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.
 

Chemical coagulants are used in water treatment to remove silt and clarify the water. The current contract for this chemical has expired and staff requested bids for a new contract. The Public Works Department advertised for bids in the Yellowstone County News and the City's website. Bids were opened on April 5, 2022.The City received one bid for the chemical coagulant from Hawkins, Inc.
 

City Council may:

• Approve the award for the purchase of chemical coagulant from Hawkins, Inc.; or
• Disapprove the purchase and reject the bid. If the Council rejects this bid, chemical coagulant will need to be purchased at market price, resulting in more cost for water treatment.

Coagulant is budgeted in the Public Works Water fund. Bids were received on April 5, 2022.  Only one bid was received, and the bidding result is as follows:
 

SUPPLIER	TRUCK DELIVERY $/lb	TOTE DELIVERY $/lb
Hawkins, Inc.	$0.6762	$0.7762

The City anticipates purchasing approximately 1,000,000 lbs at truck delivery price annually so the total expense for coagulant would be $676,200 per year.

Hawkins, Inc. has been the City's coagulant supplier for more than 3 years. Compared to the previous price, truck delivery prices have increased by 27%. 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 all have seen similar price increases in coagulant. Although, only one bid was received, staff believes the bid for coagulant is reasonable for market conditions and is a lower cost than the City would pay without a contract.