Title
Resolution to Approve Purchase of Sodium Hydroxide (Caustic Soda) for Water Treatment from JCI Jones Chemicals, Inc. (ITB 4718) (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 FY23 is $450,000.00.
The City received the following bids per dry ton:
Alexander Chemical Corporation, a Carus Company $1,340.00 (pricing firm through Jan 30, 2023)
JCI Jones Chemicals, Inc. $885.00 (pricing adjustments quarterly)
It is recommended that Council accept the bid and award a purchase order to JCI Jones Chemicals, Inc., as the lowest responsible bidder, to provide the Water Treatment Service Unit with sodium hydroxide for FY23.
It is also recommended that the purchasing agreement be extended for up to three (3) additional (1) one-year periods if the vendor is agreeable and if in the best interest of the City. Any price adjustments must follow the pricing index procedure in the bid documents or remain lower than the next lowest responsible bidder.
If JCI Jones Chemicals, Inc. is unable to furnish sodium hydroxide, it is requested that the Water Treatment Services Unit Manager 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 FY23 Operations and Maintenance Budget for the Water Supply System Fund. Purchases in future fiscal years are subject to the availability of funds.
Staff
Prepared by: Rebecca Lahr, Drinking Water Quality Manager, Water Treatment Plant
Reviewed by: Brian Steglitz, Interim 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 4718;
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 FY23 approved Operation and Maintenance Budget of the Water Supply System Fund;
RESOLVED, That Council accepts JCI Jones Chemicals, Inc.’s bid of $885.00/dry ton for sodium hydroxide in accordance with the terms of ITB 4718;
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 FY23;
RESOLVED, That the Water Treatment Services Unit Manager be directed to procure this chemical from a different source if JCI Jones Chemicals, Inc. is unable to furnish adequate supplies during the Contract period;
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 or remain lower than the next lowest responsible bidder; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.