The Public Works Water Treatment Facility uses chlorine to disinfect the City's public water supply. Lesser amounts of chlorine are used by the Department of Parks, Recreation and Public Lands (PRPL). Both users are supplied under one contract. The current contract for this chemical expires on February 13, 2015 so staff requested bids for a new contract. The contract will be for one year with the possibility of two, one-year extensions if prices for chlorine remain agreeable to the City and the Contractor.

City Council may:

• Approve the bid for the chlorine from DPC Industries, Inc. in the amount of $773.00/1-ton cylinder and $193.50/150-lb cylinder; or,
• Disapprove all bids and not award the purchase of the chlorine. If the Council rejects this bid, chlorine will have to be purchased at market prices multiple times per month as chlorine cylinders need to be replaced.

Adequate funding for this agreement is available in the Water Operations and Maintenance Account and in the PRPL budget. Bids were received on January 27, 2015.  One supplier responded to the request for bid. The bidding result is as follows:

Supplier	Unit Bid ($/1-ton cylinder)	Unit Bid ($1/150-lb cylinder)
DPC Industries, Inc.	$773.00	$193.50

Assuming (100) one-ton cylinders and (60) 150-lb cylinders per year, the total expense for chlorine would be $88,910.00,

Staff recommends that Council accept the bid from DPC Industries, Inc. to supply the City with chlorine for at least one year with the initial price of $773.00 per one-ton cylinder and $193.50 per 150-lb cylinder.