Title
AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH WATER & ENERGY SYSTEMS TECHNOLOGY, INC., FOR WATER TREATMENT CHEMICALS AND SUPERVISORY SERVICES
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into a Linking Agreement with Water & Energy Systems Technology, Inc., for water treatment chemicals and supervisory services in an amount not to exceed $200,000 for the entire term of the Agreement (initial term plus any renewals), and to authorize the City Manager to renew the Agreement, at the City Manager’s discretion, for an additional four, one-year renewals. The initial term of the Agreement is effective until July 14, 2017.
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Background
The Agreement with Water & Energy Systems Technology, Inc. will be utilized to provide water treatment chemicals, monthly services and other services on an as-needed basis to prevent bacteria growth, corrosion and buildup of hard water deposits on chiller, boilers, and all other closed loop systems. Properly treated water prevents premature failure of cooling towers as well as protecting the health of building occupants.
Water & Energy Systems Technology, Inc. was awarded a bid by Pima County as described in the Water Treatment Chemicals and Supervisory Services Agreement. Staff is requesting to utilize the cooperative purchase with Strategic Alliance for Volume Expenditures (SAVE). SAVE is a consortium of local municipalities in which Glendale is a member. Master Agreement No. 17000000000000000009 was awarded on July 15, 2016 and is effective through July 14, 2017 and includes an option to renew the contract for an additional four, one-year renewals, allowing the contract to be extended through July 14, 2021.
On November 10, 2015, the city entered into a Linking Agreement with Water & Energy Systems Technology, Inc., Contract No. C-10431, in an amount not to exceed $94,000 for water treatment chemicals and supervisory services utilizing Pima County Agreement No. 15000000000000000002 with the option to renew the agreement for an additional three, one-year renewals. Pima County did not renew this agreement and processed a new solicitation.
Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.
Analysis
Facilities Management staff oversees 3.5 million square feet of city facilities dispersed over 55 square miles throughout the city. The Agreement will allow Facilities Management to provide water treatment chemicals and monthly service to cooling towers at City Hall and the Council Chambers, Main Public Safety Building, Glendale Regional Public Safety Training Complex (GRPSTC), Main Library, Foothills Branch Library, Velma Teague Branch Library, Civic Center, Western Area Water Treatment Plant, Foothills Aquatic Center, and other services at the these facilities and others on an as-needed bases, with a vendor familiar with Glendale facilities and a proven track record of providing these services.
Previous Related Council Action
On November 10, 2015, City Council authorized entering into a Linking Agreement with Water & Energy Systems Technology, Inc., Contract No. C-10431, in an amount not to exceed $94,000.
Community Benefit/Public Involvement
Maintaining properly treated water and preventing premature failure of cooling towers and other closed looped systems is necessary for the safety of employees who work and the citizens who visit these public facilities.
Cooperative purchasing typically produces the lowest possible volume prices and allows for the most effective use of available funding. The bids are publicly advertised and all Arizona firms have an opportunity to participate.
Budget and Financial Impacts
Funding is available in the Fiscal Year 2016-17 Operating budgets for the various city departments. Expenditures with Water & Energy Systems Technology, Inc. are not to exceed $200,000 for the entire term of the Agreement, contingent upon Council budget approval.
|
Cost |
Fund-Department-Account |
|
$200,000 |
Varies |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?