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HomeMy WebLinkAbout22E - SPEC - WATER TREATMENT REQUEST FOR ; COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: AUGUST 1, 2011 TITLE: APPROVED ? As Recommended CONTRACT RENEWAL TO GALLADE ? Amended CHEMICAL INC. FOR WATER El Ordinance on 151 Reading ? Ordinance on 2"d Reading TREATMENT SALT ? Implementing Resolution (SPEC. NO.08-008) ? Set Public Hearing For _11 CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Renew the contract with Gallade Chemical Inc. for water treatment salt for a one-year period in an annual amount not to exceed $40,000. DISCUSSION The Public Works Agency Water Resources Division produced 35,274.6 acre-feet of water last fiscal year from 21 groundwater wells and purchased another 5,860.6 acre-feet of treated water from the Metropolitan Water District for delivery to businesses and residents in Santa Ana. In compliance with the National Sanitation Foundation Standard 60 requirements for safety, salt is used in a non- hazardous disinfection process at the well sites. Central Stores at the Corporate Yard handles the ordering and storing of the salt bags until requisitioned by PWA water crews. The contract for salt provides quality products at a significant savings based on quantity pricing. On April 7, 2008, the City Council awarded a contract to Gallade Chemical Inc. for a one-year period, with provisions for four one-year renewals. The vendor has performed satisfactorily during the past contract period and has agreed to renew the contract; however the vendor has requested a 2.15 percent price increase per sack as the results of rising cost of raw material. Staff verified the increase is consistent with the market and the vendor continues to offer a competitive price. Staff recommends the third renewal of the contract. The annual amount has been adjusted down by 11 percent based upon staff's projection for the next year. FISCAL IMPACT Funds are available in the Water Utility Production & Supply account (accounting unit 06017640- 63001). APPROVED AS TO FUNDS AND ACCOUNTS: Raul Godinez II Francisco Gutierrez Executive Director Executive Director Public Works Agency Finance & Management Services Agency km 22E-1 22E-2