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HomeMy WebLinkAbout10/06/1998, C5 - UTILITY CHEMICAL BIDS FOR 1999/00 councit Oct. 6 1998 j acEnaa REpont I` Nunb� C� CITY OF SAN LUIS O B I S P O FROM: John Moss, Utilities Directs Prepared By: David C. Hix, Wastewater DI iston ManageaP/ SUBJECT: Utility Chemical Bids for 1999/00 CAO RECOMMENDATION: By motion, approve bid package for 1999-2000 Water Treatment Plant and Water Reclamation Facility chemicals; authorize staff to solicit bids; authorize CAO to award the contract to lowest responsible bidder(s)if bid is within the staff cost estimate, and authorize CAO to extend contract for an additional year if chemical cost increases are within cost of living increase. DISCUSSION Plans and specifications have been prepared for the soliciting of competitive bids for chemicals required over the next year for the Water and Water Reclamation Treatment processes. The contracts with the chemical supply companies may be extended an additional year, with CAO approval, if cost increases are within cost of living increases. The competitive chemical bidders list included with the package is the result of similar City requests for bids for treatment chemicals over the years. The chemicals, estimated at a combined annual cost of $371,000 in 1998/99 and $372,500 in 1999/00, are listed below: CHEMICAL BUDGET LINE ITEM 1998-99 1999-00 WATER TREATMENT F1ANI Sodium Hypochlorite 500-5515-360-293 $31,500 $31,500 Liquid Alum 500-5515-360-282 $28,000 $28,000 Cationic Polymer 500-5515-360-305 $7,500 $7,500 Sodium Silicofluoride 500-5515-360-412 $5,000 $5,000 Sodium Hydroxide 500-5515-360-292 $9,000 S9.000 TOTAL S81,000 $81,000 WATER RECLAMATION FACILITY Sodium Hypochlorite 520-5533-360-293 5165,000 $165,000 Ferrous Chloride 520-5533-360-292 $15,000 $15,000 Sodium Bisulfite 520-5533-360-376 $100,000 $100,000 Sodium Hydroxide 520-5533-360-292 $10,00 0 1$ 2500 TOTAL $2901000 $292,500 All chemical suppliers are required in the bid documents to supply chemicals in accordance with applicable American Water Works Association standards and the City specifications. As in past years, specification packages will be sent to all of the various chemical companies (18) that supply the required chemicals and the lowest responsive/responsible bidder for each chemical will be selected to supply the City's treatment chemicals. Council Agenda Report- 1999/00 Chemical Bids Page 2 FISCAL EMPACT: A total of$81,000 in the Water Treatment Plant operating budget (Water Fund) and $290,000 in the Water Reclamation Facility operating budget (Sewer Fund) was approved as a part of the 1998-99 Budget to support the purchase of chemicals to treat water and wastewater (1997-99 Financial Plan). Current chemical contracts extend through January 31, 1999. This bid process is for contracts to begin February 1, 1999 and continue through 1999-00. This approach will allow the Utilities department to budget accurately for chemical costs in the 1999-01 Financial Plan and 1999-00 budget development. 1998-99 BUDGET FOR CHEMICALS BY FUND Water Treatment Plant Sodium Hypochlorite 31,500 Liquid Alum 28.000 Cationic Polymer 7,500 Sodium Silicofluoride 5,000 Sodium Hydroxide 9,000 Total Water Fund 81,000 Water Reclamation Faen7ity Sodium Hypochlorite 165,000 Ferrous Chloride 15,000 Sodium Bisulfite 100,000 Sodium Hydroxide 10,000 Total Sewer Fund 290,000 The bid package is available in the Council Office for review. H:\99 chembid\99 chembid car