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HomeMy WebLinkAboutItem 10q - PO Extension for Sodium HypochloritePurchase Order Extension for Sodium Hypochlorite June 6, 2023 Page 1 of 3 DATE: June 6, 2023 TO: Honorable Mayor and City Council FROM: Paul Cranmer, 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 $136,434.37 CEQA: Not a project Recommendation: Approve SUMMARY On May 17, 2022, the City Council approved a purchase order with Waterline Technologies, Inc. in the amount of $95,100.75 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 purchase order and has submitted a written offer to extend their purchase order for an additional year. Due to the volatility in production costs, including increased raw material costs and transportation costs, the contractor’s offer of extension reflects a 43%, or $0.82 per gallon cost increase from the original purchase order of $95,100.75, bringing the total purchase order amount to $136,434.37. This will be the contractor’s first of three possible extensions. All other terms and conditions of the purchase order will remain in effect. Based on the excellent level of services 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 for the disinfection of the City’s municipal water supply in the amount of $136,434.37. 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 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 Purchase Order Extension for Sodium Hypochlorite June 6, 2023 Page 2 of 3 corrosive nature of chlorine gas prompted the Public Works Services Department (“PWSD”) to convert the disinfection system over to liquid 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 then injected into the water distribution system using precision-metering devices to deliver accurate concentrations in accordance with DDW standards. The City’s Water Production Technicians monitor the chlorine residuals on a daily basis to ensure levels are consistent and safe. DISCUSSION On May 17, 2022, the City Council approved a purchase order with Waterline Technologies, Inc. in the amount of $95,100.75 for the purchase and delivery of liquid sodium hypochlorite to be used for the disinfection of the City’s municipal water system. Annually, the City purchases approximately 45,000 gallons of sodium hypochlorite. Due to industry-wide cost increases on raw materials, production costs, and transportation costs, Waterline Technology has offered to extend the agreement with a 43%, or $0.82 per gallon, price increase. This would bring the total purchase order amount to $136,434.37. Staff has evaluated the industry-wide costs associated with the production and delivery of sodium hypochlorite and has determined that the requested price increase is reasonable in relation to current industry pricing. Waterline Technologies, Inc. is the lowest cost supplier of those surveyed. It is, therefore, recommended that the City Council extend the purchase order with the requested increase for one-year. ENVIRONMENTAL ANLYSIS The proposed action does not constitute a project under Section 15061(b)(3) of the California Environmental Quality Act (“CEQA”), and it can be seen 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 2023-24 Water Operations Budget for the purchase of bulk liquid sodium hypochlorite. RECOMMENDATION It is recommended that 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 $136,434.37. Purchase Order Extension for Sodium Hypochlorite June 6, 2023 Page 3 of 3