contract with Praxair, for carbon dioxide, in the amount of $540,000.00, or as much thereof as may be needed, and to waive the provisions of competitive bidding. The Contract Compliance number for Praxair is 06-1249050. They do not have certified MBE/FBE status.
It is requested that this Ordinance be handled in an emergency manner, as the division would like to purchase carbon dioxide due to the unexpected termination of service of our current supplier.
FISCAL IMPACT: The Division of Water has allocated $9,137,000.00 for chemicals in the 2006 Budget.
$369,977.40 was encumbered for carbon dioxide in 2005.
$362,275.64 was encumbered for carbon dioxide in 2004.
Title
To authorize the Director of Public Utilities to enter into a contract, for carbon dioxide, with Praxair, for the Division of Power and Water, to waive the provisions of competitive bidding, to authorize the expenditure of $540,000.00 from Water Systems Operating Fund, and to declare an emergency. ($540,000.00)
Body
WHEREAS, Columbus City Council passed Ordinance number 0423-2006 on March 13, 2006 for the Division of Power and Water to purchase carbon dioxide, and
WHEREAS, on June 23, 2006 the City was notified that EPCO Carbon Dioxide Products cannot continue to service the City's carbon dioxide requirements effective immediately, and
WHEREAS, the Division of Power and Water, based on the provisions of Columbus City Code Section 329.27, received the Mayor's permission, from a letter dated June 27, 2006, to immediately purchase carbon dioxide and to work with the Purchasing Office to ensure a competitive process, for this project, and
WHEREAS, the Purchasing Office informally solicited bids from all known suppliers of carbon dioxide, and
WHEREAS, of the six known suppliers of carbon dioxide Praxair was the lowest, responsive, and responsible bid received, and
WHEREAS, an emergency exists in the usual daily operation of the Division of Power and Water, Department of Public Utilities, in that it is immediately necessary to authorize the Director of Public Utilities to enter into a contract, with Praxair, for carbon dioxide, in an emergency manner in order to allow for quick payment of the materials, for the immediate preservation of the public health, peace, property, safety and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Public Utilities be and is hereby authorized to enter into a contract, with Praxair, for carbon dioxide, for the Division of Power and Water, Department of Public Utilities.
Section 2. That in accordance with Section 329.27 of the Columbus City Code, this Council finds the best interest of the City is served by waiving, and does hereby waive Section 329.06 (Formal Competitive Bidding) of the Columbus City Code.
Section 3. That the expenditure of $540,000.00 or as much thereof as may be needed, is hereby authorized from Water Works Fund 600, Department 60-09, Object Level One 02, Object Level Three numbers, contract numbers with expiration dates, OCA Codes, and amounts listed below, to pay the cost thereof.
Vendor/ OCA
Chemical Contract # Code OBL 3 Amount
Praxair in process 602417 2204 $313,500.00
Carbon Dioxide 602474 2204 $195,000.00
602532 2204 $31,500.00
$540,000.00
Section 4. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.