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Item 1.A.3.
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| City Council Regular | |
| Date: | 05/12/2025 |
| Title: | Water Treatment Plant Poly-Aluminum Coagulant Bid Award |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review: | Not Applicable |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends that Council approve the award for the purchase of chemical coagulant from Hawkins, Inc. for one year with the option of two, one-year extensions if prices are mutually acceptable to the City and the supplier.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Chemical coagulants are used in water treatment to remove silt and clarify the water. The current contract for coagulant has expired and staff requested bids for a new contract. The Public Works Department advertised bids on March 14 and 21, 2025, in the Yellowstone County News and on the City's website. Bids were opened on April 1, 2025. The City received one bid for chemical coagulant from Hawkins Inc.
ALTERNATIVES
City Council may:
- Approve the award for the purchase of chemical coagulant from Hawkins, Inc.; or,
- Not approve the award from Hawkins, Inc. If City Council does not approve, chemical coagulant will need to be purchased at market prices for each shipment, likely resulting in additional cost.
FISCAL EFFECTS
Coagulant is budgeted in the Public Works water fund. Bids were received on April 1, 2025. Only one bid was received, and the bidding result is as follows:
The City anticipates purchasing approximately 1,000,000 lbs at railcar delivery price annually so the total expense for coagulant would be $705,000 per year.
Hawkins, Inc. has been the City's coagulant supplier for more than 6 years. Compared to previous years, the cost was $0.6762/lb for the truck delivery price. The $0.81/lb is a 19.8% increase. In the previous contract, Hawkins did not offer a railcar delivery price. Staff intends to utilize railcar deliveries since the cost is lower at $0.705/lb. This would limit the increase in cost to 4.3% from the previous truck price. Staff contacted other suppliers for reasons for not bidding. Other suppliers stated lack of chemical production capacity or cost feasibility as reasons for not bidding. Staff also contacted area communities, and they have seen similar price increases in coagulant.
| SUPPLIER | RAILCAR DELIVERY $/lb | TRUCK DELIVERY $/lb | TOTE DELIVERY $/lb |
| Hawkins, Inc. | $0.705 | $0.81 | $0.85 |
The City anticipates purchasing approximately 1,000,000 lbs at railcar delivery price annually so the total expense for coagulant would be $705,000 per year.
Hawkins, Inc. has been the City's coagulant supplier for more than 6 years. Compared to previous years, the cost was $0.6762/lb for the truck delivery price. The $0.81/lb is a 19.8% increase. In the previous contract, Hawkins did not offer a railcar delivery price. Staff intends to utilize railcar deliveries since the cost is lower at $0.705/lb. This would limit the increase in cost to 4.3% from the previous truck price. Staff contacted other suppliers for reasons for not bidding. Other suppliers stated lack of chemical production capacity or cost feasibility as reasons for not bidding. Staff also contacted area communities, and they have seen similar price increases in coagulant.