Title
Resolution to Approve Purchase of Sodium Hydroxide (Caustic Soda) for Water Treatment from JCI Jones Chemicals, Inc. (ITB 4730, Estimated $450,000.00/year)
Memorandum
Your approval is requested to authorize the purchase of sodium hydroxide for the Water Treatment Services Unit. Sodium Hydroxide is used to raise the pH of the water to avoid taste and odor in the water delivered to customers. The estimated cost of this chemical for FY24 with quarterly price adjustments is $450,000.00.
The City received the following bids per dry ton:
JCI Jones Chemicals, Inc. - $1,100.00 (pricing quarterly, change after 9/30/23 with 30 days written notice)
Alexander Chemical Corporation, a Carus Company- $1,249.00 (pricing per calendar quarterly only)
PVS Nolwood Chemicals, Inc.- $1,376.00 (pricing per quarterly)
It is recommended that Council accept the bid and approve a purchase order to JCI Jones Chemicals, Inc., as the lowest responsible bidder, to provide the Water Treatment Service Unit with sodium hydroxide for FY24.
It is also recommended that the City Administrator be authorized to extend the purchasing agreement for up to three (3), one-year (1) periods provided both parties agree to an extension, and with an optional price increase tied to the Producers Price Index (PPI) as outlined in the bid documents, and subject to the availability of funding.
If JCI Jones Chemicals, Inc. is unable to furnish sodium hydroxide, it is requested that the City Administrator be authorized to accept the next lowest responsible bidder for the sodium hydroxide purchase.
JCI Jones Chemicals, Inc. complies with the City’s Non-discrimination Ordinance.
Budget/Fiscal Impact: Funds are specifically budgeted for this purchase in the approved FY24 Operations and Maintenance Budget for the Water Supply System Fund.
Staff
Prepared by: Rebecca Lahr, Drinking Water Quality Manager, Water Treatment Plant
Reviewed by: Brian Steglitz, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Water Treatment Services Unit uses sodium hydroxide to raise the pH of the water to avoid taste and odor in the water delivered to customers;
Whereas, Contracts for supplying estimated requirements are the most stable and cost-effective way of meeting water treatment needs;
Whereas, JCI Jones Chemicals, Inc. bid is the lowest responsible bid for the supply of sodium hydroxide per ITB 4730;
Whereas, JCI Jones Chemicals, Inc. complies with the requirements of the Non-Discrimination Ordinance; and
Whereas, Funding for the purchase of sodium hydroxide is available in the FY24 approved Operation and Maintenance Budget of the Water Supply System Fund.
RESOLVED, That Council accepts JCI Jones Chemicals, Inc.’s bid of $1,100.00/dry ton for sodium hydroxide in accordance with the terms of ITB 4730;
RESOLVED, That the City Administrator be directed to approve a purchase order with JCI Jones Chemicals, Inc. for purchase of sodium hydroxide in accordance with this resolution at an estimated cost of $450,000.00 for FY24;
RESOLVED, That in the event JCI Jones Chemicals, Inc. is unable or unwilling to furnish adequate supplies during the contract period, the City Administrator is authorized to accept the bid of the next lowest responsible vendor or to negotiate the purchase of necessary supplies on the open market subject to the availability of funding;
RESOLVED, That the City Administrator be authorized to renew the purchase agreement for up to three (3), one-year (1) periods subject to availability of funding and limited to the price escalation clause tied to the Producers Price Index (PPI) as outlined in the bid documents; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.