TO: Mayor and Commissioners
FROM: Dale S. Sugerman, Ph.D., Assistant City Manager
Keith Tomey, Interim Fire Chief
THROUGH: Neal de Jesus, Interim City Manager
DATE: May 16, 2017
Title
APPROVAL OF AMENDMENT NO. 1 TO THE GAS, CARBON DIOXIDE, (FOOD GRADE) PURCHASE AND DELIVERY TERM CONTRACT WITH AIRGAS USA, LLC
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Recommended Action:
Recommendation
Motion to Approve Amendment No. 1 to the Gas, Carbon Dioxide, (Food Grade) Purchase and Delivery Term Contract with Airgas USA, LLC in an amount not-to-exceed $135,000 for the purchase and delivery of carbon dioxide and oxygen.
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Background:
On June 17, 2014 the City issued a contract for Gas, Carbon Dioxide, (Food Grade) Purchase and Delivery (Contract), with Airgas Carbonic, Inc. On January 24, 2017 the City executed an Assignment and Assumption Agreement delegating the Contract responsibilities to Airgas USA, LLC. The Contract is effective through June 16, 2017. The City and Airgas USA, LLC have mutually agreed to exercise the first renewal option and add the purchase and delivery of oxygen to the Contract. Amendment No. 1 will renew the Agreement through June 16, 2018 in an amount not-to-exceed $135,000.
Carbon dioxide and oxygen are critical gases to operation of the City’s potable water treatment system as well as life-saving oxygen that is purchased for Fire Rescue.
Currently, the Fire Rescue Department pays approximately $20.75 on each “Medical D” oxygen tank refilled, and $28.22 on each “Medical M” oxygen tank refilled. Per year, it is estimated that 600 “Medical D” tanks are refilled, and 84 “Medical M” tanks are refilled, equating to an annual expenditure of $14,820.48. By adding oxygen to this Contract, the cost to refill each “Medical D” and “Medical M” tank will lower to $5 and $15, respectively. This will save the City over $10,500 on an annual basis.
The Water Treatment Plant (WTP) has notified Purchasing that they are averaging just over $10,000 per month for the purchase of carb...
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