HomeMy WebLinkAboutItem 3g: Contract Extension to Waterline Technologies for Sodium Hypochlorite Disinfection of City's Water Supply V ~4 OF � N• � 9 f
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STAFF REPORT
Public Works Services Department
DATE: June 21, 2011
TO: Mayor and City Council
FROM: Tom Tait, Public Works Services Director
Prepared by: Craig Clark, Utilities Superintendent
SUBJECT: AWARD A ONE (1) YEAR PURCHASE ORDER CONTRACT
EXTENSION TO WATERLINE TECHNOLOGIES, INC. FOR THE
PURCHASE AND DELIVERY OF SODIUM HYPOCHLORITE TO BE
USED FOR THE DISINFECTION OF THE CITY'S MUNICIPAL WATER
SUPPLY IN THE AMOUNT OF $47,688
Recommendation: Approve
SUMMARY
On July 15, 2008, the City Council approved a one (1) year purchase order Agreement
with optional annual extensions with Waterline Technologies, Inc. for the purchase and
delivery of sodium hypochlorite used to disinfect the City's municipal water supply in the
amount of $45,000. The contract agreement allows for up to three (3) contract
extensions.
Waterline Technologies, Inc. is reaching the end of their second year contract extension
and has submitted a written offer to extend the existing purchase order contract for an
additional one (1) year with an increase of $2,688 or 6% due to rising fuel costs and the
availability of material (Caustic Soda) from Japan due to the recent earthquake and
tsunami. All other terms and conditions of the Agreement are to remain the same.
Based on the excellent service provided by Waterline Technologies, Inc. during
previous years, staff recommends that the City Council award a one (1) year purchase
order contract extension to Waterline Technologies, Inc. for the purchase and delivery
of sodium hypochlorite to be used for the disinfection of the City's municipal water
supply in the amount of $47,688.
DISCUSSION
The disinfection of drinking water by public water agencies is essential in eliminating
potential water quality problems. Chlorination is an acceptable method used by
municipal water systems. The City's municipal water supply system permit from the
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Mayor and City Council
June 21, 2011
Department of Public Health (DOPH) specifies that the City's water system use
Chlorination as a means of disinfection.
Gaseous chlorine had been the standard for municipal water disinfection for many
years. However, safety concerns related to the hazardous and corrosive nature of
chlorine gas prompted the Public Works Services Department to convert the disinfection
system over to liquid sodium hypochlorite solution.
Liquid sodium hypochlorite (commonly referred to as chlorine bleach) is much Tess
hazardous to work with than gaseous chlorine and has the same effect and residual
protection as chlorine gas. The sodium hypochlorite is delivered in bulk to the well sites
and stored onsite where it is then injected into the distribution system using precision
metering devices to assure the proper concentration of disinfectant. These
concentrations are monitored on a daily basis by water technicians.
On July 15, 2008, the City Council approved a one (1) year purchase order Agreement
with optional annual extensions with Waterline Technologies, Inc. for the purchase and
delivery of sodium hypochlorite used to disinfect the City's municipal water supply in the
amount of $45,000. Waterline Technologies, Inc is reaching the end of their second
year contract extension and has submitted a written offer to renew their existing
purchase order contract with an increase of $2,688 or 6 %. Since the purchase order
Agreement was awarded in 2008, Waterline Technologies has not increased their costs
despite the increase in fuel costs in previous years. In their submittal, Waterline
Technologies, Inc. is increasing their price for bulk sodium hypochlorite delivered to the
water facilities by $0.14 cents which includes tax. The City's Water Section uses an
average of 1,600 gallons a month of sodium hypochlorite or 19,200 gallons annually
which totals to an increase of $2,688. The current Agreement allows for up to three (3)
contract extensions. If approved, this will be the final extension for Waterline
Technologies and staff will re -bid this service next year.
This increase is mainly due to rising fuel costs and the economic effects of the most
recent earthquake and tsunami in Japan. As a result there is a current shortage of
caustic soda, the primary element in sodium hypochlorite. Vendors are being forced to
purchase caustic soda locally, but at a much higher cost. All other terms and conditions
of the Agreement are to remain the same. There are sufficient funds in the Water
Operating Budget for this increase.
Therefore, staff recommends that the City Council award a one (1) year purchase order
contract extension to Waterline Technologies, Inc. for the purchase and delivery of
sodium hypochlorite to be used for the disinfection of the City's municipal water supply
in the amount of $47,688.
FISCAL IMPACT
Sufficient funds have been budgeted in the FY 2011 -12 Water Fund for the purchase of
sodium hypochlorite.
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Mayor and City Council
June 21, 2011
RECOMMENDATION
Award a one (1) year purchase order contract extension to Waterline
Technologies, Inc. for the purchase and delivery of sodium hypochiorite to be
used for the disinfection of the City's municipal water supply in the amount of
$47,688
Approved by: �—
Donald Penman, City Manager
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