2001 AGN DEC 18 I09 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR CITY COUNCIL MEETING OF DECEMBER 18, 2001 Item # 9 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: DILU DE ALWIS, FINANCE DIRECTOR V SUBJECT: APPROVE A SOLE SOURCE CONTRACT FOR AN ULTRASONIC CLEANING SYSTEM PARTS WASHER FOR THE WASTEWATER TREATMENT PLANT TO CAE ULTRASONICS, GREASE MONKEY DIVISION IN THE AMOUNT OF $26,869.62 DATE: DECEMBER 6, 2001 BACKGROUND The Wastewater Division uses a parts washer to clean the parts from maintenance on their large pumps. They have been renting a parts washer for $514 per quarter in order to comply with South Coast Air Quality Management's Rule 1171. The purpose of this rule is to reduce emissions of volatile organic compounds (VOC's) and stratospheric ozone depleting or global -warming compounds from solvent cleaning operations and activities. This rule applies to all persons who use, store or dispose of VOC-containing materials used in solvent cleaning. DISCUSSION/ ANALYSIS The Purchasing Division contacted several vendors that sell parts cleaning equipment. CAE Ultrasonics, Grease Monkey Division is the only supplier of a parts cleaning machine that will meet both the type of cleaning required by the Wastewater Division, and the South Coast Air Quality Management Rule 1171. Staff is recommending the Council award a contract to CAE Utrasoncis as a sole source for the purchase of this parts washer. The form of contract will be a City of Colton Purchase Order. FINANCIAL IMPACT The funds are available in the FY 2001-2002 budget to make lease payments on this equipment. Staff is recommending that we add this piece of equipment to the City's master lease agreement to take advantage of the 4.50% interest rate. The master lease agreement is being presented to City Council for approval at this meeting of December 18, 2001. The lease term for this equipment will be five years. The annual lease payment will be approximately $6,060. The payments will be made from the Wastewater Principal and Interest accounts numbered 522-8200-8200-2500 and 522-8200-8200-5210, respectively. ENVIRONMENTAL IMPACT The purchase of this equipment will comply with the South Coast Air Quality Management District's Rule 1171 and reduce emissions of VOC's and stratospheric ozone-depleting or global -warming compounds from solvent cleaning operations at the Wastewater Treatment Plant. RECOMMENDATION Staff recommends Council approve a sole source contract to CAE Ultrasonics, Grease Monkey Division, for the purchase of an ultrasonic parts cleaning machine in the amount of $26,869.62. Staff also recommends approval to add this purchase to the City's master lease agreement. REVIEW TEA Y rr City Attorney: City Manager: Finance OTHER: