TO: Honorable Mayor and Council
FROM: Doug Thomas, Wastewater Division Manager
SUBJECT:Title
Renew Bid for Bulk Sodium Hydroxide (Caustic Soda 50%) for Odor Management, ITB No. B12-WW12-01, with DPC Enterprises for FY14-15
Body
FUNDING SOURCE:
Wastewater Utility Fund
PURPOSE:
Renew Bid WW12-01 for Sodium Hydroxide 50% for odor control at the Island, Mulberry and North Regional Treatment Plants.
BACKGROUND:
On June 26, 2012, the City Council awarded the original contract for the Bulk Sodium Hydroxide (Caustic Soda 50%) for odor management Bid No.WW12-01 to DPC Enterprises, L.P. The original contract states that the contract may be renewed at the expiration of its term by mutual agreement of both parties.
The renewal may be for a maximum of two additional twelve (12) month periods or less, if agreeable by both parties. This is the second and final renewal of the contract. The renewal will run from July 1, 2014 to June 30, 2015.
The current unit price per gallon for Sodium Hydroxide 50% is $2.90. Staff did a cost comparison to see if a better price could be achieved by going out to bid and was satisfied that the renewal price was lower than what was consistent with the Global Chlor-Alkai market.
Sodium Hydroxide is used for odor management at the treatment plants and is tax exempt. Staff anticipates spending approximately $43,000 on Sodium Hydroxide 50% for FY 2014-15.
COMMUNITY IMPACT:
These chemicals are used to control odors at the Island, Mulberry and North Regional Treatment Plants.
FISCAL IMPACT:
Funds in the amount of $764,350 are in the proposed FY14-15 budget in the Wastewater Chemical and Laboratory Supplies Fund Account 531.4210.422.5214
ATTACHMENTS:
Renewal Letter from DPC Enterprises, L.P.
SUGGESTED MOTION:Recommended Action
I move to renew the bid for Sodium Hydroxide 50% with DPC Enterprises for FY 2014-15.