HomeMy WebLinkAbout11/12/2002, C3 - UTILITY CHEMICAL BIDS FOR 2003 council ov
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12 2002
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C I TY OF SAN L U IS O B I S P O
FROM: John Moss,Utilities Director
Prepared By: Gary Henderson, Water Di on Manager r-��
SUBJECT: Utility Chemical Bids for 2003
CAO RECOMMENDATION
1. Approve Invitation for Bids package for 2003 Water Treatment Plant and Water Reclamation
Facility Chemicals, Specification No.90371.
2. Authorize staff to advertise for bids.
3. Authorize the CAO to award the contract to the lowest responsible bidder(s), if bid is within
available budget.
4. Authorize the CAO to extend the contract for an additional year if chemical cost increases are
within cost of living increase.
5. Adopt resolution authorizing the CAO, in future years, to approve invitation for bids for
supplying chemicals and award of the contracts if bids are within available budget.
DISCUSSION
Use of various chemicals are necessary for the proper treatment of drinking water and wastewater.
The specifications for chemicals needed for both the Water Treatment Plant and Water Reclamation
Facility have been prepared to provide for the chemicals needed during the next year. The
estimated costs for chemicals are shown in the table below:
Budget Budgeted Projected
Chemical Line Item 1/1/03—660/03 7/1/03—1/31/04
Water Treatment Plant
Liquid Alum 500.55150.7755 14,300 17,200
Sodium Hydroxide 500.55150.7775 4,500 5,400
Sodium Hypochlorite 500.55150.7777 15,600 18,700
Filtering Aids 500.55150.7801 3,800 4,500
Sodium Silicofluoride 500.55150.7887 3,000 3,600
TOTAL $41,200 $49,400
Water Reclamation Facility
Sodium Hydroxide 520.55330.7775 10,700 12,900
Sodium Hypochlorite 520.55330.7777 113,000 135,800
Sodium Bisulfite 520.55330.7815 57,500 69,100
Ferrous Chloride 520.55330.7775 6,100 7,400
TOTAL $187,300 $225,200
TOTAL—BOTH FACIUMS $228,500 $274,600
Council Agenda Report-Utility Chemical Bids for 2003
Page 2
Staff is requesting authority to modify the financial procedures for future procurement of chemicals.
Chemicals are a necessity for the treatment of water and wastewater to meet stringent state and
federal regulations and are therefore not a discretionary decision for the Council. The adoption of
the resolution included with this report will authorize the CAO to approve future advertisement for
chemical bids and award the contracts as long as adequate funds are available in the budget. In the
event that additional funds are necessary above the adopted financial plan, staff will return to
Council for the appropriation of the addition funds.
CONCURRENCES
The Finance Director concurs with the recommended modification to financial procedures to allow
CAO approval for advertising and awarding future chemical purchases.
FISCAL IWACT
Current Water Treatment Plant and Water Reclamation Facility budgets can support the identified
budget amounts through 6/30/03 for the respective chemicals. Should bids be higher than the
budget amounts, staff will request the use of water and sewer carryover funds to supplement the
chemical budgets.
The projected amounts for 7/1/03 through 1/31/04 are calculated assuming seven months at the
same approximate use of chemicals, with a 3% cost of living increase. The bids will be used to
prepare the actual requested chemical budgets as part of the development of the 2003-05 Financial
Plan.
ALTERNATIVES
The Council could decide not to adopt the resolution for modification to the financial policies for
future procurement of chemicals. This will result in additional staff time for staff report preparation
and also require Council review of the staff report which is typically a consent item. Since the
purchase of chemicals is not a discretionary decision, staff would not recommend this alternative.
Attachments
1. Resolution authorizing modification of financial policies for procurement of chemicals
Bid package is available in the Council reading file
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RESOLUTION NO. (2002 Series) ATTACHMENT 1
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
MODIFYING FINANCIAL POLICIES FOR PURCHASE OF CHEMICALS
REQUIRED FOR TREATMENT OF WATER AND WASTEWATER
WHEREAS, City financial policies require Council approval of purchases of materials which
cost more than$50,000; and
WHEREAS, purchase of chemicals which are required for the proper treatment of water and
wastewater at City facilities is not a discretionary action for the City; and
WHEREAS, Council approves the financial plan that includes funding necessary for the
purchase of the chemicals needed for the treatment of water and wastewater.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Modify the financial plan procedures for procurement of chemicals necessary for
the treatment of water and wastewater, authorizing the City Administrative Officer to approve invitation
for bids and award of contracts if the bids are within available budget.
Upon motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of 2002.
Mayor Allen K. Settle
ATTEST:
Lee Price, C.M.C.
City Clerk
APPROVED AS TO FORM:
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