HomeMy WebLinkAboutAgenda Report - August 15, 2007 E-06r E
AGENDA ITEM
CITY OF LODI
COUNCIL COMMUNICATION
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TM
AGENDA TITLE: Adopt Resolution Authorizing Purchase of Process Chemical Sodium Hydroxide
for White Slough Water Pollution Control Facilityfrom Basic Chemical Solutions,
of Santa Fe Springs ($55,500) and Authorizing City Managerto Approve
Additional Purchases
MEETING DATE: August 15,2007
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt a resolution authorizing the purchase of the process chemical
sodium hydroxidefrom Basic Chemical Solutions (BCS), of
Santa Fe Springs, California, for use at the White Slough Water Pollution
Control Facility (WSWPCF) in the amount of $55,500 and authorizing the
City Managerto approve additional purchases.
BACKGROUND INFORMATION: The process chemical bid for sodium hydroxidewas pursued June 7,2006,
and awarded to BCS by Resolution No. 2006-147 on August 2,2006. BCS
was the only bidderto respond. The sodium hydroxide, also known as
caustic soda, is needed to maintain effluent pH within discharge
compliance limits.
Although the bid price reflected in their June 28, 2006 bid proposal was $2.252 per gallon, BCS has been
delivering the chemical for $2.09 per gallon. On July 10,2007, BCS notified the City by letterthat they would be
passing along an $0.18 per gallon price increase due to increased product and delivery costs.
Th this same letter, BCS proposes to reduce the anticipated increase by $0.05 per gallon, if the size of the
storage tank can be increased to 1,500 gallons at no charge to the City, thereby reducing the proposed cost
increase to $0.13 per gallon. The cost per gallon for the additional year will increase to $2.22 per gallon 0.032
per gallon less than the original bid price). Based on an estimated sodium hydroxide usage of 25,000 gallons
per year, the total cost of the purchase is estimated at $55,500.
The effort BCS has made to provide their productbelow the original June 28, 2006 bid price indicatesthe
company's desire to maintain a business relationship with the City by controlling costs. For this reason, staff
recommends Council adopt a resolution authorizing the purchase of the process chemical sodium hydroxide
from Basic Chemical Solutions and authorizing the City Managerto approve additional purchases if cost
increases do not exceed the west urban -not seasonally adjusted consumer price index as published by the U.S.
Department of Labor.
FISCAL IMPACT: The cost is based on an estimated annual sodium hydroxide demand of 25,000
gallons. Because the annual usage may vary depending on the quantity and
strength of the wastewater treated, the annual cost may vary also. The
operating budget has sufficientfunds available to cover these purchases.
FUNDING AVAILABLE: The money for these purchaseswill be coming from the WSWPCF Operating
IlLi,daet in the current 2007 08 budget.
I Evans, Budget Manager. ��o I t
1
Richard C. Prima, Jr.
PublicWorks Director
Prepared by Del Kerlin, Wastewater Treatment Superintendent
RCPlDKIdk
CIO. City Attorney Water Services Manager Wastewater Treatment Superintendent
APPROVED:
Blai ,City Manager
K:IWPICOUNCIL1071ProcessCnemicals.dDc 81612007
RESOLUTION NO. 2007-167
A RESOLUTION OF THE LODE CITY COUNCIL AUTHORIZING THE
PURCHASE OF PROCESS CHEMICAL SODIUM HYDROXIDE FOR USE AT
THE WHITE SLOUGH WATER POLLUTION CONTROL FACILITY AND
AUTHORIZING THE CITY MANAGER TO APPROVE ADDITIONAL PURCHASES
WHEREAS, on June 28, 2006, the City of Lodi solicited process chemical bids from Basic
Chemical Solutions (BCS) and Sierra Chemical Company for the delivery of sodium hydroxide to
the White Slough Water Pollution Control Facility. BCS, of Santa Fe Springs, California, was
awarded the bid for fiscal year 2006-07; and
WHEREAS, staff recommends the City Council approve the purchase in the amount of
$55,500, from BCS to provide the process chemical sodium hydroxide at a proposed cost
increase of $0.13 per gallon based on report to Council, for fiscal year 2007-08 for the White
Slough Water Pollution Control Facility.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby authorizes the
purchase in the amount of $55,500 from Basic Chemical Solutions, of Santa Fe, California, to
provide the process chemical sodium hydroxide for fiscal year 2007-08 for the White Slough
Water Pollution Control Facility; and
BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager to
approve additional purchases, if cost increases do not exceed the west urban -not seasonally
adjusted consumer price index as published by the U.S. Department of Labor.
Dated: August 15, 2007
I hereby certify that Resolution No. 2007-167 was passed and adopted by the City Council
of the City cf Lodi in a regular meeting held August 15, 2007, by the following vote:
AYES: COUNCIL MEMBERS— Hansen, Hitchcock, Katzakian, and Mayor Johnson
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS — Mounce
ABSTAIN: COUNCIL MEMBERS—None
City Clerk
2007-167