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TO: Mayor Richard C. Irvin
FROM: David E. Schumacher, P.E., Superintendent of Water Production
DATE: November 19, 2020
SUBJECT:
A Resolution Authorizing a Scheduled Inventory Reagent Replacement Plan with the HACH Company for the Water Production Division
PURPOSE:
To obtain authorization for a one-year Scheduled Inventory Reagent Replacement (SIRR) Plan with the HACH Company (HACH), Loveland, CO, for laboratory chemical reagents for the calendar year 2021 for the Water Production Division (WPD), at a cost of $36,636.07.
BACKGROUND:
Since 2006, the WPD has maintained a SIRR agreement (volume discount plan) with HACH under which chemical reagents are supplied for existing HACH on-line and laboratory benchtop water quality monitoring instrumentation utilized at the Water Treatment Plant and associated remote WPD sites. The current SIRR plan will expire on December 31, 2020.
DISCUSSION:
The chemical reagents are used in approximately 80 analyzers manufactured by HACH. These analyzers test for chemical parameters essential to maintaining regulatory compliance and effective water treatment process control, such as pH, chlorine residual, ammonia nitrogen, and fluoride residual.
The cost of the proposed SIRR plan is $36,636.07, an increase of $2,902.67 from the 2020 SIRR plan. Some of this increase is due to revisions of testing processes utilized and modified testing frequencies by the WPD. Also, by entering into such a volume discount purchase agreement with HACH, they have provided preferred/reduced pricing for a total discount of approximately 11.88% off their standard list prices for the provided reagents. HACH is not receptive to negotiating a two-year SIRR plan.
HACH has a well-established and successful history of providing reagents needed in a timely manner while avoiding issues with backordered or out-of-stock items for the WPD. As such, the WPD recommends HACH to provide the necessary reagents through their SIRR volume discount plan program ...
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