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Home My WebLink AboutTGO Technologies - Approved Sole Source Procurement - PurchaCouncil/Agency Meeting Held: O De rred/Continued to: Approved ❑ Conditionally Approved :1 Denied City Clerk's Sign re Council Meeting Date: September 15, 2003 Department ID Number: PW 03-063 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY: RAY SILVER, CITY ADMINISTRATOR 4',Wy- " —a i-AJ -_ PREPARED BY: ROBERT F. BEARDSLEY, DIRECTOR OF PUBLIC WORK SUBJECT: APPROVE SOLE SOURCE PROCUREMENT FROM TGO'--q TECHNOLOGIES FOR PURCHASE AND INSTALLATION.L&F CHLORINE CONTAINMENT VESSELS Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Administrative Regulation 229 requires City Council approval for all sole source procurements over $50,000. The Public Works Utilities Division is requesting approval of sole source procurement for chlorine containment vessels. Funding Source: Funds are budgeted in the Water Fund Account 50691015.82100, Chlorine Containment, Water Improvements Recommended Action: Approve Sole Source Procurement from TGO Technologies of Santa Rosa, California for the purchase and installation of chlorine containment vessels. Alternative Action(s): Do not approve the sole source procurement and instruct staff on how to proceed. �,, 5-1 • -REQUEST FOR ACTION • MEETING DATE: September 15, 2003 DEPARTMENT ID NUMBER: PW 03-063 Analysis: Beginning in 2000, the Public Works Utilities (Water) Division began implementing a new chlorine containment technology at the City's various groundwater well sites. Chlorine is added to drinking water for disinfection and is required by the State Department of Health Services. The previous chlorine equipment did not meet State and Federal standards, specifically seismic containment standards. With the assistance of the Fire Department, the Utilities Division began examining options to bring the well facilities up to the new standards. The best and most cost effective method found was a chlorine containment vessel manufactured by TGO Technologies of Santa Rosa. The vessels provide excellent protection against an accidental chlorine release. The vessels need minimal additional construction to install at the well sites. Other methods would have involved construction of additional rooms or buildings at each site. TGO Technologies holds the patent on the vessels and is the sole manufacturer. A sole source procurement was obtained with the initial purchases. That sole source rider has expired. Administrative Regulation 229 was revised and now requires City Council approval for all sole source procurements over $50,000. The current purchase requisition is for Well No. 13 in the amount of $131,675, which includes the purchase and installation of the vessels and all appurtenances. This purchase will complete the chlorine containment project. The sole source justification is attached for reference. Environmental Status: NIA Attachment(s): RCA Author: Ken Dills, extension 5055 GAR C A0003103-063 Sept 15 Dills TGO Technologies-Chlorine.doc -2- 9/212003 2:01 PM ATTACHMENT #1 Administrative Services • . ---- -- - Central Services Division OR OP/OC SOLE -SOURCE JUSTIFICATION For use an all goods and services acquisitions. This justification document consists of two (2) pages. All information must be provided and all questions most be answered. The "Required Approvais" section most include a date for each signature, as appropriate for the transaction. Requesting Department Information Requestor Name: Division Manager: Howard Johnson Howard Johnson (Type names. Do not sign.) Department: Department Head: Public Works Robert F. Beardsley (Type names. Do not sign. Must be same as signature below. Department Contact Information Contact Name: Street Address: Howard Johnson 19001 Huntington Street Telephone: 714 636-5921 FAX: Shipping Address: 714 847-1067 7512 Garfield Huntington Beach, CA 92648 Cellular phone: Required Contact Information Contractor/Supplier Name: TGO Technologies Contractor/Supplier Address: 3450-C Regional Parkway, Santa Rosa, CA 95403 Original Contract Amount:* Amendment Amount:* (lf applicable) New Contract Amount: $ Nor 1, .D 5/ 7, S 6 9-7, y,7 $ NIA 3 ;? " $ NIA ('Includes original'contract and previously / ('Includes original contract and all amendments, approved amendments) ("Current amendment only) including current amendment 's -- 23YYlB - 3 2 i 7 - & 9 7 - 7 & 72- Provide a brief description of the ac ulsiti6h, inciudin all goods and/or services the contractor willprovide: Purchase and installation of Chlor-Tainer chlorine containment vessels and appurtenances for well 13. Contract Type and Term Contract Type: Contract Term: What account number Select One: ❑ Goods will be used to ❑ Service Begin: NIA purchase Goods & End: Bus Unit 50691015 Services Obj. Code 82100 r w > � ` r:-r. _ .,F.,.,,s -.m. vim ._ Re uiredLA royals - _ n �,✓* ; D artment Head Central Services Manager Administrative Services Assistant City Approved Denied pro d ❑ n Director.' Admini trator lei ❑ ❑ Denied f� App Denied 40( E cutiveDirr ctor/pate .3 Ce tra! ervices ManagerlDale t; ! 3/I/�D �� 3 Adm ervices Der. ssist. Adm./Date dy ransactions seeding $50,000 must be council approved)- 7�C911 bVu[,i T,lvu Wnn W. %'011u al oul vtwa uIv15I[AI 2000 Main St, Huntington Beach, CA 92648 Administrative Servicesv• Central Services Divisision Complete responses must be provided for all of the following items. A. THE GO ISERVICE RE UESTED IS RESTRICTED TO ONE SUPPLIER OR THE REASONS STATED BELOW: I. Why is the acquisition restricted to this goodslservicewsupplier? (Explain why the acquisition cannot be competitively bid. They hold the patent on the equipment and are the only manufacturer. 2. Provide the background of events leading to this acquisition. To meet State and Federal requirements for chlorine containment at the City's water wells, we have been systematically Installing the containment vessels throughout the system over the last three years. 3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?) We reviewed the containment vessels with the Fire Department. It was determined that this method was an innovative and effective approach to meeting chlorine containment standards. 4. What are the consequences of not purchasing the goodstservices or contracting with the proposed supplier? The City will not meet State and Federal requirements and may be subject to fines or penalties. 5. What market research was conducted to substantiate no competition, Including evaluation of other items considered? (Provide 8 narrative of your efforts to identify other similar or appropriate goodslservices, including a summary of how the department concluded that such attematives are either inappropriate or unavailable. The names and addresses of suppliers contacted and the reasons for not considering them must be included QR an explanation of why the surrey or effort to identify other goodstservices was not performed.) The Water (Utilities) Division, In conjunction with the Fire Department, researched other chlorine containment options and determined that the vessels developed by TGO were the best and most cost effective method to meet regulatory standards. B. PRICE ANALYSIS 1. How was the price offered determined to be fair and reasonable? (Explain what the basis was for comparison and include cost analyses as applicable.) Other options would have involved extensive building construction. These vessels require only a fence and a open roof cover. 2. Describe any cost savings realized or costs avoided by acquiring the goodsiservices from this supplier. The City must comply with regulatory standards for chlorine containment. This is a health and safety Issue and the City could be subject to fines or penalties If current chlorine storage Is not modified.