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SR - AGR-6538 - PURCHASE OF AS-NEEDED LIQUID SODIUM HYPOCHLORITE1. SUBJECT Award of Contract- Bid No. 178 -10; Purchase of liquid sodium hypochlorite on an "as needed" basis. 2. SUMMARY Two bids for the purchase of sodium hypochlorite were received and opened on October 12, 2017. The apparent responsive low bidder is Waterline Technologies, Inc. in an amount of $95,682. 3. RECOMMENDED ACTION Award the contract in the amount of $95,682 to Waterline Technologies, Inc. and authorize the Mayor and the City Clerk to execute on behalf of the City. 4. FISCAL IMPACT Funds are available to cover the cost of purchase as follows: 600.8011.53530.00000 Chemicals $85,550 600.8011.53060.00000 Misc. Materials and Supplies $48,545 5. STRATEGIC PLAN GOAL(S) 1. Provide for a safe community: b. Provide and maintain infrastructure necessary to ensure the safety of the public. 2. Be a fiscally healthy community: d. Effectively manage and develop City assets. 4. Provide outstanding public service: b. Provide facilities and services to meet customer expectations. 6. GENERAL PLAN IMPLEMENTATION Infrastructure Element Goal 6.0: Ensure water, sewer, and storm drain systems that meet the needs of residents and businesses. Policy 1.1: Provide sufficient levels of water, sewer, and storm drain service throughout the community. Economic Development Element Goal 6.0: Provide sufficient infrastructure to support anticipated economic development and growth. Policy 6.1: Provide public improvements to support commercial, industrial and institutional uses. 7. DISCUSSION and BACKGROUND The California Water Resources Control Board requires all public water systems to add chlorine to the distribution system for disinfection purposes. As a result, the Water Division needs to continuously inject liquid chlorine (sodium hypochlorite) at 12 water well sites and various reservoirs throughout the year. Based on previous chlorine consumption and the projected groundwater production, it is estimated that approximately 80,000 gallons of liquid chlorine will be used throughout the year. Bids were advertised through a formal bid process. Two bids were received and opened on October 12, 2017. Staff also received an email from Northstar Chemical declining to bid due to the unavailability of small delivery vehicles. The result of the bid opening is as follows: 1. Waterline Technologies, Inc. $95,682 2. Intervalley Pool Supply, Inc. $99,130 Waterline Technologies, Inc. has been the current sodium hypochlorite vendor for the City since 2010. They are familiar with the City's operation and facilities. Staff is recommending that the City Council award the contract for the purchase of sodium hypochlorite, on an "as needed" basis from Waterline Technologies, Inc. in an amount not to exceed $95,682. The term of the contract is for three years with a fixed cost at $1.11 per gallon. The contract can be renewed for a total of two more years if the City is satisfied with the performance and level of service from the contractor. Each extension is subject to a consumer price index (CPI) increase at the request of the vendor, with the adjustment capped at no greater than 2 %. 8. ATTACHMENTS --7 Bid Results Draft Contract Agreement ITEM 11/14/17 2