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HomeMy WebLinkAboutItem 10d - Purchase Order Extension for Sodium HypochloritePurchase Order Extension for Sodium Hypochlorite May 5, 2020 Page 1 of 3 DATE: May 5, 2020 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: John Corona, Utilities Superintendent SUBJECT: EXTENSION TO THE PURCHASE ORDER WITH WATERLINE TECHNOLOGIES, INC. FOR THE PURCHASE AND DELIVERY OF SODIUM HYPOCHLORITE FOR THE DISINFECTION OF THE CITY'S MUNICIPAL WATER SUPPLY IN THE AMOUNT OF $44,080 Recommendation: Approve SUMMARY On July 18, 2017, the City Council approved a purchase order with Waterline Technologies, Inc. in the amount of $39,065.60 for the purchase and delivery of liquid sodium hypochlorite to be used for the disinfection of the City’s municipal water system. Waterline Technologies, Inc. is reaching the end of their second purchase order extension and has submitted a written offer to extend the existing purchase order for one final year. Due to a manufacturer’s price increase, the contractor’s offer of extension reflects a one-cent per unit price increase from last year’s extension. In addition, the quantity of sodium hypochlorite to be purchased will increase by 2,000 gallons to account for the Live Oak Well returning to service in Fiscal Year 2020-2021. This would bring the total purchase order to $44,080, a 10% increase from the last purchase order extension of $40,112. This will be the contractor’s third and final purchase order extension. All other terms and conditions of the purchase order will remain in effect. Based on the excellent level of service provided by Waterline Technologies during the previous year, it is recommended that the City Council approve a one-year purchase order extension with Waterline Technologies, Inc. for the purchase and delivery of sodium hypochlorite to disinfect the City’s municipal water supply in the amount of $44,080. Purchase Order Extension for Sodium Hypochlorite May 5, 2020 Page 2 of 3 BACKGROUND The disinfection of drinking water by public water agencies is essential in preventing water-borne diseases. The City’s municipal water supply system permit from the State Water Resources and Control Board Division of Drinking Water (“DDW”) 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 (“PWSD”) to convert the disinfection system over to sodium hypochlorite. Liquid sodium hypochlorite, commonly referred to as chlorine, is also less hazardous to work with and has the same residual protection as chlorine gas. The liquid sodium hypochlorite is delivered in bulk to the City’s well sites and stored onsite, where it is injected into the water distribution system using precision-metering devices to deliver accurate concentrations in accordance with DDW standards. The City’s W ater Production Technicians monitor the chlorine residuals on a daily basis to ensure levels are consistent and safe. DISCUSSION On July 18, 2019, the City Council approved a purchase order extension with Waterline Technologies, Inc. for the purchase and delivery of liquid sodium hypochlorite to be used for the disinfection of the City’s municipal water supply. Annually, the City purchases between 35,000 to 36,000 gallons of sodium hypochlorite. However, with the completion of the Live Oak water treatment facility, Live Oak W ell is expected to be brought back into service in FY 2020-21. Although the treated water from Live Oak Well meets drinking water standards, the injection of sodium hypochlorite is necessary protocol to offer residual disinfection properties as the treated water joins the City’s distribution system. As such, an additional 2,000 gallons of sodium hypochlorite is needed, bringing the total quantity for purchase to 38,000 gallons in Fiscal Year 2020- 2021. Waterline Technologies, Inc. is reaching the end of their second purchase order extension and has submitted a written offer to extend the existing purchase order for an additional year. The contractor’s offer of extension reflects a one-cent per gallon increase, due to an increase in manufacturing costs. This will be the contractor’s third and final purchase order extension with all other terms and conditions of the purchase order to remain in effect. Waterline Technologies, Inc. has provided excellent service during the entire term of the purchase order. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the Section 15061(b)(3) of the Guidelines of the California Environmental Quality Act (“CEQA”), and it can be seen Purchase Order Extension for Sodium Hypochlorite May 5, 2020 Page 3 of 3 with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT Sufficient funds have been budgeted in the Fiscal Year 2020-2021 Water Operations Budget for the purchase of bulk sodium hypochlorite. RECOMMENDATION It is recommended the City Council determine that this action does not constitute a project and is therefore exempt under the California Environmental Quality Act (“CEQA”); and approve a one-year extension to the Purchase Order with Waterline Technologies, Inc. for the purchase and delivery of sodium hypochlorite for the disinfection of the City’s municipal water supply in the amount of $44,080.