File #: 16-674    Version: 1 Name:
Type: Staff Report Status: Consent Calendar
File created: 10/4/2016 In control: City Council
On agenda: 10/19/2016 Final action:
Title: AWARD CO2 FOOD GRADE BULK SERVICE AGREEMENT
Attachments: 1. RESO_Award co2 Food Grade Contract.pdf, 2. NuCO2_CO2 Service Contract.pdf, 3. RFP_CO2 Chemicals08252016
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CITY COUNCIL STAFF REPORT
MEETING DATE: OCTOBER 19, 2016

PREPARED BY: Cynthia Iwanaga, Management Analyst/Community Services
APPROVED BY: City Manager

TITLE
AWARD CO2 FOOD GRADE BULK SERVICE AGREEMENT
END

RECOMMENDATION(S)
RECOMMENDATION
Adopt resolution approving the following actions:
1. Award a service agreement to NuCO2, Inc. for the delivery of CO2 to the Aquatics Center and Centennial Recreation Center and the rental of three 1,000 pound CO2 tanks in the amount of $100,000; and
2. Authorize the City Manager to negotiate, execute and administer that certain service agreement with NuCO2, Inc subject to the review and approval of the City Attorney.

BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:



Ongoing Priorities
Maintaining fiscal responsibility

2016 Focus Areas
Enhancing Our Services


REPORT NARRATIVE:
In September 2016, the City of Morgan Hill issued a Request for Proposals (RFP) for the rental of three 1,000 lb. CO2 tanks at the Aquatics Center and the weekly or biweekly provision of food grade CO2 to the Aquatics Center and the Centennial Recreation Center. CO2 is used at the pools at both facilities to maintain water chemistry. While weekly deliveries are required during the summer season at the Aquatics Center, biweekly deliveries are all that are required during the off-season.

In soliciting proposals for this project, the City posted the attached RFP on the City of Morgan Hill website and the online service, Public Purchase. Proposals were opened on September 12, 2016. The sole proposal received in response to the solicitation was from NuCO2, Inc., a national provider of carbon dioxide to over 155,000 customers nationwide.

The pricing that NuCO2 has proposed is:

1. Monthly rental of three 1,000 lb. tanks $100 per month per tank
2. Carbon Dioxide Food Grade Micro Bulk $0.38 per pound

This pricing is slightly less than the prices the City is paying its current provider of $111 per tank and $0.396 per pound respectively.

Sta...

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