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HomeMy WebLinkAboutItem 16 - Storage TankMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBJECT: APPROVAL FOR THE AWARD OF A QUOTE FOR A NEW CAUSTIC STORAGE TANK AND REMOVAL OF OLD TANK RECOMMENDATION: City Council to consider approval for the award of an informal request for quote for a new caustic storage tank and removal of old tank from Palmer of Texas. FUNDING SOURCE: Funding for this purchase is currently available in account 325-48860-210-03-16 (Apparatus and Equipment) in an amount not to exceed $37,575.00. This purchase is for a new storage tank containing chemical needed to protect the integrity of the distribution pipe lines. The chemical is caustic, i.e. corrosive. Per TCEQ we are required to store at a minimum, one month of the chemical supply. The storage tank has a capacity of 12,500 gallons. The existing tank has exceeded its useful life and needs to be replaced. Informal quotes were taken in accordance with City Purchasing Policy. Formal bids and advertisements are not required for purchases under $50,000.00. Three vendors submitted quotations as noted below. Palmer of Texas submitted the lowest quote meeting specifications. Palmer of Texas $37,575.00 Diamond Services $38,485.00 USA Blue Book $46,128.60 Staff recommends approval. JD/LW