HomeMy WebLinkAboutItem 13 - Water and Wastewater Chemicals .041
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL.
FROM: BRUNO RUMBELOW, CITY MANAGER'
MEETING DATE: MAY 16, 2006
SUBJECT: RENEWAL OF BID 221-2006, ANNUAL CONTRACT TO
PROVIDE WATER AND WASTEWATER CHEMICALS
RECOMMENDATION:
City Council to consider renewal of annual contracts to Altivia, Pencco, Inc., Fort Bernd
Services, Harcors Chemicals and DPC Industries (DX Group) for water and wastewater
chemicals to be ordered on an as needed basis by the Water Treatment and
Wastewater Plants. Purchases will be limited to the annual budgeted amount for this
commodity. A bid tabulation is attached for review.
FUNDING ISOURCE:
Funds are available in accounts:
200-42205-531-2'Utility Enterprise Fund/Grounds Maintenance/Water Treatment'
200-42205-530-2 Utility;Enterprise Fund/Grounds Maintenance/Wastewater Treatment
BACKGROUND:
Bids were taken in accordance with Local Government Code Chapter 252, Subchapter
B, Section 252.021 (a) and Section 252.041 (a). The bid advertisement posted in the
Fort Worth Star Telegram and the Grapevine Sun on March '3, 2005 and March 10,
2005. Staff issued bid documents to fifteen contractors. Council approved the original
contract on April 5, 2005. There were four one-year options to renew the contract. If
approved, this would be the first renewal.
The invitation requested fixed annual pricing to provide various water and wastewater
chemicals used in the daily operations of the water and wastewater treatment plants.
Ten vendors responded to the bid invitation. With the exception of JLM Industries, all of
the responding vendors met the requested specifications of the bid. The product
submitted by JLM Industries does not meet the type ; of potassium permanganate
required for use by the Water Treatment Plant.
During the contract year, two important factors'affected chemical prices. One factor was
Hurricane Katrina and the other was the unprecedented rise in the cost of fuel and
transportation costs. These 'factors combined to put heavy price pressures on the
chemical industry. Under the original contract with each vendor, price increases may
:rr only be considered at the end of each contract period. Each of the current contract
May 10 2006(10:19AM)
vendors were contacted by Staff to see if they would renew their contracts and if there
would be any price increases. Attached is a copy of the original bid tabulation along with
the requested price increases for each chemical. The overall price increase requested is
15%.
Brenntag Southwest and F.S.T.I were originally awarded (as low bid) the Potassium
Permanganate (Item 4) and the Sodium Hydroxide Solution (Item 6). Both vendors
indicated they could not offer the same pricing and would not be able to offer fixed
pricing for the coming year. Staff contacted the next lowest bidder for both items.
Harcross Chemicals was the next lowest bidder and this vendor indicated they could
maintain fixed pricing as bid for the sodium hydroxide solution and could offer fixed
pricing on the Potassium Permanganate at a cost of $2.17/Lb. Harcross was the only
other vendor that met specifications on the Potassium Permanganate.
Staff recommends renewal of contracts to Altivia, Pencco, Inc., Fort Bend Services,
Harcooss Chemicals and DPC Industries (DX Group) for one-year at the pricing shown
on the attached bid tabulation.
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May 10, 2006(10:19AM)
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